Monday, March 19, 2007

Media Blackout: Rosie O'Donnell and 9/11

Mar 18, 2007

By Kia Ora

After our Mainstream Media delivered blow-by-blow coverage of the Rosie O'Donnel vs. Donald Trump affair, in which there was an exchange of meaningless insults, now we have a clear case of media blackout.

Rosie O'Donnell posted on her website clear doubts concerning the official story surrounding 9/11 last week and apparently the MSM is now following a 'hands off' policy on Rosie.

Tomorrow will mark the one year anniversary of another high profile celebrity going public with doubts surrounding 9/11, namely Charlie Sheen, where we witnessed numerous attack pieces waged against him to discredit his character.

Ad Hominem attacks are the norm when substance is sidelined - so why no attack on Rosie?

Is it possible that she is considered too influential in the world of soccer moms to bring obvious attention to this very controversial subject?

This seems to be a clear case of a controlled media and the continued censorship of those who question this corrupt administration's official story on 9/11.

Say what you will about Rosie O'Donnell. This story is not about her. This is about censorship. I believe in open, transparent media that does the job of reporting the news and gives their readership the option of ignoring.

Ottawa and Montreal - Day of Action: 4th Anniversary of Iraq War

Saturday, March 17, 2007

Hundreds of people once again braved icy winds and snow flurries today to join at least 37 Canadian cities and thousands of U.S. cities in voicing grave concern over the wars inflicted by the West on Iraq and Afghanistan, and currently being threatened against Iran. There was actually a global callout that included protests against regional wars such as in Somalia, Palestine and Darfur as well.

Below you will see photos from the Ottawa demo and below that are a few words and some photos of the Montreal demo, courtesy of Ron Saba, Editor of Montreal Planet Magazine.

I need to say very little about the Ottawa rally, because the protest signs spoke volumes. It was obvious the people are not fooled by the false premises - such as, we're there to "help with reconstruction" - on which the wars and horrendous human rights violations are based and by which they are lamely justified.

The Ottawa demonstration was cooperatively organized by groups such as ROCG, NOWAR-PAIX and SCAW. Information about those groups, their websites, and the names of persons who spoke at the event can be found here.

I heard several times today from people of my advanced age how wonderful it was to see so many bright young faces in the crowd. Students probably have no idea how much their enthusiasm and creativity are appreciated by worn out older activists.

On with the photos. If you notice white spots, that's falling snow. (Click on each image to see a larger version)

Gatineau, Ottawa and student groups converged at the National Art Gallery. In this photo a man is holding one of the most stand-out, homemade peace symbols I've ever seen. Someone else is carrying a sign that says: "War is a moral issue - Thou shalt not kill" It seems that even though Stephen Harper and George Bush proudly proclaim their Christianity, they have missed the point of it entirely.



"Harper Dearest: Don't Assume I Share Your Prejudices"
This sign also contains the universal symbol for "No" (a red circle with a diagonal line) and the word "Fascism" inside the circle.



"No to military attack on Iran! No to Islamic Republic of Iran!"
(Worker Communist Party of Iran)

Another sign in this photo: "The Emperor has no brain"



Two signs: "War is not the Answer" and "Stop the Bloodshed - Troops out Now!"



Two signs: "9.11 - 20.3.03; Lest We Forget - the official version IS a conspiracy!"
"Blessed are the Peace Makers for they shall be called Children of God, Matt. 5:9"



Then the march began through the Byward Market area and toward the US Embassy.
This sign says: "This is what Democracy looks like!" (In case anyone has forgotten)




"Collateral damage is not reconstruction"



"Bombs are not smart"




"We are all to blame - it's time to take a stand"



"War = The best terrorist recruitment tool our tax dollars can buy"



"Troops' lives are not worth Harper's lies"



"There is no 'reconstruction' in military destruction"



"To live the American Dream, you have to be ASLEEP! WAKE UP CANADA!"



This sign is orange and diamond-shaped like a stop sign.
It has images of Harper and Bush side by side and the words:
"Caution - War Mongers in Progress"



Here we are at the US Embassy. Photo: Girl holding bomb. I don't think it's real.



This is the speakers' dais, decorated with two wooden coffins made by a professor from one of the universities. That's the embassy in the background at which Ottawa activists have so often vented their frustration with George Bush.



Moving on toward Parliament Hill
Sign: "Our Troops are Amazing! Our Foreign Policy is Abominable!"



Banner: "Industrial Workers of the World - An injury to one is an injury to all!"



"No Illegal Imprisonment"



"Stop Fascism"
I have to assume this means the fascism in our own country. The word Islamofascism was coined by those who are trying to project our own sins onto someone else.



Taking the message right to the steps of Parliament.



The Raging Grannies received an enthusiastic response to their songs.



Here are my favourite photo subjects - I always love to see the all-important drummers and the sweet little kids

One of the drummers.



Child wearing military style helmet with the words "Class Warrior" in red at the front. The "A" in warrior is changed to a peace symbol, and there is a larger peace symbol on the back of the helmet.



This little girl made and decorated her own sign. It says "Peace on Earth" and it has hearts and stars and flowers and Mr. Sun on it, all in pretty pastel colours.




On to Montreal
Israeli Apartheid is always included in Montreal rallies. This one was no exception.

By Ron Saba: Montreal Anti-Occupation/War/Apartheid Demo, March 17, 2007
(Photo captions added by YYC)

With a cunning smile, the US Empire and its Canadian lackey offers imperial soup. And then guns them down with imperial guns. Canadians have much blood on their hands. We will have even more blood on our hands unless we act now to stop the Harper/Bush Military Industrial Complex before it attacks Iran. We the people must stand together and demand an end to the military industrial complex. We the people must stand together and demand an end to the illegal occupation of Iraq, Afghanistan and Palestine.

Sign: "Palestiniens et Juifs Unis Contre L'Occupation IsraƩlienne"



View of marchers in the street



Sign: "Massacre Charitable? C'est Louche!"



Street theatre - tough guy soldiers with guns



Sign: "No More Bantustans - South Africa 1988, Now Palestine"
(The Coalition Against Israeli Apartheid)



A pointed message about Petro Canada : "See ya in Iran"
In other words, we're onto you guys. We know what you're really after, and what you don't mind shedding other people's blood for.






Related:
CanadaWatch: PHOTOS of Hamilton demo
CBC: Rallies in Canada and U.S. protest Iraq war, Afghan mission
More links to photos at WhatReallyHappened.com

States Tried to Stop Subprime Bubble- but Bush Shut them Down

Rewarding Work

by J. Mijin Cha


The Predatory Lending Bubble and How the Feds Made it Worse

The trouble in the subprime lending market is sending ripples through Wall Street. One of the biggest subprime lenders, New Century, has been de-listed from the New York Stock Exchange.

As this Dispatch will detail, the current mortgage and foreclosure crisis is the result of years of irresponsible lending and federal policies that shut down efforts by state and local governments to restrain the predatory lending practices that set the country up for this crisis. Despite these roadblocks by the federal government, many states are still finding solutions to help prevent these abusive lending practices.

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The Crisis in Subprime Lending

At the end of last year, late mortgage payments reached the highest level in over three years and new foreclosures reached record levels. The cause? Subprime loans, that is loans for people with bad or limited credit which carry a higher interest rate, and often unfavorable terms. A report released in December 2006 shows that as many as 2.2 million subprime borrowers face foreclosure on their home loans.

Abusive Mortgage Lending: The subprime lending market is aimed at families who have bad credit or trouble getting credit. While on the surface, it seems like these loans help families with bad credit purchase homes, deceptive marketing practices and lack of information for customers create an environment of abusive lending. The Center for Responsible Lending lists seven signs of predatory lending. Among some of the more striking:

  • Excessive Fees- costs that are not directly reflected in interest rates that can reach over 5 percent of the loan amount.
  • Abusive Prepayment Penalties- Up to 80 percent of subprime loans carry a prepayment penalty in order to discourage refinancing at less abusive terms-- penalties that can cost more than six months' interest.
  • Kickback to Brokers- when brokers deliver a loan with an inflated interest rate, the mortgage broker gets a cash bonus.

What made the problem most acute for these subprime borrowers is that when the Federal reserveBusiness Week wrote just a week ago, "About $265 billion worth of subprime loans are scheduled to have their rates adjusted upward in 2007...Many stretched homeowners may soon be paying 11% or 12% on their mortgages, while everyone else can get 30-year fixed-rate loans at a little over 6%...In effect, monetary policy is turning into a regressive tax." hiked interest rates, most borrowers could refinance to long-term loans whose rates have barely moved in the past three years. People with poor credit, however, absorbed the brunt of the shift, since their contracts usually hiked their mortgage rates in tandem with the Federal Reserve rate hikes-- and either their contracts or their bad credit prevented them from escaping these mortgages as their monthly payments skyrocketed. As

Other Predatory Practices: Subprime mortgage lending is one example of the larger problem of predatory lending imposing unfair and abusive loan terms on vulnerable buyers. One additional disturbing form of predatory lending is payday lending -where a postdated check is exchanged for a smaller amount of cash. If the check bounces for any reason, such as a health emergency or an unforeseen layoff, the borrower gets stuck in a near-impossible debt trap as the interest rate for payday lending can be as high as 911 percent for one week, 456 percent for a two week loan and 212 percent for a one-month loan. This form of lending has been particularly detrimental for military servicepeople. 20 percent of service men and women use payday loans. Predatory payday lending costs military families over $80 million a year in abusive fees.

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How the Feds Pre-Empted State Law

With millions of families facing these exploitive lending practices, the question is why the government didn't act to stop it? The answer is that the states did act-- but the federal government, backed by campaign contributions from predatory lenders, shut them down and helped create this mortgage crisis.

Back in 1994, Congress did pass the Home Ownership and Equity Protection Act to protect homeowners. The law was meant to be the floor for protection: states could go above and beyond the protections offered in the Act and since then, over 30 states have passed laws offering more protection than the federal Act.

Bush Administration Preempts State Laws: However, state and local efforts have been pre-empted by the Office of Thrift Supervision (OTS) and the Office of the Comptroller of the Currency (OCC). The OCC, in particular, has promoted a theory of "field preemption" that would preempt all state laws and insulate national banks and their operating subsidiaries from virtually all state regulation. This effectively destroys any state's ability to regulate the business activities of all banks. The OCC preempted Georgia's Fair Lending Act, which had offered protection against predatory lending, including outlawing extreme prepayment fees or penalties, unreasonable monthly payments, and increased interest rates after default. This was followed by the OCC preempting the New Jersey Home Ownership Security Act, which prohibited abusive lending practices and challenges to other state laws have followed. Adding to the attack on state authority, some in Congress proposed laws to further preempt state authority over mortgage lending. One of the chief sponsors of the preemption bill was Congressman Bob Ney, who was convicted of bribery for his role in the Abramoff scandal.

Courts and Preemption: The courts have largely backed this federal preemption of state authority, with federal courts striking down predatory lending laws in a number of states. After the Sixth Circuit Court of Appeals struck down state banking laws in Michigan, the Supreme Court agreed to hear the case and will be making a ruling soon on whether some parts of state regulation will survive preemption.

Yet whatever the courts decide now, the damage has been done. During the critical period of the recent housing bubble, as speculation and predatory lending ran riot, state regulators were so involved in defending their laws in court that their effectiveness was undermined and the costs are being borne by some of the most vulnerable borrowers in the market.

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States Rally to Increase Protection

In examining the predatory lending crisis, the Carsey Institute at the University of New Hampshire released a report that included several simple steps government can take to protect their citizens against predatory lending:

  • Reduce excessive points and fees that strip equity from borrowers
  • Provide consumers with additional protection for high cost loans, such as prohibiting pre-payment penalties or prohibiting financing of fees
  • Require interest rates to reflect the risk of the loan rather than upfront points and fees that strip equity from borrowers
  • Protect consumers in disputes with lenders, such as prohibiting mandatory arbitration, which tends to favor lenders
  • Require a net tangible benefit to the borrower in any refinance loan

The bottom-line is that we need common-sense rules that prevent consumers from ending up with loans costing far higher than they thought they were signing up for initially.

State Mortgage Laws: While state laws are under challenge, there is hope that the Supreme Court will restore more authority to state regulators. Some laws and administrative actions worth highlighting:

  • The Center for Responsible Lending and ACORN each track past and present predatory lending laws from around the states. As one example, Wisconsin passed a bill that prohibits balloon payments, a payment that is more than twice as large as the average of all earlier scheduled payments, limits the amount of interest that a lender can receive on a loan, and other protections for borrowers, including a full disclosure of loan terms to borrowers. There was a clarification issued by the Wisconsin Director of Legal Affairs, but the Act was not preempted.
  • Connecticut introduced a bill to regulate predatory lending. SB 1039 would cap the interest charged at 12 percent per annum for loans that are less than $15,000. The text of the bill also specifically states that the provisions of the bill are to be applied to payday loans. Unfortunately, the bill died in committee.
  • The Illinois House introduced HB 1478, the Predatory Lending Protection Act. The Act prohibits the imposition of prepayment penalties, flipping of loans and lend financing of credit insurance. The Act also imposes limitations on high-cost loans and prohibits lending unless the lender reasonably believes that the borrower is able to make the payments to repay the loan.

  • Minnesota HF 387 requires lenders to ensure that borrowers are able to make the principal and interest payments on the loans before the loan is granted and prohibits the flipping of loans.

  • The recent slew of subprime lenders going bankrupt has spurred state action to protect their constituents. New Hampshire's state Banking Department ordered New Century Financial Corp. to stop accepting new loan applications on Wednesday and six weeks ago charged Mortgage Lenders Network USA, INC.. with failing to fund mortgages on which it had closed. Massachusetts Secretary of State William F. Galvin has demanded documents from two Wall Street firms over their recommendations on subprime lenders.
  • States are also taking action against the related abuse of payday loans: Eleven states have interest rate limits on payday lenders and proposals are being debated in ten other states. Virginia has just capped payday loan interest rates at 72 percent, still high but a vast improvement over the 400 percent payday lenders had been charging. Going even further, New Hampshire is debating a bill that would close the doors on payday loan shops. The New Hampshire bill would prevent any person from making a loan with an interest rate higher than 30 percent.

More Resources

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Conclusion

The new Congress seems more willing to grapple with the predatory lending problem, with Congressman Barney Frank from Massachusetts saying he would introduce legislation to restrict subprime lending. But while the Federal government may be trying to help the situation now, the debacle of recent years is a lesson in why federal preemption of state laws is often a recipe for disaster. While minimum federal standards are often needed, states are usually aware more quickly of problems appearing locally that need additional regulation, such as the explosion of predatory lending. We should remember in coming years that by tying the hands of state governments, federal regulators made a bad problem far, far worse.

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LEST WE FORGET: ETHNIC CLEANSING AND LAND THEFT

PROLOGUE:

Creation of an exclusive Jewish State in Palestine meant importing of Jews from all corners of the globe to Palestine. Between 1882 and 1948, the number of Jews in Palestine increased from 7000 to about 700,000 forming no more than 35% of the total population of the country and owing no more than 7% of the total land.

This meant that creation of the state the Zionists had in mind required ethnic cleansing and land theft and this was the reason why they launched the war in 1948.

The British, who were still in Palestine and responsible for maintaining law and order, could have stepped in and avoided the catastrophe, they simply preferred to turn their backs to what was going on. The reason is that they were aware of the tacit agreement between King Abdullah, the appointed commander of all the Arab troops, and the Zionist leadership in Palestine and gave it their blessings. According to this agreement, Palestine would be divided between the Jews and Abdullah. Abdullah would take that part of Palestine allotted to the Arabs west of the Jordan Valley and the rest of Palestine would be left for the “Jewish State”. (For details, see: Avi Shlaim, Collusion Across the Jordan: King Abdullah, The Zionist Movement, and the Partition of Palestine. New York: Columbia University Press, 1988)

On 18 February 1947, the British submitted the Palestine problem to the United Nations General Assembly (UNGA). Resolution #181 was adopted on 29 November 1947 allocating 56.5% of Palestine to a Jewish state and 43% to an Arab state with an international enclave around Jerusalem.

On 10 March 1948, the British House of Commons voted to end Mandate on 15 May. On 20 March 1948, the U.S. delegate to the UN requested a special session to suspend action on partition and work on a trusteeship plan. On 1 April 1948, a UN Security Council resolution called for special session of the UNGA and agreed to U.S. proposal for truce to be arranged through the Jewish Agency (JA) and the Arab Higher Committee (AHC).

THE 1948 WAR:

To avoid trusteeship, the Haganah launched Operation “Nachshon” of Plan Dalet on 3 April 1948, which marked the starting point of the 1948 war.

As a result of the war, about 10,000 Palestinian Arabs were killed, about 30,000 were wounded, over 750,000 were ethnically cleansed and became refugees, and more than 400 Arab villages were bulldozed and used to build settlements for the influx of Jewish immigrants.

While Operation Nachson was going on, a brutal massacre was committed in Deir Yassin killing over 250 men, women and children. This massacre spread panic and many Palestinian Arabs began leaving the country seeking a safe shelter.

On the night of 16-17 April 1948, units of the Haganah attacked the Old City of Tiberias. The Arab notables sued for a truce but the Haganah commanders refused; they wanted surrender. The Arabs then appealed to the British to lift the Haganah siege on the Old City and to extend their protection to the Arab areas. The British said they intended to evacuate the city within a few days and hence could offer no protection to the Arabs beyond 22 April. The Arab notables then decided to evacuate the city. A truce was instituted. The British brought buses and trucks and took the Arabs to Nazareth and Transjordan. (Benny Morris, The Birth of the Palestinian Refugee Problem, 1947 – 1949, Cambridge, 1987, P. 71)

On 18 April 1948, Major General Hugh C. Stockwell, British Commander in Haifa, summoned to his headquarters Harry Beilin, the JA liaison officer with the British army in the city. Stockwell informed Beilin that he intended to begin withdrawing his forces from the borders and no-man’s-land between the Arab and Jewish quarters in Haifa and that the withdrawal would be completed by 20 April.

Noninterference of the British Army in the fighting in Tiberias, on the one hand, and the green light given by Stockwell, on the other hand, encouraged the Haganah into action in Haifa.

British withdrawal was completed by sunset on Tuesday, 20 April. At 10:30 A.M. on Wednesday, 21 April, the Haganah launched its offensive. The Arab crowds broke into the port and pushing aside the police who guarded the gate it stormed the boats and began to flee the city.” The scene at the port was described as follows: “Men stepped on their friends and women on their own children. The boats in the port were soon filled with living cargo. The overcrowding in them was horrible. Many turned over and sank with all their passengers.” (Details on the fall of Haifa, the military situation in Palestine on the eve of Plan Dalet, the fall of Qastel and the death of Abd al-Qadir Husseini, and the fall of Jaffa were selected and annotated by Walid Khalidi, Selected Documents on the 1948 War, Journal of Palestine Studies, 107, Volume XXVII, No. 3, Spring 1998, pp. 60-105)

Jaffa was the largest Arab City in Palestine. It was close to Tel Aviv but did not pose any strategic threat. According to Benny Morris “The Haganah siege would eventually bring the town to its knees; it would fall like a ripe plum when the British withdrew”. This did not save the city from attack, which started by an offensive launched on 25 April 1948 by the IZL (Irgun Tzeva'i le'umi).

While Jaffa was being attacked by the IZL, Operation Hametz (Mivtza Hametz) was launched by the Haganah against the Arab villages east of Jaffa in order to cut the city from all centers of Arab population and its rural hinterland.

On 13 May, with the final British evacuation, the Jaffa Arab Emergency Committee, representing the 4,000-5,000 remaining inhabitants, signed a formal surrender agreement with the Haganah. (Benny Morris, The Birth of the Palestinian Refugee Problem, 1947-1949. Cambridge, 1987 pp. 95-101)

Beisan as well as Safad and surrounding villages were captured by the Zionist forces on 12 May, Acre was captured on 17 May, Lydd and Ramla were captured on 14 July 1948.

The town of Nazareth was captured on 16 July 1948. Only one Israeli was killed and one wounded in the attack. A delegation of Christian clerics came out to meet the conquerors. Their request that the civilian population should not be forced to evacuate was granted. When Abraham Yaffe, an Israeli officer, entered Nazareth, he met a man whom he had driven out of another town in the Galilee. “Have you come to turn us away again?” the Arab inquired. “No, not in Nazareth,” Yaffe answered, “Nazareth is a holy place, a holy town. The world is watching us. You are not going to be a victim here.” The Israeli behavior in Nazareth was different from their behavior in the other Palestinian towns and villages. They realized that expulsion of Christian Arabs in one of the holiest Christian locations would produce unfavorable headlines all over the world. “Nazareth was the exception that proved the rule”. (Michael Palumbo, The Palestinian Catastrophe: The 1948 Expulsion of a People from their Homeland, London/Boston: 1987, pp. 123-125)

LAND THEFT:

On 28 May, Yosef Weitz, Director of the Jewish National Fund Lands Dept., met with Moshe Sharrett, the newly appointed Foreign Minister, and proposed that the Cabinet appoint himself, Elias Sasson, head of the Foreign Ministry’s Middle East Affairs Department, and Ezra Danin “to hammer out a plan of action designed [to achieve] the goal of transfer”.

On 5 June 1948, Weitz met with Ben-Gurion and submitted to him a memorandum entitled “Retroactive Transfer, A Scheme for the Solution of the Arab Question in the State of Israel”. Weitz, Danin, and Sasson signed the memorandum.

Ben-Gurion devoted two paragraphs in his diary to the meeting. He proposed that a committee of three – composed of representatives of the JNF (Weitz), the Jewish Agency settlement department, and the Agency’s treasury department – be set up. The job of this committee was to oversee “the cleaning up of the [Arab] settlements, cultivation of their [fields] and their settlement [by Jews], and the creation of a labour battalion to carry out this work”. Ben-Gurion, like Weitz, stressed that it would not be the government carrying out these activities, but they would be carried out “with its knowledge, by the National Institutions”.

The next day, 6 June, Weitz sent Ben-Gurion a detailed list of the abandoned villages and towns, with the appropriate population figures. In a covering note, he confirmed the meeting held in the previous day as well as Ben-Gurion’s approval that the destruction of Arab villages and prevention of cultivation of Arab fields will begin immediately. Weitz continued: “In line with this, I have given an order to begin [these operations] in different parts of the Galilee, in the Beit Shean Valley, in the Hills of Ephraim and in Samaria [meaning the Hefer Valley].” In this way, Weitz was trying to cover himself and not to leave himself open to charges that he had acted on his own.

Weitz spent the following day [7 June] talking with Danin about how to go about destroying the abandoned villages – where would the money come from, the tractors, the dynamite, the manpower? And where was it best to begin?

COUNT FOLKE BERNADOTTE:

The UN appointed Count Folke Bernadotte as mediator to resolve conflict in Palestine. He managed to bring about a first truce in the war from 11 June – 8 July 1948 and a second truce from 18 July – 15 October 1948.

In his report submitted to the UN on 16 September 1948, referring to the Arab refugees, Bernadotte stated, “It would be an offence against elemental justice if these innocent victims of the conflict were denied the right of return to their homes while Jewish immigrants flow into Palestine and indeed, offer the threat of permanent replacement of the Arab refugees who have been rooted in the land for centuries.” The following day, Count Bernadotte was murdered in Jerusalem by the Stern Gang. (Michael Palumbo, The Palestinian Catastrophe: The 1948 Expulsion of a People from their Homeland. London/Boston: 1987, p. 159)

ARAB INTERVENTION:

Arab intervention in the war was bogus and shameful. The Zionist onslaught started in early April; Arab armies did not interfere until 15 May when it was too little and too late.

Jordanian King Abdullah, commander of the Arab troops, was in tacit agreement with the Zionists.

Iraqi general Sir Ismail Safwat, chairman of the Arab league’s military committee, who had been appointed to lead all Arab troops in Palestine, resigned on 13 May 1948 because he was “firmly convinced that the absence of agreement on a precise plan can only lead us to disaster”. (Simha Flapan, The Birth of Israel: Myths and Realities. New York: 1987, p. 197)

ILLUSIONS OF PEACE:

For over fifty years, all efforts to end the Zionist-Arab conflict and bring peace have failed. The reason is simple: the Zionist mission had not been completed. Not all the areas coveted by the Zionists were occupied 1948 and ethnic cleansing was incomplete.

More lands were occupied in 1967 and another 250,000 Palestinians were ethnically cleansed. But all that was not good enough for the Zionist appetite.

Proposals for Arab population removal were outlined in an article entitled “A Strategy for Israel in the 1980s”, which appeared in the World Zionist Organization’s periodical Kivunim in February 1982. Oded Yinon, a journalist and analyst of Middle Eastern affairs and former senior Foreign Ministry official wrote the article.

Yinon called for Israel to bring about the dissolution and fragmentation of the Arab states into a mosaic of ethnic groupings. He believed that “Israel has made a strategic mistake in not taking measures [of mass expulsion] towards the Arab population in the new territories during and shortly after the [1967] war...”

Moreover, Yinon suggested to encompass the whole Arab world, including the imposition of a Pax Israela on, and the determination of the destiny of, Arab societies: re invading Sinai and “breaking Egypt territorially into separate geographical districts”. As for the Arab East: “...the total disintegration of Lebanon into five regional, localized governments as the precedent for the entire Arab world...the dissolution of Syria, and later Iraq, into districts of ethnic and religious minorities...” (Nur Masalha, A Land Without a People: Israel, Transfer and the Palestinians 1949 – 96, London: Faber and Faber ltd., 1997, pp. 196 - 198, citing Oded Yinon, A Strategy for Israel in the 1980s, [Hebrew], Kivunim, Jerusalem, No. 14, February 1982, pp. 53 - 58)

Benjamin Netanyahu told Bar-Ilan University students on 16 November 1989 that the government had failed to exploit internationally favorable situations to carry out “large-scale” expulsions at a time when “the damage [to Israel’s public relations] would have been relatively small”. He was referring to the Tianamen Square massacre in June 1989 when world attention and the media were focused on China. Netanyahu added, “I still believe that there are opportunities to expel many people”. He later denied making the remarks but the Jerusalem Post presented a tape recording of his speech. (Ibid, p. 190; Michael Palumbo, Imperial Israel: The History of the Occupation of the West Bank and Gaza, London: Bloomsbury Publishing Ltd., 1990, pp. 302 - 303)

Nizar Sakhnini, 18 March 2007

Mortgage Adjusting Seen Boosting Foreclosures

Foreclosures to spike as new rates kick in

Study: 1.1 million more mortgage defaults expected over next 6 years.


NEW YORK (Reuters) -- About 1.1 million additional home foreclosures are expected over the next six years as adjustable-rate mortgages - which made home buying more affordable to U.S. buyers in recent years - reset to higher payments, according to a study by research firm First American CoreLogic.

The expected $112 billion in losses won't break the mortgage industry but will inflict pain on lenders and borrowers affected by the defaults, said the study, released Monday.

mortgage_home_finance.03.jpg
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CNN's Gerri Willis how a meltdown among U.S. subprime mortgage lenders affects consumers. (March 14)
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"It's less than we spend on alcohol. It's less than we spend on the lottery and gambling," said Christopher Cagan, director of research and analytics, and author of the report Mortgage Payment Reset, The Issue and the Impact.

"The price of gasoline has far more impact. We have $60 billion a month in trade deficit that dwarfs this," he added.

Some loans made over the past few years were designed to allow initial periods of low payments. Many of those were "teaser" loans, which called for very low initial interest rates. A large chunk of the initial low-interest and teaser-rate loans are scheduled to reset to higher and longer term rates. Some "negative amortization" loans will call for larger principal payments than the initial loan.

Many borrowers are likely to face the double-pressure of a large reset while at the same time, stagnant or fallen property values and little money down will leave many borrowers with no equity, or ownership in the home above the mortgage. That may hasten defaults and foreclosures.

The study forecasts that the defaults won't severely hurt the economy and will account for about 0.36 percent of the nation's gross domestic product. However, recent reports of default troubles in loans made to borrowers with weak credit histories helped send the stock market into a funk.

"That's what gets the attention," Cagan said. "The traffic report reports the accidents. It doesn't report the normal traffic."

The report focused on single-family residences and reviewed only the impact of loans that will reset to new rates. It also assumed that prices will stay level with those at the end of 2006. However, a 1 percent rise in national prices will cause 70,000 fewer loans to be lost from reset-driven foreclosures, while a 1 percent price decline will force an additional 70,000 into foreclosure.

The U.S. mortgage industry loans about $2 trillion each year, so the loses from foreclosures may be less than 1 percent of total lending, the report said.

"The problem is this falls on a slice of lenders, investors and borrowers - 1 or 2 percent of them - that gets stunned," Cagan said.

The percentage of loans resetting with negative equity is expected to leap from 12.9 percent in 2007 to 24.4 percent in 2008. That's when some of the most frequently used 2/28 mortgages, which called for two years of low payments and 28 years of higher payments, and 3/27 mortgages, which called for three years of low payments and 27 years of higher payments, are scheduled to reset.

Still, more than 93 percent of the 32 million single-family residences' valuations and loans in the study had positive equity.

The 1.1 million foreclosures represents about 13 percent of the adjustable-rate mortgages originated through purchase or refinance from 2004 to 2006, equaling about $326 billion in debt.

The study assumed that after all the foreclosure sales would be completed, about $112 billion would be lost.

But the study also projected that the pain would not be spread evenly. The "teaser" loan group is expected to see 32 percent of those mortgage defaults because of resetting, while 12 percent of sub-prime loans are expected to default. About 7 percent of market-rate adjustable loans are expected to default through resetting.

However, many lenders already are working with clients to modify terms or refinance existing loans to avoid default.

"Many lenders do not want an empty house on their hands or an empty condo, which will take them a year to sell and they have to pay maintenance, taxes and insurance," Cagan said.

Lenders such as Countrywide Financial (Charts), Wachovia (Charts) and Wells Fargo (Charts) are sensitive to rising foreclosure levels.

Editor's note: also see new articles at the other blog

And more coming up here.

The other blog.

Inflation is eating US wage gains

from the March 19, 2007 edition

Food, housing, and healthcare costs rose at a 6 percent yearly rate in the past three months.

The Christian Science Monitor

Brian Fortinberry, who runs Front Range Barbecue in Colorado Springs, Colo., is feeling the brunt of a spike in prices.

Beef costs about 10 percent more than it did in January, he says. Fruit and lettuce are also pricier. Gasoline has gone up, adding to costs when his restaurant does a catering job. And Colorado voters just raised the minimum wage – pushing up his payroll tab.

"We haven't increased our prices, but we're looking to do that," Mr. Fortinberry says. "Eventually you have to pass it along."

The economy may be a bit cooler than it was a year ago, but inflation is still running hot. It's not like the runaway price train of the '70s, but it's enough so that people notice at the grocery checkout, when they pay for day care, or when they buy college textbooks.

Some prices – namely for housing, food, and medical care – have been more noticeable than others of late, jumping at a 6 percent annual rate during the three-month period from December through February, the government reported Friday. Retail gasoline prices rose 7 percent in just two weeks, according to a March 12 report by the US Energy Information Administration.

Of course, not everything is getting more expensive. The core rate of inflation – prices of all goods and services minus volatile food and energy – has been edging up, not soaring, for the past three months. Still, at a 2.6 percent annual rate, inflation is hotter than Federal Reserve officials would like.

Economists are divided over what happens next. Some say inflation is bound to taper off – though maybe not for some months – as the ripple effects of a housing-market downturn cool the economy. Others say that rising prices will persist and that the economy, instead of cooling off, will run close to its speed limit.

"You're going to see continued [inflationary] pressure," predicts Michael Darda, chief economist at MKM Partners, an investment firm in Greenwich, Conn. "Firms will find the pricing power [to pass along increased costs]. I think it is a broad-based issue."

Doug Stoddard, who works at a computer job in Boston, doesn't need government reports to tell him about rising prices. He's seen them in numerous bills over the past year.

"Rent went up. Cable went up. My gym membership went up," he says.

His subway pass rose from $44 to $59 a month. And he's noticed higher prices for gasoline and groceries.

Mr. Stoddard figures that all this has outstripped the change in his income. Higher health-insurance costs alone ate up most of his last raise, he says.

Wage gains of Fall 2006 dissipate

Millions Americans face a similar touch-and-go battle to keep up with rising prices.

In the past two months, average weekly earnings have fallen in real terms (adjusted for inflation). That marks a reversal from last fall when, thanks to a dip in energy prices, real incomes were enjoying sturdy gains.

Consumers are being buffeted from several directions. The resurgence of inflation comes even as homeowners face a dip in property values and as the stock market has sagged from a recent peak. All this dragged consumer confidence down a notch in an index released Friday by the University of Michigan.

Hopes dim for an interest-rate cut

These economic crosswinds also pose a challenge for Federal Reserve policymakers. At a meeting Tuesday and Wednesday, they will weigh the risks to the economy – whether the threat of inflation is greater than the opposing forces that could cause an economic slowdown.

Many investors have been anticipating that the Fed will cut its short-term interest rate later this spring. That would help ensure that the housing downturn doesn't push the nation into a recession.

To pave the way for such a move, the Fed could first announce a "neutral" policy stance, rather than its current inflation-fighting bias toward raising interest rates.

But the latest news on consumer prices is dimming hopes for both the tonal shift and a subsequent interest-rate cut.

Not everyone has given up on the possibility of some easing by the Fed. But it now looks less imminent.

"The Fed will be on hold for the balance of this year," predicts Carl Tannenbaum, chief economist at LaSalle Bank in Chicago. He says surveys of wholesale and retail prices "are suggesting that inflation is not entirely under control."

In fact, the Labor Department's consumer price index on Friday showed price momentum in a wide range of goods. Food, clothing, shelter, medical care, energy, and airline tickets all posted sizable gains in February.

Some of the recent price changes may represent one-time shocks. Beef prices are reacting, in part, to a devastating storm that buried cattle country in snow. The higher costs for fresh vegetables and fruits such as oranges can be attributed in part to bad weather. Oil and gasoline prices have gone up and down based on forecasts for demand, production quotas set by OPEC nations, and glitches at refineries.

But if the Fed doesn't need to worry about any one price, it does have the task of watching the overall price level. A loose monetary policy can allow a broader cycle of price hikes in the economy, damaging consumer and investor confidence. Such a spiral, once started, can be hard to stop.

The Fed wants "to maintain a healthy investment environment where investors are not seeing their ... returns eaten by rising prices," says Mr. Tannenbaum. That stability helps businesses create jobs and boost productivity, allowing workers' real income to rise.

Some economists say a cooling economy will help to tame inflation. Prices have been falling, in fact, for cars, computer equipment, and other categories that respond to cyclical swings by consumers.

Other analysts are skeptical that the economy is slowing down. Mr. Darda expects both output and inflation to show surprising strength.

"I think we're going to end the year with core inflation much closer to 3 than to 2.5" percent, compared with 12 months before, Darda says. The Fed may not act soon, but "the next move is probably a tightening."

Mark Trumbull | Staff writer