Lazy Caturday Reads: Space Cat Visits Venus (and some news, unfortunately)

Book Cover

Good Afternoon!!

I think I’ve hit a wall this morning. I’m feeling so exhausted and overwhelmed with what Trump is doing to the country, that I just want to lie down and give up. I hope I can raise my spirts somehow as the day goes on.

Anyway, it is Caturday, and I have a new installment of Space Cat to share today. It’s the second book in the space cat series, Space Cat Visits Venus. Here is the synopsis from Amazon:

Flyball the Space Cat is back, and this time he’s living in Luna Port, the first city on the Moon. Workers at the lunar station are building a rocket to transport him and his pilot buddy, Colonel Fred Stone, to Venus. The two friends take a long voyage to the planet, where they encounter violet skies, torrential ammonia rains, and strange plants that can communicate without speaking.

This new edition of a charmingly illustrated storybook from 1955 is the second of a four-book series starring the intrepid feline known as Space Cat. Young readers will delight in taking a look at space exploration from Flyball’s point of view and following his escapades across the solar system.

It’s hard to believe these books are still in print after all this time, but I  think they are really cute. See some of the illustrations scattered through this post.

As you know, John Bolton’s home and office were searched by the FBI yesterday. Below are some articles that analyze and comment on Trump’s retribution project.

The Wall Street Journal Editorial Board: Trump’s Vendetta Campaign Targets John Bolton.

President Trump promised voters during his campaign for a second term that he had bigger things on his mind than retribution against opponents. But it is increasingly clear that vengeance is a large part, maybe the largest part, of how he will define success in his second term.

His revenge campaign took an ominous turn Friday as FBI agents raided the home and office of Mr. Trump’s first-term national security adviser John Bolton. They brought two broad warrants to search the “premises.” Agents showed up unannounced at his Bethesda, Md., home at 7 a.m. They confiscated his wife Gretchen’s phone because it was visible and not on her person. Mr. Bolton had already left for his office, which is where FBI agents greeted him….

Cat with Venus rocket

It’s hard to see the raid as anything other than vindictive. Mr. Bolton fell out of Mr. Trump’s favor in the first term and then wrote a book about his experience in the White House while Mr. Trump was still President. Mr. Trump tried and failed to block publication. The President then claimed Mr. Bolton had exposed classified information, though the book had gone through an extensive pre-publication scrub at the White House for classified material.

The book investigation faded away under President Biden, but now it looks as if Mr. Patel is reviving it. Whether Mr. Trump ordered the FBI probe or not doesn’t matter. Mr. Patel knows what the President thinks about Mr. Bolton, and the President’s minions in Trump II don’t serve as the check on his worst impulses the way grown-ups did in his first term. The presidential id is now unchained.

Mr. Trump made clear that he was out for blood against Mr. Bolton when he pulled the former adviser’s protective detail after his re-election. Mr. Bolton is widely known as a defense hawk, and in 2022 the Justice Department charged an Iranian national it said planned to murder him.

A bit more:

It’s unlikely that Mr. Bolton broke any laws on national secrets, and he certainly didn’t share any with us over our long association with him. But perhaps Mr. Trump intends for the process itself to be the punishment even if there is ultimately no criminal charge. Mr. Bolton has to pay for legal counsel, and his family has to endure the anxiety of being under federal government siege.

Mr. Bolton has continued to speak candidly about Mr. Trump’s second-term decisions, pro and con, including in these pages this week. The President may also hope the FBI raid will cause Mr. Bolton to shut up, though knowing him we can’t imagine that working.

The real offender here is a President who seems to think he can use the powers of his office to run vendettas. We said this was one of the risks of a second Trump term, and it’s turning out to be worse than we imagined.

Shane Harris at The Atlantic (gift link): The Bolton Raid Feels Like a Warning.

FBI directors don’t customarily announce raids in progress. But early this morning, Kash Patel celebrated the search of former National Security Adviser John Bolton’s home as agents were rolling into his suburban-Maryland driveway: “NO ONE is above the law … @FBI agents on mission,” Patel wrote on X. Agents also executed a search warrant at Bolton’s office in Washington, D.C. President Donald Trump later told reporters that he had learned about the raid on one of his most voluble critics from TV news, but he took the opportunity to call Bolton a “lowlife” and “not a smart guy.” Then he added: “Could be a very unpatriotic guy. We’re going to find out.”

Flyball dreams of mice

The FBI’s actions were hard not to read as payback for Bolton’s years of criticism of the president, even as the facts that persuaded a judge to approve a search warrant remain unknown. That’s the problem with a politicized legal system—even if an investigation is legitimate, it’s easy to assume that its motives are corrupt. Trump has spent years vowing retribution against Bolton, particularly after Bolton published a 2020 memoir that portrayed the president as incompetent and out of his depth on foreign policy.

If this was revenge, it wasn’t an isolated act. As agents were still packing up boxes of Bolton’s effects, The Washington Post reported that Defense Secretary Pete Hegseth had pushed out yet another senior military officer, firing Lieutenant General Jeffrey Kruse, director of the Defense Intelligence Agency. In June, its analysts delivered a preliminary assessment that U.S. bombers had caused relatively limited damage to Iranian nuclear facilities, undercutting Trump’s pronouncements that the sites were “obliterated.” And just three days ago, Director of National Intelligence Tulsi Gabbard revoked the security clearances of more than three dozen current and former national-security officials. Several played key roles in efforts to counter or expose Russia’s 2016 election interference, what Trump calls the “Russia Hoax” and Gabbard has described as part of a “years-long coup” against the president.

Put it all together, and this may be remembered as the week Trump’s campaign against the “deep state” kicked into high gear. To some intelligence professionals I spoke with, it felt as though something fundamental had shifted in their historically apolitical line of work.

“Given the dystopian nature of it all—clearance revocations of former officials who did no wrong, forced retirements of long-standing intelligence officials, reductions in force that include junior officers who were just hired, and a wildly politicized leadership in the intelligence community—I no longer recommend young Americans to pursue careers in intelligence,” Marc Polymeropoulos, a veteran CIA officer who had his own security clearance yanked earlier this year, told me.

Purge doesn’t adequately capture what national-security experts see happening here. Chilling effect is too mild, though revoking the security clearances of two senior intelligence officers, as Gabbard did, effectively ending their government careers, will indeed send a message. Terrorizing the workforce is a phrase I heard a lot this week. And that may indeed be the point.

“Instead of being honest about what we think, now people will just keep their mouths shut or tell Trump what he wants to hear,” said one former official, who would only speak anonymously. The administration publicly identified this person as part of the “Russia Hoax,” and they’ve hired personal security for outside their home, fearing that Trump’s most fevered supporters might pay a visit.

Forget about calling out misbehavior or wrongdoing by administration officials, the person added: “Where would we go to file a grievance, or to report misconduct? Who’s going to do that?”

You can use the gift link to read rest. I wonder if they will target Hillary Clinton? I’m sure Trump would like to do that.

The Trump DOJ seems to have hit on mortgage fraud as their go to accusation against critics.

Flyball and Fred look out at Venus.

The Wall Street Journal: Mortgage-Fraud Accusations Are Trump’s New Political Weapon.

The Trump administration has a new weapon at its disposal in its efforts to take down Democrats and their appointees: mortgage records.

Members of the administration have now alleged three public officials have committed mortgage fraud, referring each to the Justice Department. The administration has signaled that it has just gotten started: U.S. Pardon Attorney Ed Martin was recently tapped “to investigate fraud by public officials in mortgages,” according to a letter Martin sent.

The targets have denied wrongdoing, but the probes represent an aggressive new spin on opposition research that has long dug into tax records and financial disclosures public officeholders have to make. Mortgage applications go beyond the typical disclosure requirements.

Another twist is the allegations are coming from a government official overseeing an agency able to access massive amounts of mortgage data.

At the forefront of the campaign is Bill Pulte, a homebuilder heir Trump tapped to lead the government agency that oversees Fannie Mae and Freddie Mac, the largest players in the mortgage market.

At the historically quiet but powerful Federal Housing Finance Agency, Pulte has turned himself into a Trump attack ally, probing mortgages of prominent Democrats and a Biden-appointed official at the Federal Reserve.

So far, DOJ has announced investigations of Federal Reserve governor Lisa Cook, Senator Adam Schiff, andNew York Attorney General Letitia James.

Heading into an election season, mortgage documents could become even more a source of contention across the country, for both sides of the aisle. Mortgage fraud allegations have also emerged against Texas Attorney General Ken Paxton, a Republican who is campaigning for a Senate seat. (Paxton’s campaign has declined to comment on his properties.)

Mick Mulvaney, a former chief of staff for Trump who had faced questions about taxes on his nanny when he was facing Senate confirmation, says the attacks are going to be part of the new normal for Republicans to use versus Democrats now.

“Right now it’s classified documents and mortgage applications,” Mulvaney said of the new opposition research. “Whether or not you pretend to need a wheelchair at an airport to get on the plane faster, that may be used next if that’s illegal.”

In other news, the troops (and FBI agents and ICE thugs) are still occupying Washington DC. Here’s the latest on that story.

CNN: Hegseth orders National Guard troops in DC to carry weapons.

Defense Secretary Pete Hegseth has ordered National Guard members patrolling the streets of Washington, DC, to begin carrying their service weapons as they fulfill President Donald Trump’s crime crackdown in the nation’s capital, according to a US defense official.

Taking off their helmets

The directive from Hegseth represents a notable shift in guidance from the Pentagon, which had previously indicated that National Guard members could be armed if the circumstances warranted, and suggests hundreds of guard troops deployed in DC will soon be carrying weapons despite serving in a support role.

“At the direction of the Secretary of Defense, (Joint Task Force) JTF-DC members supporting the mission to lower the crime rate in our Nation’s capital will soon be on mission with their service-issued weapons, consistent with their mission and training,” the official said….

It comes as other states’ National Guard members have begun arriving in Washington, DC, to be in-processed to assist the DC National Guard.

More than 1,900 troops from multiple states have been called up as part of the mission including from West Virginia, South Carolina, Mississippi, Ohio, Louisiana, and Tennessee National Guards, according to a release from Joint Task Force – DC on Thursday.

What could possibly go wrong? I wonder if Hegseth has heard about Kent State?

ABC News reports that National Guard troops will now be permitted to act as law enforcement: National Guard in DC to carry M17 pistols, conduct law enforcement duties, task force says.

National Guard troops deployed on the streets of Washington, D.C., will now carry weapons for personal protection and are allowed to carry out law enforcement duties, defense officials announced Friday.

The decision is an escalation in President Donald Trump’s use of military troops to address what he insists is “out of control” crime in the nation’s capital. Since his announcement, Trump has mobilized nearly 2,300 National Guard troops from Washington, D.C., and six states with Republican governors. But troops had remained unarmed until now.

ABC News first reported Friday that Defense Secretary Pete Hegseth had officially authorized the troops to carry weapons if their mission required it. On Friday, the joint task force overseeing the troops confirmed the move, noting that Guard personnel sent on missions would carry M17 pistols, “which are intended for person protection.” The task force said Guard members would receive proper training on how to use the weapons before being allowed to carry them.

“This decision is not something taken lightly,” said Army Brig. Gen. Leland D. Blanchard, III, the Commanding General of the D.C. National Guard, in a statement.

Flyball and the Venus Mouse.

Really? I think it is taken very lightly, considering there’s not as serious crime problem in DC and it’s illegal for the military to perform law enforcement functions in the U.S.

The task force also noted in its statement late Friday that Guard troops can carry out law enforcement duties because they are operating under Title 32 status, a law that exempts troops from restrictions under the 1878 Posse Comitatus Act, because they are still technically under a state governor’s command.

Legal experts have long warned about how presidents might use Title 32 as a kind of legal loophole to Posse Comitatus, which is supposed to prevent the president from using the military as a domestic police force. Under Title 32, a president pays for a Guard mission while keeping troops under control of the governors; in this case, Trump asked red-state governors to send their troops to D.C.

While those governors technically retain control of the troops, their missions are being decided by the White House, according to several administration officials.

Reuters: Trump crime crackdown deploys troops in Washington’s safest sites.

Hundreds of National Guard soldiers in military fatigues and combat boots mingled with tourists, posed for selfies, and treated themselves to ice cream from food trucks on Thursday along Washington’s National Mall, one of the safest parts of America’s capital.

On occasion an angry local would hurl verbal abuse at them, but the soldiers simply shrugged and carried on what appeared to be an undemanding assignment.

Outside the National Museum of African American History and Culture, five members of the West Virginia National Guard were standing on the street corner far away from the city’s crime hot spots.

A grateful rescued mouse.

“It’s boring. We’re not really doing much,” said Sergeant Fox, who declined to give his first name.

Fox is among almost 2,000 troops, including 1,200 from six Republican-led states, who are being deployed in Washington as part of an extraordinary militarization inside the Democratic-led city.

The soldiers, some of whom told Reuters they did not get involved in arrests, are officially in Washington to support a federal crackdown on what President Donald Trump calls a crime epidemic. But that depiction appears to run counter to the fact that crime rates overall have shrunk in recent years.

That disconnect, combined with the troop concentration near the Washington Monument, the Lincoln Memorial and in view of the U.S. Capitol, highlights criticism by the city’s Democratic leaders that this massive deployment is more a show of power by Trump, rather than a serious effort to fight crime.

No kidding.

This is something I hadn’t heard about before. Trump is also mobilizing National Guard troops in other parts of the country. The Independent: Trump mobilizing up to 1,700 National Guardsman in 19 states to widen crime and immigration crackdown.

The Trump administration reportedly plans to mobilize up to 1,700 National Guard troops across 19 states in the coming weeks to support its immigration and anti-crime crackdowns, a dramatic expansion of the controversial operation that’s seen federal agents and Guard troops carrying out activities across Washington, D.C.

The troops, who will largely be activated across Republican-controlled states, will serve in support of the administration’s Immigration and Customs Enforcement operations, as well as other law enforcement priorities, according to comment from unnamed Pentagon officials and documents obtained by Fox News.

Taking photos of the plants

The Guardsmen assisting ICE will be carrying out tasks that may include “personal data collection, fingerprinting, DNA swabbing and photographing of personnel in ICE custody,” an official told outlet.

The deployments will take place across the following states: Alabama, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Nebraska, Nevada, New Mexico, Ohio, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wyoming, per Fox.

Texas is reportedly slated to have the largest deployment.

The Guardsmen will be serving under Title 32 Section 502F authority, in which they technically remain under state command and control, but can assist with federal missions and are paid with federal funds. The status allows them to avoid running afoul of a federal law limiting military involvement in domestic law enforcement.

Read more at the link.

Trump is also fantasizing about occupying Democratic cities like Chicago and New York. The Guardian: Trump targets Chicago and New York as Hegseth orders weapons for DC troops.

Donald Trump has threatened to take his federal crackdown on crime and city cleanliness to New York and Chicago, as the defense secretary, Pete Hegseth, ordered that national guard troops patrolling the streets of Washington DC under federal control will now be armed.

The US president talked to reporters in the Oval Office and said: “When ready, we will start in Chicago … Chicago is a mess.” He added that then the administration “will help with New York”, amid the controversial and aggressive federal efforts to control leading Democratic-voting cities, each of which has a Black mayor….

Touching the telepathic moss.

On the issue of suddenly announcing that it would now arm the federalized troops in DC, the defense department did not immediately offer any other details about the new development or why it was needed.

The step is an escalation in the federal government’s rare intervention into policing in the nation’s capital and came as nearly 2,000 national guard members are stationed in the city.

Earlier this week hundreds of troops from several Republican-led states arrived to bolster the DC national guard.

The Pentagon and the US army had said last week that troops would not carry weapons.

There’s more information about the DC occupation in the Guardian article.

Hegseth’s orders come just a day after Jeanine Pirro, the District of Columbia’s top federal prosecutor, instructed prosecutors to pursue the most serious charges possible in cases stemming from recent arrests, limiting their discretion as the Trump administration intensifies its law enforcement presence in the capital.

That directive, first reported by the New York Times, was issued this week and narrows the ability of line prosecutors to decide how cases are charged and prioritized. By pushing for the maximum charges allowed, the new policy could lead to longer prison terms for convicted defendants….

According to the White House, federal agents have made more than 630 arrests as of Thursday, though the justice department has not clarified how that figure compares with typical city police numbers.

While Pirro has committed to filing the toughest charges possible in most cases, she has also relaxed enforcement of one local gun law. This week she directed prosecutors not to pursue felony charges against people for possessing rifles or shotguns in the city, despite a DC law prohibiting them.

Finally:

On Thursday, Trump declared his takeover of the Metropolitan police department to be a success.

Yeah, right.

A few more interesting stories to check out today:

NBC News: Kilmar Abrego Garcia notified by ICE that he may be deported to Uganda.

Kilmar Abrego Garcia, the man who was wrongfully deported to a high-security prison in El Salvador, was notified by immigration authorities that he may be deported to Uganda, less than 24 hours after his release from federal custody.

Abrego was released Friday from a jail near Nashville, Tennessee, where he had been held since his return to the U.S. in June after being mistakenly deported to El Salvador’s CECOT prison.

Flyball’s first vegetarian meal.

Immigration authorities were expected to attempt to deport Abrego upon his release. Abrego “may be removed to Uganda no less than 72 hours absent weekends,” a source familiar with the case told NBC News on Saturday.

That is in line with standard procedure that ICE must give immigrants 72 hours notice before removing them to third countries.

Abrego, originally from El Salvador, had a withholding of removal order from 2019 that prevents his deportation to his home country due to concerns that he would be persecuted by violent gangs.

The removal order was violated when the Trump administration accidentally deported Abrego to the El Salvador’s CECOT prison, notorious for its harsh conditions, in March. However, the 2019 protective order does not bar Abrego from being deported to another country.

Abrego’s lawyers have now notified the judge in the Middle District of Tennessee that ICE has informed Abrego of its intent to deport him to Uganda. Abrego could not face the criminal charges of human smuggling brought against him by DOJ in that case if he is out of the country.

They are never going to leave this poor man alone.

AP: Judge blocks Trump from cutting money to Chicago, LA and other cities over ‘sanctuary’ policies.

A judge ruled late Friday the Trump administration cannot deny funding to Boston, Chicago, Denver, Los Angeles and 30 other cities and counties because of policies that limit cooperation with federal immigration efforts.

U.S. District Judge William Orrick in San Francisco extended a preliminary injunction blocking the administration from cutting off or conditioning the use of federal funds for so-called “sanctuary” jurisdictions. His earlier order protected more than a dozen other cities and counties, including San Francisco, Portland and Seattle.

An email to the White House late Friday was not immediately returned. In his ruling, Orrick said the administration had offered no opposition to an extended injunction except to say the first injunction was wrong. It has appealed the first order.

Orrick also blocked the administration from imposing immigration-related conditions on two particular grant programs.

More at the link.

Newsweek: Florida Locals Defy Ron DeSantis By Restoring Pulse Rainbow Crosswalk.

People in Orlando have defied Republican Governor Ron DeSantis and reinstated a rainbow crosswalk outside the Pulse nightclub, after Florida officials removed the painted crossing installed in memory of the 49 people killed at the site in 2016.

Fleeing the ammonia storm.

The restoration was led by local community members and LGBTQ+ advocates who gathered at the intersection following the overnight state-directed repainting. In a video shared to social media by the account @jeremy_rodrigue, people can be seen DIY-ing the rainbow crosswalk and drawing the colors back onto the ground.

“While this attack was meant to demoralize us and push us back in the closet, Orlando refused to be erased,” Democratic state Senator Carlos Guillermo Smith, who became the first openly gay Latino elected to the Florida legislature in 2016, told Newsweek. “It was inspiring to see so many local residents spring into action in response to the Governor’s cowardly abuse of power.” [….]

The removal of the rainbow crosswalk— painted in 2017 and approved during the administration of former Republican Governor Rick Scott—has sparked fierce backlash from city officials, survivors, and LGBTQ+ organizations who say it was eliminated in the dead of night with no warning.

The crosswalk was painted over following a directive from the Trump administration. In a letter to governors last month, Transportation Secretary Sean Duffy instructed states to “eliminate” distractions on public roads. He wrote on X at the time: “Taxpayers expect their dollars to fund safe streets, not rainbow crosswalks.”

That’s it for me today. I’m going to try to ignore the news for awhile. Please take care of yourselves, everyone.


Thursday Reads

Good Morning!!

I hate to tell you this, but there is another Republican debate tonight at 8PM, hosted by CNN in Jacksonville, Florida. We’ll be live blogging, as always. Being the twisted individual I am, I’m still enjoying watching the Republicans commit mass suicide, so I’ll be listening and updating even if no one else shows up. But I hope some people do! Now let’s see what’s in the news today.

I missed this in the run up to the SOTU last night: Speaker tells members what not to wear

Just seconds after an emotional tribute to Arizona Democratic Rep Gabby Giffords in the House of Representatives Wednesday, House Speaker John Boehner – who got a little choked up in the moment – suddenly felt the need to remind members that there’s a dress code on the House floor.

Boehner recovered his composure after embracing Giffords, who had just handed him her resignation letter. He looked around the chamber, and announced, “the chair would remind all members to be in proper business attire when you come to the floor of the House.”

Apparently enforcing the House dress code is one of the duties of Speaker that Boehner takes very seriously.

On Monday night, Boehner ran through some of basic rules of decorum on the floor, including the one about proper dress. “Members should wear appropriate attire however brief their presence might be,” the speaker said. And to the wardrobe offenders, Boehner said, “you know who you are.”

Obama and Geithner shake hands after SOTU

I know everyone has heard the news that Tim Geithner doesn’t expect President Obama to ask him to stay on as Treasury Secretary for a second term.

“He’s not going to ask me to stay on, I’m pretty confident,” Geithner said in an interview with Bloomberg Television today. “I’m confident he’ll be president. But I’m also confident he’s going to have the privilege of having another secretary of the Treasury.”

Ralphb commented on the SOTU live blog that Geithner “looked like he’d been gut punched” when Obama spoke about making banks pay fees on “transactions to pay for mortgage relief/refinancing.” Apparently Geithner wasn’t clued in about that ahead of time.

I’m wondering if they’ve been leaving him out of some of the meetings since Confidence Men revealed that Geithner was dismissive of presidential orders. Check out the facial expressions and body language in the above photo taken after the speech (I made it big so you could see detail). To me that doesn’t look like a friendly greeting. What do you think?

According to Business Week (see above link) two possible candidates to replace Geithner are Catfood Commission co-chair Erskine Bowles and North Dakota Senator Kent Conrad–both horrible choices IMO.

Conrad, 63, chairman of the Senate Budget Committee who said a year ago he won’t seek another term, is “a serious budget hawk on the left, well-liked and respected,” Calabria said.

Bowles, 66, is the former co-leader of Obama’s commission that drafted a plan to reduce the federal government’s debt.

Ariz. Gov. Jan Brewer lecturing President Obama

President Obama had another difficult interaction on Wednesday when he met wacky Arizona Governor Jan Brewer at Phoenix-Mesa Gateway Airport. From the Chicago Tribune:

During their brief encounter on the tarmac, intended to be a ceremonial welcome, Obama told Governor Jan Brewer that he disagreed with an account she had given of a meeting they had at the White House two years ago.

“He was a little disturbed about my book, ‘Scorpions for Breakfast,'” Brewer told reporters after the conversation. At one point during their chat, she pointed a finger at the president.

Brewer, who has differed with Obama over immigration policy in the past, handed him a letter asking him for a meeting to talk about Arizona’s economy when she greeted him. A White House official said the subject of the book came up after Brewer gave Obama the letter.

“The president said he’d be glad to meet with her again, but did note that after their last meeting, a cordial discussion in the Oval Office, the governor inaccurately described the meeting in her book. The president looks forward to continuing taking steps to help Arizona’s economy grow,” the official said.

I didn’t know she had written a book. In fact, I didn’t know she could read…. ABC News provides a little more detail on what the squabble was about.

Brewer complains in Scorpions for Breakfast that she and her staff were treated coldly by White House aides, prevented from taking pictures in the holding room outside the Oval Office and that their cell phones and cameras were “confiscated” by Secret Service.

“Too bad we weren’t illegal aliens, or we could have sued them,” she writes.

During her meeting with the president, Brewer said Obama was “condescending” and professorial, “lecturing” on his efforts to promote comprehensive immigration reform.

“It wasn’t long before I realized I was hearing the president’s stump speech,” she said. “Only I was supposed to listen without talking. Did he care to hear the view from the actual scene at the border? Did the opinions and observations of the people of Arizona mean anything to him? I didn’t think so.”

“He was patronizing,” she said. “Then it dawned on me: He’s treating me like the cop he had over for a beer after he bad-mouthed the Cambridge police, I thought. He thinks he can humor me and then get rid of me.”

After the interaction, Obama apparently walked away before Brewer finished giving him a piece of her mind (or what’s left of it), but she said she would “regroup.” I guess that means “get over it.”

In the run-up to tonight’s debate, Mitt Romney and Newt Gingrich have been lustily attacking each other. Romney must be doing something right, because he’s now running neck and neck with Newt (36% for Romney and 34% for Gingrich) after being behind the former Speaker by 9 points a couple of days ago. Santorum is trailing at 11% and Paul 9% CNN reports:

Gingrich…disparaged Romney’s personal wealth when asked about the former Massachusetts governor’s call for illegal immigrants to deport themselves.

“I think you have to live in a world of Swiss bank accounts and Cayman Island accounts and automatic, you know, $20 million a year income with no work to have some fantasy this far from reality,” Gingrich said at a “Meet the Candidates” forum in Miami, later adding: “For Romney to believe that somebody’s grandmother is going to be so cut off that she is going to self-deport, I mean this verges — this is an Obama-level fantasy.” [….]

Romney….said in the candidate forum, hosted by the Spanish-language network Univision, that such attacks were “unbecoming” for a presidential hopeful….”It’s very sad for a candidate to resort to that kind of epithet,” Romney said of the pulled ad. “There are differences between the candidates on these issues but we don’t attack each other with those kind of terrible terms.”

Newt Gingrich was heckled about his work for Freddie Mac at a rally in Coral Springs, Florida yesterday.

It was quite a scene as a scrum of journalists ignored the candidate and turned to Cara Jennings, who heckled Gingrich in the face of intimidation from his campaign workers, threats from nearby supporters, and the two police officers who showed up to flank her.

“Do you work for the people or Freddie Mac?” Jennings shouted at the former speaker, who was on a platform in a parking lot about 50 feet away.

“I work for the people,” Gingrich responded.

The woman kept shouting, and Gingrich implored her to give others a chance to hear him. But Jennings kept it up, and Gingrich continued engaging her.

Mitt Romney, feeling pressure over the low taxes he pays, tried to claim that his “real tax rate is closer to 45-50 percent.” Think Progress provides a transcript from Romney’s interview with Univision’s Jorge Ramos:

RAMOS: You just released your tax returns. In 2010 you only paid 13 percent of taxes while most Americans paid much more than that. Is that fair?

ROMNEY: Well, actually, I released two years of taxes and I think the average is almost 15 percent. And then also, on top of that, I gave another more 15 percent to charity. When you add it together with all of the taxes and the charity, particularly in the last year, I think it reaches almost 40 percent that I gave back to the community. One of the reasons why we have a lower tax rate on capital gains is because capital gains are also being taxed at the corporate level. So as businesses earn profits, that’s taxed at 35 percent, then as they distribute those profits as dividends, that’s taxed at 15 percent more. So, all total, the tax rate is really closer to 45 or 50 percent.

RAMOS: But is it fair what you pay, 13 percent, while most pay much more than that?

ROMNEY: Well, again, I go back to the point that the, that the funds are being taxed twice at two different levels.

Sorry Mitt, but you’re not a corporation, and besides, as Think Progress points out, most corporations don’t pay 35 percent taxes–in fact many corporations pay no taxes. Romney constantly tells out and out, bald-face lies. Is that de rigueur for the Mormon church, or does he get a dispensation because of all the money he contributes to them?

Brainwashed cult member Rick Santorum, whose campaign is going nowhere in Florida, appeared at a Baptist church in Naples, Florida. He told the audience that “the left” uses college education to “indoctrinate” young people.

“It’s no wonder President Obama wants every kid to go to college,” said the former Pennsylvania senator. “The indoctrination that occurs in American universities is one of the keys to the left holding and maintaining power in America. And it is indoctrination. If it was the other way around, the ACLU would be out there making sure that there wasn’t one penny of government dollars going to colleges and universities, right?”

He continued: “If they taught Judeo-Christian principles in those colleges and universities, they would be stripped of every dollar. If they teach radical secular ideology, they get all the government support that they can possibly give them. Because you know 62 percent of children who enter college with a faith conviction leave without it.” [….]

“I’ll bet you there are people in this room who give money to colleges and universities who are undermining the very principles of our country every single day by indoctrinating kids with left-wing ideology,” he said. “And you continue to give to these colleges and universities. Let me have a suggestion: Stop it.”

Santorum attended Penn State and went on to earn an MBA from the University of Pittsburgh and a law degree from Dickinson School of Law. But he’d rather have the proles stay uneducated so they’ll buy his crazy theocratic bullsh*t.

Santorum did have a license to practice law, but it has been suspended because he didn’t bother to pay his $70.00 per year fee to keep it active. He stopped paying in 1994 and was suspended in 2010. Maybe he decided being a lawyer was the devil’s work?

OK, that’s it for me. What are you reading and blogging about today?


Will the Banksters Finally Pay?

Federal regulators have finally decided to go after seventeen  big banks for bad mortgage lending practices.  In question are $200 billion in toxic mortgages sold to now bankrupt Fannie and Freddie.  The Federal Housing Finance Agency (FHFA) is the regulator suing BOA, JP Morgan, Morgan Stanley, Goldman Sachs and others. You may recall I wrote on a FED investigation last month.  This comes way too late to help many people who were put into loans they couldn’t possibly handle who were later evicted, but it may give these folks standing in future court suits to recoups some of their losses.  Financial sector-related equities and bonds lost in what was a dismal Friday market already given the unemployment figures.

The litigation represents a more intense effort by the federal government to go after the financial services industry for its supposed mortgage failures.

Indeed, the cases were brought on the basis of 64 subpoenas issued a year ago, giving the government an edge in its investigation that private investors suing the banks lack.

The Obama administration as well as regulators like the Federal Reserve have been criticized for going too easy on the banks, which benefited from a $700 billion bailout package shortly after the collapse of Lehman Brothers in the autumn 2008.

Much of that money has been repaid by the banks — but the rescue of the mortgage giants Fannie and Freddie has already cost taxpayers $153 billion, and the federal government estimates the effort could cost $363 billion through 2013.

Even though the banks already face high legal bills from actions brought by other plaintiffs, including private investors, the suits filed Friday could cost the banks far more. In the case against Bank of America, for example, the suit claims that Fannie and Freddie bought more than $57 billion worth of risky mortgage securities from the bank and two companies it also acquired, Merrill Lynch and Countrywide Financial.

In addition to suing the companies, the complaints also identified individuals at many institutions responsible for the machinery of turning subprime mortgages into securities that somehow earned a AAA grade from the rating agencies.

The filing did not cite a figure for the total losses the government wanted to recover, but in a similar case brought in July against UBS, the F.H.F.A. is trying to recover $900 million in losses on $4.5 billion in securities. A similar 20 percent claim against Bank of America could equal a $10 billion hit.

In a suit that identifies 23 securities that Bank of America sold for $6 billion, the company “caused hundreds of millions of dollars in damages to Fannie Mae and Freddie Mac in an amount to be determined at trial.”

The most interesting thing about these new lawsuits is that it is obvious that some of the most egregious practices like backdating  and robosigning are still being practiced even as these banks are making tons of fees from foreclosure. It’s hard to sympathize with an industry unable to correct it’s own bad practices.  This is especially true since so much tax payer money has gone to stabilize the results of these practices already.  This is from the American Banker and it’s damning.

Some of the largest mortgage servicers are still fabricating documents that should have been signed years ago and submitting them as evidence to foreclose on homeowners.

The practice continues nearly a year after the companies were caught cutting corners in the robo-signing scandal and about six months after the industry began negotiating a settlement with state attorneys general investigating loan-servicing abuses.

Several dozen documents reviewed by American Banker show that as recently as August some of the largest U.S. banks, including Bank of America Corp., Wells Fargo & Co., Ally Financial Inc., and OneWest Financial Inc., were essentially backdating paperwork necessary to support their right to foreclose.

Some of documents reviewed by American Banker included signatures by current bank employees claiming to represent lenders that no longer exist.

Many banks are missing the original papers from when they securitized the mortgages, in some cases as long ago as 2005 and 2006, according to plaintiffs’ lawyers. They and some industry members say the related mortgage assignments, showing transfers from one lender to another, should have been completed and filed with document custodians at the time of transfer.

“It’s one thing to not have the documents you’re supposed to have even though you told investors and the SEC you had them,” says Lynn E. Szymoniak, a plaintiff’s lawyer in West Palm Beach, Fla. “But they’re making up new documents.”

The banks argue that creating such documents is a routine business practice that simply “memorializes” actions that should have occurred years before. Some courts have endorsed that view, but others, such as the Massachusetts Supreme Judicial Court, have found that this amounts to a lack of sufficient evidence and renders foreclosures invalid.

Yves Smith at Naked Capitalism has been following this issue closely and continues to have harsh words for banks and banker apologists.

It’s disturbing at this juncture that Felix Salmon more or less falls in with the bogus bank party line on “memorializing” (he finesses it by saying they need to do it “transparently”). I suggest he try talking to an attorney who is expert in securitizations and does not have opinion letter liability on this matter. The contracts that governed these deals were immutable and set forth in precise detail the steps various parties to the deal were required to perform. That included strict cutoff dates for getting the properly prepared notes and mortgages to the securitization trusts. Long-standing precedents for New York trusts (virtually all RMBS trusts are New York trust) call for delivery to the trust to be as perfect as possible. Since all securitization through at least the late 1990s did deliver all the notes and mortgages to the trusts as stipulated, there is no excuse for later changes in practice (as in if the parties wanted to simplify procedures for reasons of cost or convenience, they needed to change the governing agreements to reflect that).

Put it another way: what about the Statute of Frauds don’t you understand? And while some judges have sided with banks, the robosigning scandal and greater media coverage of mortgage abuses has led many jurists to be much less bank friendly than they were a mere year ago. The trend is moving decisively against, not for, the banks.

The American Banker article, disappointingly, fails to discuss what these continued abuses mean. As we have stressed in repeated past posts, the failure to get the notes to the securitization trusts by the cutoff date is not fixable by any legitimate means. Do you think banks and law firms would continue to fabricate documents, particularly in the wake of so much harsh media and Congressional scrutiny, if they had any other way out?

The failure to get the notes to the securitization trust correctly does NOT mean that no one has the right to foreclose. It does mean that the party that can foreclose is someone earlier in the securitization chain who was paid for the note but in effect, no one bothered to collect it from him. No one wants that party to foreclose because, first, it would prove that the securitization did not have the note and investors were misled, and second, there is no way to get the proceeds into the trust for the benefit of the investors.

The FHFA actions against the banks rush to originate loans to package and dump is based in lack of due diligence which is central to the role of any lending institution. I’ve written a lot about this having been straight out of grad school and part of the secondary mortgage process back in the 1980s when the S&L crisis exploded.  My huge S&L was desperate to grab fee income any way it could to stay afloat.  Practices this time were based on giving people bonuses just to give high numbers.  That’s always a disaster policy from a quality stand point.

Buried in the filings themselves, however, is a damning portrait of the excesses of the housing bubble, when borrowers were able to obtain home loans without basic proof of income or creditworthiness, and banks appeared only too happy to mine profits taking the risky loans and assembling them into securities that could be sold to investors.

In the complaint against Goldman Sachs, for example, the suit says that “Goldman was not content to simply let poor loans pass into its securitizations.” In addition, the giant investment bank “took the fraud further, affirmatively seeking to profit from this knowledge.”

When an outside analytics firm, Clayton, identified potential problems in the underlying mortgages Goldman was turning into securities, the suit said, “Goldman simply ignored and did not disclose the red flags revealed by Clayton’s review.” Goldman Sachs declined to comment, as did JPMorgan Chase, Morgan Stanley, Credit Suisse and Citigroup.

Similar behavior in terms of warnings provided by Clayton transpired at Bank of America, Citigroup, Deutsche Bank, RBS and UBS, according to the complaints.

My hope is that this leads to some policy to compensate homeowners taken in by these schemes but I’m not holding my breath.  Speculators and gamblers should not be rewarded for causing homeless and lost wealth for honest people looking to live the American Dream.  My worry is that Timothy Geithner’s presence as Treasury Secretary will force policy that continues to prop up the wrong people. This entire spectacle is another example of the opposites reality we know seem to inhabit.  In this version of “It’s a wonderful life”, the cautionary tale is the ending.