Daily Archives: March 13, 2016

Art imitating life: US become more hellish version of George Orwell 1984

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“He who controls the past controls the future. He who controls the present controls the past.” ― George Orwell1984

“Political language… is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind.”- George Orwell
Written by Biloxi

I remember reading George Orwell’s book 1984 in the early 80’s and thought this country would never be like this in the year of 1984 and in the future. Well, we are in 2016, and our freedoms this country (i.e. privacy of the phone and internet, 1st Amendment rights, right to vote, right to choose who we love, the rights of women, and so on) are feared to be under attack. As Thomas Jefferson said “When the people fear their government, there is tyranny; When the government fears the people, there is liberty.” But then again, as Alexander Hamilton said “Those that stand for nothing fall for anything.” Many in this country have become interested in being entertained than educated. It is hard to say that but it is truthful. This Presidential election has been heated, violent, misinformed, and yet has dominated news in this country than other important issues that do matter.

 

Back to the Orwell’s book 1984, I draw some parallel of his book as we are viewing of what is happening in our country as whole such as federal, state, county, city, and local. This pic above with the name INGSOC displayed is the banner of the Party in the 1984 film adaptation of the book.

Here is the excerpt of the plot of Orwell’s book 1984:

The class hierarchy of Oceania has three levels:

  • (I) the upper-classInner Party, the elite ruling minority, who make up 2% of the population.
  • (II) the middle-classOuter Party, who make up 13% of the population.
  • (III) the lower-classProles (from proletariat), who make up 85% of the population and represent the uneducated working class.

2000px-1984_social_classes_alt-svg

As the government, the Party controls the population with four ministries:

 

Deutsche Bank Chiefs Cite Government on Mistrust Issue, FAZ Says

Chancellor Angela Merkel’s government is partly to blame for market mistrust in Deutsche Bank AG because it spearheaded implementation of new liability rules for bondholders in a law passed last year, the lender’s Co-Chief Executive Officers John Cryan and Juergen Fitschen told the Frankfurter Allgemeine Zeitung.

While the government has solved the problem of liability capital, it created other problems that only exist in Germany and that “makes us a special case internationally,” Cryan told the newspaper. Fitschen said “national solo efforts” by the government that aren’t matched elsewhere don’t help.

Litigation issues are another reason why financial markets mistrust Deutsche Bank, with the greatest litigation risks stemming from the U.S., FAZ cited Cryan as saying. Deutsche Bank will also carefully examine its set-up in Russia after transactions with Russian shares raised questions as to how effective the lender’s “systems and controls” are, Cryan said.

Both CEOs see no need to fundamentally challenge the business model of the institution, with Cryan saying “Deutsche Bank must first and foremost be anchored in Germany.” International capital market operations will remain a pillar of the bank and investment banking, including trade, is indispensable, Cryan said.

Read on.

Injecting Integrity into the Mortgage Business

By Lynn Szymoniak March 7, 2016

March 7, 2016

Trump Mortgage was a company started in 2006 and closed 18 months later, following a scandal that involved significant over-stating of the credentials of the company’s president, E.J. Ridings.   When Trump Mortgage closed, Donald Trump licensed his name to First Meridian Mortgage as his next partner in the residential mortgage business.  How well did First Meridian Mortgage, a/k/a Trump Financial, operate?

First Meridian Mortgage made money, but not because of its careful lending practices.  First Meridian Mortgage made money by selling its loans to big banks and securities companies so that the loans could be included in residential mortgage-backed trusts that were being created and sold at breakneck speed from 2004 through the first half of 2007.

Donald Trump asserted when Trump Mortgage began that he wanted to inject integrity into the mortgage industry.  The mortgages made by First Meridian Mortgage from 2006 through 2008 in Palm Beach County, Florida – a county Trump often calls home – show that First Meridian Mortgage was just one more mortgage company that contributed to the meltdown of the housing market.

In 2006 and 2007, First Meridian Mortgage recorded 242 mortgages in Palm Beach County, Florida, making it possible for buyers to purchase 152 townhouses, condominiums and houses.  The number of mortgages does not match the number of properties because First Meridian Mortgage very often used “piggy-backed” mortgages, giving a buyer a first mortgage for 80% of the purchase price, then a second mortgage for 5% to 20% of the purchase price, so that borrowers could purchase a home with little or no money down. First Meridian also offered adjustable rate mortgages with low teaser rates of 3.75% that could adjust as high as 11.75%.  Many of the mortgages also had prepayment penalty riders.

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Bank of America paid Clintons speaking fees, too – more than $1M worth

The plot thickens..

Clinton’s paid speeches at Goldman Sachs Group have been an issue in her presidential bid

Charlotte bank says it sometimes pays former officials to speak on global issues

JPMorgan places a big bet on jobless youth

JPMorgan Chase is making a big bet — on younger Americans who don’t have jobs.

Last month, the Wall Street mega-bank committed $75 million to tackle youth unemployment, which in parts of Europe, the Middle East and Africa is well above 20 percent, and is frequently mentioned as being responsible for a range of social ills in those regions. In the U.S., the youth unemployment rate runs at 10 percent, about double the national jobless rate and totaling more than 5 million.

Read on.

Wall Street’s deans: Anyone but Trump!

Some of Wall Street’s most respected voices can’t agree on a single 2016 White House contender, but there’s one they all seem to agree they don’t like.

Speaking to CNBC’s “Fast Money” this week, some of the deans of the finance world expressed varying views on the U.S. economy that ranged from calls for a 4 percent interest rate to anticipation of a 10 percent drop in the S&P 500.

However, when it came to politics, bulls and bears alike delivered a universal message: Donald Trump would be a disaster for stocks and trade.

Read on.