Category Archives: Financial crisis

Obama lies from Stepanie Cutter, Obama campaign spokesperson lies about Obama job growth compared to Bush and Reagan, Bureau of Labor Statistics

Obama lies from Stepanie Cutter, Obama campaign spokesperson lies about Obama job growth compared to Bush and Reagan, Bureau of Labor Statistics

“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984″

“And if all others accepted the lie which the Party imposed
–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″

“Propaganda must not serve the truth, especially not insofar
as it might bring out something favorable for the opponent.”
… Adolf Hitler

From News Busters August 26, 2012.

“‘Fact Checkers’ AWOL After Obama Spokesperson Lies About Jobs Created Under Reagan and Obama”

“Obama campaign spokesperson Stepanie Cutter, appearing on MSNBC earlier this week, claimed that “over the past, you know, 27 months we’ve created 4.5 million private-sector jobs. That’s more jobs than in the Bush recovery (or) in the Reagan recovery.”

A Thursday Investor’s Business Daily editorial plaintively asked: “Where are those allegedly unbiased fact-checkers when you need them?” As will be seen shortly, the answer is “AWOL.”

First, to debunk Cutter’s lie (source: Bureau of Labor Statistics):”


“Thanks to the graph, yours truly doesn’t need to bore readers with lots of numbers. Outside of very small blips, there is virtually no point on the above graph where the trajectory of job growth under Obama is as high as that seen under Reagan, even though the Reagan-era workforce was about one-third smaller. If done on percentage of workforce, the slope of the Reagan-era ascent would be even steeper.

For those who crave some numbers — In its first 37 post-recession months, the economy under Reagan added more than 9.8 million nonfarm payroll (NFP) jobs, over 7 million more than the 2.7 million added under Obama. To replicate the Reagan-era performance, the economy under Obama would have needed to add over 14 million jobs since the recession’s end; it has really added less than 20% of that. The Reagan-era private sector margin is over 5.7 million jobs.

And of course, there’s an obvious point to be made about the unemployment rate, as IBD noted:

What’s more, after 29 months of allegedly stellar job growth under Obama, the jobless rate is still 8.3%. By this point in the Reagan and Bush jobs recoveries, the unemployment rate was 7.2% and 4.9%, respectively.
If we were one of those fact-checking organizations, we’d give Stephanie Cutter the “Lying Liar from Liersburg” award.
A Google News search done this morning on “Stephanie Cutter Reagan” (past week, not in quotes, sorted by date with duplicates) returned six items (the final result listed pre-dates Cutter’s lie). The results are from American Thinker, Real Clear Politics (2), National Review, Washington Examiner, and United Liberty.

The same search at the Associated Press’s main site returned nothing.

AP’s “Presidential Campaign Fact Check” appears to be limited to what the presidential and vice-presidential candidates say. The wire service is currently carrying its interview with President Obama, naturally headlined “AP INTERVIEW: OBAMA CALLS ROMNEY’S IDEAS ‘EXTREME’,” on its “Top Story” page. Zheesh.

As to “fact-checkers” like PolitiFact and others, nothing demonstrates that they have turned themselves into just another tool of leftist bias than the “fact” that they haven’t called out Stephanie Cutter’s lie for four days and counting while trying and failing to nitpick the Romney campaign over its true statement about women’s job losses during the recession several months ago. PolitiFact falsely claimed it was “Mostly False.”

Oh, by the way, as James Pethoukouis noted in his second crucifixion of Cutter’s comment (his original post relating to Reagan is here), “both the Reagan and Bush recoveries were stronger than the current recovery under President Obama.””

http://newsbusters.org/blogs/tom-blumer/2012/08/26/fact-checkers-awol-after-obama-spokesperson-lies-about-jobs-created-unde

Obviously, congress is mostly at fault. The Democrats controlled both houses beginning in 2007 to create a “perfect storm” of failing liberal policies with the help of Obama.

Consider the following:

Reagan inherited an economic mess from Carter. Many of you remember the long gas lines and 18 percent mortgage rates from the Carter years.

In January 1983, 2 years after Reagan took office, the unemployment rate was 10.4 percent. In January 1989, when reagan left office, the rate was 5.4 percent.

When George Bush took office in January 2001, the unemployment rate was 4.2 percent. When the Democrats took control of congress in January 2007, the rate was 4.6 percent.

So, the impact of a Democrat congress with the addition of Barack Obama in January 2009 led to an unemployment rate of 9.1 percent in January 2011.

The Republicans took control of the house in January 2011. The stated unemployment rate is 8.3 percent but would be much higher if so many folks had not dropped out of the labor force.

Check for yourself:

http://data.bls.gov/timeseries/LNS14000000

From the Ulsterman,  February 24, 2012.

For a bit of contrast check out thiscomparative chart detailing the Reagan recovery vs the Obama recovery. One president charged ahead with plans to greatly reduce taxes, lessen regulations, and pushes to increase domestic energy production in the United States. The other president – Barack Obama, called for more taxes, more regulation, and has fought increasing domestic energy production at every opportunity – such as his shutting down of the much-needed Keystone pipeline:”


“The truth is clear – the Obama presidency has been a near-complete disaster for working Americans.  This might explain a term growing in popularity of late – “ABO”  –  Anybody But Obama in 2012…”

US unemployment claims rise 4000, NC unemployment rate 9.8 percent, Unemployment rate increased in 26 NC counties, Charlotte Mecklenburg rate 10 percent

US unemployment claims rise 4000, NC unemployment rate 9.8 percent, Unemployment rate increased in 26 NC counties, Charlotte Mecklenburg rate 10 percent

“Guilford (Large NC County) appears on it’s way to a third consecutive year with annual jobless rates in double digits. Economists say that likely hasn’t happened since the Great Depression.”…Greensboro News Record December 2, 2011

“North Carolina currently has the fourth-highest unemployment rate in the country and has stayed well above the national average through 2012.”…WRAL, August 17, 2012

“We tried our plan—and it worked. That’s the difference. That’s the choice in this election. That’s why I’m running for a second term.”…Barack Obama

From the US Labor Department August  23, 2012.

“In the week ending August 18, the advance figure for seasonally adjusted initial claims was 372,000, an increase of 4,000 from the previous week’s revised figure of 368,000. The 4-week moving average was 368,000, an increase of 3,750 from the previous week’s revised average of 364,250.

The advance seasonally adjusted insured unemployment rate was 2.6 percent for the week ending August 11, unchanged from the prior week’s unrevised rate.

The advance number for seasonally adjusted insured unemployment during the week ending August 11, was 3,317,000, an increase of 4,000 from the preceding week’s revised level of 3,313,000. The 4-week moving average was 3,311,500, an increase of 6,500 from the preceding week’s revised average of 3,305,000.”

http://www.dol.gov/opa/media/press/eta/ui/current.htm

From the NC Department of Commerce August 24, 2012.

“North Carolina’s statewide unemployment rate (not seasonally adjusted) was 9.8 percent in July. This was a 0.1 of a percentage-point decrease from June’s revised rate of 9.9 percent, and a 1.1 percentage-point decrease over the year.

Over the month, the unemployment rate decreased in 47 counties, increased in 26 and remained the same in 27. Thirty-four counties had unemployment rates below the state’s 9.8 percent rate.

Scotland County recorded July’s highest unemployment rate at 17.6 percent, remaining the same as the previous month. Graham County had the second-highest rate at 15.2 percent. Currituck County had the lowest unemployment rate at 4.7 percent, followed by Chatham, 7.0 percent; and Orange, 7.1 percent.”

http://www.ncesc1.com/PMI/Rates/PressReleases/County/NR_July2012CountyRate_M.pdf

Mecklenburg County, the home of the 2012 Democrat convention in Charlotte, has an unemployment rate of 10 percent.

Obama NC college economy in ruins, Tuition up, Healthcare almost doubled, Unemployment up, UNCG and A&T student cancellations, No college & no jobs

Obama NC college economy in ruins, Tuition up, Healthcare almost doubled, Unemployment up, UNCG and A&T student cancellations, No college & no jobs

“The hikes have forced more students to take on extra jobs to pay for school, or drop out altogether.”

“The state mandates that at least 25 percent of the money from the tuition dollars go toward financial aid for needy students. Some board members recently have spoken out about that requirement, saying it essentially calls for students, who themselves may be struggling, to subsidize the education of other students.”…Greensboro News record February 11, 2012

“The cost of health insurance will climb from a range of $61 to $77 monthly to a range of $118 to $133 monthly, according to a memo sent from UNC President Tom Ross to the UNC Board of Governors. On an annual basis, most students will pay about $500 to $700 more in 2012-13, depending on the campus.”

“Mallette said the insurance increases are due to the health care usage of UNC system students during the past couple of years, plus federal regulations on preventive care and pharmacy services issued in March. The process is complicated, he said, by the new provisions of the Affordable Care Act.”…Charlotte Observer May 1, 2012

“Guilford (Large NC County) appears on it’s way to a third consecutive year with annual jobless rates in double digits. Economists say that likely hasn’t happened since the Great Depression.”…Greensboro News Record December 2, 2011

Michelle Obama spoke at UNCG a few weeks ago.

“It means all of our kids should be able to go to college without a mountain of debt.”

“Because of this reform, our children can stay on our insurance until they’re 26 years old. (Applause.) So they don’t have to lose their health care when they graduate and they’re out there looking for a job, trying to build their lives.”

“I want you to tell them how many jobs he created. Tell them how much money he’s put back in the pockets of American people. You can tell them that more of our kids can afford college;”

http://citizenwells.wordpress.com/2012/08/02/michelle-obama-uncg-speech-august-1-2012-obama-lies-job-lies-tax-lies-college-tuition-lies-health-care-lies-student-loans-and-records-hidden/

Obama lies versus Obama reality.

From the front page of the Greensboro News & Record August 20, 2012.

“Registration cancellations rising at UNCG, A&T”

“UNCG about two weeks ago canceled the registrations of about 1,300 students because they had yet to pay their tuition bills — the highest number of cancellations since fall 2009, university officials said.

N.C. A&T is also seeing an increase in the number of students facing cancellation. The schools’ officials attribute their numbers to a variety of factors, including tuition increases and cuts and other changes in state and federal financial aid programs.

“Every lost soul is unacceptable to me, and it really hurts when we have to cancel that many registrations,” said Steve Roberson, UNCG dean of undergraduate studies.

By Friday, UNCG had managed to whittle that number to just 500, according to preliminary data.

But administrators are concerned about the large number of students who are having trouble paying this year.

UNCG Vice Provost Alan Boyette said recently that some students ran into problems because they did not apply for financial aid on time, or their financial aid had not yet been packaged. So, he expected that initial number would be reduced.

He said enrollment this year is “really unpredictable.” The university is gauging payments and registration on a near daily basis to get a feel for what the final number will be, he said.

“We think the timing is clearly related to the current economy,” Boyette said of the number of students paying late.

Sarah Carrigan, UNCG director of institutional research, said Friday that UNCG canceled 1,300 student registrations between July 31 and Aug. 8.

That’s an increase of about 500 over last year at that same time, she said.

As of Friday, about 800 of those students had paid to register again, Carrigan said.

A&T has also had a slight increase in the number of students who risk having their registrations canceled, said Akua Matherson, the university interim associate vice chancellor for enrollment management.

As of late Friday afternoon, the university was scheduled to cancel the registrations of 541 students, Matherson said.

That’s a 2.5 percent increase from last year, she said.

Those students had until the close of business Friday to make some kind of arrangement to keep their registration.

Staff from both universities spent much of the summer reaching out to students who were eligible to return to school but had not registered to find out what their problems are and to offer solutions.

More than 80 percent of A&T students qualify for need-based aid. Staff members have talked to families whose financial situations have changed, such as one parent losing a job.

“Some of our students are looking at some real challenges,” Matherson said.

Deborah Tollefson, UNCG financial aid director, has heard similar stories of parents’ stretched incomes.

She said that counselors steer students away from private loans.

Instead, they inform them of such options as federal loans, part-time campus employment and tuition payment plans if they are having trouble paying.

Tollefson said that UNCG has received a lot of late financial aid applications this year. Students who didn’t have to take out loans two or three years ago are now having to but are unfamiliar with the process, she said.

A&T had 10,590 students enrolled as of Wednesday, the first day of classes.

UNCG’s latest enrollment figures showed an enrollment of 17,800. Students there start classes today.”

http://www.news-record.com/content/2012/08/20/article/registration_cancellations_rising_at_uncg_at

With the Obama economic plan we get higher tuition, much higher health care costs and higher unemployment.

From Citizen Wells February 12, 2012.

“Amid chants of protest from about 100 students, the UNC Board of Governors this morning approved President Tom Ross’ proposal for tuition and
fee hikes over the next two years.

Ross’ plan would raise tuition by an average of 8.8 percent across the system and keeps increases below 10 percent on every campus.”

“Today’s vote caps months of intense debate over tuition, which the system has used in recent years to help make up for legislative cuts to its budget. The
hikes have forced more students to take on extra jobs to pay for school, or drop out altogether.”

“The state mandates that at least 25 percent of the money from the tuition dollars go toward financial aid for needy students. Some board members recently have spoken out about that requirement, saying it essentially calls for students, who themselves may be struggling, to subsidize the education of other students.”

http://citizenwells.wordpress.com/2012/02/12/unc-tuition-hikes-university-of-nc-system-raises-tuition-costs-in-dismal-economy-working-students-and-families-pay-others-tuition-income-redistribution-unc-tuition-hikes-university-of-nc-system/

I have met and talked with many college students. Recently a UNCG student, who is struggling to support his family and attend school, confided in me that the recent tuition and health care increases (mandatory health care insurance almost doubled) could force him to leave school.

From Citizen Wells May 2, 2012.

“The UNC system began requiring students to be covered by health insurance in the fall of 2010. Students must either prove that they have their own insurance or buy a plan offered by the UNC system. Before that, 11 campuses required insurance; rates and coverage varied significantly among the schools.

On top of rising tuition and fees, those UNC system students who buy the university-sponsored health insurance plan will face steep premium increases in the next academic year.

The cost of health insurance will climb from a range of $61 to $77 monthly to a range of $118 to $133 monthly, according to a memo sent from UNC President Tom Ross to the UNC Board of Governors. On an annual basis, most students will pay about $500 to $700 more in 2012-13, depending on the campus.”

“Mallette said the insurance increases are due to the health care usage of UNC system students during the past couple of years, plus federal regulations on preventive care and pharmacy services issued in March. The process is complicated, he said, by the new provisions of the Affordable Care Act.”

http://citizenwells.wordpress.com/2012/05/02/obama-lies-work-on-unc-students-unc-student-health-care-increase-tuition-increase-high-unemployment-obama-uses-orwellian-language-to-sway-students-occupy-white-house/

From Citizen Wells July 27, 2012.

“Unemployment Rates Increase in 84 Counties in June”

“North Carolina’s statewide unemployment rate (not seasonally adjusted) was 9.9 percent in June. This was a 0.4 of a percentage-point increase from May’s revised rate of 9.5 percent, and a 1.0 percentage-point decrease over the year.

Over the month, the unemployment rate increased in 84 counties, decreased in 11 and remained the same in five. Thirty-nine counties had unemployment rates at or below the state’s 9.9 percent rate.”

“Guilford County, containing both Greensboro and High Point had an increase from 9.6 to 10.3 percent.”

http://citizenwells.wordpress.com/2012/07/27/nc-unemployment-rate-9-9-percent-june-data-unemployment-rates-rose-in-84-of-100-counties-mecklenburg-home-of-democrat-convention-rises-3-percent-to-9-9/

What evidence do we have that Obama had any student loans?

Obama a Christian?, Media protects Obama slams Romney, Real economy numbers reported in late November 2012, John Hammer Rhino Times, August 9, 2012

Obama a Christian?, Media protects Obama slams Romney, Real economy numbers reported in late November 2012, John Hammer Rhino Times, August 9, 2012

“My whole family was Muslim,” …Maya Soetoro-Ng

“A light will shine through that window, a beam of light will come
down upon you, you will experience an Epiphany…and you will
suddenly realize that you must go to the polls and vote for Obama.”…Barack Obama

“There is no evidence that Barack Obama is a Christian”…Citizen Wells

Real reporting about Obama, in print, in NC,

From John Hammer of the Rhino Times August 9, 2012.

“The presidential campaign is still not officially underway – since neither candidate is the official candidate of their party until after the party conventions – and it is already ugly and is going to get worse. Obama, with an unemployment rate of 8.3 percent, cannot run on his record. He spent the $1 trillion in stimulus money to get the unemployment rate down and it didn’t work. If Obama talks about the $1 trillion in stimulus he opens the door for a mistake that he has admitted to making – there is no such thing as a shovel-ready project. So the $1 trillion that was for shovel-ready projects was for fantasy projects. It reminds voters how little Obama knows about how the government works, how business works or, really, how anything other than a political campaign works. And the indications are that he really doesn’t understand political campaigns either.

Four years ago Obama ran what appeared to be a flawless political campaign, but in retrospect it appears that he was running against a Republican that all the other Republicans had beaten when he ran in his campaign mode. It was only when he ran as Sen. John McCain that anyone could tolerate him. When McCain went back to being the Republican presidential candidate, instead of himself, he had already lost. Also Obama could have been caught in the act with a creature from outer space and the media would not have reported it. How many photos did you see of Obama smoking? Do you think the media would have run photos of Sarah Palin smoking if they had them? The media was only going to report good things about Obama and they did. It is why we still know so little about Obama.

The only real source of information we had about Obama was his own book, and then we found out that it is far from a memoir in that he has a composite girlfriend. If the press vetted Obama at all we would know whether or not he was really Rev. Jeremiah Wright’s protégé as he once said, or was he just someone who attended that church on occasion because of its political clout in the black community in Chicago. If he was a protégé then Obama needs to explain when he realized that Wright’s racist rants against white people in general and Jews in particular went too far and he decided not to be a follower.

If the truth is that he was never really a follower of Wright’s, and that is the only church he has ever been a member of according to his book, is he really a Christian? He wasn’t raised as Christian. Neither of his parents were Christians. If Wright did not bring him to Christ, who did? And why did he decide not to practice his religion in a formal manner while president.

These are the kinds of questions that you would expect to have answers to about the president of the United States, but evidently asking any question about Obama that he has not already answered is wrong.

, , ,

Along those same lines, it is no surprise, but worth noting, that the mainstream media have become even more liberal and partisan. Back in 2010 and even 2011, with the election at least a year away, the mainstream media were willing to be critical of Obama and to admit that whoever the Republican nominee was that he or she might have some redeeming qualities.

Now that the election is less than three months away, the mainstream media pundits are back to proclaiming Obama the messiah, and Mitt Romney is just some rich guy who inherited a bunch of money, has never really done anything and now wants to buy the presidency. Four years ago when Obama raised more money than any presidential candidate ever had it was because he had the support of the people. Now that Romney is raising more money month after month than Obama it is because Romney is rich. It’s amazing how things get reported.

, , ,

One thing that has changed in this election is that no one can argue that Obama doesn’t have the experience to be president. He now has more experience than anyone still in the game. He will soon be tied with both George Herbert Walker Bush, and James Earl Carter Jr., but it is unlikely that either one of them will decide to run for another term.

Experience was a good issue for Republicans in 2008, since Obama had not completed a full term in the US Senate and had never been the chief executive of anything other than the Harvard Law Review and his own political campaigns, both of which are a little different from being president. But this time around Romney’s experience running a business, running a state and running the Olympics are all good preparation but Obama has him beat when it comes to experience being president.

Now it is easy to argue that Obama’s experience as president proves that he shouldn’t serve another term, because he hasn’t been able to get the economy back on track. It will be interesting to see what the real numbers are for the economy when the election is over. It will be a real surprise if the figures released by the government are not revised in November after the election.

I have no doubt that the government in late November will reveal that the economy is in worse shape than the figures released earlier would indicate. Unemployment will turn out to be higher and economic growth will turn out to be lower, and not reporting it earlier was simply due to an unfortunate mathematical error.”

Read more:

http://greensboro.rhinotimes.com/Articles-Columns-c-2012-08-08-212799.112113-Under-the-Hammer.html

NC unemployment rate 9.9 percent, June data, Unemployment rates rose in 84 of 100 counties, Mecklenburg home of Democrat Convention rises .3 percent to 9.9

NC unemployment rate 9.9 percent, June data, Unemployment rates rose in 84 of 100 counties, Mecklenburg home of Democrat Convention rises .3 percent to 9.9

“The United States economy has lost more jobs than it has added since the recovery began over a year ago.”…NY Times Sept. 20, 2010.

“Guilford (Large NC County) appears on it’s way to a third consecutive year with annual jobless rates in double digits. Economists say that likely hasn’t happened since the Great Depression.”…Greensboro News Record December 2, 2011

“We tried our plan—and it worked. That’s the difference. That’s the choice in this election. That’s why I’m running for a second term.”…Barack Obama

Yesterday, July 26, 2012, we learned that NC had the second largest  initial claims for unemployment in the nation.

“The largest increases in initial claims for the week ending July 14 were in California (+26,244), North Carolina (+11,948), Georgia (+8,372), Alabama (+4,148), and Oregon (+3,019)”

http://citizenwells.wordpress.com/2012/07/26/nc-unemployment-claims-second-highest-in-nation-july-26-2012-11948-claims-second-only-to-ca-nc-labor-force-decreased-and-jobs-lost/

Today the news is even bleaker.

From the NC Dept. of Commerce July 27, 2012.

“Unemployment Rates Increase in 84 Counties in June”

“North Carolina’s statewide unemployment rate (not seasonally adjusted) was 9.9 percent in June. This was a 0.4 of a percentage-point increase from May’s revised rate of 9.5 percent, and a 1.0 percentage-point decrease over the year.

Over the month, the unemployment rate increased in 84 counties, decreased in 11 and remained the same in five. Thirty-nine counties had unemployment rates at or below the state’s 9.9 percent rate.

Scotland County recorded June’s highest unemployment rate at 17.6 percent, 0.6 of a percentage point higher than last month. Graham County had the second-highest rate at 15.2 percent. Currituck County had the lowest unemployment rate at 5.3 percent, followed by Orange, 7.1 percent; and Chatham & Henderson,
7.3 percent.

The unemployment rates increased in all 14 of the state’s Metropolitan Statistical Areas (Metros). The Rocky Mount Metro had the highest unemployment rate in June at 13.2 percent. The Asheville & Durham/Chapel Hill Metros reported the month’s lowest unemployment rates at 7.9 percent, which increased 0.3 of a percentage point for Asheville and 0.5 of a percentage point for Durham/Chapel Hill. Raleigh/Cary followed at 8.0 percent.”

http://www.ncesc1.com/pmi/rates/PressReleases/County/NR_June2012CountyRateRelease_M.pdf

Mecklenburg County, mostly consisting of Charlotte, NC, the site of the 2012 Democrat Convention, had an unemployment rate increase from May to June of .3 to a rate of 9.9 percent. Adjacent county to the west, Gaston, went from 10.2 to 10.9 percent.  Guilford County, containing both Greensboro and High Point had an increase from 9.6 to 10.3 percent.

I am certain that Obama will portray this as utopian conditions.

Unemployment claims rise 10000, Private sector job adds fewer than expected, First quarter economy growth revised downward, Change and no hope

Unemployment claims rise 10000, Private sector job adds fewer than expected, First quarter economy growth revised downward, Change and no hope

“And we can see the positive impacts right here at Solyndra. Less than a year ago, we were standing on what was an empty lot.But through the Recovery Act, this company received a loan to expand its operations. This new factory is the result of those loans.”…Barack Obama

“One could make the argument that Pritzker was the most important person in Barack Obama’s presidential bid – except, perhaps, for Obama himself. A longtime Obama friend, Pritzker was national finance chairwoman for the Obama campaign throughout his 2008 presidential effort. She helped him raise a record $750 million from a dizzying array of donors.
Obama’s huge fundraising advantage not only gave him clout during the primaries against Sen. Hillary Rodham Clinton (D-N.Y.), but also provided the means to bypass federal funding for the general election and dramatically outspend Sen. John McCain (R-Ariz.)…Washington Post 

“Democratic presidential contender Barack Obama says he’ll crack down on fraudulent sub-prime lenders. If he really means it he can start by firing his campaign finance chair, Penny Pritzker. Before taking over Obama’s campaign finances, she headed up the borderline shady and failed Superior Bank. It collapsed in 2002. The bank’s sordid story and its abominable role in fueling the sub-prime crisis are well known and documented. It engaged in deceptive and faulty lending, questionable accounting practices, and charged hidden fees. It did it with the sleepy-eyed see-no-evil oversight of federal. It made thousands of dubious loans to mostly poor, strapped homeowners. A disproportionate number of them were minority.

Obama’s home state, Illinois, ranked near the top of thee states in the percentage of sub-prime mortgages. Nearly 15 percent of home loans were sub-prime according to the Mortgage Bankers Association. But that only tells part of the tale. According to the Woodstock Institute, a Chicago non-profit that studies housing issues, the sub-prime fall-out was far higher in the predominantly black and Latino neighborhoods of South and Southwest Chicago.

The predictable happened when many of those lost their homes. When the bank collapsed Pritzker and bank officials skipped away with their profits and reputations intact. Aside from the financial and personal misery sub prime lenders caused the thousands of distressed homeowners, sub-prime lending has been a major cause of the housing crisis in many areas, and has dealt a sledgehammer blow to the economy. Obama has said nothing about Pritzker, Superior Bank, or their dubious practices.”…Huffington Post, February 29, 2008

We got the change Obama promised and no hope as long as he stays in office.

From the US Labor Dept. May 31, 2012.

“In the week ending May 26, the advance figure for seasonally adjusted initial claims was 383,000, an increase of 10,000 from the previous week’s revised figure of 373,000. The 4-week moving average was 374,500, an increase of 3,750 from the previous week’s revised average of 370,750.”

http://www.dol.gov/opa/media/press/eta/ui/eta20121072.htm

From Zachs Investment Research May 31, 2012.

“For the second month in a row, the monthly jobs report from Automatic Data Processing (ADP – Snapshot Report) missed expectations. Since the ADP report tries to preview the monthly labor market report from the government’s Bureau of Labor Statistics (BLS), this morning’s disappointing read does not bode well for tomorrow’s BLS report. For May, the ADP report is showing private-sector jobs of 133K, below expectations of 154K (according to Bloomberg). The tally for April was modestly revised downwards to 113K (from 119K). The expectation for private sector jobs in Friday’s BLS report is for 164K.”

http://www.zacks.com/stock/news/76139/ahead-of-wall-street-may-31-2012

From Bloomberg Business Week May 31, 2012.

“U.S. Economy Q1 Growth Revised Downward”

“The U.S. economy grew more slowly in the first quarter than previously estimated, reflecting smaller gains in inventories and bigger government cutbacks.

Gross domestic product climbed at a 1.9 percent annual rate from January through March, down from a 2.2 percent prior estimate, revised Commerce Department figures showed today in Washington. The report also showed corporate profits rose at the slowest pace in more than three years and smaller wage gains at the end of 2011.”

http://www.businessweek.com/news/2012-05-31/economy-in-u-dot-s-dot-grew-less-in-first-quarter-than-last-estimated?r=bloomberg

Obama 2012 manufactured crisis to delay election, Government insider warning?, Obama diversions abound, Obama camp panic, Cornered animal predictable

Obama 2012 manufactured crisis to delay election, Government insider warning?, Obama diversions abound, Obama camp panic, Cornered animal predictable

“One of these days, thought Winston with sudden deep conviction, Syme will be vaporized. He is too intelligent. He sees too clearly and speaks too plainly. The Party does not like such people. One day he will disappear. It is written in his face.” …George Orwell, “1984″

“This was all because of what [Obama] did to all of his challengers,”

“It just was outrageous to disqualify these people that way. This is how moral and ethical our so-called president is. His own mentor, who went out of her way to support him in his career – he turned around with a knife and put it in her back and had her challenged off the ballot in a way that was so amoral and unethical, and she became a Hillary supporter.”…Bettina Viviano, Hollywood Producer

“You are now witnessing the beginning of a great epoch in German history…This fire is the beginning,”…Adolf Hitler at burning Reichstag

Obama is in trouble. The Obama camp confidence in winning the 2012 election is fading rapidly. And to make matters worse for him, Obama has a huge NC problem. And the Democrat Convention is scheduled to be in Charlotte, NC.

Obama and his cohorts are trying every trick in the book. Their specialty is diversions, like gay marriage. And of course they are bragging about the slightly shrinking unemployment rate while masking the real effect of labor participation and job losses. Gas prices have dropped a little but are still about double what they were when Obama took the White House.

I told people several years ago that Obama’s reactions to being prosecuted or losing an election are predictable. Like a wild animal that is cornered.

On top of that we know his history and that of his thugs.

Canada Free Press presented a very interesting article recently.

Is the following report real? I cannot substantiate it.

Is it plausible?

Ab so lute ly!

From Canada Free Press May 8, 2012.

“The planned re-election of Obama, revolutionary style”

“The Contact

It was not the proverbial 3:00 a.m. phone call, but close enough. And it was not made to the White House, but to my house, which is not white, nor is it in DC. It was about 2:30 a.m. on 25 April 2012, and the call itself was somewhat unexpected. I had anticipated the telephone call from my DHS insider much earlier the previous day, but our schedules didn’t synch up. I was traveling on an investigative assignment, while my source was in meetings all day. I had just fallen asleep, and was slumbering no more than 20 minutes when the phone rang.

In most households, a ringing phone at that time of night causes concern for everyone who hears it. In my household, it seems to surprise only my surly, 140 pound light-sleeping German Shepherd. He let out an objective grunt as I stepped over him to take the call in another room. It was “Rosebud,” the code name given my insider source.

About Rosebud
Just a little bit here about my source and his “super-secret code name.” I’ve known this government insider since 1979, when he first became a municipal patrol officer. He took a job in a bigger city and had a very successful run as a cop. Before retirement and after the events of 9/11, he was tapped by the feds, where he worked in various capacities under the umbrella of DHS. He worked his way up, and suddenly found himself in what he terms the inner sanctum of the “TEC” building. TEC, he explains, is an acronym for what he calls “The Estrogen Challenged,” which houses the upper echelon of the Department of Homeland Security. I’ll leave it at that.

As far as his code name, it originates from an incident that occurred at the end of the disco era. It is something that we both privately laugh about, but rarely ever talk about. His “code name” is known to him, me, and at the time, a young woman who has since vanished amid the glitter of disco balls and constant replays of the Bee Gees in a dark nightclub some 32 years ago, and has no “cloak and dagger” origins.

But he is real, his position serious, and his knowledge vast. Unfortunately, that’s what makes the whole situation frightening and deadly serious.

The information
It began on Wednesday, 2 May 2012 with a 45-minute interview on TruNews with Rick Wiles when I first disclosed the information I received the previous week from my source. The information I relayed “went viral,” as they say, across the internet.

To support the statements I made during that interview, I am showing my handwritten notes taken contemporaneously during our conversation. My notes consist of two pages and are, at various points, admittedly difficult to decipher. I ask that points not be deducted for my penmanship given the time of the morning which they were taken.

According to my source, there is talk among the highest levels of the uppermost echelon of the Department of Homeland Security, which he describes as effectively under the control of Barack Hussein Obama. During this call, he said that the DHS is actively preparing for massive social unrest inside the United States. He then corrected himself, stating that “a civil war” is the more appropriate term. Certain elements of the government are not only expecting and preparing for it, they are actually facilitating it,” stated my source.

“The DHS takes their marching orders from the Obama administration, from Obama himself, but mostly from his un-appointed czars. And Jarrett, especially Valerie Jarrett. Don’t think for a minute that the administration is doing anything to stabilize events in the U.S. They are revolutionaries, and revolutionaries thrive on chaos,” he added.

My source stated that he has not seen things this bad since he began working within DHS. “It’s like they [DHS agency heads] don’t care about what the American people see or feel about what the DHS agencies are doing. They figure that if the average American will put up with being “sexually groped and nuked” just to fly, they’ll accept almost anything. “That’s why their actions are becoming more overt. “It’s in your face and the brass actually chuckle about it” said my source.

New Information
Astounded by the information my source provided “going viral,” I spoke to him again early Sunday morning. This was a scheduled telephone call (as noted on page 2 of my notes) based on a high level meeting of DHS personnel that was scheduled for and took place in Chantilly, Virginia, on Saturday, 5 May 2012. He hoped to provide me with more information to supplement that which he already given. Although he was not personally present, his source was. While he would not say who was at the meeting on Saturday or give its precise location, he said that the many of the names would be recognizable. He spoke to his source late Saturday night.

I contacted him on his cellular phone early Sunday morning to get the promised update.

“Geez, nice job on getting the word out about what’s really going on at DHS and in this administration,” were the first words out of his mouth, followed by “thanks a lot.” I asked him why he would be thanking me. “I just wanna’ tell you that I’m going to have to hire someone to start my car, and I’m surely not going for any rides in small planes in the immediate future,” he said with a bit of nervous laughter. “I hope no one finds out who I am or it’s going to be more than my pension I’ll have to worry about.”

“I can tell you word is getting out that people are starting to wake up, which is causing a lot of ‘pissed off brass.’ I can’t tell if they are more desperate or upset about the exposure, but the tone is starting to become a lot more tense. I hope that we’re having something to do with that,” he added.

With that, he provided me with additional information to supplement that which he already given me on 25 April. For clarity purposes, I have combined the information together from both contacts. The following information includes the updated information provided to me Sunday morning.

Obama the revolutionary
Metaphorically speaking, there’s a revolution going on in the U.S., propped up by three legs. Economic chaos, chaos through racial division, and chaos through class division, all joined by one core element: Barack Hussein Obama and his stable of unelected czars. Obama is using the lessons learned in 1968 as the template for 2012, and many of those who were active in the late 1960s are now calling the shots for 2012.

“The Obama administration and many of the un-elected ‘czars,’ either directly or indirectly, are engaged in covert activities with the occupy movement, various labor protests, and other subversive activities inside the U.S.,” stated my source. Using untracked campaign funds, they are paying people to infiltrate the various movements to cause physical destruction of property and disrupt commerce. That began last year, but has increased ten-fold already this year,” stated this source. He added that they are using some lower level DHS agents to make the payments under the context of tracking subversives, but they are the unwitting subversives. “It’s like Fast & Furious” but in the social realm,” he added.

“Obama is using some high profile people as pawns to foment the revolution. I heard several times through very credible sources that [Louis] Farrakhan is on the CIA payroll. Other have been named as well, but I’m not prepared to identify them yet. Farrakhan is to coordinate the Blacks and the Muslims to prepare for riots this summer, using any means necessary.”

“Mentioned at the meeting Saturday were methods to use pawns to simulate the rioting in the Arab Spring countries, but to the benefit of this administration. A controlled chaos thing,” stated my source. They envision rioting starting in the urban areas first, such as New York and other major cities, followed by a disruption of business and commerce. This will allow the DHS to mobilize their various teams into the streets of America without objection of the people,” stated my source.

“They want to restrict travel, if not through high energy prices, then by checkpoints and curfews mandated by rioting and unrest. They understand we are the most well-armed nation in the world, yet they are aware of our vulnerabilities and intend to fully exploit them,” he added. The whole purpose is to keep Obama in office for another term, no matter how unpopular he is, as he is not finished changing our country from a Constitutional Republic. This is the run-up to the 2012 elections, or perhaps causing enough chaos to delay them – indefinitely.”

One statement that rattled me more than anything was that a great number of those already in power, whether in appointed or elected positions, actually want to see Obama stay in power, according to this source. “This is what we’ve been working toward and we’re closer now than we’ve ever been. If we lose now, we might not have another chance.”

This chilling common goal also explains the lack of interest in the Constitutional legitimacy of Obama. It is common knowledge that Obama is not an American, and neither is his agenda. Of course, criticism of his bona-fides feeds into the cries of racism, despite the massive fraud perpetrated on the American people. Party lines are meaningless when the common objective is the revolutionary overtaking of America.

Obama, the professor of Keynesian economics
“The Obama administration is working closely with Bernanke, Geithner and others not to save our economy, but to outright destroy it. He is not the first or only one to try this, but the most effective and most vetted for that purpose. Do you actually think that the fact that Timothy Geithner’s father worked with Obama’s mother in Indonesia was coincidental,” stated my source rhetorically. “What we’re seeing now is the fourth quarter of a game that started long ago, which also currently involves the Clintons. Obama would not be where he is if it were not for the Clintons, and to a lesser extent, Bush, but that’s for other reasons. Don’t be fooled, the Clintons never left or lost power,” he added.

“There are file drawers full of papers, heavily guarded papers at the ‘TEC building’ so I can only imagine what’s in them, about international financial dealings going back decades. I do know, or at least I was told, that they involve organizations that are the so-called conspiracy fringe groups, such as the Bilderberg group, the Trilateral Commission, and people including George Soros, Henry Kissinger, and current leaders of big industry. Some are fossils. They’ve been around a long time. Others are up-and-coming. They’ve got one thing in common, though, and that is to put in place a global system of governance, including a common currency. Economics is a huge part of this revolution, and they want to replace the dollar, to see it collapse. They expect, that is, they are working toward this very goal, and when this happens, it will cause chaos like never seen before in the history of this country.”

“Why do you think Jon Corzine is not only walking around, but heavily involved in Obama fundraising? They know it’s just a matter of time that Europe will implode economically, and when it does, start counting the days before we see massive hyperinflation and the ultimate collapse of the U.S. dollar,” stated this insider. “What will it look like in the streets of America when the general population realizes that there is no money? That’s right, chaos.”

Obama & the planned racial divide
According to this insider, the Trayvon Martin case is just the tip of the iceberg. “You certainly don’t have to be a genius to understand how Obama and his team played the public on this issue, and it’s far from over. But that’s not the sole element of what we’ll see this summer.”

“Remember the shots fired at the White House not too long ago?” asked my source. There was an element of outrage that was squandered, according to ‘team Obama.’ In fact, Obama and some of his closest advisors, especially [Valerie] Jarrett were incredibly angered that the outrage was seemingly tempered. It should have been an opportunity to use our force against the Tea Parties, the gun clingers, the Constitutionalists, and everyone who has complained about Obama. DHS should have stepped in right then, and used that event to start the clampdown,” this source stated about White House comments.

This source stated that from that point on, the DHS must become more responsive and aggressive.

Watch for a false flag event against Obama or his family, something that will outrage ‘black America.’ It will be carefully choreographed, but executed in a manner that will evoke the ugliest of reactions and create racial chaos in this country that will make the Watts riots, 1968 and the Rodney King riots pale in comparison. That’s the third leg in this.”

The planned end-game
Does Obama look worried about the upcoming elections? Look at his lavish vacations, his limited work schedule, and those with whom he is working. This is a very dangerous man who has, as his closest advisors, people who have orchestrated the revolutions of the 1960s. They know the “trigger points” in America.

The Obama administration, including his czars and along with his closets Progressive supporters, are planning a manufactured insurgency against America. He is using the media to his advantage to garner both sympathy and support for his unfinished goals. He is desperately seeking a way to remain in office, even if it means the surreal prospect of an indefinite postponement of elections – if it can be pulled off. So far, he’s got the support of the majority of the DHS “brass” behind him, according to my source.

“They’re power hungry, and they want to remain in charge,” stated this source.

The “surreal” aspect of suspended elections won’t look so surreal when you see any or all of the “trigger points” take place in the not-so-distant future.

“The end-game plan for America is its destruction as a Constitutional Republic, with the assistance of the agencies under the umbrella of the DHS.”

My sourced stated one more thing that seemed to tie things together. He urged me to recall the quote by Henry Kissinger who was speaking at a Bilderberg meeting at Evian, France, on 21 May 1992:

Today Americans would be outraged if U.N. troops entered Los Angeles to restore order; tomorrow they will be grateful. This is especially true if they were told there was an outside threat from beyond, whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will plead with world leaders to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well being granted to them by their world government.

That threat need not be from beyond. All it might take is a world of starving, broke and desperate people.

Note: My source promised more information at a later time. Stay tuned.”

http://www.canadafreepress.com/index.php/article/46516

 

Unemployment May 4, 2012, Unemployment claims revised upward, 4 week moving average 383500, April private sector jobs plummeted, Real unemployment rate?

Unemployment May 4, 2012, Unemployment claims revised upward, 4 week moving average 383500, April private sector jobs plummeted, Real unemployment rate?

“Guilford (Large NC County) appears on it’s way to a third consecutive year with annual jobless rates in double digits. Economists say that likely hasn’t happened since the Great Depression.”…Greensboro News Record December 2, 2011

“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984”

“And if all others accepted the lie which the Party imposed
–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″

The stated unemployment rate is 8.1%.

What is the real unemployment rate?

Further analysis of this is forthcoming.

Here is what we know:

Unemployment claims get reported and then revised upward. The recent report was changed to 392,000 from the prior week’s reported 388,000.

The 4 week moving average has gone up the past several weeks. It is now 383,500.

Private sector employment increased by 119,000 jobs in April instead of the forecasted 170,000.

Many individuals, discouraged by the dismal jobs picture, have left the job market.

What ever the stated unemployment rate is, the real unemployment rate is significantly higher.

High school and college graduates, about to enter the full time job market, face dismal prospects. Though they have been counted by the Labor Department (I just verified this), they will still add millions to those seeking full time employment.

“Federal Reserve Chairman Ben Bernanke and his fellow policymakers at the central bank have expressed worry that the employment picture ahead is likely to be weak”…CNBC May 2, 2012.

Rush Limbaugh continues to state that the unemployment rate will be manipulated to benefit Obama. Anything over 8 % is considered lethal to his reelection.

Obama change in gas and food prices, Higher gas prices threaten economy, Jobs added?, Millions of jobs and job seekers lost, WON Whip Obama Now

Obama change in gas and food prices, Higher gas prices threaten economy, Jobs added?, Millions of jobs and job seekers lost, WON Whip Obama Now

“If you’re complaining about the price of gas and you’re only getting 8 miles a gallon, you know…you might want to think about a trade-in.”…Barack Obama
“This announcement is not a judgment on the merits of the pipeline, but the arbitrary nature of a deadline that prevented the State Department from gathering the information necessary to approve the project and protect the American people,”…Barack Obama

“And if all others accepted the lie which the Party imposed
–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″

Obama Change

Gasoline and food price facts for Truth Team and interested Americans.

Pedestrians help push a motorist who ran out of gas Friday into a station in downtown Los Angeles, where prices topped $5 per gallon. / Damian Dovarganes / Associated Press

I have located several versions of an AP article on gas prices and the economy.

From the AP March 16, 2012.

“Higher gas prices threaten economy if they persist”

“Inflation remains tame throughout the U.S. economy, with one big exception: gas prices.

Those higher prices haven’t derailed a steadily improving economy. But if they surpass $4 or $5 a gallon, experts fear Americans could pull back on spending, and job growth could stall, posing a potentially serious threat to the recovery.

And the longer prices remain high, the more they could imperil President Barack Obama’s re-election hopes.

A few weeks ago, economists generally agreed that the economy was in little danger from higher gas prices as long as job growth remained strong. But fears are now mounting that gas prices could begin to weaken consumer confidence.

The average pump price nationwide is $3.83 a gallon. Energy analysts say it’s bound to climb higher in the weeks ahead.

“It’s a thorn in the side of the consumer and businesses,” said Chris Christopher, an economist at IHS Global Insight. The economy this year “would have been better and stronger if we didn’t have to deal with this.”

So far, higher prices aren’t undermining the economic recovery, which is getting a lift from strong job creation. It would take a big jump — to around $5 a gallon — before most economists would worry that growth would halt and the economy would slide into another recession.

That’s because an improving economy is somewhat insulated from any threat posed by higher prices at the pump.

The risk is that gas prices could eventually slow growth by causing some people to cut spending on other goods, from appliances and furniture to electronics and vacations. Gasoline purchases provide less benefit for the U.S. economy because about half of the revenue flows to oil-exporting nations, though U.S. oil companies and gasoline retailers also benefit.

Many American businesses suffer, too. They must pay more for fuel and shipping and for materials affected by high oil prices, such as petroleum-based plastics. Profit margins get squeezed.

Even if prices ease after the summer driving season, don’t expect gasoline to fall below $3 a gallon. The government estimates that this year’s average will be $3.79, followed by $3.72 in 2013.

Most economists accept a rough guideline that a 25-cent rise in gas prices knocks about 0.2 percentage point off economic growth.

Gas prices also have an outsize impact on consumer confidence, Christopher noted. It’s a high-frequency purchase. Consumers notice the price whether they’re filling up or driving past a gas station.

Along with the unemployment rate and stock market levels, gasoline prices heavily determine how Americans see their financial health.

That effect was evident Friday when a decline was reported in the Thomson Reuters/University of Michigan index of consumer sentiment. The result surprised some economists who had assumed that higher stock prices and lower unemployment would lift consumer sentiment.

The Michigan report showed that “gasoline worries … are outweighing stock market gains and job growth” when it comes to influencing consumer attitudes, said Michael Hanson, an economist at Bank of America Merrill Lynch.

The price of gasoline has climbed 17 percent since the year began — to a national average of $3.83 a gallon. That’s the highest ever for this time of year. A month ago, it was $3.52.”
http://www.google.com/hostednews/ap/article/ALeqM5jCwE51Rb2hl34tObtft80XI1pKhA?docId=8d2a58e51da64b07b23f1f6bad04b2b6

From above:

“So far, higher prices aren’t undermining the economic recovery, which is getting a lift from strong job creation. It would take a big jump — to around $5 a gallon — before most economists would worry that growth would halt and the economy would slide into another recession.”

Which country are they referring to? As evidenced recently in NC and reported here, the NC unemployment rate was adjusted upward to above 10 percent.

Also as reported here several times.

Inflation has been downplayed as well. Anyone visiting a grocery store for the past several years has watched food prices skyrocket, mostly due to rising gasoline prices.

From America’s North Shore Journal March 17, 2012.

The Bureau of Labor Statistics (BLS) keeps track of the average retail price for a number of common items as a U.S. city average. Let’s take a look at a few. We used the price for the month President Obmam was inaugurated, January 2009, and the last month of data available, December 2011. The items are sorted in descending order by the percentage increase of the price during the Obama administration.

    Obama Obama
Item Unit Jan 2009 Dec 2011 I/D Perc
Gasoline, unl reg gal $1.787 $3.278 $1.491 83.44%
Fuel oil, #2 gal $2.509 $3.777 $1.268 50.54%
Ground beef lb $2.357 $2.921 $0.564 23.93%
Sugar, white lb $0.569 $0.703 $0.134 23.55%
Bacon. Sliced lb $3.730 $4.550 $0.820 21.98%
Cookies, Choc chip lb $3.114 $3.682 $0.568 18.24%
Spaghetti & macaroni lb $1.131 $1.306 $0.175 15.47%
Eggs, A lrg doz $1.850 $1.874 $0.024 1.30%
Electricity kwh $0.126 $0.127 $0.001 0.79%
Lettuce, iceberg lb $0.944 $0.947 $0.003 0.32%
Milk, whole gal $3.575 $3.565 -$0.010 -0.28%
Potatoes, white lb $0.676 $0.666 -$0.010 -1.48%

CPI Food 2009-2011

http://northshorejournal.org/whip-inflation-now

WON (whip inflation now)

Whip Obama Now

Penny Pritzker Obama 2008 national finance chairwoman, Economic Recovery Advisory Board, Skills for America’s Future, Obama Council for Jobs and Competitiveness, Superior Bank origin of sub prime crisis

Penny Pritzker Obama 2008 national finance chairwoman, Economic Recovery Advisory Board, Skills for America’s Future, Obama Council for Jobs and Competitiveness, Superior Bank origin of sub prime crisis

“We intend to close loopholes that allowed big financial firms to trade risky financial products like credit defaults swaps and other derivatives without
oversight; to identify system-wide risks that could cause a meltdown; to strengthen capital and liquidity requirements to make the system more stable; and to ensure that the failure of any large firm does not take the entire economy down with it. Never again will the American taxpayer be held hostage by a bank
that is “too big to fail.”…Barack Obama

“Democratic presidential contender Barack Obama says he’ll crack down on fraudulent sub-prime lenders. If he really means it he can start by firing his campaign finance chair, Penny Pritzker. Before taking over Obama’s campaign finances, she headed up the borderline shady and failed Superior Bank. It collapsed in 2002. The bank’s sordid story and its abominable role in fueling the sub-prime crisis are well known and documented. It engaged in deceptive and faulty lending, questionable accounting practices, and charged hidden fees. It did it with the sleepy-eyed see-no-evil oversight of federal. It made thousands of dubious loans to mostly poor, strapped homeowners. A disproportionate number of them were minority.

Obama’s home state, Illinois, ranked near the top of thee states in the percentage of sub-prime mortgages. Nearly 15 percent of home loans were sub-prime according to the Mortgage Bankers Association. But that only tells part of the tale. According to the Woodstock Institute, a Chicago non-profit that studies housing issues, the sub-prime fall-out was far higher in the predominantly black and Latino neighborhoods of South and Southwest Chicago.

The predictable happened when many of those lost their homes. When the bank collapsed Pritzker and bank officials skipped away with their profits and reputations intact. Aside from the financial and personal misery sub prime lenders caused the thousands of distressed homeowners, sub-prime lending has been a major cause of the housing crisis in many areas, and has dealt a sledgehammer blow to the economy. Obama has said nothing about Pritzker, Superior Bank, or their dubious practices.”…Huffington Post, February 29, 2008

“One could make the argument that Pritzker was the most important person in Barack Obama’s presidential bid – except, perhaps, for Obama himself. A longtime Obama friend, Pritzker was national finance chairwoman for the Obama campaign throughout his 2008 presidential effort. She helped him raise a record $750 million from a dizzying array of donors.
Obama’s huge fundraising advantage not only gave him clout during the primaries against Sen. Hillary Rodham Clinton (D-N.Y.), but also provided the means to bypass federal funding for the general election and dramatically outspend Sen. John McCain (R-Ariz.)…Washington Post 

“Why did Obama employ Robert Bauer of Perkins Coie, to request an advisory opinion on FEC matching funds that he was not eligible for?”…Citizen Wells

More on Obama’s 2008  National Finance Chairwoman and economic advisor Penny Pritzker.

From Consortium News February 28, 2008.

“Though Superior Bank collapsed years before the current sub-prime turmoil that is rocking the world’s financial markets – and pushing those millions of homeowners toward foreclosure – some banking experts say the Pritzkers and Superior hold a special place in the history of the sub-prime fiasco.

“The [sub-prime] financial engineering that created the Wall Street meltdown was developed by the Pritzkers and Ernst and Young, working with Merrill Lynch to sell bonds securitized by sub-prime mortgages,” Timothy J. Anderson, a whistleblower on financial and bank fraud, told me in an interview.

“The sub-prime mortgages,” Anderson said, “were provided to Merrill Lynch, by a nation-wide Pritzker origination system, using Superior as the cash cow, with many millions in FDIC insured deposits. Superior’s owners were to sub-prime lending, what Michael Milken was to junk bonds.”

In other words, if you traced today’s sub-prime crisis back to its origins, you would come upon the role of the Pritzkers and Superior Bank of Chicago.”

http://www.consortiumnews.com/2008/022708a.html

From Chicago Magazine December 2002.

“”They were always more interested in building an empire than in getting their name in the newspaper,” says Patrick Foley, formerly president of Hyatt Hotels Corporation. “They just didn’t enjoy that kind of notoriety.”

Last year, however, the Pritzkers found themselves most uncomfortably in the public eye after the stunning collapse of Superior Bank, the Oakbrook Terrace–based savings and loan they jointly owned with the New York real estate developer Alvin Dworman. The institution’s failure is “a tale of gross mismanagement,” says George Kaufman, a finance professor at Loyola University Chicago. “[Superior] was engaged in relatively unethical practices, fancy-footwork accounting, playing it very close to the edge.” Kaufman says many share in the blame for the mess-the bank’s managers, directors, and auditors, as well as banking regulators-but he also wonders how the Pritzkers, as co-owners, could have allowed it to happen. “One of the great mysteries to me is what the Pritzkers were up to, why they took these chances,” he says. “It makes no sense given their wealth and visibility.””

“The family’s most agonizing setback, however, was the stunning collapse last year of the once high-flying Superior Bank. The thrift had come into the Pritzker fold in 1988, when Jay Pritzker and Alvin Dworman-old social friends and partners in several past business ventures-put up $42.5 million for the insolvent Lyons Savings Bank, as it was then called, in return for an estimated $645 million in federal tax credits and loan guarantees. (By one estimate, it would have cost the government $200 million less simply to shut Lyons down.) Although Dworman had agreed to run the renamed Superior Bank out of his New York office, Jay deputized his niece Penny-a Harvard educated go-getter who had just earned her law degree and M.B.A. from Stanford-to help keep tabs on the investment. She served as chairman of Superior from 1989 to 1994, long enough for the bank to regain its financial health and embark on an aggressive new strategy, making high-interest home and auto loans to people with bad credit. For a time, that strategy appeared to work like a charm, yielding big profits-and large dividends for the Pritzkers and Dworman.

In reality, Superior was spiraling into ruin. Although the details are complicated, the bank’s fall stemmed from a risky business strategy and from poor oversight by the bank’s directors, according to investigations by banking regulators. Superior became heavily concentrated in high-risk assets connected with its subprime lending business, and then used “unrealistic and overly optimistic assumptions” to record the value of those assets, according to a report by the inspector general of the Federal Deposit Insurance Corporation. In language redolent of the corporate accounting scandals that have rocked Wall Street recently, the report adds that by using “liberal interpretations of accounting principles” Superior was able to “report impressive net income figures that masked the net operating losses the institution was actually experiencing.” Those phony “profits,” by the way, allowed Coast-to-Coast Financial Corporation, the holding company owned jointly by the Pritzkers and Dworman, to collect more than $200 million in dividends from 1993 to 1999-money the bank desperately could have used as it tottered toward insolvency.

After the Pritzkers and Dworman failed in July of last year to follow through on a plan to inject $270 million into the bank, Superior was seized by the Office of Thrift Supervision and eventually placed in receivership under the FDIC. Last December, to avoid being punished for Superior’s failure, the Pritzkers agreed to pay the FDIC $460 million while admitting no wrongdoing. Because $360 million of that payment was to be spread out interest free over 15 years, the settlement was worth an estimated $335 million in today’s dollars. But that won’t cover all the damage. Even with the settlement, Superior’s failure is expected to cost the federal thrift insurance fund an estimated $440 million.

Meanwhile, the Pritzkers still have not put their Superior troubles entirely behind them. Tom and Penny Pritzker are defendants (along with Dworman, several officers and directors, and the bank’s auditor, Ernst & Young) in a federal civil racketeering suit brought on behalf of Superior’s uninsured depositors (those with deposits in excess of the federally insured $100,000). Although the 1,400 uninsured depositors so far have recovered about 55 percent of the more than $65 million they lost in the collapse, they are still out almost $30 million, according to Clint Krislov, the lawyer for the plaintiffs. By contrast, the Pritzkers may not have fared so badly. Counting the tax credits and deductions they originally received and the dividends they collected over the years, “they appear not to have lost money on the deal,” Krislov says. (A source close to the family says the Pritzkers did lose money in Superior, and asserts that the lawsuit is without merit.)

* * *
The Superior scandal stained virtually everyone connected with it-the bank’s managers and directors, the accountants who signed off on its financial statements, the banking regulators who failed to act aggressively as early as the mid-nineties, when Superior’s problems were fast becoming apparent, and, of course, the owners. As the fallout spread, the Pritzkers worked feverishly to control the damage. They claimed that they had been “passive investors” while Dworman’s people ran the show (Dworman said the Pritzkers shared in the blame). They also made the case that Superior’s auditor had continued to give favorable opinions on the bank’s accounting over the years. On that score, the Pritzkers appeared to gain some vindication in early November of this year when the FDIC sued Ernst & Young for fraud in its audit of Superior, and sought at least $2.19 billion in punitive and compensatory damages. (Ernst & Young denied responsibility for Superior’s collapse and said it would vigorously fight the charges.)

To some, however, the Pritzkers were hardly the innocents they made themselves out to be. The family, after all, controlled half the board seats of the bank’s holding company, which benefited from all that dividend income, and the Pritzker Organization’s chief financial officer, Glen Miller, chaired the bank’s audit committee. Although Penny had stepped down as the bank’s chairman in 1994, she remained a director of its holding company.

“No one should have had any illusions about what was going on,” says Bert Ely, a banking consultant in Alexandria, Virginia, who tracked the Superior story. “[Superior] was reporting gains that were unrealistically high, which allowed [it] to pay big dividends [to the Pritzkers and Dworman]. It was a lot like Enron and WorldCom-reporting profitability that wasn’t there. Their financial people should have been able to figure that out. If they truly didn’t understand the bank’s fundamentally unworkable business model, then the Pritzkers have bigger problems than Superior.”

The Pritzkers said in a statement that the settlement was simply “the right thing to do,” reflecting the family’s “historical commitment to stand behind their investments.” That may have been true. But it also entitles them to 25 percent of any sum the government collects in its $2.19-billion suit against Ernst & Young. Beyond that, the settlement made an ugly story go away. “I am convinced that the Pritzkers wanted to get their name off the front page,” says Ely. “They had stepped into a pile of horse manure, and they were highly embarrassed.””

http://www.chicagomag.com/Chicago-Magazine/December-2002/Tremors-in-the-Empire/