Why Is Glenn Beck After The SEIU?
The Market Ticker ® - Commentary on The Capital Markets
Posted 2011-03-25 12:47
by Karl Denninger
in Housing
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Why Is Glenn Beck After The SEIU?
 

The story began here:

Lerner's plan is to organize a mass, coordinated "strike" on mortgage, student loan, and local government debt payments--thus bringing the banks to the edge of insolvency and forcing them to renegotiate the terms of the loans.  This destabilization and turmoil, Lerner hopes, will also crash the stock market, isolating the banking class and allowing for a transfer of power.

What's wrong with this?

Look when you take out a mortgage, you sign a contract.  The contract says you will pay $X for Y period of time or the bank has the right to come take the house back from you and sell it to someone else.

Ok, so what's the problem?  You decide to do the second - not pay.

Before someone pipes up and says "but that's immoral!" let me point out that the Mortgage Bankers Association themselves did the same thing.  They "jingle mailed" their headquarters building, which they bought and then dropped in value.

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http://www.thedailyshow.com/watch/thu-october-7-2010/mortgage-bankers-association-strategic-default

So maybe Beck can explain why there's something wrong with the SEIU organizing people into a group to do exactly the same thing that the very trade association representing these bankers did?

I have long argued that the proper thing to do is make a decision on whether you should pay or intentionally default based on your personal circumstances, including the potential legal and financial repercussions.

I see no reason to change that recommendation, and that the SEIU is attempting to organize people into a block to do the same thing - make a business decision on whether to pay (or not) their loans - doesn't seem to be any more troublesome than it was for the Mortgage Bankers Association.

Might this destabilize some banks?  It certainly might.  Is there anything wrong with that?  Not from where I sit.  The bank made the decision to loan the money knowing full well you might choose not to pay and if that happened they'd have to seize and resell the house.  The simple fact of the matter is that you entered into a contract, and that contract contains an "or else" provision if you don't pay.  Choosing to have the "or else" happen is your right and if the bank didn't like the odds on that they shouldn't have made the loan in the first place.  The consequence of the decision to lend you money - whether good or bad - is entirely theirs.

Furthermore the government had every opportunity and ability in 2008 and 2009 to take these institutions into receivership.  The bondholders would have been massacred.  So would have the stockholders.  So what?  That's what failure is in a capitalist system - you fail, you go out of business, the bondholders and stockholders lose money.  Would "financial Armageddon" have ensued?  For whom?  For Blankfein and friends?  Yes, it would have.  How about for the community and regional banks that didn't make bad loans and had solid balance sheets?  It would have been a business bonanza unlike any other.

Since the government won't enforce Prompt Corrective Action and when faced with the facts on the bank's assets they changed the rules (see Kanjorski and friends) instead of doing what's right, what peaceful set of actions remain other than bending over and thanking them for violating you?

I continue to assert that the decision to default or not is and should be a business decision, just like it was for the Mortgage Bankers Association.

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User Info Why Is Glenn Beck After The SEIU? in forum [Market-Ticker]
Jeffrey_thomason
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The concern is less the actions and more with the motives and the goals I think.

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Phantomace
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Gen:
I think the issue Beck has with it is the motive, and not necessarily the action.
The motive for most homeowners as listed in your Ticker is current financial hardship.
The motive for Lerner/SEIU is to pull the evolution of a full-on collapse forward so the system cab be reshaped into a Socialist construct even worse than where we're at now.

Not saying either is right or wrong, mind you, just trying to perhaps point out the difference between the action and desired outcomes.

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Geckolizard
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SO if Lerner put the squeeze on the banks, what can they do?

Oh, that's right- they'll bitch to Congress for a bailout. And they'll probably get it. Right before they spin off and sell their ****ty mortgages to the FED.

I agree with Lerner- starve the beast- but this beast gets fed from multiple sources.

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The preacher man says it's the end of time. He says that America's rivers are going dry. The interest is up, The stock market's down. You guys have to be careful walking around here this late at night. This-this is the perfect place to get jumped. ('Providence', Godspeed You! Black Emperor)
Tnhermit
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IF you destroy the banking system (which i hate) People will look to government for help. Thats is the whole purpose of SEIU So you get people making a so-called business decision thinking the government will bail them out. Not the best choice in my mind
Lenguado
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Gen - what Jeff said.

I heard Glenn's railings on this, and he was pretty explicit in stating something along the lines of (paraphrasing the rest here) - even though you may agree with what they are doing, going after the TBTF banks, etc - there are 2 problems with falling in line with and supporting them.

First - they are blatently and openly talking about the overthrow of our Govt (Glenn's words, not mine). And even if you agree with trying to take down the banks, you shouldn't be associated or support the open overthrow of the govt. Not to mention that if other organizations (like say some "militia group" like the "Tea Party") were openly talking about it, they would be swooped down on and charged with Federal crimes.

Second - the concern isn't the short-term OPEN objectives - punish and close the TBTF banks; but the unstated ulterior motive - cause enough chaos in the system to overthrow the govt using classic Cloward-Pivens strategy of 'overwhelm the system' to "transform the United States of America"....

I think that is what Glenn was getting at. At least from what I understood what he was saying. Again, not my words, but trying to encapsulate what he was saying.

FWIW

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they're saying "Kenyansian Economics". Grass Huts for everyone!
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Genesis
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The banking system destroyed itself. It has nobody to blame but itself for the consequences.

The government has had every opportunity to force these people to take their losses and fail.

Self-imposed harm is self-imposed. I don't buy that if the banks blow we lose our government. To the contrary - I argue that protecting them will kill our government.

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What part of "shall not be infringed" was unclear?

Adrenaline_junky
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We lost our government already. Now the question is how to get it back from the Plutocrats without handing it to the Socialists.

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Mannfm11
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These guys are idiots if the purpose is to redistribute wealth. They will make it equal alright, zero. Where the hell does the SEIU think they invest their pension funds?

I think part of the big problem in the US is the government is being run by the SEIU on one side and the banks on the other and the rest of us are being sucked dry by these 2 groups. The only purpose the SEIU would have to bust the banks is so they would be the remaining power in control.

The fly in the ointment is none of this is the banks money. This doesn't sink into the guy on the street or the bankers, who have moved toward bigger and bigger parasites on both sides. All this **** falls apart, it is our money. The entire money supply in the US is what the banks owe us. We bail that out, it can only be a reduction in what we have. The SEIU is merely another parasite on the other side of the body and they used these bankers to set up seemingly cheap pension funds.

Beck also gets after the bankers or I would buy into the idea this is a left/right argument. He might think as I do that if you took both the banks and the SEIU and sent them to the depths of hell, we might have a chance here. Does anyone believe the SEIU wants their benefits to be the same as the average Joe's? This sounds more like Lenin than a patriot.

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Killben
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Gen,

It has been my profound belief that people should go in for strategic default ENMASSE.

Also it is a simple decision .. is your house underwater, will it ever recoup your investment, is it throwing good money after bad, legal repercussions, credit score hits etc.

Do not bring in any other emotional matters into the equation.

Then take a call. Do it enmasse. One thing it does .. it exposes banks and their pals in Washington and the Fed who have all been swimming naked.

Also it is best way to take on the banks and hit them where it hurts. Remember the video of the Deusche Bank employee waving a dollar note.. He no longer will be able to .. probably he may not have a job.

The best and easiest way to KICK THE BANKS ON THE BALLS AND SEE THEM SQUIRM. I do not think there is a bettr way to do it.
Mannfm11
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AJ, the bankers are the socialists. It is the ultimate social control mechanism.

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Genesis
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Oh no, I want to see them both end up with Beelzebub.

But the fact remains that I don't see the issue with the SEIU attempting to foment people into a group that refuses to pay loans that are unsustainable. The outcome of that is what it is, but the fact remains that the lenders had superior information when they made the loans and did it anyway.

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Infidel
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Motivation goes beyond making banks "pay" (since they won't, you will as a productive citizen via more bailouts) and leads to anarchy, which I believe you have staked out a position on.

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Genesis
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I don't believe there will be more bailouts. I don't believe they can fund them.

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Geckolizard
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Quote:
One thing it does .. it exposes banks and their pals in Washington and the Fed who have all been swimming naked.


No, I think it would just result in more money going from Washington (the public) to Wall Street and more **** debt going from Wall Street to Washington (the public). Seen this movie a few years ago, know the ending.

But being ass*****d by the bankers forever is not a good alternative, either.

Genesis wrote..
I don't believe there will be more bailouts. I don't believe they can fund them.


I WANT to believe this. I really do. But past performance has told me otherwise.

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The preacher man says it's the end of time. He says that America's rivers are going dry. The interest is up, The stock market's down. You guys have to be careful walking around here this late at night. This-this is the perfect place to get jumped. ('Providence', Godspeed You! Black Emperor)

Corn1945
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This is pointless. They will just get another bailout. Maybe not outright but some kind of back door deal. They'll still get it though. Anyone who disagrees has been out to lunch for the last two years.
Infidel
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Corn, to be fair, I don't think anyone but ben and tim thought they would go this far. Right now, it is a scorched earth policy at the Fed. To be honest at this point they probably wish that congress would step up and throw their asses out onto the street. It plays right into their hand by giving the CB an out when the whole world burns and they can rise from the ash like a phoenix.

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Ark
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Beck thinks the Bankers and crooks who caused the mess should be in jail. Rule of Law.

As others above said, he's concerned with the motives of SEIU.

I also agree that it's highly unlikely that the Banks would not get yet another Bailout. It hasn't mattered in the past that we "didn't have the $$$". I'm also pretty sure that Lerner himself KNOWS this - he's been in and out of the White House and has to know that the outcome of his "plan" would just cause more bailouts and more inflation and more misery for Average Americans.

At this point, I'm sure the PTB could give a hoot if 99% of the population was rolling dollar bills around in wheel barrows, at long as their buddies got to survive another 3 months.

Drench
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Or, indeed, AFTRA.
Riceday
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Speaking of motives... isn't Andy Stern of SEIU one of the top visitors to the White House?
Ktrosper
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Jeffrey_thomason wrote..
The concern is less the actions and more with the motives and the goals I think.


I agree.

I find myself, in a strange way, rooting for these Marxists. I’m rooting for them to bring about the collapse, at least. For a while I've felt that collapse was imminent and I just wanna get through it, for my kids’ sake. The sooner we get through it, the sooner we can start rebuilding.

When it happens, the real fight will begin between the "statists" and the "constitutionalists"... The statists (and I think SEIU fits in there) will argue that free-market capitalism brought about the pain and they'll try to pull what's left of the country toward whatever Marxist-utopian-workers-paradise-model fills their dreams.

The "constitutionalists" (I consider myself one of these) will want to return to the country of our founding... Limited gov, free-market capitalism, freedom and liberty.

The trap here for freedom-loving, free-market capitalists is that their knee-jerk reaction to this will be to defend the businesses, "defend the free-market"!!!

Well, this ain't no free market. And it hasn't been in a while. So guys like Beck, who rush to defend the free-market have their hearts in the right place, but what their defending ISN'T anything close to a free market enterprise....

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The unexamined life is not worth living.-Socrates
The only stable state is the one in which all men are equal before the law.-Aristotle
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Jinxx0r
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Yeah, the seiu cares about the rule of law... They want to implode the system and replace it with soviet eastern block communism. Oh, it will be different this time they tell me.

Yeah, there will be rule of law if they're successful. Sure. As long as you agree with them all the time.

I need to fix the engine in my car, so I'll use dynamite on it to open the hood. Great idea...
Jinxx0r
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Quote:
I find myself, in a strange way, rooting for these Marxists. I’m rooting for them to bring about the collapse, at least. For a while I've felt that collapse was imminent and I just wanna get through it, for my kids’ sake. The sooner we get through it, the sooner we can start rebuilding.


Watch "The Road" and see why nobody wants to collapse the system. These idiots think they can collapse the system and they will replace it. It takes serious arrogance to believe that.
Infidel
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Ktroper: guns or no guns the free **** army backed by pension badges will roll over this country like **** through a goose. Like someones else said on another thread, the free ****ters will beg for fascism before this is over.

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"DON'T BELIEVE THEM, DON'T FEAR THEM, DON'T ASK ANYTHING OF THEM." -ALEXANDER SOLZHENITSYN.

Tm22721
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The Fed is the subject of Beck's show this afternoon. He is plugged into the banking system up to his eyeballs and is a religious conservative so anything negative that he says against the Fed and the banks should be taken with tons of Fukushima salt.

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The country is terminally ill and IT JUST WANTS A PILL.

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