Monday, November 01, 2010

Too Big To Fail, Too

You have all patiently listened to me complain and bitch these last 14 months about the unemployment crisis in this country, especially as it pertains to me.

So this is addressed as much to those about to be elected selected and sent for their turn in The Viper's Den tomorrow. If anyone can help get it in their hands that would be good.

Except for 3 months in the summer of 2009, either my wife or I have been unemployed since June 2008. We are now making 35% to 40% less than we did when Barack Obama was elected.

Despite that we have made it a priority to keep the bills pad, especially the mortgages (2 on my house) but all the rest as well.

While my wife was out of work I didn't ask for help beyond asking for a lower rate on a credit card or two.

But when my position was eliminated that had to change. Even so I waited from Sept of 2009 until May of 2010 before approaching my mortage company. Citimortgage. The Bastards.

And I laid it all out for them, that though we were still making payments now at some not too distant point that was going to become a serious problem.

Ok, says they, let's get you into the Home Assistance Mortgage Program. Or whatever they call the damn thing.

This summer was spent sending them paperwork they lost, again and again. Not helping was that they used no less than 3 different outside contractor to collect this paperwork. And last I spoke to them they were no longer using anyone but keeping it all in house. So I have no idea who has all my confidential information that I never thought would have access to it.

No phone call to them ever went less than 45 minutes and more than a few times when I asked for a supervisor I was put on hold for a few minutes and then disconnected.

Finally today, 5 months and 2 weeks after it all started I got this letter:






So, if I'm understanding this correctly, I don't qualify because, although Doom is impending, I didn't get into a mortgage that at the time was over my head, or worth more than the house itself, I made it a priority to pay on my debts although it is a struggle and we're eating hamburger instead of Filet and becauseI have cash reserves (Where? the puny remnants of an IRA I've had to pillage and plunder the last few months? are you fucking kidding me?).

The point here is not my personal situation. I use it only as a first hand I'm-deep-in-the-middle-of-it-this-isn't-something-I-heard account of what these mortgage companies are doing to millions of people across the country.

People who want to do the right thing, know that they are going to run into trouble soon and would rather head it off. People who are asking for a little help.

Not a handout, just a helping hand, to hold them over until things right themselves. Unlike the handout the people gave the corporations through their tax dollars, and their childrens' tax dollars, and their grandchildrens. The bilions these Goliaths received in bailout and stimulus money. The help they received to stay afloat, to stay in business. Because they were too big to fail.

But now, Americans are failing. Unemployment is still high, personal income down. Families are losing homes they have been in for years because they missed a couple payments. They asked for help and were given the finger, after months of being jerked around.

They're surviving on unemployment or even less when they'd like nothing more than to be working and contributing. But the businesses that have the money to create the jobs -- whether they got it from the government or own their own -- are afraid to create those jobs because of the government policies in place and are unsure how these policies will affect their business. Especially when the tax cuts expire and as Obamacare's damage beomes more apparent.

So instead of taking a chance on the people that need it, on America, they're sitting on the money. Maybe not growing as fat as they had been but not quite hemorraging, either.

Trillions spent and nothing to show for it. At least not where it counts. Everywhere Americans are hurting, bleeding more and more each day. There is no recovery and you and I know it. This isn't a recession, it's a depression. It may not be the 1930's yet, but the road leads that way.

When these people can only afford to rent a city apartment, instead of buying a quarter million cookie cutout in the latest cardboard subdivision, when they're eating peanut butter instead of a cheesesteak for lunch, these too big to fail businesses are going to find no one there left to prop them up.

No merchant, no car dealer, no bank or financial institution was EVER too big to fail, no matter how painful it may be. They should never have been artifically propped up by the government. And not at the cost to the people themselves.

Because the bottom line, for America, for the world, for history and for Freedom is that The American People are too big to allow fail.

So you soon to be employees of The American People (and don't you forget that) keep this in mind.

You may have run your campaign as a referendum on Obama or the Dems or politics as usual.

And you will have missed the point.

I'm not sure even many of those in the Tea Parties realize it.

Tomorrow is not a referendum on Obama or current policies.

Tomorrow is a referendum on America. And what we Americans believe she should be.

10 comments:

Anonymous said...

citi bank is a septic tank.

ive seen no evidence that they or most of the other banks have been interested in loan modifications.

the only way is to get the mod is to strategically stopp paying your mortgage. keep the money in reserve and pay it but stay behind a little.

unfortunately this will fuck up your credit. and make it harder to get a mortgage in the future.

revereridesagain said...

All past and present residents of NYC refer to Citibank as "Sh***yBank" for a reason. Many reasons, actually. This is one of them.

sheepdogsview said...

Hi I have been reading your site for more than a year now and have never commented before, I read a lot of financial sites as well. I would refer you to the following blog posts which might be helpful to you. He is not the only one to write about this situation. If I would still talk with a lawyer before using this solution.
http://gonzalolira.blogspot.com/2010/10/coming-middle-class-anarchy.html

http://gonzalolira.blogspot.com/2010/10/this-is-what-brian-and-ilsa-said-to.html

http://gonzalolira.blogspot.com/2010/10/mulligan-mortgagesthe-banks-only-way.html

and additional references on the matter
http://www.marketwatch.com/story/freddie-mac-and-other-mortgage-investors-in-trouble-as-foreclosure-crisis-drags-on-2010-10-28?reflink=MW_news_stmp

http://www.fiercefinance.com/story/citigroup-sued-faulty-foreclosures-mers-big-issue/2010-10-04

From my understanding at the very least your should be able to get a new mortgage with a better rate if your situation is similar. Hope this helps you.

Pastorius said...

Banks are making it very hard to loan money at this point.

I have perfect credit, and I can't get a refi. I know other people in the same situation.

I also have to say, I know lots of people like me, who used to be top-level execs, who are now working for 1/3, 1/5, 1/10th of what they used to make.

The people I know who are in this situation do not complain much. They just keep their noses to the grindstone, figuring things will work out for them eventually.

But, in the meantime, we are not saving for college for our kids, we are having trouble paying our mortgages (some of us, many of us have lost our homes), we are making all sorts of "sacrifices" to the disgusting god of malaise, OBAMA.

Pastorius said...

Where's that cat's sweater?

midnight rider said...

That's my point here, not my own mortgage mess.

Like we've heard again and again, we're the first generation who believes they won't be leaving a better future for their children.

Saving for college? Are you kidding? It's past that. My two oldest are paying back their own loans and I will never be able to save a dime for the 12 year old's fund.

I've had to attack my IRA. I'll have a pension from my former job and Social Security but, considering what they're worth, I fully believe that once I am reemployed, I will never be able to "retire". Nor will millions like us.

And it is all policies and practices that have been in place for many years, not just Obama. He was just a force multiplier, if you will. But he certainly hasn't brought change for the better (none of us here thought he would).

Yet the banks and the others got the bailout and the stimulus.

We got road signs saying the road project was paid for by the stimulus.

Always On Watch said...

The more homes that are foreclosed on, the greater the danger that the entire economy will crash down.

Surely the banks and the Obama administration know that.

SamenoKami said...

MAYDAY! MAYDAY! MR, you must read the copious amount of posts at MarketTicker/Karl Denninger on the Home Mortgage fiasco. Do it before you do another thing. It'll point you in a direction.
Before you let them foreclose, demand to see the 'wet' signature original mortgage deed. The banks are 'stealing' houses they have no right to foreclose on.
I'll bet if you started the talk of wanting to see the original, the bastages would whistle a different tune.

Pastorius said...

Just to clarify, my comment about "people in my position don't complain much" was not meant as a criticism.

It's hard not to be vocal when one does not have a job.

AND,

I don't see this post as complaining on your part.

The fact is, "people like me" do have a job. So, we're not as likely to be vocal.

And, while I am able to afford my nut many months, maybe even most at this point, I can not afford it every month, and every month I can not, I am that much closer to being in exactly your position.

And, the big question is, when is this all going to end?

If it were up to Obama, I guess it would never end. I don't think he understands how terrible it is.

Epaminondas said...

The message sent is clearly that being irresponsible means you are a victim.

This is true whether you make 50k and bought a $750k house, or if you are Citibank and your cash assets were worth 2% of your CDO risk.

If you are big enough you are indemnified against Darwin.

If you are responsible then the knowledge that you are is now the only reward which can be expected.

After Lehman collapsed NONE OF MY CLIENTS (which include many small local banks) could get a business lease for half a year. Obviously this means credit score is irrelevant.

Listening to the R&D's discuss who outsourced jobs and what taxes killed jobs sounds like a bunch of white noise during a stroke.

American workers will never work for what people in Sri Lanka get. That means if we want people to work here in middle class blue collar positions RIGHT UP THROUGH ADVANCED I.T. AND DEVELOPMENT AND ENGINEERING, we simply CANNOT have the kind of free trade we have had since the 70's.

It began with cheap steel subsidized by Japan in the early 70's and now infects the upper reaches of engineering.

It is time to try and act in this sphere TODAY, IMMEDIATELY with the same level of urgency the tea party has acted.

We need to have this national discussion rapidly and make these decisions.

Until then the clock is ticking on our economic decline while we argue about the details of taxing or cutting taxes on a declining revenue base.

It may be time to have the US raise tariffs across the board and subsidize exports .. we are the richest market and we need to ensure WE GET IT...

SOMEHOW.