Matt Taibbi bombshell: Mortgage market was a giant criminal enterprise

By GottaLaff

Bombshell time:

It seems that a court has ruled that about half of the mortgage market has been run as a criminal enterprise for years, which would invalidate any potential forelosure proceedings for about, oh, 60 million mortgages. The court ruled that the electronic transfer system used by the private company MERS — a clearing system for mortgages, similar to a depository, that is used for about half the mortgage market — is fundamentally unreliable, and any mortgage sold and/or transferred through MERS can’t be foreclosed upon, at least not in Kansas. [...]

[S]uffice to say the lenders and the banks were extremely sloppy about their paperwork (at best — there is a fraud angle as well) and jammed up the system with missing and/or mismarked mortgage notes. Since a sale isn’t legal unless there’s full transfer of the physical note, a lot of the sales of mortgage-backed securities were not entirely legal, since the actual notes were often not transferred.

Pow.

H/t: Gr8RDH

Video- Matt Taibbi versus Maria Bartiromo on numbers of "uninsured"

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And looky here, CNN debunked Bartiromo's talking point!!

CNN Truth Squad: The uninsured — 46 million or 8 million?

The Statement: The number of people unable to get health insurance in the United States is only about 8 million, far lower than the total of 46 million that the Census Bureau says lack health insurance. Several people at congressional town hall meetings have cited the figure to argue that the sweeping congressional proposals to expand health coverage are unnecessary.

The Facts: The figure has been disseminated by the Pacific Research Institute, a conservative think tank that opposes the Obama administration's push for health-care reform. But Rowena Itchon, a spokeswoman for the institute, said the number was drawn from a 2003 study by the insurance company Blue Cross-Blue Shield.

(snip)

But the Census Bureau's survey — which found about 15 percent of the U.S. population uninsured — is the largest and most regular survey, said Karyn Schwartz, a senior policy analyst at the nonprofit and nonpartisan Kaiser Family Foundation. And according to its findings, "The bulk of the uninsured are U.S. citizens, they're from working families, but they have low incomes and would likely have trouble affording private coverage," she said.

The latest Census Bureau survey was published in 2008, based on data gathered in 2007. That survey does not take into account effects of the current recession, which officially began in December 2007.

The Verdict: In dispute — but most researchers who study health care issues rely on the Census Bureau's figures.

Could you imagine the children of a Bartiromo/Scarborough pairing? Smarmy and smug to the nth degree.

Matt Taibbi slams Michelle Bachmann on Hardball

I almost forgot about this until Heather reminded me. Truly beautiful.

Taibbi: You know it's funny this morning outside of Penn Station I saw a guy huffing glue out of a paper bag, and he was making more sense than Michelle Bachmann was making. I can't believe it. You need to pass a written test to drive a car in this country but I bet this woman can't even write her name in the ground with a stick. I mean it's just unbelievable to me that this person is in the Congress.

"It's about power. How Wall Street insiders are using the bailout to stage a revolution"

By GottaLaff

Illustration by Victor Juhasz

Thanks to our friends at BuzzFlash, we get a link to another brutal gem by Matt Taibbi. Fasten your seatbelts:

It's over — we're officially, royally fucked. no empire can survive being rendered a permanent laughingstock, which is what happened as of a few weeks ago, when the buffoons who have been running things in this country finally went one step too far. It happened when Treasury Secretary Timothy Geithner was forced to admit that he was once again going to have to stuff billions of taxpayer dollars into a dying insurance giant called AIG, itself a profound symbol of our national decline — a corporation that got rich insuring the concrete and steel of American industry in the country's heyday, only to destroy itself chasing phantom fortunes at the Wall Street card tables, like a dissolute nobleman gambling away the family estate in the waning days of the British Empire. [...]

[A]ll this happened at the end of eight straight years that America devoted to frantically chasing the shadow of a terrorist threat to no avail, eight years spent stopping every citizen at every airport to search every purse, bag, crotch and briefcase for juice boxes and explosive tubes of toothpaste. Yet in the end, our government had no mechanism for searching the balance sheets of companies that held life-or-death power over our society and was unable to spot holes in the national economy the size of Libya (whose entire GDP last year was smaller than AIG's 2008 losses).

So it's time to admit it: We're fools, protagonists in a kind of gruesome comedy about the marriage of greed and stupidity. And the worst part about it is that we're still in denial — we still think this is some kind of unfortunate accident, not something that was created by the group of psychopaths on Wall Street whom we allowed to gang-rape the American Dream. When Geithner announced the new $30 billion bailout, the party line was that poor AIG was just a victim of a lot of shitty luck — bad year for business, you know, what with the financial crisis and all. Edward Liddy, the company's CEO, actually compared it to catching a cold: "The marketplace is a pretty crummy place to be right now," he said. "When the world catches pneumonia, we get it too." [...]

He conveniently forgot to mention that AIG had spent more than a decade systematically scheming to evade U.S. and international regulators, or that one of the causes of its "pneumonia" was making colossal, world-sinking $500 billion bets with money it didn't have, in a toxic and completely unregulated derivatives market. [...]

People are pissed off about this financial crisis, and about this bailout, but they're not pissed off enough. The reality is that the worldwide economic meltdown and the bailout that followed were together a kind of revolution, a coup d'état. They cemented and formalized a political trend that has been snowballing for decades: the gradual takeover of the government by a small class of connected insiders, who used money to control elections, buy influence and systematically weaken financial regulations.

The crisis was the coup de grâce: Given virtually free rein over the economy, these same insiders first wrecked the financial world, then cunningly granted themselves nearly unlimited emergency powers to clean up their own mess. [...]

The mistake most people make in looking at the financial crisis is thinking of it in terms of money, a habit that might lead you to look at the unfolding mess as a huge bonus-killing downer for the Wall Street class. But if you look at it in purely Machiavellian terms, what you see is a colossal power grab that threatens to turn the federal government into a kind of giant Enron — a huge, impenetrable black box filled with self-dealing insiders whose scheme is the securing of individual profits at the expense of an ocean of unwitting involuntary shareholders, previously known as taxpayers.

Go read the rest here.

VIDEO-- On Hardball, Matt Taibbi: Rush Limbaugh is "a fat, pill-popping idiot"

By GottaLaff

The discussion started with Michael Steele's latest antics, but then Boss Limbaugh's name came up. My hero, Matt Taibbi, is worth the price of admission:

Visit msnbc.com for Breaking News, World News, and News about the Economy

Chris Matthews: "Why don't people like Rush Limbaugh?"

Matt Taibbi: "He's abrasive, he's divisive, he's a fat, pill-popping idiot... He's completely abrasive to the centrists people in this country [...] He would automatically win [the Democrats] hundreds of thousands of votes in every election."

Chris Matthews: "Well, I'm glad I asked."

Requiem for a Maverick

By GottaLaff

Illustration by Victor Juhasz

John McCain ran one of the most incompetent, schizo campaigns in history — and for that we owe him big-time

Matt Taibbi attended John McCain's concession speech. He brilliantly opines on that and much, much more (Apologies for the length, but how do you eliminate gems?):

The exodus, in fact, begins about eight seconds into John McCain's concession speech, which incidentally starts off on the classiest of notes: with the remaining crowd cursing the name of the new president. [...]

A few yards away, a pair of thirtysomething women in an advanced wine slog have gotten into a screaming match with a Hispanic cameraman. One of them, 33-year-old Kristen McEntire, is already spinning out a conspiracy theory to explain McCain's defeat, suggesting that the media called the election in some key states before the polls closed, tricking hordes of would-be McCain voters into staying home. Obama, she assures me, is a "novelty" who will "go away within the next couple of years."

"Um," I say. "Go away?"

"I just don't think America's ready for a black president," she explains. "And I don't mean that in a racial way whatsoever." [...]

The Republicans didn't just break the party — they left it smashed into space dust. They weren't just beaten; the very idea of Republican conservatism was massively rejected in virtually every state where large chunks of the population do not believe in the literal existence of a horned devil, and even in some that do. [...]

The ironic thing is that the destruction of the Republican Party was a two-part process. Their president, George W. Bush, did most of the work by making virtually every mistake possible in his two terms, reducing the mightiest economy on Earth to the status of a beggar-debtor nation like Pakistan or Zambia.[...]

But John McCain and Sarah Palin made their own unique contribution to the disaster by running perhaps the most incompetent presidential campaign in modern times. They compounded a millionfold Bush's legacy of incompetence by soiling both possible Republican ideological strategies going forward: They killed off Bush-style neoconservatism as well as the more traditional fiscal conservatism McCain himself was once known for by trying to fuse both approaches into one gorgeously incoherent ticket. It was like trying to follow the recipes for Texas 10-alarm chili and a three-layer Black Forest chocolate cake in the same pan at the same time. The result — well, just take a bite! [...]

Instead of a plan, they had an endless succession of dumb ideas scrapped at the 11th hour in favor of even dumber ones. [...]

McCain's shtick wasn't exactly that, but it was close. He was a war hero who married an heiress to a beer distributorship and had been in the Senate since the Mesozoic Era. His greatest strength as a politician had up until this year been his ability to "reach across the aisle," a quality that in the modern Republican Party was normally about as popular as open bisexuality. [...]

[T]hey stuck him with Pinochet in heels for a running mate.[...] In a way that even George W. Bush never was, she is Karl Rove's wet dream, the Osama bin Laden of soccer moms, crusading against germs, communism, atheism and other such unclean elements strictly banned by American law. [...]

[McCain] exited the campaign on his knees, all his dignity gone, having handed the White House to the hated liberals after spending the last months of the race with numb-nuts Sarah Palin on his arm and Karl Rove's cock in his mouth. Even if you wanted to vote for him, you didn't know who you were voting for. The old McCain? The new McCain? Neither? Both? [...]

[O]ur TV-age political contests have devolved into grotesque marathons of mawkish entertainment programming, intellectually on par with a season of Survivor, in which the command of the most powerful military force in human history is handed to that unscrupulous nitwit who over the course of 18 months succeeds in getting himself photographed the most times and in the most swing states bowling a strike or wearing a duck-hunting costume. [...]

This dumbed-down, degraded election process of ours has, in spite of itself and to my own extreme astonishment, brilliantly re-energized the American experiment and restored legitimacy to our status as the world's living symbol of individual freedom. We feel like ourselves again, and the floundering economy and our two stagnating wars now seem like mere logistical problems that will be overcome sooner or later, instead of horrifying symptoms of inevitable empire-decline.

For this to happen, absolutely everything had to break right. And for that we will someday owe sincere thanks to John McCain, and Sarah Palin, and George W. Bush. They not only screwed it up, they screwed it up just right.

Matt Taibbi: The Return of Rove

By GottaLaff

Read. Now. Excerpts:

One is tempted to call this brilliant tactics, except that it isn't brilliant, any more than pointing a gun at a Korean store owner is a "brilliant" way to make $135. One of the most remarkable aspects of Rove's career is the way the media consistently respond to being lied to, pissed on and manipulated by Rove: They stroke his already swollen gonads even more, hailing him as a singular political genius. [...]

Rove is not a genius, or even very clever: He's totally and completely immoral. It doesn't take genius to claim, as Rove ludicrously did last fall, that it was the Democrats in Congress and not George W. Bush who pushed the Iraq War resolution in 2002. It doesn't take brains to compare a triple-amputee war veteran to Osama bin Laden; you just have to be a mean, rotten cocksucker.

The reason Rove continues to survive is the same reason that Johnnie Cochran was called a genius for keeping a double-murderer on the golf course — because this generation of Americans has become so steeped in greed and social Darwinism that it can no longer distinguish between cheating and achieving, between enterprise and crime, and can't bring itself to criticize winners any more than it knows how to be nice to losers. He survives because an increasing number of Americans secretly agree with Rove's vision of rules, laws and "the truth" as quaint, faintly embarrassing rituals that only a sucker would let hold him back.

Rove's comeback is evidence that the attack on our civic institutions in the Bush years wasn't an isolated incident, something we can pin on a specific group of now-deposed politicians. It's a trend, a thing that grows in direct proportion to our greed and ignorance. We may be a country at war, facing one of the greatest financial meltdowns of all time. But in the end, the thing that could be our undoing is the kind of generalized boredom with legality and honor that empowers Rovian behavior. If we let it.

The truth hurts.

Matt Taibbi on what IWRC* Palin's candidacy says about America

By GottaLaff

This is what real writing is, distilling it down to the simple truth. Vintage Matt Taibbi:

The defining moment [of IWRC* Palin's convention speech] for me came shortly after Palin and her family stepped down from the stage to uproarious applause, looking happy enough to throw a whole library full of books into a sewer. In the crush to exit the stadium, a middle-aged woman wearing a cowboy hat, a red-white-and-blue shirt and an obvious eye job gushed to a male colleague — they were both wearing badges identifying them as members of the Colorado delegation — at the Xcel gates.

"She totally reminds me of my cousin!" the delegate screeched. "She's a real woman! The real thing!"

I stared at her open-mouthed. In that moment, the rank cynicism of the whole sorry deal was laid bare. Here's the thing about Americans. You can send their kids off by the thousands to get their balls blown off in foreign lands for no reason at all, saddle them with billions in debt year after congressional year while they spend their winters cheerfully watching game shows and football, pull the rug out from under their mortgages, and leave them living off their credit cards and their Wal-Mart salaries while you move their jobs to China and Bangalore.

And none of it matters, so long as you remember a few months before Election Day to offer them a two-bit caricature culled from some cutting-room-floor episode of Roseanne as part of your presidential ticket. And if she's a good enough likeness of a loudmouthed Middle American archetype, as Sarah Palin is, John Q. Public will drop his giant-size bag of Doritos in gratitude, wipe the Sizzlin' Picante dust from his lips and rush to the booth to vote for her. Not because it makes sense, or because it has a chance of improving his life or anyone else's, but simply because it appeals to the low-humming narcissism that substitutes for his personality, because the image on TV reminds him of the mean, brainless slob he sees in the mirror every morning.

Sarah Palin is a symbol of everything that is wrong with the modern United States. As a representative of our political system, she's a new low in reptilian villainy, the ultimate cynical masterwork of puppeteers like Karl Rove. But more than that, she is a horrifying symbol of how little we ask for in return for the total surrender of our political power. Not only is Sarah Palin a fraud, she's the tawdriest, most half-assed fraud imaginable, 20 floors below the lowest common denominator, a character too dumb even for daytime TV — and this country is going to eat her up, cheering her every step of the way. All because most Americans no longer have the energy to do anything but lie back and allow ourselves to be jacked off by the calculating thieves who run this grasping consumer paradise we call a nation. [...]

Right-wingers of the Bush-Rove ilk have had a tough time finding a human face to put on their failed, inhuman, mean-as-hell policies. But it was hard not to recognize the genius of wedding that faltering brand of institutionalized greed to the image of the suburban-American supermom. It's the perfect cover, for there is almost nothing in the world meaner than this species of provincial tyrant. [...]

The great insight of the Palin VP choice is that huge chunks of American voters no longer even demand that their candidates actually have policy positions; they simply consume them as media entertainment, rooting for or against them according to the reflexive prejudices of their demographic, as they would for reality-show contestants or sitcom characters. [...]

The truly disgusting thing about Sarah Palin isn't that she's totally unqualified, or a religious zealot, or married to a secessionist, or unable to educate her own daughter about sex, or a fake conservative who raised taxes and horked up earmark millions every chance she got. No, the most disgusting thing about her is what she says about us: that you can ram us in the ass for eight solid years, and we'll not only thank you for your trouble, we'll sign you up for eight more years, if only you promise to stroke us in the right spot for a few hours around election time.

H/t: Chris

*"In What Respect, Charlie?"