Posted by AzBlueMeanie: There are two measures Congress must deal with in short order: extension of unemployment benefits and the Obama middle class tax cuts. But Republicans stand in opposition to Congress doing anything unless they get the Bush tax cuts for the "two percenters" extended – at a cost of $700 billion in additional defict … Read more

Posted by AzBlueMeanie: Last night Rachel Maddow destroyed any remaining shred of credibility of Senator John McCain with video of John McCain testifying against — John McCain. "One of my favorite political conflict stories of all time is the sharp, bitter, divisive, at times inhumanely polarizing political conflict between John McCain and John McCain." Transcript … Read more

Posted by AzBlueMeanie: Sen. Jon Kyl (Ariz) has been his party's leading voice on the new START treaty and has pressed the administration to commit to a major modernization of the country's weapons labs in exchange for approval of the pact. All eyes on Sen. Kyl as Obama presses nuclear treaty: The administration sent a … Read more

Posted by AzBlueMeanie:

A congressional oversight panel is set to warn on Tuesday that a widespread problem of flawed and fraudulent foreclosure paperwork could upend the housing market and undermine the nation's financial stability, just as the issue is coming under greater scrutiny this week in Washington. Don't underestimate foreclosure crisis, watchdog to warn:

The report, issued by the Congressional Oversight Panel, which monitors the government's bailout program, marks the first time a federal watchdog has weighed in on the nationwide foreclosure mess.

The panel echoed concerns raised by consumer advocates and financial analysts, who have said that although the consequences of the foreclosure debacle remain unclear, the problems could throw into doubt the ownership not only of foreclosed properties but also the millions of ordinary mortgages that were pooled and traded by investors around the world.

The report is scheduled to be released [this] morning, just before the Senate Banking Committee holds a hearing on the matter and as lawmakers are considering several legislative responses.

The spotlight on the foreclosure process has anxious financial executives mobilizing on Capitol Hill. A financial lobbyist said senior executives have been meeting with lawmakers and their staffers, and industry groups are planning letter campaigns aimed at preventing any aggressive new legislation.

"Everyone's very nervous about what's going to happen this week," said another industry official, who spoke on condition of anonymity because his firm has a stake in the outcome. "We have all hands on deck."

The banksters of Wall Street want "business as usual" to continue, i.e., governments to turn a blind eye to lenders' failures to comply with state laws pertaining to mortgages and foreclosures and federal laws pertaining to securitized mortgage investment devices such as derivatives. They want to keep churning mortgages for profits. Laws are for "little people" to comply with — homeowners being forced out of their homes in foreclosures, in some cases where there has been no default and even where the mortgage is paid off.

Some lawmakers want to resurrect legislation that would give bankruptcy judges the power to order lenders to reduce the principal that homeowners owe. ["cram-down" rule] Others are pushing for some big banks to spin off their mortgage-servicing arms to avoid conflicts of interest. There's also discussion of the federal government replacing the industry's current system for tracking mortgages with one that would be subject to federal regulation.

Not to worry say the banksters of Wall Street. "The risk is small that a bill gets through," the financial lobbyist said. But, he added: "We are taking it very seriously."

By Michael Bryan Every time I turn on the radio, watch TV, or read a GOP-leaning website, I hear the same nonsense: the GOP has won a mandate in the mid-term. My ass. Voters were pissed about the job Democrats were doing, and I can't say I disagree with them. What I do disagree with … Read more

Posted by AzBlueMeanie: The editors of the Washington Post today join the editors of the New York Times from last week in an editorial opinion critical of John McCain and DADT. Gays in the military: THE LAST POSSIBLE rationale for maintaining the military's "don't ask, don't tell" policy appears to have been pulverized. The Post's … Read more

Posted by AzBlueMeanie: Jon Perr weighs in with his view of the Catfood Commission in PERRspectives: Obama Should Repeat Bush's History on Deficit Commission (emphasis added): Karl Marx famously said that historical events occur twice: first as tragedy, then as farce. But when it comes to his debt commission, President Obama is in danger of standing that … Read more