Obama Is Funding The Anti-Trump Movement With Sleazy Backdoor Policies And Taxpayer Money

Barack Obama is funding the anti-Trump movement through a series of backdoor deals and policies. Wall Street may be surprised to learn that it is also helping bankroll the anti-Trump ‘resistance’ whether they wanted to or not. Wall Street is fighting policies which would heavily favor it, including corporate tax cuts and the repeal of Obama-era banking and health-care regulations.
We have the Obama administration to thank for the harsh anti-Trump movement by far left groups, according to an article by the New York Post.
The Obama administration’s massive shakedown of Big Banks over the mortgage crisis included unprecedented back-door funding for dozens of Democratic activist groups who were not even victims of the crisis. At least three liberal nonprofit organizations the Justice Department approved to receive funds from multibillion-dollar mortgage settlements were instrumental in killing the ObamaCare repeal bill and are now lobbying against GOP tax reform, as well as efforts to rein in illegal immigration. An estimated $640 million has been diverted into what critics say is an improper, if not unconstitutional, ‘slush fund’ fed from government settlements with JPMorgan Chase and Co., Citigroup Inc. and Bank of America Corp., according to congressional sources.
The payola is potentially earmarked for third-party interest groups approved by the Justice Department and HUD without requiring any proof of how the funds will be spent. Many of the recipients so far are radical leftist organizations who solicited the settlement cash from the administration even though they were not parties to the lawsuits, records show.
‘During the Obama administration, groups committed to ‘revolutionary social change’ sent proposals and met with high-level HUD and Justice Department officials to try to get their pieces of the settlement pie,’ Cause of Action Institute vice president Julie Smith told The Post. -New York Post

This post was published at shtfplan on September 25th, 2017.

Behind The Student Debt Crisis – – Stagnant Middle Class Wages

When Sheila Bair took the helm of Washington College in Chestertown, Md., earlier this year, she noted that a small liberal-arts college about 75 miles east from Washington, D. C. isn’t where her friends and colleagues expected her to end up. Before assuming her role at Washington, Bair worked in finance and economic circles for decades, most famously as the chair of the Federal Deposit Insurance Corporation during the financial crisis.
But Bair’s economic background certainly influences her new job. In her inaugural speech in September, she highlighted the financial concerns dogging students as they enter and graduate from school. MarketWatch spoke with Bair about student debt, college affordability and her plans to address these in her new role. Below are some of the biggest takeaways from our talk:
One of the biggest causes of the student debt crisis is that Americans haven’t seen a raise in years ‘You have this dynamic of declining real wages and an increased need for a college degree,’ she said. ‘And so what you end up having is more and more young people applying to college with fewer families able to pay for it.’ Between 1980 and 2013, middle-class workers have seen their incomes barely budge, and low-wage workers have actually seen their incomes decrease, according to the Economic Policy Institute, a left-leaning think tank. At the same time that Americans have less money to pay for college, a degree has become an increasingly important ticket to the workforce. The gap between the earnings of high school and college graduates hit a record high in 2013 in large part because the wages of high school graduates have dropped off precipitously over the past few decades.
The origins of the student loan crisis have parallels to the origins of the mortgage crisis, Bair said. In both cases ‘very well intentioned’ government programs made it easier for Americans to borrow for housing or school without getting a true sense of whether borrowers will be able to repay those debts.

This post was published at David Stockmans Contra Corner on October 17, 2015.

Hedge Fund Giant Paul Singer: China Crash Is Way Bigger Than Subprime

Hedge fund manager Paul Singer said that China’s debt-fueled stock market crash may have larger implications than the U. S. subprime mortgage crisis, echoing warnings from fellow billionaire money managers Bill Ackman and Jeffrey Gundlach.
‘This is way bigger than subprime,’ Singer, founder of hedge fund Elliott Management, said at the CNBC Institutional Investor Delivering Alpha Conference in New York in response to a question about China’s crash potentially affecting other markets. Singer said it may not be big enough to cause a global financial market conflagration.
China’s stock market has dropped from a June 12 peak wiping out almost $4 trillion in value in less than a month after investors who borrowed to buy shares had to unwind trades. Markets tumbled even as President Xi Jinping’s government ramped up efforts to stem the rout, including preventing share sales of companies.
The threat to markets from the country is a bigger concern to Ackman, who runs Pershing Square Capital Management, than Greece.
‘China is a bigger global threat by far,’ Ackman said Wednesday at the conference. ‘The Chinese stock market is a fairly remarkable phenomenon and I think kind of a frightening one.’

This post was published at David Stockmans Contra Corner on July 16, 2015.

Here They Go Again – -Subprime Delinquencies Rising In Autoland

Yesterday’s WSJ article on rising auto loan delinquencies had a familiar ring. It focused on sub-prime borrowers who were missing payments within a few months of the vehicle purchase. Needless to say, that’s exactly the manner in which early signs of the subprime mortgage crisis appeared in late 2006 and early 2007.
More than 8.4% of borrowers with weak credit scores who took out loans in the first quarter of 2014 had missed payments by November, according to the Moody’s analysis of Equifax credit-reporting data. That was the highest level since 2008, when early delinquencies for subprime borrowers rose above 9%.
To be sure, subprime auto will never have the sweeping impact that came from the mortgage crisis. The entire auto loan market is less than $1 trillion compared to a mortgage market of more than $10 trillion at the time of the crisis.
Yet the salient point is the same. The apparent macro-economic recovery and prosperity of 2004-2008 rested on the illusion of an unsustainable debt fueled housing boom; this time its the auto sector.
Indeed, delete the auto sector from the phony 5% GDP SAAR of Q3 2014 and you get an economy inching forward on its own capitalist hind legs. Q3 real GDP less motor vehicles was up just 2.3% from the prior year (LTM); and that’s the same LTM rate as recorded in Q3 2013, and slightly lower than the 2.4% growth rate posted in Q3 2012.

This post was published at David Stockmans Contra Corner on January 9, 2015.

Here They Go Again – -Subprime Delinquencies Rising On The Dealer Lots

Yesterday’s WSJ article on rising auto loan delinquencies had a familiar ring. It focused on sub-prime borrowers who were missing payments within a few months of the vehicle purchase. Needless to say, that’s exactly the manner in which early signs of the subprime mortgage crisis appeared in late 2006 and early 2007.
More than 8.4% of borrowers with weak credit scores who took out loans in the first quarter of 2014 had missed payments by November, according to the Moody’s analysis of Equifax credit-reporting data. That was the highest level since 2008, when early delinquencies for subprime borrowers rose above 9%.
To be sure, subprime auto will never have the sweeping impact that came from the mortgage crisis. The entire auto loan market is less than $1 trillion compared to a mortgage market of more than $10 trillion at the time of the crisis.
Yet the salient point is the same. The apparent macro-economic recovery and prosperity of 2004-2008 rested on an illusion of unsustainable debt fueled housing boom; this time its the auto sector.
Indeed, delete the auto sector from the phony 5% GDP SAAR of Q3 2014 and you get an economy inching forward on its own capitalist hind legs. Q3 real GDP less motor vehicles was up just 2.3% from the prior year (LTM); and that’s the same LTM rate as recorded in Q3 2013, and slightly lower than the 2.4% growth rate posted in Q3 2012.
Aside from autos, there has been no acceleration, no escape velocity. Furthermore, the 2% /- growth in the 94% balance of the economy after the 2008-09 plunge has nothing to do with the Fed’s maniacal money printing stimulus and the booster shot from cheap credit that is supposed to provide.

This post was published at David Stockmans Contra Corner by David Stockman ‘ January 9, 2015.