Saturday, November 27, 2010

Making Money Work


Affordability: Resources, Not Money



Probably the biggest thing that trips people up when thinking about countercyclical public policy is a misleading over-emphasis on accounting ledger books as the right measure of what can and can’t be afforded. Making sums add up is important, of course, but it’s more helpful to start by thinking about real resources. People’s time, capital goods, raw materials, etc.


Think about the mayor of a mid-sized city presiding over good economic times. Tax revenues are going up, and demands on social services are relatively low. Suddenly the budgetary picture looks very bright and it seems easy to “afford” longer library hours, more frequent bus service, and tax cuts. This, however, is close to backwards. You can’t manufacture librarians or bus drivers. It’s when times are good that it’s most costly to pull human beings out of whatever else they’re doing and have them drive buses. Similarly, it’s when people are flush that extra money in their pockets is going to go to enterprises with low marginal utility.


Then along comes the crash and suddenly the budget looks bleak. Now we “can’t afford” those extra social services and we need higher taxes. But with household budgets tight, the taxes are much more burdensome than they would have been in good times. And the real social cost of having someone work in a library rather than sit at home unemployed is probably below zero.


What you actually ought to be doing is setting the quantity of social services at some level that makes sense across the business cycle. Then during periods of economic growth, taxes should raise more money than you spend. That way thanks to your stockpile you never need to cut services in the face of a recession and in fact can shower your city with tax cuts during a downturn to families can get by. But of course almost no jurisdiction in America actually does engage in this sort of responsible budgeting, and the Reagan and W Bush administrations took the federal government on a wildly different course. This has bad economic consequences on its own terms, and I also think tends to distort the political dialogue. Since budget deficits are “bad,” it’s unintuitive to say that bigger deficits will help in a recession. By contrast I think it’d be easy for people to see why a surplus-accumulating government shouldn’t try to horde even more money at a time when people are struggling. The reality is that nothing magical happens at zero, and what we “can afford” is ultimately determined by how many resources are available not by accountants.




As part of the ongoing Mashable Awards, we’re taking a closer look at each of the nomination categories. This is “Must-Follow Non-Profit.” Be sure to nominate your favorites and join us for the Gala in Las Vegas! Sponsorships are available. Please contact sponsorships@mashable.com for more information.

When it comes to social good, the name of the game is creating or inspiring change, and often with limited resources. That’s why social media is so important for non-profit organizations. By allowing organizations to reach more people with less money, social media has become an integral part of the non-profit toolbox.

Groups are using social media a variety of ways, from raising money to engaging with constituents on personal and meaningful levels. The most important thing social media offers for non-profits, though, is a highly effective channel to spread awareness about their cause. “Having 10 million people is more important than $10 million,” Change.org founder and CEO Ben Rattray told Mashable recently. “For advocacy you need to mobilize people, and the web helps you mobilize people like never before.”

There are any number of worthy non-profit organizations utilizing social media in new and interesting ways; below are five that caught our eye this year as must-follow groups. Please share in the comments any other non-profits you think deserve a follow and nominate them for a Mashable Award.

1. Brooklyn Museum

More than just a great art museum, the Brooklyn Museum is one of the most social media-savvy organizations on the planet. From a mobile website that lets visitors tag items in the gallery (which, in turn, helps to organize the museum’s vast, 94,000-record online collection) to a Foursquare account that offers tips for things to do in the neighborhood and rewards mayors with special parties and other offers, the Brooklyn Museum is hip to the latest social media trends.

What’s really great about the museum, which can also be found on Tumblr, Flickr, Facebook, YouTube, and Twitter, is that the staff is not afraid to innovate and try new things. They’re constantly testing out new social platforms and innovating new ways to use their current social media accounts. They even share the code behind some of their best ideas on GitHub!

2. Sesame Street Workshop

Sesame Street Workshop is the non-profit organization behind the beloved children’s classic television series Sesame Street, among others. And despite being 41 years old, these cats — er, Muppets — really know social media.

You can find your favorite Sesame Street residents on Twitter and Facebook (characters like Elmo, Big Bird and Oscar have their own Pages). Where the Workshop really excels, however, is YouTube. Sesame Street Workshop has made its biggest social media splash on YouTube, with exclusive content that often features celebrity guests and frequent parodies of other digital media memes, such as the Google search stories or the Old Spice Guy, that prove the people behind Sesame Street know their stuff.

3. WildlifeDirect

Founded in 2006 by noted African conservationist Dr. Richard Leakey, WildlifeDirect aims to save endangered animals in Africa. The organization helps local conservation groups around Africa raise funds, awareness and support for their conservation projects.

WildlifeDirect can be found on many of the usual social media networks, such as Twitter and Facebook, but where it really shines is blogging. The organization has set up an active blog network of more than 100 field blogs penned by conservation groups across Africa. The blogs are one of the main drivers of donations to the conservation work that the organization supports, but they also offer a fascinating look into the struggle to save endangered species in some of the most diverse and threatened areas on Earth.

4. Kids Are Heroes

Founded in 2008 by Gabe O’Neill and his then 9-year-old daughter, MaryMargaret, Kids Are Heroes is a non-profit group that has the admirable goal of inspiring children to get involved in the act of giving back. The website offers profiles of more than 100 kids who have at a young age (some as young as 5-years-old!) had a meaningful impact on their communities and the world — whether by training diabetic service dogs, donating books to low-income families, or raising millions of dollars for out-of-work war veterans. The organization’s message is loud and clear: Kids can make a difference.

Along with the inspiring stories, the Kids Are Heroes website allows children to send “shout outs” to one another, and the group maintains active and engaging Twitter and Facebook accounts.

5. Darius Goes West

Darius Weems and the Darius Goes West project is a force to be reckoned with. Afflicted with Duchenne Muscular Dystrophy (DMD) — a genetic degenerative muscular disease that killed his older brother — Darius and 11 of his friends set out six years ago to travel across America with the ultimate goal of getting Darius’ wheelchair customized on MTV’s Pimp My Ride. The group filmed that trip and turned it into the much-celebrated documentary film, Darius Goes West.

Six years later, Darius Goes West has become a movement — non-profit vehicle to raise money and awareness for the search for a DMD cure that now seems so tantalizingly close. Darius, who continues to defy the odds, recently turned 21 years old and the Darius Goes West crew continue to come up with innovative ways to spread their message and raise money using social media. From raising money through Facebook widgets to inspiring people to do crazy things in the name of charity, Darius Goes West is a must-follow cause for their innovation and unflappable humor.

What’s Your Take?

Which non-profits should we absolutely follow? Let us know your picks and recommendations in the comments below or nominate them for the Mashable Awards.

The Mashable Awards Gala at Cirque du Soleil Zumanity (Vegas)/>

In partnership with Cirque du Soleil, The Mashable Awards Gala event will bring together the winners and nominees, the Mashable community, partners, media, the marketing community, consumer electronics and technology brands and attendees from the 2011 International CES Convention to Las Vegas on Thursday, January 6, 2011. Together, we will celebrate the winners and the community of the Mashable Awards at the Cirque du Soleil Zumanity stage in the beautiful New York New York Hotel. The event will include acts and performances from our partner Cirque du Soleil Zumanity. In addition, there will be special guest presenters and appearances.

Date: Thursday, January 6th, 2011 (during International CES Convention week)/> Time: 7:00 – 10:00 pm PT/> Location: Cirque du Soleil Zumanity, New York New York Hotel, Las Vegas/> Agenda: Networking, Open Bars, Acts, Surprises and the Mashable Awards Gala presentations/> Socialize: Facebook, Foursquare, Meetup, Plancast, Twitter (Hashtag: #MashableAwards)

Sponsorships are available. Please contact sponsorships@mashable.com for more information.

Thanks to our sponsors:

Mashable Awards Gala Partner:

From a group of 20 street performers at its beginnings in 1984, Cirque du Soleil is now a global entertainment organization providing high-quality artistic entertainment. The company has over 5,000 employees, including more than 1,200 artists from close to 50 different countries.

Cirque du Soleil has brought wonder and delight to nearly 100 million spectators in 300 cities on five continents. In 2010 Cirque du Soleil, will present 21 shows simultaneously throughout the world, including seven in Las Vegas.

For more information about Cirque du Soleil, visit www.cirquedusoleil.com

Mashable Awards Online Partner:

Have you ever wished for your own personal gourmet Chef?

The Fresh Diet is like having a Cordon Bleu chef prepare your meals in your own kitchen. There’s no cooking, cleaning, shopping – just fresh prepared delicious meals, hand delivered to your door daily! Whether you want to lose weight or just want to eat healthy, The Fresh Diet can help you meet your goals. The best news, we’re giving away a FREE week of The Fresh Diet every day on our Facebook page. Just click here to become a fan and you could be the next winner. Join now!

Mashable Awards Partner:

Join us at the 2011 International CES®, the global platform for inspired ideas and innovation. With 2,500 exhibitors, CES continues to be the world’s largest consumer technology tradeshow and always reflects the dynamic consumer electronics industry. The International CES is not open to the general public and all attendees must be in the CE industry to be eligible to attend the show. Register FREE for the 2011 CES with priority code MSHB, an exclusive promotion for Mashable Readers.

Mashable Awards Category Sponsor:

Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications including the BlackBerry® wireless platform and the new BlackBerry PlayBook. For the latest on the BlackBerry PlayBook visit the Inside BlackBerry Blog.

Win an iPad!

Join us on Facebook to learn how to enter Dynadot’s I Can Haz iPad Giveaway!

Dynadot is an ICANN accredited domain name registrar and web host where you can register the perfect domain name affordably, reliably, simply and securely. Whether you are a blogger, business owner, or planning on creating the next best Internet meme you need a domain that represents you. Let Dynadot help you establish your web identity today.

Mobile Future is a broad-based coalition of businesses, non-profit organizations and individuals interested in and dedicated to advocating for an environment in which innovations in wireless technology and services are enabled and encouraged. Our mission is to educate the public and key decision makers on innovations in the wireless industry that have transformed the way Americans work and play and to advocate continued investment in wireless technologies.

Our “Mobile Year in Review 2010” animation proves a glimpse into the most notable breakthroughs in the wireless industry this year.

Yahoo! is an innovative technology company that operates the largest digital media, content, and communications business in the world. Yahoo! keeps more than half a billion consumers worldwide connected to what matters to them most, and delivers powerful audience solutions to advertisers through its unique combination of Science + Art + Scale. Yahoo! is headquartered in Sunnyvale, California. For more information, visit the company’s blog, Yodel Anecdotal.

Mashable Awards Gala Silver Sponsor:

Aro Mobile is an intelligent mobile experience that includes better email, connected contacts, smarter calendar and improved browsing.

The Aro system automatically learns what’s important in your life—the people, places, dates and organizations you care about most. In your communications, Aro automatically identifies people, places, events, dates,organizations and locations. From any recognized term, Aro offers quick action menus to speed up your day.

The unique Aro experience is powered by advanced web services: next generation natural language processing and semantic data analytics services. Aro gives you the power to see through the clutter and focus your mobile life.

Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications including the BlackBerry® wireless platform and the new BlackBerry PlayBook. For the latest on the BlackBerry PlayBook visit the Inside BlackBerry Blog.

Mashable Awards Gala VIP Lounge sponsor:

Influxis specializes in the deployment of creative streaming solutions. Services include large scale deployment, mobile streaming, turn-key applications, and enterprise support with custom network options. With the unique combination of a worldwide network, knowledgeable developer support and nearly a decade of streaming media experience, Influxis is an essential partner to businesses, advertisers, developers, educators, and others who seek expertise in innovative streaming.

Mashable Awards After Party Sponsor:

Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications including the BlackBerry® wireless platform and the new BlackBerry PlayBook. For the latest on the BlackBerry PlayBook visit the Inside BlackBerry Blog.

Image courtesy of iStockphoto, snapperharmer

For more Social Good coverage:

    class="f-el">class="cov-twit">Follow Mashable Social Goodclass="s-el">class="cov-rss">Subscribe to the Social Good channelclass="f-el">class="cov-fb">Become a Fan on Facebookclass="s-el">class="cov-apple">Download our free apps for Android, iPhone and iPad

bench craft company finances

Last Look: Style <b>News</b> You Might Have Missed (PHOTOS, POLL)

Welcome to Last Look, where we round up the Style scraps that didn't make it to our news page this week. Click through and catch up on what else happened since Monday!

Minecraft dev explains sales transparency PC <b>News</b> - Page 1 <b>...</b>

Read our PC news of Minecraft dev explains sales transparency.

<b>News</b> - Jennifer Aniston, Chelsea Handler Flaunt Bikini Bods in <b>...</b>

The new BFFs show off their curves while celebrating Thanksgiving abroad.


bench craft company management

Last Look: Style <b>News</b> You Might Have Missed (PHOTOS, POLL)

Welcome to Last Look, where we round up the Style scraps that didn't make it to our news page this week. Click through and catch up on what else happened since Monday!

Minecraft dev explains sales transparency PC <b>News</b> - Page 1 <b>...</b>

Read our PC news of Minecraft dev explains sales transparency.

<b>News</b> - Jennifer Aniston, Chelsea Handler Flaunt Bikini Bods in <b>...</b>

The new BFFs show off their curves while celebrating Thanksgiving abroad.


bench craft company account excutives are standing by

Affordability: Resources, Not Money



Probably the biggest thing that trips people up when thinking about countercyclical public policy is a misleading over-emphasis on accounting ledger books as the right measure of what can and can’t be afforded. Making sums add up is important, of course, but it’s more helpful to start by thinking about real resources. People’s time, capital goods, raw materials, etc.


Think about the mayor of a mid-sized city presiding over good economic times. Tax revenues are going up, and demands on social services are relatively low. Suddenly the budgetary picture looks very bright and it seems easy to “afford” longer library hours, more frequent bus service, and tax cuts. This, however, is close to backwards. You can’t manufacture librarians or bus drivers. It’s when times are good that it’s most costly to pull human beings out of whatever else they’re doing and have them drive buses. Similarly, it’s when people are flush that extra money in their pockets is going to go to enterprises with low marginal utility.


Then along comes the crash and suddenly the budget looks bleak. Now we “can’t afford” those extra social services and we need higher taxes. But with household budgets tight, the taxes are much more burdensome than they would have been in good times. And the real social cost of having someone work in a library rather than sit at home unemployed is probably below zero.


What you actually ought to be doing is setting the quantity of social services at some level that makes sense across the business cycle. Then during periods of economic growth, taxes should raise more money than you spend. That way thanks to your stockpile you never need to cut services in the face of a recession and in fact can shower your city with tax cuts during a downturn to families can get by. But of course almost no jurisdiction in America actually does engage in this sort of responsible budgeting, and the Reagan and W Bush administrations took the federal government on a wildly different course. This has bad economic consequences on its own terms, and I also think tends to distort the political dialogue. Since budget deficits are “bad,” it’s unintuitive to say that bigger deficits will help in a recession. By contrast I think it’d be easy for people to see why a surplus-accumulating government shouldn’t try to horde even more money at a time when people are struggling. The reality is that nothing magical happens at zero, and what we “can afford” is ultimately determined by how many resources are available not by accountants.




As part of the ongoing Mashable Awards, we’re taking a closer look at each of the nomination categories. This is “Must-Follow Non-Profit.” Be sure to nominate your favorites and join us for the Gala in Las Vegas! Sponsorships are available. Please contact sponsorships@mashable.com for more information.

When it comes to social good, the name of the game is creating or inspiring change, and often with limited resources. That’s why social media is so important for non-profit organizations. By allowing organizations to reach more people with less money, social media has become an integral part of the non-profit toolbox.

Groups are using social media a variety of ways, from raising money to engaging with constituents on personal and meaningful levels. The most important thing social media offers for non-profits, though, is a highly effective channel to spread awareness about their cause. “Having 10 million people is more important than $10 million,” Change.org founder and CEO Ben Rattray told Mashable recently. “For advocacy you need to mobilize people, and the web helps you mobilize people like never before.”

There are any number of worthy non-profit organizations utilizing social media in new and interesting ways; below are five that caught our eye this year as must-follow groups. Please share in the comments any other non-profits you think deserve a follow and nominate them for a Mashable Award.

1. Brooklyn Museum

More than just a great art museum, the Brooklyn Museum is one of the most social media-savvy organizations on the planet. From a mobile website that lets visitors tag items in the gallery (which, in turn, helps to organize the museum’s vast, 94,000-record online collection) to a Foursquare account that offers tips for things to do in the neighborhood and rewards mayors with special parties and other offers, the Brooklyn Museum is hip to the latest social media trends.

What’s really great about the museum, which can also be found on Tumblr, Flickr, Facebook, YouTube, and Twitter, is that the staff is not afraid to innovate and try new things. They’re constantly testing out new social platforms and innovating new ways to use their current social media accounts. They even share the code behind some of their best ideas on GitHub!

2. Sesame Street Workshop

Sesame Street Workshop is the non-profit organization behind the beloved children’s classic television series Sesame Street, among others. And despite being 41 years old, these cats — er, Muppets — really know social media.

You can find your favorite Sesame Street residents on Twitter and Facebook (characters like Elmo, Big Bird and Oscar have their own Pages). Where the Workshop really excels, however, is YouTube. Sesame Street Workshop has made its biggest social media splash on YouTube, with exclusive content that often features celebrity guests and frequent parodies of other digital media memes, such as the Google search stories or the Old Spice Guy, that prove the people behind Sesame Street know their stuff.

3. WildlifeDirect

Founded in 2006 by noted African conservationist Dr. Richard Leakey, WildlifeDirect aims to save endangered animals in Africa. The organization helps local conservation groups around Africa raise funds, awareness and support for their conservation projects.

WildlifeDirect can be found on many of the usual social media networks, such as Twitter and Facebook, but where it really shines is blogging. The organization has set up an active blog network of more than 100 field blogs penned by conservation groups across Africa. The blogs are one of the main drivers of donations to the conservation work that the organization supports, but they also offer a fascinating look into the struggle to save endangered species in some of the most diverse and threatened areas on Earth.

4. Kids Are Heroes

Founded in 2008 by Gabe O’Neill and his then 9-year-old daughter, MaryMargaret, Kids Are Heroes is a non-profit group that has the admirable goal of inspiring children to get involved in the act of giving back. The website offers profiles of more than 100 kids who have at a young age (some as young as 5-years-old!) had a meaningful impact on their communities and the world — whether by training diabetic service dogs, donating books to low-income families, or raising millions of dollars for out-of-work war veterans. The organization’s message is loud and clear: Kids can make a difference.

Along with the inspiring stories, the Kids Are Heroes website allows children to send “shout outs” to one another, and the group maintains active and engaging Twitter and Facebook accounts.

5. Darius Goes West

Darius Weems and the Darius Goes West project is a force to be reckoned with. Afflicted with Duchenne Muscular Dystrophy (DMD) — a genetic degenerative muscular disease that killed his older brother — Darius and 11 of his friends set out six years ago to travel across America with the ultimate goal of getting Darius’ wheelchair customized on MTV’s Pimp My Ride. The group filmed that trip and turned it into the much-celebrated documentary film, Darius Goes West.

Six years later, Darius Goes West has become a movement — non-profit vehicle to raise money and awareness for the search for a DMD cure that now seems so tantalizingly close. Darius, who continues to defy the odds, recently turned 21 years old and the Darius Goes West crew continue to come up with innovative ways to spread their message and raise money using social media. From raising money through Facebook widgets to inspiring people to do crazy things in the name of charity, Darius Goes West is a must-follow cause for their innovation and unflappable humor.

What’s Your Take?

Which non-profits should we absolutely follow? Let us know your picks and recommendations in the comments below or nominate them for the Mashable Awards.

The Mashable Awards Gala at Cirque du Soleil Zumanity (Vegas)/>

In partnership with Cirque du Soleil, The Mashable Awards Gala event will bring together the winners and nominees, the Mashable community, partners, media, the marketing community, consumer electronics and technology brands and attendees from the 2011 International CES Convention to Las Vegas on Thursday, January 6, 2011. Together, we will celebrate the winners and the community of the Mashable Awards at the Cirque du Soleil Zumanity stage in the beautiful New York New York Hotel. The event will include acts and performances from our partner Cirque du Soleil Zumanity. In addition, there will be special guest presenters and appearances.

Date: Thursday, January 6th, 2011 (during International CES Convention week)/> Time: 7:00 – 10:00 pm PT/> Location: Cirque du Soleil Zumanity, New York New York Hotel, Las Vegas/> Agenda: Networking, Open Bars, Acts, Surprises and the Mashable Awards Gala presentations/> Socialize: Facebook, Foursquare, Meetup, Plancast, Twitter (Hashtag: #MashableAwards)

Sponsorships are available. Please contact sponsorships@mashable.com for more information.

Thanks to our sponsors:

Mashable Awards Gala Partner:

From a group of 20 street performers at its beginnings in 1984, Cirque du Soleil is now a global entertainment organization providing high-quality artistic entertainment. The company has over 5,000 employees, including more than 1,200 artists from close to 50 different countries.

Cirque du Soleil has brought wonder and delight to nearly 100 million spectators in 300 cities on five continents. In 2010 Cirque du Soleil, will present 21 shows simultaneously throughout the world, including seven in Las Vegas.

For more information about Cirque du Soleil, visit www.cirquedusoleil.com

Mashable Awards Online Partner:

Have you ever wished for your own personal gourmet Chef?

The Fresh Diet is like having a Cordon Bleu chef prepare your meals in your own kitchen. There’s no cooking, cleaning, shopping – just fresh prepared delicious meals, hand delivered to your door daily! Whether you want to lose weight or just want to eat healthy, The Fresh Diet can help you meet your goals. The best news, we’re giving away a FREE week of The Fresh Diet every day on our Facebook page. Just click here to become a fan and you could be the next winner. Join now!

Mashable Awards Partner:

Join us at the 2011 International CES®, the global platform for inspired ideas and innovation. With 2,500 exhibitors, CES continues to be the world’s largest consumer technology tradeshow and always reflects the dynamic consumer electronics industry. The International CES is not open to the general public and all attendees must be in the CE industry to be eligible to attend the show. Register FREE for the 2011 CES with priority code MSHB, an exclusive promotion for Mashable Readers.

Mashable Awards Category Sponsor:

Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications including the BlackBerry® wireless platform and the new BlackBerry PlayBook. For the latest on the BlackBerry PlayBook visit the Inside BlackBerry Blog.

Win an iPad!

Join us on Facebook to learn how to enter Dynadot’s I Can Haz iPad Giveaway!

Dynadot is an ICANN accredited domain name registrar and web host where you can register the perfect domain name affordably, reliably, simply and securely. Whether you are a blogger, business owner, or planning on creating the next best Internet meme you need a domain that represents you. Let Dynadot help you establish your web identity today.

Mobile Future is a broad-based coalition of businesses, non-profit organizations and individuals interested in and dedicated to advocating for an environment in which innovations in wireless technology and services are enabled and encouraged. Our mission is to educate the public and key decision makers on innovations in the wireless industry that have transformed the way Americans work and play and to advocate continued investment in wireless technologies.

Our “Mobile Year in Review 2010” animation proves a glimpse into the most notable breakthroughs in the wireless industry this year.

Yahoo! is an innovative technology company that operates the largest digital media, content, and communications business in the world. Yahoo! keeps more than half a billion consumers worldwide connected to what matters to them most, and delivers powerful audience solutions to advertisers through its unique combination of Science + Art + Scale. Yahoo! is headquartered in Sunnyvale, California. For more information, visit the company’s blog, Yodel Anecdotal.

Mashable Awards Gala Silver Sponsor:

Aro Mobile is an intelligent mobile experience that includes better email, connected contacts, smarter calendar and improved browsing.

The Aro system automatically learns what’s important in your life—the people, places, dates and organizations you care about most. In your communications, Aro automatically identifies people, places, events, dates,organizations and locations. From any recognized term, Aro offers quick action menus to speed up your day.

The unique Aro experience is powered by advanced web services: next generation natural language processing and semantic data analytics services. Aro gives you the power to see through the clutter and focus your mobile life.

Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications including the BlackBerry® wireless platform and the new BlackBerry PlayBook. For the latest on the BlackBerry PlayBook visit the Inside BlackBerry Blog.

Mashable Awards Gala VIP Lounge sponsor:

Influxis specializes in the deployment of creative streaming solutions. Services include large scale deployment, mobile streaming, turn-key applications, and enterprise support with custom network options. With the unique combination of a worldwide network, knowledgeable developer support and nearly a decade of streaming media experience, Influxis is an essential partner to businesses, advertisers, developers, educators, and others who seek expertise in innovative streaming.

Mashable Awards After Party Sponsor:

Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications including the BlackBerry® wireless platform and the new BlackBerry PlayBook. For the latest on the BlackBerry PlayBook visit the Inside BlackBerry Blog.

Image courtesy of iStockphoto, snapperharmer

For more Social Good coverage:

    class="f-el">class="cov-twit">Follow Mashable Social Goodclass="s-el">class="cov-rss">Subscribe to the Social Good channelclass="f-el">class="cov-fb">Become a Fan on Facebookclass="s-el">class="cov-apple">Download our free apps for Android, iPhone and iPad

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Last Look: Style <b>News</b> You Might Have Missed (PHOTOS, POLL)

Welcome to Last Look, where we round up the Style scraps that didn't make it to our news page this week. Click through and catch up on what else happened since Monday!

Minecraft dev explains sales transparency PC <b>News</b> - Page 1 <b>...</b>

Read our PC news of Minecraft dev explains sales transparency.

<b>News</b> - Jennifer Aniston, Chelsea Handler Flaunt Bikini Bods in <b>...</b>

The new BFFs show off their curves while celebrating Thanksgiving abroad.


bench craft company spread covers

Last Look: Style <b>News</b> You Might Have Missed (PHOTOS, POLL)

Welcome to Last Look, where we round up the Style scraps that didn't make it to our news page this week. Click through and catch up on what else happened since Monday!

Minecraft dev explains sales transparency PC <b>News</b> - Page 1 <b>...</b>

Read our PC news of Minecraft dev explains sales transparency.

<b>News</b> - Jennifer Aniston, Chelsea Handler Flaunt Bikini Bods in <b>...</b>

The new BFFs show off their curves while celebrating Thanksgiving abroad.


bench craft company team

Last Look: Style <b>News</b> You Might Have Missed (PHOTOS, POLL)

Welcome to Last Look, where we round up the Style scraps that didn't make it to our news page this week. Click through and catch up on what else happened since Monday!

Minecraft dev explains sales transparency PC <b>News</b> - Page 1 <b>...</b>

Read our PC news of Minecraft dev explains sales transparency.

<b>News</b> - Jennifer Aniston, Chelsea Handler Flaunt Bikini Bods in <b>...</b>

The new BFFs show off their curves while celebrating Thanksgiving abroad.


bench craft company spacers

Saturday, November 20, 2010

web site promotion internet marketing

bench craft company rip off

Office de Tourisme de Loire Forez by L'agence Medianet


bench craft company rip off

Sony Russia confirms Mass Effect 3? PlayStation 3 <b>News</b> - Page 1 <b>...</b>

Read our PlayStation 3 news of Sony Russia confirms Mass Effect 3?.

Rivet returning to lineup - Sabres Edge - Blogs - The Buffalo <b>News</b>

The Buffalo News updated every day with news from Buffalo, New York. Links to national and business news, entertainment listings, recipes, sports teams, classified ads, death notices.

One and a Half Cheers for Fox <b>News</b>, David Henderson | EconLog <b>...</b>

Senator Jay Rockefeller made a splash Wednesday by suggesting that the Federal Communications Commission shut down the Fox News Channel and MSNBC. My guess is that he mentioned MSNBC because he wanted to sound equally oppressive of both ...


bench craft company rip off

Office de Tourisme de Loire Forez by L'agence Medianet


bench craft company rip off

Sony Russia confirms Mass Effect 3? PlayStation 3 <b>News</b> - Page 1 <b>...</b>

Read our PlayStation 3 news of Sony Russia confirms Mass Effect 3?.

Rivet returning to lineup - Sabres Edge - Blogs - The Buffalo <b>News</b>

The Buffalo News updated every day with news from Buffalo, New York. Links to national and business news, entertainment listings, recipes, sports teams, classified ads, death notices.

One and a Half Cheers for Fox <b>News</b>, David Henderson | EconLog <b>...</b>

Senator Jay Rockefeller made a splash Wednesday by suggesting that the Federal Communications Commission shut down the Fox News Channel and MSNBC. My guess is that he mentioned MSNBC because he wanted to sound equally oppressive of both ...


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One and a Half Cheers for Fox <b>News</b>, David Henderson | EconLog <b>...</b>

Senator Jay Rockefeller made a splash Wednesday by suggesting that the Federal Communications Commission shut down the Fox News Channel and MSNBC. My guess is that he mentioned MSNBC because he wanted to sound equally oppressive of both ...


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Sony Russia confirms Mass Effect 3? PlayStation 3 <b>News</b> - Page 1 <b>...</b>

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One and a Half Cheers for Fox <b>News</b>, David Henderson | EconLog <b>...</b>

Senator Jay Rockefeller made a splash Wednesday by suggesting that the Federal Communications Commission shut down the Fox News Channel and MSNBC. My guess is that he mentioned MSNBC because he wanted to sound equally oppressive of both ...


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Sony Russia confirms Mass Effect 3? PlayStation 3 <b>News</b> - Page 1 <b>...</b>

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One and a Half Cheers for Fox <b>News</b>, David Henderson | EconLog <b>...</b>

Senator Jay Rockefeller made a splash Wednesday by suggesting that the Federal Communications Commission shut down the Fox News Channel and MSNBC. My guess is that he mentioned MSNBC because he wanted to sound equally oppressive of both ...


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Office de Tourisme de Loire Forez by L'agence Medianet


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One and a Half Cheers for Fox <b>News</b>, David Henderson | EconLog <b>...</b>

Senator Jay Rockefeller made a splash Wednesday by suggesting that the Federal Communications Commission shut down the Fox News Channel and MSNBC. My guess is that he mentioned MSNBC because he wanted to sound equally oppressive of both ...


bench craft company rip off

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Sony Russia confirms Mass Effect 3? PlayStation 3 <b>News</b> - Page 1 <b>...</b>

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One and a Half Cheers for Fox <b>News</b>, David Henderson | EconLog <b>...</b>

Senator Jay Rockefeller made a splash Wednesday by suggesting that the Federal Communications Commission shut down the Fox News Channel and MSNBC. My guess is that he mentioned MSNBC because he wanted to sound equally oppressive of both ...


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Sony Russia confirms Mass Effect 3? PlayStation 3 <b>News</b> - Page 1 <b>...</b>

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One and a Half Cheers for Fox <b>News</b>, David Henderson | EconLog <b>...</b>

Senator Jay Rockefeller made a splash Wednesday by suggesting that the Federal Communications Commission shut down the Fox News Channel and MSNBC. My guess is that he mentioned MSNBC because he wanted to sound equally oppressive of both ...


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Thursday, November 18, 2010

foreclosure victims


Diane Thompson of the National Consumer Law Center, who was a rock star at yesterday’s hearing, made a point that has gone overlooked. She said that you can get much better compliance on loan modifications if you actually fund mediation programs and legal services attorneys. There are mandatory mediation programs up and running in Philadelphia and New York, and they have been far more successful in preventing foreclosures – by about 50%, according to Thompson. It’s just a matter of getting the servicers into these mediation programs instead of hoping they will initiate modifications on their own.


As for legal services, as I said a couple days ago, Dodd-Frank authorized $35 million dollars for legal services for homeowners facing foreclosure, but never appropriated the money. Thompson said, “All of the robo-signing allegations were only discovered, brought to light by aggressive, competent attorneys working very diligently to represent their clients. Homeowners cannot negotiate these kinds of issues without lawyers. Low-income homeowners particularly need the lawyers… we urgently need that funding.”


I’ve been taking a look at this issue over the past couple days, contacting people on the Hill, and it doesn’t look good. The funding does not exist in the Treasury/HUD appropriations bill, one of the routine spending bills that need to be passed. It’s not entirely likely they’ll get passed at all, let alone that the report will get reopened to insert that funding in there.


Some Senators are looking for other ways to get the funding through. Some want to allow TARP funds to get used for legal assistance. Others, like Sherrod Brown, have been asking for expansions of legal aid since June. He wants the Treasury Department to allow the Housing Finance Agency’s Hardest-Hit Fund (HHF) to be used in counseling and legal aid services for foreclosure victims.



After a quick review of its procedures, Bank of America this week announced that it will resume its foreclosures in 23 lucky states next Monday. While the evidence is overwhelming that the entire foreclosure process is riddled with fraud, President Obama refuses to support a national moratorium. Indeed, his spokesmen on the issue told reporters three key things. As the Los Angeles Times reported:



A government review of botched foreclosure paperwork so far has found that the problems do not pose a "systemic" threat to the financial system, a top Obama administration official said Wednesday.



Yes, that's right. HUD reviewed the "paperwork" problem to see whether it threatened the banks -- not the homeowners who were the victims of foreclosure fraud. But it got worse, for the second point was how the government would respond to the epidemic of foreclosure fraud.



The Justice Department is leading an investigation of possible crimes involving mortgage fraud.


That language was carefully chosen to sound reassuring. But the fact is that despite our pleas the FBI has continued its "partnership" with the Mortgage Bankers Association (MBA). The MBA is the trade association of the "perps." It created a ridiculous on its face definition of "mortgage fraud." Under that definition the lenders -- who led the mortgage frauds -- are the victims. The FBI still parrots this long discredited "definition." That is one of the primary reasons why -- in complete contrast to prior financial crises -- the Justice Department has not convicted a single senior officer of the large nonprime lenders who directed, committed, and profited enormously from the frauds.



Note that the Justice Department is not investigating foreclosure fraud. HUD Secretary Donovan's statement shows why:



"We will not tolerate business as usual in the mortgage market," he said. "Where there have been mistakes made or errors, we will hold those entities, those institutions, accountable to stop those processes, review them and fix them as quickly as possible."


Note the language: "mistakes", "errors", "processes" (following the initial use of "paperwork"). No mention of "fraud", "felony", "criminal investigations", or "prosecutions" for the tens of thousands of felonies that representatives of the entities foreclosing on homes have admitted that they committed. Note that Donovan does not even demand that the felons remedy the harm caused by their past fraudulent foreclosures. Donovan wants them to "fix" "processes" -- not repair the harm their frauds caused to their victims.



The fraudulent CEOs looted with impunity, were left in power, and were granted their fondest wish when Congress, at the behest of the Chamber of Commerce, Chairman Bernanke, and the bankers' trade associations, successfully extorted the professional Financial Accounting Standards Board (FASB) to turn the accounting rules into a farce. The FASB's new rules allowed the banks (and the Fed, which has taken over a trillion dollars in toxic mortgages as wholly inadequate collateral) to refuse to recognize hundreds of billions of dollars of losses. This accounting scam produces enormous fictional "income" and "capital" at the banks. The fictional income produces real bonuses to the CEOs that make them even wealthier. The fictional bank capital allows the regulators to evade their statutory duties under the Prompt Corrective Action (PCA) law to close the insolvent and failing banks.



The inflated asset values allow the Fed and the administration to ignore the Fed's massive loss exposure and allow Treasury to spread propaganda claiming that TARP resolved all the problems -- at virtually no cost. Donovan claims that we have held the elite frauds accountable -- but we have done the opposite. We have made the CEOs of the largest financial firms -- typically already among the 500 wealthiest Americans -- even wealthier. We have rewarded fraud, incompetence, and venality by our most powerful elites.



If the government does not hold the fraudulent CEOs responsible, who is supposed to stop the epidemic of elite financial fraud? The Obama administration's answer is the fraudulent CEOs themselves, at a time of their choosing. You can't make this stuff up.



But ultimately resolving the problems is not the government's responsibility, said Michael Barr, assistant Treasury secretary for financial institutions.



"Fundamentally, this is up to the banks and the servicers to fix," he said. "They can fix it as fast as they feel like."



So who is Michael Barr and why is saying things on behalf of the Obama administration that make it appear to be a wholly-owned subsidiary of the fraudulent lenders and servicers? He's a Robert Rubin protégé and he's the senior Treasury official for banking policy.



We have a different policy view. We believe that only the government can stop fraud from growing to catastrophic levels and that among the government's highest responsibilities is to provide the regulatory "cops on the beat" with the competence, resources, courage, and integrity to take on our most elite frauds. We believe that anything less is a travesty that causes tens of millions of Americans to be defrauded and poses a grave threat to our economy and democracy.





Prompt Corrective Action



First, it is time to stop the foreclosures until the banks and servicers adopt corrective steps, certified as adequate by FDIC, that will prevent all future foreclosure fraud. They must also adopt plans to remedy the injuries their foreclosure frauds have already caused, and assist the FBI, Department of Justice, and legal ethics officials investigations of their officers' and attorneys' frauds and ethical violations.



Second, it is time to place the financial institutions that committed widespread fraud in receivership. We should remove the senior leadership of the banks and replace them with experienced bankers with a reputation for integrity and competence, i.e., the honest officers that quit or were fired because they refused to engage in fraud. We should prioritize the receiverships to deal with the worst known "control frauds" among the "systemically dangerous institutions" (SDIs). The SDIs' frauds and fraudulent leaders endanger the global economy.



We propose Bank of America for the first receivership. In the last few weeks, the SEC has obtained a large (albeit grossly inadequate) settlement of its civil fraud charges against the former senior leaders of Countrywide. (Bank of America acquired Countrywide and is responsible for its frauds.) Fannie and Freddie's investigations -- with their findings reviewed by their regulator, the Federal Housing Finance Agency (FHFA) -- have identified many billions of dollars of fraudulent loans originated by Countrywide that were sold fraudulently to Fannie and Freddie through false representations and warranties. The Fed, BlackRock, and Pimco's investigations have identified many billions of dollars of fraudulent loans provided by Countrywide under false reps and warranties. Ambac's investigation found that 97% of the Countrywide loans reviewed by Ambac were had false reps and warranties. Countrywide also engaged in widespread foreclosure fraud. This is not surprising, for every aspect of Countrywide's nonprime mortgage operations that has been examined by a truly independent body has found widespread fraud -- in loan origination, loan sales, appraisals, and foreclosures. Fraud begets fraud. Lenders that are control frauds create criminogenic environments that produce "echo" epidemics of control fraud in other professions and industries.



We have been amazed that, as one financially sophisticated entity after another found widespread fraud by Countrywide in the entire gamut of its operations, the administration, the industry, and the financial media act as if this is acceptable. Countrywide made hundreds of thousands of fraudulent loans. It fraudulently sold hundreds of thousands of loans through false reps and warranties. It fraudulently foreclosed on large numbers of loans. It victimized hundreds of thousands of people and hundreds of financial institutions, causing hundreds of billions of dollars of losses. It has defrauded more people, at a greater cost, than any entity in history.



Bank of America chose to purchase Countrywide at a point when it -- and its senior leaders -- were infamous. Bank of America made some of these Countrywide leaders its senior leaders. Yet, Bank of America is not treated as a criminal entity. President Obama, Attorney General Eric Holder, Donovan, and Barr cannot even bring themselves to use the "f" word -- fraud. They substitute euphemisms designed to trivialize elite criminality. The administration officials do not call for Bank of America to be the subject of a criminal investigation. They do not demand that Fannie, Freddie, Ambac, the FHFA, and Pimco file criminal referrals about Countrywide's frauds. They do not demand that Fannie, Freddie, and the Fed refuse to purchase or take as collateral any mortgage instrument from Bank of America. No one at the Harvard Club in New York moves to kick Bank of America's officers out of their club! The financial media treats Bank of America as if it were a legitimate bank rather than a "vector" spreading the mortgage fraud epidemic throughout much of the Western world.



For the sake of our (and the global) economy, our democracy, and our souls this willingness to allow elite control frauds to loot with impunity must end immediately. The control frauds must be taken down and their officers removed promptly. Receivership is the way to begin to reclaim our souls, our economy, and our democracy and Bank of America has the track record that makes it a good place to start. It is sufficiently large and powerful that its receivership will send the credible signal that America is restoring the rule of law and that even the most elite frauds will be held accountable.



Next we need to remove the rest of the "too big to fail" institutions -- we call them systemically dangerous institutions, or SDIs -- to reduce the global systemic risks that they pose. We are rolling the dice with disaster every day. The SDIs are inefficient, so shrinking them will reduce risk and increase efficiency. We need to follow three types of policies with respect to SDIs.



  1. They cannot grow larger and compound the systemic risk they pose.

  2. They must create an enforceable plan to shrink to a level and functions such that they no longer pose a systemic risk within five years.

  3. Until they shrink to the point that they no longer pose systemic risks they must be regulated with far greater intensity than other banks. In particular, control fraud poses so severe a risk of triggering another global financial crisis that there must be no regulatory tolerance for control frauds at the SDIs. One of the best ways to reduce their risks is to mandate that high levels of executive compensation be paid only after sustained and superior performance (at least five years), and with "claw back" provisions if compensation was obtained by fraudulent reported income or seriously inadequate loss reserves.



Appointing a receiver for an SDI will be a major undertaking for the FDIC, but it is also well within its capabilities. Contrary to the scare mongering about "nationalizing" banks, receivers are used to returning failed banks to private ownership. Receiverships are managed by experienced bankers with records of competence and integrity rather than the dread "bureaucrats." We appointed roughly a thousand receivers during the S&L and banking crises of the 1980s and early 1990s under Presidents Reagan and Bush.



Here is how it works. A receiver is appointed on Friday. The bank opens for business as normal (from the bank's customers' perspective) on Monday. The checks clear, the ATMs work, and the branches all open. The receiver's managers direct the business operations, find the true facts about the bank's operations, senior managers, and financial condition, recognize the real losses, and make the appropriate referrals to the FBI and the SEC so that the frauds can be investigated and prosecuted.



The receiver is also a well-proven device for splitting up banks that are too large and incoherent by selling units of the business to different bidders who most value the operations.







bench craft company

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bench craft company


Diane Thompson of the National Consumer Law Center, who was a rock star at yesterday’s hearing, made a point that has gone overlooked. She said that you can get much better compliance on loan modifications if you actually fund mediation programs and legal services attorneys. There are mandatory mediation programs up and running in Philadelphia and New York, and they have been far more successful in preventing foreclosures – by about 50%, according to Thompson. It’s just a matter of getting the servicers into these mediation programs instead of hoping they will initiate modifications on their own.


As for legal services, as I said a couple days ago, Dodd-Frank authorized $35 million dollars for legal services for homeowners facing foreclosure, but never appropriated the money. Thompson said, “All of the robo-signing allegations were only discovered, brought to light by aggressive, competent attorneys working very diligently to represent their clients. Homeowners cannot negotiate these kinds of issues without lawyers. Low-income homeowners particularly need the lawyers… we urgently need that funding.”


I’ve been taking a look at this issue over the past couple days, contacting people on the Hill, and it doesn’t look good. The funding does not exist in the Treasury/HUD appropriations bill, one of the routine spending bills that need to be passed. It’s not entirely likely they’ll get passed at all, let alone that the report will get reopened to insert that funding in there.


Some Senators are looking for other ways to get the funding through. Some want to allow TARP funds to get used for legal assistance. Others, like Sherrod Brown, have been asking for expansions of legal aid since June. He wants the Treasury Department to allow the Housing Finance Agency’s Hardest-Hit Fund (HHF) to be used in counseling and legal aid services for foreclosure victims.



After a quick review of its procedures, Bank of America this week announced that it will resume its foreclosures in 23 lucky states next Monday. While the evidence is overwhelming that the entire foreclosure process is riddled with fraud, President Obama refuses to support a national moratorium. Indeed, his spokesmen on the issue told reporters three key things. As the Los Angeles Times reported:



A government review of botched foreclosure paperwork so far has found that the problems do not pose a "systemic" threat to the financial system, a top Obama administration official said Wednesday.



Yes, that's right. HUD reviewed the "paperwork" problem to see whether it threatened the banks -- not the homeowners who were the victims of foreclosure fraud. But it got worse, for the second point was how the government would respond to the epidemic of foreclosure fraud.



The Justice Department is leading an investigation of possible crimes involving mortgage fraud.


That language was carefully chosen to sound reassuring. But the fact is that despite our pleas the FBI has continued its "partnership" with the Mortgage Bankers Association (MBA). The MBA is the trade association of the "perps." It created a ridiculous on its face definition of "mortgage fraud." Under that definition the lenders -- who led the mortgage frauds -- are the victims. The FBI still parrots this long discredited "definition." That is one of the primary reasons why -- in complete contrast to prior financial crises -- the Justice Department has not convicted a single senior officer of the large nonprime lenders who directed, committed, and profited enormously from the frauds.



Note that the Justice Department is not investigating foreclosure fraud. HUD Secretary Donovan's statement shows why:



"We will not tolerate business as usual in the mortgage market," he said. "Where there have been mistakes made or errors, we will hold those entities, those institutions, accountable to stop those processes, review them and fix them as quickly as possible."


Note the language: "mistakes", "errors", "processes" (following the initial use of "paperwork"). No mention of "fraud", "felony", "criminal investigations", or "prosecutions" for the tens of thousands of felonies that representatives of the entities foreclosing on homes have admitted that they committed. Note that Donovan does not even demand that the felons remedy the harm caused by their past fraudulent foreclosures. Donovan wants them to "fix" "processes" -- not repair the harm their frauds caused to their victims.



The fraudulent CEOs looted with impunity, were left in power, and were granted their fondest wish when Congress, at the behest of the Chamber of Commerce, Chairman Bernanke, and the bankers' trade associations, successfully extorted the professional Financial Accounting Standards Board (FASB) to turn the accounting rules into a farce. The FASB's new rules allowed the banks (and the Fed, which has taken over a trillion dollars in toxic mortgages as wholly inadequate collateral) to refuse to recognize hundreds of billions of dollars of losses. This accounting scam produces enormous fictional "income" and "capital" at the banks. The fictional income produces real bonuses to the CEOs that make them even wealthier. The fictional bank capital allows the regulators to evade their statutory duties under the Prompt Corrective Action (PCA) law to close the insolvent and failing banks.



The inflated asset values allow the Fed and the administration to ignore the Fed's massive loss exposure and allow Treasury to spread propaganda claiming that TARP resolved all the problems -- at virtually no cost. Donovan claims that we have held the elite frauds accountable -- but we have done the opposite. We have made the CEOs of the largest financial firms -- typically already among the 500 wealthiest Americans -- even wealthier. We have rewarded fraud, incompetence, and venality by our most powerful elites.



If the government does not hold the fraudulent CEOs responsible, who is supposed to stop the epidemic of elite financial fraud? The Obama administration's answer is the fraudulent CEOs themselves, at a time of their choosing. You can't make this stuff up.



But ultimately resolving the problems is not the government's responsibility, said Michael Barr, assistant Treasury secretary for financial institutions.



"Fundamentally, this is up to the banks and the servicers to fix," he said. "They can fix it as fast as they feel like."



So who is Michael Barr and why is saying things on behalf of the Obama administration that make it appear to be a wholly-owned subsidiary of the fraudulent lenders and servicers? He's a Robert Rubin protégé and he's the senior Treasury official for banking policy.



We have a different policy view. We believe that only the government can stop fraud from growing to catastrophic levels and that among the government's highest responsibilities is to provide the regulatory "cops on the beat" with the competence, resources, courage, and integrity to take on our most elite frauds. We believe that anything less is a travesty that causes tens of millions of Americans to be defrauded and poses a grave threat to our economy and democracy.





Prompt Corrective Action



First, it is time to stop the foreclosures until the banks and servicers adopt corrective steps, certified as adequate by FDIC, that will prevent all future foreclosure fraud. They must also adopt plans to remedy the injuries their foreclosure frauds have already caused, and assist the FBI, Department of Justice, and legal ethics officials investigations of their officers' and attorneys' frauds and ethical violations.



Second, it is time to place the financial institutions that committed widespread fraud in receivership. We should remove the senior leadership of the banks and replace them with experienced bankers with a reputation for integrity and competence, i.e., the honest officers that quit or were fired because they refused to engage in fraud. We should prioritize the receiverships to deal with the worst known "control frauds" among the "systemically dangerous institutions" (SDIs). The SDIs' frauds and fraudulent leaders endanger the global economy.



We propose Bank of America for the first receivership. In the last few weeks, the SEC has obtained a large (albeit grossly inadequate) settlement of its civil fraud charges against the former senior leaders of Countrywide. (Bank of America acquired Countrywide and is responsible for its frauds.) Fannie and Freddie's investigations -- with their findings reviewed by their regulator, the Federal Housing Finance Agency (FHFA) -- have identified many billions of dollars of fraudulent loans originated by Countrywide that were sold fraudulently to Fannie and Freddie through false representations and warranties. The Fed, BlackRock, and Pimco's investigations have identified many billions of dollars of fraudulent loans provided by Countrywide under false reps and warranties. Ambac's investigation found that 97% of the Countrywide loans reviewed by Ambac were had false reps and warranties. Countrywide also engaged in widespread foreclosure fraud. This is not surprising, for every aspect of Countrywide's nonprime mortgage operations that has been examined by a truly independent body has found widespread fraud -- in loan origination, loan sales, appraisals, and foreclosures. Fraud begets fraud. Lenders that are control frauds create criminogenic environments that produce "echo" epidemics of control fraud in other professions and industries.



We have been amazed that, as one financially sophisticated entity after another found widespread fraud by Countrywide in the entire gamut of its operations, the administration, the industry, and the financial media act as if this is acceptable. Countrywide made hundreds of thousands of fraudulent loans. It fraudulently sold hundreds of thousands of loans through false reps and warranties. It fraudulently foreclosed on large numbers of loans. It victimized hundreds of thousands of people and hundreds of financial institutions, causing hundreds of billions of dollars of losses. It has defrauded more people, at a greater cost, than any entity in history.



Bank of America chose to purchase Countrywide at a point when it -- and its senior leaders -- were infamous. Bank of America made some of these Countrywide leaders its senior leaders. Yet, Bank of America is not treated as a criminal entity. President Obama, Attorney General Eric Holder, Donovan, and Barr cannot even bring themselves to use the "f" word -- fraud. They substitute euphemisms designed to trivialize elite criminality. The administration officials do not call for Bank of America to be the subject of a criminal investigation. They do not demand that Fannie, Freddie, Ambac, the FHFA, and Pimco file criminal referrals about Countrywide's frauds. They do not demand that Fannie, Freddie, and the Fed refuse to purchase or take as collateral any mortgage instrument from Bank of America. No one at the Harvard Club in New York moves to kick Bank of America's officers out of their club! The financial media treats Bank of America as if it were a legitimate bank rather than a "vector" spreading the mortgage fraud epidemic throughout much of the Western world.



For the sake of our (and the global) economy, our democracy, and our souls this willingness to allow elite control frauds to loot with impunity must end immediately. The control frauds must be taken down and their officers removed promptly. Receivership is the way to begin to reclaim our souls, our economy, and our democracy and Bank of America has the track record that makes it a good place to start. It is sufficiently large and powerful that its receivership will send the credible signal that America is restoring the rule of law and that even the most elite frauds will be held accountable.



Next we need to remove the rest of the "too big to fail" institutions -- we call them systemically dangerous institutions, or SDIs -- to reduce the global systemic risks that they pose. We are rolling the dice with disaster every day. The SDIs are inefficient, so shrinking them will reduce risk and increase efficiency. We need to follow three types of policies with respect to SDIs.



  1. They cannot grow larger and compound the systemic risk they pose.

  2. They must create an enforceable plan to shrink to a level and functions such that they no longer pose a systemic risk within five years.

  3. Until they shrink to the point that they no longer pose systemic risks they must be regulated with far greater intensity than other banks. In particular, control fraud poses so severe a risk of triggering another global financial crisis that there must be no regulatory tolerance for control frauds at the SDIs. One of the best ways to reduce their risks is to mandate that high levels of executive compensation be paid only after sustained and superior performance (at least five years), and with "claw back" provisions if compensation was obtained by fraudulent reported income or seriously inadequate loss reserves.



Appointing a receiver for an SDI will be a major undertaking for the FDIC, but it is also well within its capabilities. Contrary to the scare mongering about "nationalizing" banks, receivers are used to returning failed banks to private ownership. Receiverships are managed by experienced bankers with records of competence and integrity rather than the dread "bureaucrats." We appointed roughly a thousand receivers during the S&L and banking crises of the 1980s and early 1990s under Presidents Reagan and Bush.



Here is how it works. A receiver is appointed on Friday. The bank opens for business as normal (from the bank's customers' perspective) on Monday. The checks clear, the ATMs work, and the branches all open. The receiver's managers direct the business operations, find the true facts about the bank's operations, senior managers, and financial condition, recognize the real losses, and make the appropriate referrals to the FBI and the SEC so that the frauds can be investigated and prosecuted.



The receiver is also a well-proven device for splitting up banks that are too large and incoherent by selling units of the business to different bidders who most value the operations.







bench craft company>

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bench craft company

Oct. 15 '09 Vizcaya Democratic Club by UN1SON


bench craft company

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Not too long ago, we received a comment from a reader of our Small Business Trends small business news roundups on a post called Marketing Mashup. Though we.

Fox <b>News</b> President: Jon Stewart Is Crazy And NPR Is Run By Nazis <b>...</b>

The second part of The Daily Beast's interview with Fox News president Roger Ailes is out today, and Ailes' encore doesn't disappoint. He responded harshly to Jon Stewart's pervasive criticism of cable news and had some tough, ...


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Diane Thompson of the National Consumer Law Center, who was a rock star at yesterday’s hearing, made a point that has gone overlooked. She said that you can get much better compliance on loan modifications if you actually fund mediation programs and legal services attorneys. There are mandatory mediation programs up and running in Philadelphia and New York, and they have been far more successful in preventing foreclosures – by about 50%, according to Thompson. It’s just a matter of getting the servicers into these mediation programs instead of hoping they will initiate modifications on their own.


As for legal services, as I said a couple days ago, Dodd-Frank authorized $35 million dollars for legal services for homeowners facing foreclosure, but never appropriated the money. Thompson said, “All of the robo-signing allegations were only discovered, brought to light by aggressive, competent attorneys working very diligently to represent their clients. Homeowners cannot negotiate these kinds of issues without lawyers. Low-income homeowners particularly need the lawyers… we urgently need that funding.”


I’ve been taking a look at this issue over the past couple days, contacting people on the Hill, and it doesn’t look good. The funding does not exist in the Treasury/HUD appropriations bill, one of the routine spending bills that need to be passed. It’s not entirely likely they’ll get passed at all, let alone that the report will get reopened to insert that funding in there.


Some Senators are looking for other ways to get the funding through. Some want to allow TARP funds to get used for legal assistance. Others, like Sherrod Brown, have been asking for expansions of legal aid since June. He wants the Treasury Department to allow the Housing Finance Agency’s Hardest-Hit Fund (HHF) to be used in counseling and legal aid services for foreclosure victims.



After a quick review of its procedures, Bank of America this week announced that it will resume its foreclosures in 23 lucky states next Monday. While the evidence is overwhelming that the entire foreclosure process is riddled with fraud, President Obama refuses to support a national moratorium. Indeed, his spokesmen on the issue told reporters three key things. As the Los Angeles Times reported:



A government review of botched foreclosure paperwork so far has found that the problems do not pose a "systemic" threat to the financial system, a top Obama administration official said Wednesday.



Yes, that's right. HUD reviewed the "paperwork" problem to see whether it threatened the banks -- not the homeowners who were the victims of foreclosure fraud. But it got worse, for the second point was how the government would respond to the epidemic of foreclosure fraud.



The Justice Department is leading an investigation of possible crimes involving mortgage fraud.


That language was carefully chosen to sound reassuring. But the fact is that despite our pleas the FBI has continued its "partnership" with the Mortgage Bankers Association (MBA). The MBA is the trade association of the "perps." It created a ridiculous on its face definition of "mortgage fraud." Under that definition the lenders -- who led the mortgage frauds -- are the victims. The FBI still parrots this long discredited "definition." That is one of the primary reasons why -- in complete contrast to prior financial crises -- the Justice Department has not convicted a single senior officer of the large nonprime lenders who directed, committed, and profited enormously from the frauds.



Note that the Justice Department is not investigating foreclosure fraud. HUD Secretary Donovan's statement shows why:



"We will not tolerate business as usual in the mortgage market," he said. "Where there have been mistakes made or errors, we will hold those entities, those institutions, accountable to stop those processes, review them and fix them as quickly as possible."


Note the language: "mistakes", "errors", "processes" (following the initial use of "paperwork"). No mention of "fraud", "felony", "criminal investigations", or "prosecutions" for the tens of thousands of felonies that representatives of the entities foreclosing on homes have admitted that they committed. Note that Donovan does not even demand that the felons remedy the harm caused by their past fraudulent foreclosures. Donovan wants them to "fix" "processes" -- not repair the harm their frauds caused to their victims.



The fraudulent CEOs looted with impunity, were left in power, and were granted their fondest wish when Congress, at the behest of the Chamber of Commerce, Chairman Bernanke, and the bankers' trade associations, successfully extorted the professional Financial Accounting Standards Board (FASB) to turn the accounting rules into a farce. The FASB's new rules allowed the banks (and the Fed, which has taken over a trillion dollars in toxic mortgages as wholly inadequate collateral) to refuse to recognize hundreds of billions of dollars of losses. This accounting scam produces enormous fictional "income" and "capital" at the banks. The fictional income produces real bonuses to the CEOs that make them even wealthier. The fictional bank capital allows the regulators to evade their statutory duties under the Prompt Corrective Action (PCA) law to close the insolvent and failing banks.



The inflated asset values allow the Fed and the administration to ignore the Fed's massive loss exposure and allow Treasury to spread propaganda claiming that TARP resolved all the problems -- at virtually no cost. Donovan claims that we have held the elite frauds accountable -- but we have done the opposite. We have made the CEOs of the largest financial firms -- typically already among the 500 wealthiest Americans -- even wealthier. We have rewarded fraud, incompetence, and venality by our most powerful elites.



If the government does not hold the fraudulent CEOs responsible, who is supposed to stop the epidemic of elite financial fraud? The Obama administration's answer is the fraudulent CEOs themselves, at a time of their choosing. You can't make this stuff up.



But ultimately resolving the problems is not the government's responsibility, said Michael Barr, assistant Treasury secretary for financial institutions.



"Fundamentally, this is up to the banks and the servicers to fix," he said. "They can fix it as fast as they feel like."



So who is Michael Barr and why is saying things on behalf of the Obama administration that make it appear to be a wholly-owned subsidiary of the fraudulent lenders and servicers? He's a Robert Rubin protégé and he's the senior Treasury official for banking policy.



We have a different policy view. We believe that only the government can stop fraud from growing to catastrophic levels and that among the government's highest responsibilities is to provide the regulatory "cops on the beat" with the competence, resources, courage, and integrity to take on our most elite frauds. We believe that anything less is a travesty that causes tens of millions of Americans to be defrauded and poses a grave threat to our economy and democracy.





Prompt Corrective Action



First, it is time to stop the foreclosures until the banks and servicers adopt corrective steps, certified as adequate by FDIC, that will prevent all future foreclosure fraud. They must also adopt plans to remedy the injuries their foreclosure frauds have already caused, and assist the FBI, Department of Justice, and legal ethics officials investigations of their officers' and attorneys' frauds and ethical violations.



Second, it is time to place the financial institutions that committed widespread fraud in receivership. We should remove the senior leadership of the banks and replace them with experienced bankers with a reputation for integrity and competence, i.e., the honest officers that quit or were fired because they refused to engage in fraud. We should prioritize the receiverships to deal with the worst known "control frauds" among the "systemically dangerous institutions" (SDIs). The SDIs' frauds and fraudulent leaders endanger the global economy.



We propose Bank of America for the first receivership. In the last few weeks, the SEC has obtained a large (albeit grossly inadequate) settlement of its civil fraud charges against the former senior leaders of Countrywide. (Bank of America acquired Countrywide and is responsible for its frauds.) Fannie and Freddie's investigations -- with their findings reviewed by their regulator, the Federal Housing Finance Agency (FHFA) -- have identified many billions of dollars of fraudulent loans originated by Countrywide that were sold fraudulently to Fannie and Freddie through false representations and warranties. The Fed, BlackRock, and Pimco's investigations have identified many billions of dollars of fraudulent loans provided by Countrywide under false reps and warranties. Ambac's investigation found that 97% of the Countrywide loans reviewed by Ambac were had false reps and warranties. Countrywide also engaged in widespread foreclosure fraud. This is not surprising, for every aspect of Countrywide's nonprime mortgage operations that has been examined by a truly independent body has found widespread fraud -- in loan origination, loan sales, appraisals, and foreclosures. Fraud begets fraud. Lenders that are control frauds create criminogenic environments that produce "echo" epidemics of control fraud in other professions and industries.



We have been amazed that, as one financially sophisticated entity after another found widespread fraud by Countrywide in the entire gamut of its operations, the administration, the industry, and the financial media act as if this is acceptable. Countrywide made hundreds of thousands of fraudulent loans. It fraudulently sold hundreds of thousands of loans through false reps and warranties. It fraudulently foreclosed on large numbers of loans. It victimized hundreds of thousands of people and hundreds of financial institutions, causing hundreds of billions of dollars of losses. It has defrauded more people, at a greater cost, than any entity in history.



Bank of America chose to purchase Countrywide at a point when it -- and its senior leaders -- were infamous. Bank of America made some of these Countrywide leaders its senior leaders. Yet, Bank of America is not treated as a criminal entity. President Obama, Attorney General Eric Holder, Donovan, and Barr cannot even bring themselves to use the "f" word -- fraud. They substitute euphemisms designed to trivialize elite criminality. The administration officials do not call for Bank of America to be the subject of a criminal investigation. They do not demand that Fannie, Freddie, Ambac, the FHFA, and Pimco file criminal referrals about Countrywide's frauds. They do not demand that Fannie, Freddie, and the Fed refuse to purchase or take as collateral any mortgage instrument from Bank of America. No one at the Harvard Club in New York moves to kick Bank of America's officers out of their club! The financial media treats Bank of America as if it were a legitimate bank rather than a "vector" spreading the mortgage fraud epidemic throughout much of the Western world.



For the sake of our (and the global) economy, our democracy, and our souls this willingness to allow elite control frauds to loot with impunity must end immediately. The control frauds must be taken down and their officers removed promptly. Receivership is the way to begin to reclaim our souls, our economy, and our democracy and Bank of America has the track record that makes it a good place to start. It is sufficiently large and powerful that its receivership will send the credible signal that America is restoring the rule of law and that even the most elite frauds will be held accountable.



Next we need to remove the rest of the "too big to fail" institutions -- we call them systemically dangerous institutions, or SDIs -- to reduce the global systemic risks that they pose. We are rolling the dice with disaster every day. The SDIs are inefficient, so shrinking them will reduce risk and increase efficiency. We need to follow three types of policies with respect to SDIs.



  1. They cannot grow larger and compound the systemic risk they pose.

  2. They must create an enforceable plan to shrink to a level and functions such that they no longer pose a systemic risk within five years.

  3. Until they shrink to the point that they no longer pose systemic risks they must be regulated with far greater intensity than other banks. In particular, control fraud poses so severe a risk of triggering another global financial crisis that there must be no regulatory tolerance for control frauds at the SDIs. One of the best ways to reduce their risks is to mandate that high levels of executive compensation be paid only after sustained and superior performance (at least five years), and with "claw back" provisions if compensation was obtained by fraudulent reported income or seriously inadequate loss reserves.



Appointing a receiver for an SDI will be a major undertaking for the FDIC, but it is also well within its capabilities. Contrary to the scare mongering about "nationalizing" banks, receivers are used to returning failed banks to private ownership. Receiverships are managed by experienced bankers with records of competence and integrity rather than the dread "bureaucrats." We appointed roughly a thousand receivers during the S&L and banking crises of the 1980s and early 1990s under Presidents Reagan and Bush.



Here is how it works. A receiver is appointed on Friday. The bank opens for business as normal (from the bank's customers' perspective) on Monday. The checks clear, the ATMs work, and the branches all open. The receiver's managers direct the business operations, find the true facts about the bank's operations, senior managers, and financial condition, recognize the real losses, and make the appropriate referrals to the FBI and the SEC so that the frauds can be investigated and prosecuted.



The receiver is also a well-proven device for splitting up banks that are too large and incoherent by selling units of the business to different bidders who most value the operations.







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Oct. 15 '09 Vizcaya Democratic Club by UN1SON


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Taiwanese <b>News</b> Channel Animates Royal Engagement! | PerezHilton.com

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Small Business <b>News</b>: Direct Marketing Diorama

Not too long ago, we received a comment from a reader of our Small Business Trends small business news roundups on a post called Marketing Mashup. Though we.

Fox <b>News</b> President: Jon Stewart Is Crazy And NPR Is Run By Nazis <b>...</b>

The second part of The Daily Beast's interview with Fox News president Roger Ailes is out today, and Ailes' encore doesn't disappoint. He responded harshly to Jon Stewart's pervasive criticism of cable news and had some tough, ...


bench craft company

Oct. 15 '09 Vizcaya Democratic Club by UN1SON


bench craft company

Taiwanese <b>News</b> Channel Animates Royal Engagement! | PerezHilton.com

Royal Wedding Fever has hit Taiwan! Check out their animated (because we wouldn´t want it any other way!) interpretation of Prince William´s engagement to Kate Middleton (above)! Sooo...

Small Business <b>News</b>: Direct Marketing Diorama

Not too long ago, we received a comment from a reader of our Small Business Trends small business news roundups on a post called Marketing Mashup. Though we.

Fox <b>News</b> President: Jon Stewart Is Crazy And NPR Is Run By Nazis <b>...</b>

The second part of The Daily Beast's interview with Fox News president Roger Ailes is out today, and Ailes' encore doesn't disappoint. He responded harshly to Jon Stewart's pervasive criticism of cable news and had some tough, ...


bench craft company

Taiwanese <b>News</b> Channel Animates Royal Engagement! | PerezHilton.com

Royal Wedding Fever has hit Taiwan! Check out their animated (because we wouldn´t want it any other way!) interpretation of Prince William´s engagement to Kate Middleton (above)! Sooo...

Small Business <b>News</b>: Direct Marketing Diorama

Not too long ago, we received a comment from a reader of our Small Business Trends small business news roundups on a post called Marketing Mashup. Though we.

Fox <b>News</b> President: Jon Stewart Is Crazy And NPR Is Run By Nazis <b>...</b>

The second part of The Daily Beast's interview with Fox News president Roger Ailes is out today, and Ailes' encore doesn't disappoint. He responded harshly to Jon Stewart's pervasive criticism of cable news and had some tough, ...


bench craft company

Taiwanese <b>News</b> Channel Animates Royal Engagement! | PerezHilton.com

Royal Wedding Fever has hit Taiwan! Check out their animated (because we wouldn´t want it any other way!) interpretation of Prince William´s engagement to Kate Middleton (above)! Sooo...

Small Business <b>News</b>: Direct Marketing Diorama

Not too long ago, we received a comment from a reader of our Small Business Trends small business news roundups on a post called Marketing Mashup. Though we.

Fox <b>News</b> President: Jon Stewart Is Crazy And NPR Is Run By Nazis <b>...</b>

The second part of The Daily Beast's interview with Fox News president Roger Ailes is out today, and Ailes' encore doesn't disappoint. He responded harshly to Jon Stewart's pervasive criticism of cable news and had some tough, ...


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bench craft company

Oct. 15 '09 Vizcaya Democratic Club by UN1SON


bench craft company
bench craft company

Taiwanese <b>News</b> Channel Animates Royal Engagement! | PerezHilton.com

Royal Wedding Fever has hit Taiwan! Check out their animated (because we wouldn´t want it any other way!) interpretation of Prince William´s engagement to Kate Middleton (above)! Sooo...

Small Business <b>News</b>: Direct Marketing Diorama

Not too long ago, we received a comment from a reader of our Small Business Trends small business news roundups on a post called Marketing Mashup. Though we.

Fox <b>News</b> President: Jon Stewart Is Crazy And NPR Is Run By Nazis <b>...</b>

The second part of The Daily Beast's interview with Fox News president Roger Ailes is out today, and Ailes' encore doesn't disappoint. He responded harshly to Jon Stewart's pervasive criticism of cable news and had some tough, ...


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