Central to the Tea Party revolt was a fierce reaction against the bailout of the big banks.
Will the Republican Congress now spit that sentiment in the eye and push through another bailout, this time by overturning centuries of property law and nationalizing what has always been governed by state law?
Will the power of their donors overwhelm the power of their voters and the platitudes of their ideology?
The Third Way, one of a gaggle of outlets for the corporate wing of the Democratic Party, has just published a paper “Fixing Foreclosure-gate” urging that Congress take over and overturn state laws on mortgages and property. Increasingly local courts are choking on the reality that the banks trampled all property law in their rush to market mortgage backed securities. Now as they try to foreclose on millions of homeowners, they can’t establish who has the right to foreclose because they haven’t kept the records required by law. The bank position is “nevermind,” let us foreclose anyway.
That’s essentially what the Third Way is saying. Only problem is without clarity about the title and who has the right to foreclose, the courts — at least those that aren’t bought and sold — can’t force someone out of their home.
Good reporting on this has been done by Yves Smith, Mike Konczal, Marcy Wheeler, and David Dayan. Mike Lux calls out the Third Way in the HuffPo.
Get ready for a brutal battle. Both the Bush and the Obama administrations and the Fed have done whatever they could to rescue the big banks without reforming them, throwing trillions into the effort. Now the administration and Congress will be asked to trash the law — retroactively — in the same cause. Will Rs stand up for established property law? Will Ds battle to force a deal — with mortgages getting written down to current value as price of cleaning up the mess? Or will the big banks, what Simon Johnson dubs the six most dangerous government sponsored establishments, have their way? Stay tuned.
Help us Prepare for Trump’s Day One
Trump is busy getting ready for Day One of his presidency – but so is Truthout.
Trump has made it no secret that he is planning a demolition-style attack on both specific communities and democracy as a whole, beginning on his first day in office. With over 25 executive orders and directives queued up for January 20, he’s promised to “launch the largest deportation program in American history,” roll back anti-discrimination protections for transgender students, and implement a “drill, drill, drill” approach to ramp up oil and gas extraction.
Organizations like Truthout are also being threatened by legislation like HR 9495, the “nonprofit killer bill” that would allow the Treasury Secretary to declare any nonprofit a “terrorist-supporting organization” and strip its tax-exempt status without due process. Progressive media like Truthout that has courageously focused on reporting on Israel’s genocide in Gaza are in the bill’s crosshairs.
As journalists, we have a responsibility to look at hard realities and communicate them to you. We hope that you, like us, can use this information to prepare for what’s to come.
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In addition to covering the widespread onslaught of draconian policy, we’re shoring up our resources for what might come next for progressive media: bad-faith lawsuits from far-right ghouls, legislation that seeks to strip us of our ability to receive tax-deductible donations, and further throttling of our reach on social media platforms owned by Trump’s sycophants.
We’re preparing right now for Trump’s Day One: building a brave coalition of movement media; reaching out to the activists, academics, and thinkers we trust to shine a light on the inner workings of authoritarianism; and planning to use journalism as a tool to equip movements to protect the people, lands, and principles most vulnerable to Trump’s destruction.
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