Thursday, September 2, 2010

Finance Goldman in Business of Taking Away People’s Home

Tags: Finance, Goldman Sachs in Business of Taking Away People's Home, How to Grow Poor in America

Goldman Sachs spent years buying hundreds of thousands of subprime mortgages and is now in the business of taking away homes as Bank of America did in the Great Depression to make a huge fortune. We call them vultures or worse. Thousands of small banks failed because they did not get a bailout in the same way Goldman Sachs did from the Open Window at the Federal Reserve.

Bush/Cheney was assembling a private army to protect the rich when the masses revolt when they finally catch on what was happening to them. They were also building massive detention centers which Americans wrongly thought were for the Muslims and may have been for the now strongly Republican angry crowd as always blaming the wrong people. They will at some point starting thinking.

Bush and Cheney who were both very poor students at Yale with Cheney flunking out twice because he did not have a famous father. As we have discovered, instincts or killer instincts are needed in politics rather than an educated brain.

The NFL tried to get the best quarterbacks by giving IQ tests, but failed miserably! All the famous quarterbacks are quite dumb and don’t necessarily have to learn the plays because a lineman can relay the play from the coach to others and fake understanding the play. Sure pro football can be quite complex with so many options to consider, but apparently considerable practice and play gives them an instinct to thrive. So do politicians, especially on the Republican side who get notes from billionaire founded Think Tanks that give them the soundbite for the day.

Jim Kawakami, Sept 2, 2010,

Finance Goldman in Business of Taking Away People’s Home By Greg Gordon | McClatchy Newspapers

McClatchy Newspapers Finalist for Pulitzer Award 2010, Monday November 2, 2009,

SAN JOSE, Calif. — When California wildfires ruined their jewelry business, Tony Becker and his wife fell months behind on their mortgage payments and experienced firsthand the perils of subprime mortgages.

The couple wound up in a desperate, six-year fight to keep their modest, 1,500-square-foot San Jose home, a struggle that pushed them into bankruptcy.

The lender with whom they sparred, however, wasn't the one that had written their loans. It was an obscure subsidiary of Wall Street colossus Goldman Sachs Group.

Goldman spent years buying hundreds of thousands of subprime mortgages, many of them from some of the more unsavory lenders in the business, and packaging them into high-yield bonds. Now that the bottom has fallen out of that market, Goldman finds itself in a different role: as the big banker that takes homes away from folks such as the Beckers.

The couple alleges that Goldman declined for three years to confirm their suspicions that it had bought their mortgages from a subprime lender, even after they wrote to Goldman's then-Chief Executive Henry Paulson — later U.S. Treasury secretary — in 2003.

Unable to identify a lender, the couple could neither capitalize on a mortgage hardship provision that would allow them to defer some payments, nor on a state law enabling them to offset their debt against separate, investment-related claims against Goldman.

In July, the Beckers won a David-and-Goliath struggle when Goldman subsidiary MTGLQ Investors dropped its bid to seize their house. By then, the college-educated couple had been reduced to shopping for canned goods at flea markets and selling used ceramic glass. ...

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