Tag Archives | Bankruptcy

The 2005 Bankruptcy Bill: Knowing a Financial Crisis Was Imminent, Banks Lobbied Government to Pass Laws to Preserve Their Wealth

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Our government representatives would like us to believe that the subprime mortgage crisis (2, 3, 4, 5) could not have been predicted. The truth is, the collapse was expected and authorities were well aware that crimes were being committed.


I. Introduction

It is said that if you want to find the corrupt, follow the money. This catchphrase, however, cannot be used as a preventative measure; it can only be used in retrospect to punish perpetrators of a crime. It does very little to protect us from predators. This is unfortunate when applied to our current crony capitalistic system; a wrong decision in our personal finances can mean the difference between living a life of debt servitude or one of freedom.

In our current centralized economic system, the best way to avoid pitfalls and preserve wealth, improving lifestyle, is to pay close attention to changes in laws and be mindful of their implications.… Read the rest

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Debt Collectors and District Attorneys Collude to Deceive Debtors

Picture: Artist unknown (PD)

The New York Times has a story on the ongoing unethical collusion between debt-collectors and prosecuting attorney’s offices:

The letters are sent by the thousands to people across the country who have written bad checks, threatening them with jail if they do not pay up.

They bear the seal and signature of the local district attorney’s office. But there is a catch: the letters are from debt-collection companies, which the prosecutors allow to use their letterhead. In return, the companies try to collect not only the unpaid check, but also high fees from debtors for a class on budgeting and financial responsibility, some of which goes back to the district attorneys’ offices.

So here’s the deal, it’s a crime to write a bad check if you know that the bank isn’t going to honor the instrument. But in most states, in order to be convicted the State has to prove that you knew the check was going to bounce when you wrote it.… Read the rest

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Bank Failures Show No Sign Of Stopping – Taxpayers Pick Up The Tab

The Wall Street Journal attracted a lot of attention yesterday with the headline “Banks Keep Failing, No End in Sight.” If you’ve been reading Danny Schechter’s posts about the never-ending recession and financial crisis, it may not come as a surprise, but if you drank the “Recession’s Over” Kool Aid being dispensed in Washington, it might surprise you to learn that since big fish Washington Mutual went bust, 279 more lenders have collapsed, and counting:

The largest number of bank failures in nearly 20 years has eliminated jobs, accelerated a drought in lending and left the industry’s survivors with more power to squeeze customers.

Some 279 banks have collapsed since Sept. 25, 2008, when Washington Mutual Inc. became the biggest bank failure on record. That dwarfed the 1984 demise of Continental Illinois, which had only one-seventh of WaMu’s assets. The failures of the past two years shattered the pace of the prior six-year period, when only three dozen banks died.

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America Without a Middle Class

Elizabeth Warren, chair of the Congressional Oversight Panel created to oversee the banking bailouts, writes on Huffington Post:

Can you imagine an America without a strong middle class? If you can, would it still be America as we know it?

MiddleClass

Today, one in five Americans is unemployed, underemployed or just plain out of work. One in nine families can’t make the minimum payment on their credit cards. One in eight mortgages is in default or foreclosure. One in eight Americans is on food stamps. More than 120,000 families are filing for bankruptcy every month. The economic crisis has wiped more than $5 trillion from pensions and savings, has left family balance sheets upside down, and threatens to put ten million homeowners out on the street.

Families have survived the ups and downs of economic booms and busts for a long time, but the fall-behind during the busts has gotten worse while the surge-ahead during the booms has stalled out.

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