Sunday, November 6, 2011

Our Government at Work.

In today's Seattle Times are four important articles.

1.  Front page of the Real Estate section E, page E 1.  "Some Big Goofs in Tax-Credit Program" discusses the fiasco of President Obama's tax-credit for first time home buyers.  Initially it was $7,500 then later $8,000.  The result?  Nearly 4 million applied and won $30 billion of taxpayers' cash for simply buying a home (which in all likelihood is worth less now).  But wait!  "A series of audits by the Treasury's inspector general has documented foul-ups by the IRS" including prison inmates, dead people, and teenagers getting the cash and plenty of fraud because the IRS initially didn't require any documentation.  The entire endeavor was a typical hugely expensive government bureaucratic mess costing upwards of a wasted $500 MILLION.  WASTED tax money from U. S. taxpayers.

2.  "4M  borrowers eligible for foreclosure review".   4,000,000 bundles of paperwork are to be reviewed by the U. S. Office of the Comptroller of the Currency, Federal Reserve and "independent" consultants forced on mortgage servicers for problems.  Who's to pay for all this?  You, one way or another, through use of your taxes or higher fees charged to get  a mortgage.

3.  Front Page D section, "Business", page D 1: "'Red Flag' seen before investment firm fell".
Seems Seattle investment advisor Mark Spangler's company The Spangler Group was inspected by an independent accounting firm which discovered that there was no independent qualified custodian of its customers' money and securities.  This material noncompliance was duly reported to the U. S. Securites and Exchange Commission which...did nothing.  Seems Spangler put $68 million of his clients' money into propping up failing (and subsequently failed) companies in which he had a personal investment.  The SEC was probably too busy writing rules or lobbying Congress to get more turf and regulations.  These are the regulators President Obama is counting on to stop another "meld-down"?  This agency was also investigated for illegally destroying its own records.  Oh yes, after the Spangler group filed for receivership did the SEC take a look.

4.  Finally in today's (November 6) Parade Magazine is an article which tells why this country is suffering from the rule of the over-zealous, anti-business Democratic Party.  Page 12: "If you purchased Reebok toning may...[get cash] through a proposed class action SETTLEMENT", where Reebok denied all wrongdoing but decided to settle.  If you bought certain Reebok items you can receive UP TO $25, $40 or $50.  YAHOO!  Score.  But WAIT! There's more:  Trial lawyers will get $3,500,000 plus expenses.  Of which according to practive $350,000 will be donated to elect Democrat Party candidates.  The Democrats who gain election throught the contributions of trial lawyers fight tooth and nail to continue the Class Action Lawsuit Industry from which they ream millions and sometimes billions of dollars of settlements.  There are no trials, no adjudication only suits filed, settlements agreed and dollars for lawyers.  And remember Reebok pays by increasing prices to pay the lawyers.

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