Day Twenty Three: Turkey Pardoning

Somehow I have a feeling that this man will be unjustly left off of the list

Sarah Palin's latest embarrassing episode - obliviously answering questions during a turkey pardoning while turkeys are violently meeting their maker - reminds me that we're close to the Pardoning Sweepstakes. At the end of every presidency, the exiting incumbent releases a slew of well-connected rakes from their well-earned sentences. This, the ability of the President of the United States to pardon convicted criminals with impunity, is, perhaps, one the most overlooked Presidential powers. Before he left office, Bill Clinton went a little apeshit, pardoning 140 people including his ne'er do well half-brother.

The following noteworthy felons have received Executive clemency for their misdeeds:

• Richard Nixon - This crook was pardoned by Gerald Ford, apparently to help a nation heal. At least that's the official reason that was given. My belief is that this pardon was granted so that men in power would not bring their entire self-perpetuating system of political inequality into question. But I guess I'm just cynical like that.
• Caspar Weinberger - Pardoned by Bush the First. I was with my uncle when this happened. When the news broke, I remember him almost choking on his Baby Ruth and asking no one in particular, "Ain't that a bitch?"
• Elliot Abrams -Another Bushman. He and Weinberger were the most visible members of the Iran-Contra scandal.
  
• Marc Rich - A Bill Clinton Special. Rich (by no means a misnomer) was a brazen tax evader and oil runner. He was no fool, however, and he also contributed mightily to the Clintons and the Democratic party.
  
• Mark Felt and Edward Miller - Pardoned by Nixon. Deep throats, deep pockets and strong ties to right wing power.
• George Steinbrenner - Pardoned by Reagan. Loved by Nixon. The owner of my beloved Yankees was indicted on 14 criminal counts in 1974. I'm sure his countless donations to the Nixon campaign had little to do with his clemency.
• Edgar and Vonna Jo Gregory - Pardoned by Clinton. These pardons were literally bought and paid for in the form of $107,000 worth of unpaid loans to the one and only Hillary Rodham Clinton. But I'm sure Magic Johnson knew nothing of that when he campaigned for her.
  
• Jimmy Hoffa - Pardoned by Nixon. If he had any idea what was in store for him, he would probably have preferred to stay in the pen.

Next up? Among others, one Lewis Libby. Just as sure as I'm typing this sentence, Scooter will scoot by way of a Bush the Second pardon. And the wheel just keeps on spinnin.' Here's a thought: If both of them are still alive in 2016, maybe we can convince Obama to pardon Mumia.

Kenneth Lay Takes the Easy Way Out (Again)

Enjoy that executive suite in Hell, buddy!

Ken Lay, the dishonored founder of Enron whose deceit and double dealings cost 4,000 employees their jobs, and many of them their entire life savings, died of a massive coronary this morning.

I know some of you think that this heart attack is cause for celebration. I don’t. I think that the sweet release of death is too good for this disgraced, fraudulent scoundrel. I would have preferred a nice, lengthy jail term, let’s say about forty years. Besides, a heart attack is not a moral indictment. There are plenty of benevolent people who die of heart attacks. I know at least five people who have lived pretty decent lives and suffered the same fate as Lay. And when their turn came to meet their maker, they weren’t relaxing in one of their vacation homes or receiving the best medical care that money can buy.

In fact, I wonder how many former Enron employees have died, or seen a sharp decline in their health as a direct result of losing their jobs and their savings. I wonder how many of them will have to sit through the inevitable eulogies that try to make this asshole look like a tragic figure who, like Oedipus, was simply overcome by his circumstances. Lest you think I exaggerate, I offer you proof that some have already begun the post mortem exoneration process. From Bloomberg: “Lay's death robs his family of any chance to proceed with his appeal to attempt to clear his name by reversing the conviction,” said Houston defense attorney Joel Androphy, who followed the trial. “Legally, he may have gotten his good name back, but publicly he did not,'' he said. “People will view this as the ultimate sentence.”

So now you see where this is headed. If Kenneth Lay had murdered two or three people in cold blood, no one would be describing him, like Ben Richardson of the BBC, as a “fallen hero.” He would be accurately depicted as a piece of garbage. But Lay didn’t get his hands dirty. He simply ruined the futures of thousands of people and was fortunate enough to not have to spend one single day in prison because of it. Let’s not allow the media to turn this guy into Achilles.

Raising the Maximum Wage

Corporate Confetti

Last week, I ran across two stories that caught my attention. The first was a summary of an “analysis” that found that chief executives of large companies made 262 times the average worker's annual pay. This worked out to be about $42,000 a day. From the opposite end of the supposed free market, there came news that the Senate struck down a measure to raise the federal minimum wage. It currently stands at $5.15/hr, just as it has for the last 9 years. So, I guess this led me to the question that some of you may have. Why don’t we really give a damn that there are people out there busting their asses in exchange for a five dollar bill and fifteen pennies an hour?

First, an answer from the other side. I spoke with a diehard Republican regarding this issue and he seems to think that there’s really no need to raise the minimum wage. He argues that minimum wage positions are supposed to be occupied by teens who are just entering the workplace on a temporary basis while they secure their financial futures via education.

On its surface, this argument seems to hold water. Most of us have, at some point in our youth, worked at some slave-wage hole-in-the-wall that convinced us to pursue an education or gain some skills that would allow us to forever turn our backs on that kind of vocation. Indeed, many of us are currently fortunate enough to be able to share that experience with our children so that they can understand the value of perseverance. The major problem with this idea, though, is that there’re a ton of people who have either lost decent jobs for any number of reasons (to line the pockets of the already-rich, because positions were sent overseas, or, my favorite, the company decided to go in “another direction” – namely away from YOU) and who are forced to work wherever they can. Not many of us could wait for an adequate replacement if we were to lose our jobs tomorrow. More than likely, we’d have to find something and hold on to it just to get by.

Another major glitch in this line of reasoning is that it assumes that everyone has equal access to education, or to the development of marketable, transferable skills. It’s a comforting assumption that absolves those of us who don’t wish to complicate our lives with empathy, or who benefit, directly or indirectly, from the exploitation of low wage earners.

Also, there’s what many Realtors refer to as location. Some areas just have more jobs than others. So, for instance, if you’re unfortunate enough to have been working for a car manufacturer that decided to eliminate your well-paying job, and said car manufacturer was the only game in town, AND you’ve got a family a mortgage and a couple of car notes, you’re probably not going to find a quick, commiserate replacement for your paycheck at the local Piggly Wiggly.

But, to be honest, the fundamental problem that I have with this standard Republican objection to raising the minimum wage is that it blames the poor. The idea that “these people” are completely at fault for their condition is pervasive, (indeed, I can recall sitting in a college classroom listening to people make the case that society needs poor people) and is the primary reason why we haven’t seen a minimum wage increase in over nine years.

We Americans are a peculiar lot. Despite all sociological and personal evidence to the contrary, we avidly nurse the myth of the industrious, self-made millionaire who, despite all odds, pulled himself up by the bootstraps to control his own financial destiny. Even though the only things that separate many of us from $5.15 an hour are the whims of the faceless executives at the tops of the companies that employ us, we feel no solidarity with our low wage brethren. Since most of us assume that we’re safely lodged in the middle class, we believe that all we need to move up a notch or two and retire early (or at least comfortably) is some combination of pluck, perseverance or diligence. Horatio Alger would be proud of us.

In the meantime, as we continue to work longer hours for less pay, less leave, fewer benefits and vacation hours, and shrinking or completely nonexistent retirement funds, the corporate fat cats who are responsible for our deprivation are being rewarded to the tune of $42,000.00 a day. Ain’t life grand?

Housing Scams That Target Minorities and the Poor

I just came across some information that needs to be disseminated as far and wide as possible. It’s regarding mortgage scams that are being perpetrated against unsuspecting, enthusiastic families who are looking to purchase a home. The targets of these scams – usually minorities or poorer people who might have some credit problems – can be bilked for thousands of dollars. So far, I only have information on two of these cons. Do us all a favor and pass this along. Here’s the first:

1. Properties that can easily appraise higher than current market rates (new homes or revitalized neighborhoods) are found.

2. The "investor" goes to the seller with a proposal to purchase the property at a higher price than the selling price (or with a new home, it may be at the listing price). The investor places a secondary lien on the home before the home is sold to them, many times in another person's name. The mortgage broker (who is in on this too, he is selling the note to an unsuspecting company) has an appraiser who will appraise high to make the property look good to an underwriter.

3. The home is sold and the "investor" and the mortgage banker (and possibly the builder) take the money from the closing on the second lien and split it. The house sits for months (many times as long as a year) and eventually goes into foreclosure. This can take very long because of the huge number of foreclosures each company is dealing with.

So let's say a recently built house, which had been listed at $369,900, is done in this way. The investor puts a $40,000 lien on the home. They close on the house with no money down. They get $40k and split with the shady mortgage broker. They let it go into foreclosure, they have no reason to want to rent it....they have money in their pocket.

Many times, they are using identity theft to do this, taking someone's good credit to get the note. Model homes are particularly easy to do this way as well because they can appraise very high. The models are bought by the investor and then leased back by the builder. The builder is making payments, so the scam is hidden for a long time. The investor can continue to do this with many properties because they can show great payment history (since the payments are being made by the builder).

Here’s the second scheme. This particular one was executed on a black couple two houses down from where we live.

1. Owner/Investor takes over home and rents it out. Has renter put down a down payment with a lease-to-own agreement.

2. Then, the owner collects monthly rent from his tenants and makes no mortgage payments.

3. The house is foreclosed and the renters are forced out onto the street with complete loss of down payment and any equity above normal rent fees.