Jones writes: "We must not forget the more than 14 million homeowners (one in five) whose homes are underwater, beneath a crushing total $700 billion in negative equity. We must not forget the more than 4 million families who have lost their homes."
Environmental activist, writer and former White House advisor Van Jones. (photo: Ethan Miller/Getty Images)
Bank Settlement: $25B Down, $675B to Go
10 February 12
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his week a $25 billion settlement was announced in which big banks pay up for a portion of their bad deeds in the home foreclosure crisis. Everyone is trying to determine whether this is a good deal or a bad deal.
Here is how I score it. This deal represents small progress on a small problem. Now it's time to make big progress on the big problem.
Don't count on finding many good points in the deal itself, because there aren't a lot. In fact, the main win can be found in what's NOT in the deal.
A truly horrible deal would have let the banks write a small check and then seal the door on all further investigations and pursuits of accountability. This deal does NOT do that. Because this settlement limits legal immunity for banks, this deal does not automatically let the banks off the hook for all of their wrong-doing. Except for a few issues like robo-signing, state attorneys general can still fight for more compensation and relief for the banks' victims. Government officials can proceed with investigating and prosecuting banks for their role in crashing the economy and the housing market. In other words, the door is still open to solve the much bigger problems we face. Our fight for justice can, and will, continue.
That is small comfort, perhaps, but it was hard won. So we should honor the hard work of New York State Attorney General Eric Schneiderman, California Attorney General Kamala Harris and others, including many grassroots progressive organizations like New Bottom Line. They fought courageously to prevent a total sweetheart deal for the banks. This outcome is the result of determined activism, and without this heroic effort, the deal would have been drastically worse.
That said, there is a reason why many progressives and housing advocates are furious, and why many struggling homeowners are left wondering, "How does this help me?"
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Millions of homeowners and families are still suffering under the tremendous weight of a debt blanket that is smothering the economy.
This $25 billion settlement helps only a fraction of those homeowners and addresses only a very limited set of fraudulent behaviors. A number of homeowners will get some cash payments, but the amounts are negligible compared to the pain and injustice they have experienced. The actual total cash paid out by the banks is only $5 billion dollars, to be split among the nation's largest banks -- hardly a stiff penalty considering that the six largest banks in the U.S. paid $144 billion in bonuses last year. And enforcement mechanisms remain murky.
We must not forget the more than 14 million homeowners (one in five) whose homes are underwater, beneath a crushing total $700 billion in negative equity. We must not forget the more than 4 million families who have lost their homes. We must not forget the millions of families who are in some form of foreclosure proceedings on this very day.
These are the Americans who have suffered and continue to suffer. They are worried today, like yesterday, whether they will still have a home to live in tomorrow. They are the ones who must choose every month whether to pay bills or to feed their children.
Here are three things that must happen next:
1) The U.S. Department of Justice and state attorneys general must investigate and prosecute banks more aggressively than ever, at a much larger scale than anything that has happened to date.
2) We must force banks to make massive principal reduction of hundreds of billions of dollars, to immediately relieve the 14 million homeowners in the country who have underwater mortgages.
3) We must change laws and regulations to prevent this kind of crisis and fraud from ever happening again.
Two weeks ago, I called for hundreds of billions in principal reduction for homeowners. This would free up Americans to start new businesses, spend money on worthwhile products and services, and invest in their children's futures. We still need to address the $700 billion in negative equity, which in turn is only part of the nearly seven trillion dollars in total lost equity created by the banks' irresponsible, and in some cases, illegal practices.
We need a solution at the scale of the problem, so that families can get back on their feet, the economy can get working, and people can reach for their American dreams again instead of watching them drown.
That is why I say: $25 billion down, $675 billion to go.
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There is always a way around a safeguard, but unless guns are being used they should be secured. Perhaps legislation to make a gun safe part of gun purchase and penalities levied against owners that don't secure thier guns appropriate to the challenge of that environment, i.e., man living alone might be fine with a combo safe, whereas a family man with frequent vistors might need a gun safe with a lock and interior combination safeguard or a gun locker away from the home enviroment. There will always be accidents, but shall we take away every single privledge that has a dangerous component to it? What kind of freedom is that?
They are not called "scatter guns" for nothing.
There is much more going on here and he only paints a brief picture.
I have two personal stories. My first experience with a gun in the home was when my little brother decided he wanted to learn to hunt. He got a gun, took safety courses offered by NRA. The first family argument he took it out and pointed it at my brother. Guns represent a sense of power and as my law enforcement friend told me, that sense of power is seductive. Secondly, a friend's husband had brain cancer and the treatment made him violent. She and her children snuck his weapon collection out of the home and into a locked closet of an uncle in another town. Their patient never remembered his gun collection but continued to get more violent. When managing care,keeping firearms around is a chance should never be taken.
There's a disease of power in this country because guns have replaced personal wit and character. The NRA sells guns with the simple solution to personal power.
My little story is of being shot next to my eye with a bb gun by a cousin who was completely indifferent to what he had done. The play and the rowdy tempers that can flair can easily be a precursor to the next stage of real rage with a real gun.
Then there are the two little boys who found their father's pistol in the glove compartment of the car, and the little brother was killed. Jeb was his name. No words will describe the brother's lifelong guilt and the sorrow.
A small boy found a high-powered rifle abandoned in a Cinema seat in the city of Tillamook with the SAFETY OFF!
The kid had the sense to not touch the weapon but went and told his dad, who in turn called the police. But imagine how many kids might have messed with this lethal object planted with what looked like lethal intent by some deranged copycat in the immediate wake of the Connecticut massacre.
Gosh, is the equally deranged NRA goin' to arm not only teachers and have armed guards in schools but tool-up cinema employees too? It'd save people having to go to the movies to watch violence -they could just have shooting matches in the aisles and over the seats. The last one standing gets a free super-sized drink and popcorn!
Exactly!
And it's the same linked reactionary forces who want to destroy public education and make "learning" the realm of the privileged and keep the sacred market forces strong by passing it down through their fortunate spawn.
But there are always rebels and those who insist on looking beyond the box they are born into. They can't keep everybody down!
If a kid has legs long enough to reach the pedals, it is time to learn to drive and understand that vehicle and what makes it run. Those lessons also teach the responsibility of the privilege of driving. And so on in everything possible to teach them. As for schools, it could be there will be group home schooling as there was in communes of the past, should the elites running this country destroy all good things.