bills_fan Posted October 7, 2010 Share Posted October 7, 2010 One of the first things I am totally on board with the President on! This is good! A little background... The House passed the Interstate Recognition of Notarizations Act of 2010 (HR 3808) and it was rushed through the Senate. The practical effect of this is outlined by Denninger.... Not all that long ago a similar bill was proposed. It essentially nationalized what had been up until then a State's Right - usury laws. These laws set maximum interest rates, and were state-specific. The credit - that is, bank - industry argued that everyone should have the right to have banking and credit cards on consistent terms across state lines, and that this would promote interstate commerce. They won. What happened? The Banks then shopped for a couple of states where they could bribe the legislature with a bunch of call centers and jobs. They found South Dakota along with a handful of other states, which had no usury law at all. By doing this we welcomed into the world the 39% credit card interest rate and destroyed the 50 State's ability to discern that this was an abusive practice that they should not allow anyone to subject their citizens to. Now the banks are at it again, and they will once again abuse the law. Once this law is passed they will find some state that needs jobs, and bribe the legislature to enact ridiculously loose notary laws, such that a notary signature will become effectively meaningless. This law will force every other State in the Union to accept that signature even though it signifies nothing. Denninger's full article. Basically, this boils down to letting the banks could avoid suit from homeowners in foreclosure for shoddy documents and investors for being sold shoddy paper as MBS and MBS trust certificates. The trail is fairly complicated, but the point is that this would have made the shoddiest paper acceptable in all 50 states as long as the notarization was good in one of the states (of course, the one with the lowest standards). Going forward, it would have absolved paperwork mistakes at the banks and made it almost impossible to buy a home with clear title. Good for Obama...can't believe I just typed that! Link to comment Share on other sites More sharing options...
Magox Posted October 8, 2010 Share Posted October 8, 2010 One of the first things I am totally on board with the President on! This is good! A little background... The House passed the Interstate Recognition of Notarizations Act of 2010 (HR 3808) and it was rushed through the Senate. The practical effect of this is outlined by Denninger.... Denninger's full article. Basically, this boils down to letting the banks could avoid suit from homeowners in foreclosure for shoddy documents and investors for being sold shoddy paper as MBS and MBS trust certificates. The trail is fairly complicated, but the point is that this would have made the shoddiest paper acceptable in all 50 states as long as the notarization was good in one of the states (of course, the one with the lowest standards). Going forward, it would have absolved paperwork mistakes at the banks and made it almost impossible to buy a home with clear title. Good for Obama...can't believe I just typed that! Yeah well, I can tell you his motives weren't what you think it was. I will leave it at that... Link to comment Share on other sites More sharing options...
OCinBuffalo Posted October 8, 2010 Share Posted October 8, 2010 (edited) How about this as an explanation: 1. Obama thought they might be able to catch Republicans in a trap right before the election, and have something, finally, on the record that they would be willing to run on. They can't run on their record as it stands, and they are desperate. 2. So, they set up this bill and expected to nail Republicans. This way, they could say "See? Republicans are voting for the big banks, and against the people, etc.", or something similar. 3. Republicans outsmarted them somehow and sniffed out the procedural chicanery, and the thing sails through Congress. 4. Since it's such a goofy thing, Obama, in a panic, decides to pocket veto the bill, but... 5. He forgets that the Senate is still in session, and therefore he can't pocket veto it. 6. And now they are trying to play the whole thing off. 7. They can't blame the Republicans for any of this, since they are in control of all the procedure. I doubt we will ever be able to confirm or deny any of this fully, and it's just my theory. But how else do you explain the pocket veto gaffe, on legislation that was pushed by Democrats, after an unexpected near unanimous vote, on legislation pushed by Democrats? Something is rotten in the state of Denmark. I don't know the legal/procedural minutia well enough to say exactly, but this whole thing doesn't make any sense. Edited October 8, 2010 by OCinBuffalo Link to comment Share on other sites More sharing options...
KD in CA Posted October 8, 2010 Share Posted October 8, 2010 They can't blame the Republicans for any of this, since they are in control of all the procedure. What?? You mean the GOP hasn't been running Congress for the last 4 years??? Someone should really alert the media. Link to comment Share on other sites More sharing options...
bills_fan Posted October 13, 2010 Author Share Posted October 13, 2010 Folks are waking up....this could be a very big problem, very quickly. Instant Detonation Link to comment Share on other sites More sharing options...
GG Posted October 13, 2010 Share Posted October 13, 2010 Folks are waking up....this could be a very big problem, very quickly. Instant Detonation Riddle me this quote by Rattigan, "Dodd works to the benefit of the banks, and not to the benefit of the financial system." Uhm, what is the financial system without the banks? Link to comment Share on other sites More sharing options...
bills_fan Posted October 13, 2010 Author Share Posted October 13, 2010 Riddle me this quote by Rattigan, "Dodd works to the benefit of the banks, and not to the benefit of the financial system." Uhm, what is the financial system without the banks? Oh, Rattigan is an idiot, no question. But the point he makes about the banks having to swallow the bad paper is legit. Link to comment Share on other sites More sharing options...
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