GE by Myself
I watched Patrick and Sherri Brandon moving out from the home they'd
purchased in 2000, for $96,500. They couldn't pay the Mortgage and the
bank foreclosed. The bank took their bad mortgage to the Federal Home
Loan Mortgage Corporation and thanks to Tim Geithner, was made whole.
The Federal Home Lone Mortgage Corporation will take this property and
bundle it with other distressed properties and then auction them off
to(drum roll here)" the banks.
The banks will re-purchase these properties for .22 cents on the dollar and
offer them again for sale at $78,000. See how this works? The Brandon's
were foreclosed on for $45,000 and the FMLMC repaid the bank in full;
the government insurance policy recovers the .22 cents on the dollar or
$12, 3700. The only ones out here are Patrick & Brandy and their
children. Patrick and Brandy ran Spirit & Truth Design ware LLC.
They are also Ministers in a local church, but that doesn't matter much,
does it? As common as sands on a beach, blown away by the corporate
storm, a sale item on the discount rack of the Corporate -- Government
great super market of give away days.
If the bank sells the house and turns a profit, it kicks some money back
to Uncle Money Bags. If, in three years the bank hasn't turned a profit
Uncle Money Bags will cut the bank a rebate check, sound fair enough
for you? The bank forecloses on a family and throws them out into the
street and your government goes into a partnership deal and guarantees a
profit to the bank. It's kind of the reverse mirror image of Mitt's
Romney's forty seven percent, where the one percent are force fed,
goodies and freebies and you and I pay their freight.
How do you love a country that won't love you back? Robert Moses is
ninety two years old, he's a WW2 veteran with a heart condition and he
too, is facing foreclosure. Who would have thunk it, a WW2 veteran
trying to game the system by taking advantage of those poor unsuspecting
bankers. Or maybe, Robert Moses is the worst house flipper in American
history after having lived in his home for over four decades.
"Seniors have been set upon by these banks in a very, very vicious
manner," asserted Archbishop Franzo King of the St. John Coltrane
African Orthodox Church, who said he was himself a senior and lost his
home to foreclosure recently. "We have to shake off that cloak of shame
and put on our war clothes and fight these gangsters."
I ride these streets of Cleveland and it is like a scene out of a post
apocalyptic movie. Empty factories, empty buildings, just a mile from
where I sit, there is a three story office building as long as a
football field and as empty as a government promise, with its front door
just swinging wide open. I joke that when I get rich, I'm gonna buy it
and live there and it would be funny except, this isn't an accident.
This was a well orchestrated plan, to set us up, just to knock us back
It is a treason of the highest order regardless of the political party,
but what can you expect, but to be sold out like a discount Jesus marked
down to nineteen ninety five, silver on the barrel head. Yes indeed,
Soylent Green is made of people. They would make food out of us if they
could get away with it and put it together with the right marketing
plan. Soylent Green! Now in Jalapeno Cheese Flavor!
This is a little convoluted, but I want you to understand how this all
works in the Corporate Playhouse we call Washington, Patrick and Sherri
Brandon and Robert Moses"out, because the government is leveraged
against them. Mortgage rates are at 3.3 percent on a thirty year loan.
The loan originator earns 1% of that amount and then the bank has to
borrow the money from the Federal Reserve at 0.25% so the bank makes 2%
less their paperwork and overhead. Take Patrick & Brandy's house at
$78,000 the bank would make less than 2% or around $1,560 on a thirty
year mortgage. True, if the bank were making hundreds of these loans, I
suppose they could make it up on the volume, but then they would have to
hire more employees.
Instead, let's lend five billion dollars to GE to refinance their bond
debt. One contract, less paperwork and besides, GE is good for the
money. GE projects revenue over the next four years of $100 billion
dollars in profits. This is a bit complicated but, this is banksterism
and cannot be helped, if it wasn't banksterism, it would be simple,
GE recently sold seven billion dollars in corporate bonds and these
bonds will pay the holder 2.58 percent in interest. GE borrows $5
billion from the bank at record low interest rates, well under the rates
paid by Robert Moses and then GE uses its own profits to buy back stock
driving up its own stock price and then uses the borrowed money to pay
off maturing debts. The corporation is just rolling its debt over, and
actually only pays the difference between the maturing debt interest
rate and the cost of borrowing and if someone is willing to give you
money for nearly free, why spend your own money?
Now before we hang these suckers from the old sour apple tree, remember
this, there isn't a bank in America that could stay in business today by
just lending money to us peasants. We the people have been effectively
priced out of the loan market by low interest rates. Would you rather
make two percent of $78,000 or 1% of $5 billion?
Bloomberg - "It's a no-brainer," Jody Lurie, a corporate credit analyst
at Janney Montgomery Scott LLC in Philadelphia, said in a telephone
interview. "It costs nothing to issue, so why would they use cash on
hand" to pay off maturing obligations?
It's a puppy chasing his tail, GE plans stock buy backs and acquisitions
to raise their stock price. The only way left for the one percent to
make any money on their investments is on Wall Street; GE floats a check
for $5 billion to pay its debts then uses cheap money to raise the
piece of the stock. Is that enough, is it ever enough? No, of course it
isn't enough; it is never ever enough, never.
The financing arm of GE, GE Capital, sold $21.9 billion dollars in bonds
earlier this year. Investors who purchased the bonds have seen gains of
$150 million dollars the first day. If only you and I were lucky enough
to have been in that right place at the right time with that inside
knowledge of what and when to buy.
Bloomberg- "Most of the new cash generated through 2016 will be used to
reward shareholders through equity dividends, stock buybacks and
acquisitions, CEO Jeffery Immelt said. While free cash flow at the
company declined 21 percent to $20.7 billion last year, the money
available to reward equity owners and to use to reduce debt is above the
$16 billion recorded in 2009, Bloomberg data show."
Over one million people exhausted their unemployment in the second
quarter of the year, they are families and they are people, real people.
They are real people who used to live in that little house down the
street. Nearly five million Americans applied for first time
unemployment payments in the second quarter and became a part of the
churn, part of the slurry of the American non-working class. See how it
works, for wealthy corporations, there is all the money in the world.
For the rest of America, there is only the illusion of beneficent
Perhaps then, the civil war has already begun, perhaps this is the
nucleolus of the cell, in that infinite instant where one cell splits
and becomes two and then two cells become four. These four parts are
wealth and work, or the lack there of, plus two levels of perception
about it all, from a gut feeling or just a nagging thought to the real
mania fear of a bull struggling in a holding pen. Our lives become
changed and mutated by these experiences. A child born into wealth lives
in a far different life, a life filled with opportunities. While a
child born into this existence without wealth, is offered a life in the
new American, post industrial poverty, decorated with a continuous
subtle fear and a blankness of opportunity.
These are not the children of one America, but of two peoples. The
breath of their shared experiences becomes very small until, they'll
have little in common. Economic disparity becomes social disparity
becomes unsocial, becomes hostility, begets and begets. The cells
multiply and begin to form organs in the dying days of summer. It isn't
1984, its 2012, and it's scary as hell. It isn't the day to day
uneasiness but the apprehension of what is coming next, a pessimism
harbored for at least a thousand nights.
A disconnected national Congress, holding an 11% approval rating or an
89% disapproval rating which claims to have some legitimacy. What would
the corporate media say if Mahmoud Ahmadinjad or Hugo Chavez held only
an 11% approval rating?
A Presidential contest between two corporately anointed marionettes, as
their strings show in the lights. Neither with any sense of the people's
needs or a people's agenda, they'll see, only opportunity and wealth.
You see, this is more than skin deep, this short and sharp, long and
jagged, the separation of two peoples, the splitting of the cell. We can
see it now, the last act just coming into focus, to crash the economy
to get everything they've ever dreamed of, but it won't be enough,
because it is never, ever enough.
"Up ahead they's a thousan' lives we might live, but when it comes it'll on'y be one." -- John Steinbeck