Prevent Foreclosures? Not the Treasury Dept.

Neel Kashkari testified before the House Oversight Subcommittee of Domestic Policy on Friday. Kashkari touted the Treasury Department's "accomplishments" in terms of T.A.R.P.'s effectiveness and pretended to answer questions of committee members.

(When he said "I am happy to answer your questions," I wanted to ask him how much he paid for his suit, likely more than an average American makes in two weeks.)

Dennis Kucinich, the subcommittee chairman, ripped into Kashkari like a rabid dog or a Diet Coked-out soccer mom after a questionable call. Kucinich took the Treasury Department to task for its decision to give preference to Wall Street while turning a blind eye to Main Street. With millions of people already in foreclosure, and millions more on the verge, Kucinich chastised Kashkari for the Treasury Dept's decision to give banks free reign for spending their bailout funds, rather than requiring banks to direct the funds to preventing home foreclosure.

Kucinich linked the Treasury Department's approach to the Republican favored trickle down economics and noted that this policy too often leaves the poor poor and, in this case, homeless. Kashkari bobbed and weaved his way through Kucinich's questions and stuck to the Treasury Department's line that maintains they spent the money Congress gave them, even though they promised Congress to spend it on something else.

The ranking member of the subcommittee, Darrell Issa, asked point blank, whether Kashkari had lied to Congress. Kashkari's response blamed Sec. of Treasury Paulson for the decision. Great, Kashkari's the only one who has a buck and he's passing it.

Dennis Kucinich lays the smack down

Chairman for the House Oversight Subcommittee on Domestic Policy, Dennis Kucinich, took Sec. of Treasury Hank Paulson to task Friday afternoon. Ripping into the Treasury Department's decision to override the intent of Congress's T.A.R.P. (a.k.a The Bailout) legislation.

How the money should be used isn't laid out in specific terms. But both the committee chairman and Rep Darrell Issa (R-CA) were furious at the Treasury Department's disregard for the crisis so many American homeowners face: losing their homes.

Elijah Cummings (D-Maryland) noted that AIG doesn't in fact understand how the rest of America is fairing amidst this credit crisis as it continues to ask for congregational funds. AIG continues to pay bonuses and lavish salaries to its employees, and has yet to announce expansive job cuts. The Treasury Department, Cummings alleges, that it is the lack of oversight and "inviable hand" market aproach has cost the America its status as an economic juggernaut. "This administration," said Cummings, "wants to privatize Wall Streets gains and socialize Wall Streets losses." This, in his eyes, and judging form the tone of the comments the rest of the subcommittee, is unacceptable.

Lies the Financial Industry Told Me

"I believe the programs that we currently have in place will handle the majority of the default situations," Michael Gross said Wednesday during a House hearing on preventing mortgage foreclosures. Gross currently serves in Bank of America’s Loan Administration, as the Managing Director of Loss Mitigation. He bares the typical, self-assured confidence of white men of a certain age (think George Bush, but slightly more articulate).

As he, and other financial gurus, answer questions from members of the House, he shows no signs of guilt or shame. Nor does he offer more than wordy subterfuge: an olive branch for the representatives to take back to their districts. Thanks, but no thanks Mr. Gross.

Gross, along with representatives of JPMorgan Chase, American Securitization, Citi Financial, claims homeowners know they are in a position to negotiate with their loan provider. However, the increase of foreclosures presents a stark contrast to his claim. And when you look at the details of Gross’s promise to negotiate with consumers in, or on the verge of, default, you’ll see that if other credit problems exist then financial instructions rescind the renegotiation offer.

The financial institutions know the majority of Americans carry between $8,000 and $13,000 in credit card dept alone. They’re the ones that set the terms. If credit card debt, with default interest rates on credit cards standing on average (for first time offenders) as more than 18%, precludes individuals from the minimum terms required for renegotiation it seems unlikely that owner occupied homes will be saved as a result of the so called bailout.

House Hearing: Preventing Home Mortgage Foreclosures

Banking executives faced both long winded and technically specific questions Wednesday, as several representatives of the home lending fiscal sat before members of the U.S. House of Representatives.

Of primary concern was the issue of standardization that would extend default requirements beyond those currently required of Fannie Mae and Freddie Mac. Homeowners may renegotiate their mortgage or request modification of their home loan only after they have missed three mortgage payments but have yet to file for chapter 7 or 13 bankruptcy.

The issue here is two fold. First, the inchoate manner in which some homeowners are currently receiving help via private banks needs standardization. Second, federal refinancing allows renegotiation after three late mortgage payments and that help, when it comes as all, is often too late.

Representative Jackie Speier (D-Ca, 12 District) noted the fallibility of a system that lets lenders off the hook: "When you don't have any skin in the game it's easy to conduct yourself in a risky and irresponsible manner." True that.

Fast Company: Could Recycling Invade Your Privacy?

Could recycling invade your privacy? In short, the answer is yes!
An article by Anya Kamenetz ("Attack of the Green-Tech Geeks"), in this month's Fast Company, discusses several technologies used to quantify--and improve--"green" living. While environmentally useful such technology may fundamentally alter life as we know it.

The technology targets large municipalities and other corporate types that need to predict energy usage but it has a broader affect on residential consumers. According to the article: "Thirty five years of studies about home energy show that simply seeing the impact of your behavior in real time cuts consumption by %5 to %15."

That said, Agilewaves offers a product that is installed in homes, by homeowners, to monitor energy use, including water, electricity and natural gas. The information can be accessed in real time by customers and details such measures as whether clients showered during peak energy periods.

Take for instance a vacationing family. The system would detail zero, or significantly reduced, use of water, electricity and gas. A hacker might find this information useful for, say, throwing a house party, if not staging a robbery. A lot of private information would be chronicled and archived via such technology, including behavior patterns, say, when a family eats dinner or how long they spend online or in front of the TV. Were such information to be sold, and I'm not saying it will, it would prove advantageous to a variety of marketers.

Though you might find the ability to monitor your household's energy use via Blackberry a money saving tool, you should remember to keep in mind that you are not the only one privy to this information. Take the technology developed by RecycleBank for instance. The company sells its technology to your city, who then embeds chips into your trash and recycling bins. These chips measure the amount of refuse you produce and how much you recycle. Trash and recycling trucks are also equipped with readers that transmit the chip's data to a remote server. There, an algorithm converts the weight of your trash and recycling into points and measures things like your carbon foot print. Sure you can log in and view this information, but it could also be used to hike your rate or fine you for producing too much waste.

The kicker is, the trash and recycling companies don't have to ask your permission to install the chips! Environmentally sound may not always sound acceptable to those who value their privacy.

Sarah Palin: What Next?

Bleak weather and crowds of loyal supporters greeted Alaska governor Sarah Palin upon her return home to Anchorage on Wednesday. Gov. Palin's enthusiastic welcome home in Alaska mirrors the enthusiasm of McCain insiders who wished her farewell While Palin denies reports of tension between her and Senator McCain, the rumors continue.
At this point Sarah Palin might find life as Alaska's governor a bit dull. The fever for her remains hot and she should take full advantage of it. She could do a number of things that would allow her to satisfy the many republicans' insatiable desire for her.

For instance, Palin could easily jump into some stilettos and a slinky little dress and do Dancing with the Stars. While her fans may not have numbered enough to elect her veep, they may be able to keep her on Dancing with the Stars through the finale. Perhaps Todd could get on the show too, though he may be a little too lumbering to glide across the dance floor as gracefully as his wife.

I'm waiting to see the E Network or FoxNews develop a reality show around the Palins. They've got everything a reality show needs. Meet Todd: champion snowmobile racer, small business owner, and father of five. His son Track: good looking, 18 year-old, serving in the military. The three girls: Bristol, an unwed, pregnant, teenager; sisters Willow, 14, and Piper, 7. And let's not forget baby Trig, the "special needs" child she spoke about often on the campaign. And of course Sarah Palin, herself, the outspoken, oil-hungry, hockey mom who may be credited for being the dead weight that sunk McCain's political career in favor of forwarding her own.

To recap: the family has a retarded baby, a solider, a snowmobile racer, a pregnant kid, and a mother who should never be a heartbeat away from the presidency. The show could be a gentle mix of "The Kardashians," (self absorbed, stupid and fashion obsessed), "Denise Richards: It's Complicated" (a pretty hick, prone to swearing and tantrums), and "The Osbornes" (teen rebellion, befuddled parenting and incoherence). I like it. Where's Fox's development department when they're needed.

Buses, Buses and More Buses

In the past two days I've been on ten buses. I've spent three hours on the bus, and that's all in San Francisco. Back and forth. Back and forth.