On The Money with Peter Hebert

October 4, 2012

On the Money with Peter Hebert, “U.N., Israel & Iran,” October 2, 2012

Filed under: Commentary — Peter Hebert @ 7:24 PM

This half hour, prerecorded segment of On the Money with Peter Hebert features an interview with Bill Salus, the author of Revelation Road, concerning the 67th Session of the General Assembly of the United Nations, Iran’s development of nuclear technology, Israel’s fears concerning Iran’s intentions, and the implications for the region and the world in the event of a preemptive strike on Iran. The conversation takes into account several troubling prophecies from the Scriptures concerning the middle east. Listen to Show HERE.

August 29, 2012

On the Money with Peter Hebert, “1560 Geneva Bible: Facsimile Edition,” August 29, 2012

Filed under: Commentary — Peter Hebert @ 8:46 PM

This installment of On the Money with Peter Hebert is titled “1560 Geneva Bible: Facsimile Edition.” I recently acquired it.

None should take for granted the wonders of technology given the low reproduction costs of high quality facsimile editions of Bibles that shaped history.This 1560 Geneva Bible: Facsimile Edition is a treasure in so many ways. It is the first modern study bible in that it has numbered verses, Scriptural cross references, and annotations to make the sense of the Scripture clear. The Geneva Bible was the work of the Frenchman John Calvin, the Englishman William Whittingham, and a small committee of translators. The translators relied upon Theodore Beza’s Latin translation, the Hebrew Masoretic text, the Greek Textus Receptus produced by Desiderius Erasmus, and William Tyndale’s translations. The Geneva Bible of 1560 was the most influential English Bible of the 16th and 17th centuries. It is also the most controversial Bible of all time due to the militant marginal notes that kings wanted censored and popes wanted burned. This edition is better than what’s in a museum, because this book can be handled and studied. No white cloth mittens required with a nervous curator with those penetrating eyes burning holes in the back of your neck. For those who have been in a rare book room of a serious library, you know what I’m talking about.

We start with Henry VIII, who had divorced himself and the nation from Rome as a political power, Latin as a language, and Roman Catholicism as a culture shaping faith when he established the Church of England in 1534. The English Reformation was political, not theological. Because of Henry VIII – the brutal king who was quick to behead wives and those who disagreed with him – English language bibles shaped England, the English language, and western culture. But, the Authorized Versions were by products of and for Anglicans of the Church of England, not Puritans. The Geneva Bible was for Puritans, and it represents the theological basis for the Protestant Reformation. The Geneva Bible was produced by Englishmen exiled in Geneva during the five year reign of England’s Queen Mary (1553-1558). Queen Mary, the daughter of Catherine of Aragon and Henry VIII (1509-1547), failed to see the direction of the wind of history for England when she reasserted Roman Catholicism as the state religion. When Mary died of influenza, her protestant sister Elizabeth became queen of England (1558-1603), and Catholics fled for exile in France where they produced the English language Douay-Rheims Bible (1582/1609/1610). England and Scotland were unified under King James VI of Scotland (1566–1625) and I of England (1603-1625). James did not like the sentiments of Scottish Presbyterians, who were Geneva Bible-wielding Calvinists, opposed to bishops, and approved of revolutions to overthrow tyrants as acts of obedience to God. The Geneva Bible with its notes transformed the laity to become a deadly conspiracy against professional clergy (vestment clad bishops) and the “divine right” of kings. Puritans saw themselves as a chosen people, a royal priesthood, a kingdom of kings and priests with King James as one member of the Body of Christ with Jesus Christ, not the king, as the head over all.

To make matters more interesting, one Puritan in sarcastic disdain said he would rather read the Koran than the Bishop’s Bible of 1568. The fact is, the Church of England’s second authorized version, the Bishop’s Bible had many poorly rendered passages and was read aloud in the church. It was not portable. All across England, the English had hand sized copies of the Geneva Bible, which they read and studied for 100 years. The Bard of Avon, William Shakespeare quoted from the Geneva Bible in some of his famous plays. But, many of the Puritans were separatists, as was the case with those in Scrooby. Some, like Henry Barrowe, were imprisoned in the Tower of London, interrogated, tortured, and then executed under the eyes of Archbishop of Canterbury Richard Bancroft and Bishop of Chichester Lancelot Andrewes, lead translators of the King James Bible. The capital crime of these unfortunate Puritan separatists was having conducted home-based bible studies and meetings and not wanting to be part of the Church of England. In 1620, some Puritans fled for freedom to the New World on the Mayflower. These 120 passengers, the Pilgrim Fathers, carried with them the Geneva Bible. They settled Plymouth on Cape Cod in Massachusetts. The colony they established was governed by the Mayflower Compact. My cousin’s wife’s ancestors were on the Mayflower, and she and her husband live in New England. In his book Democracy in America, Alexis de Tocqueville suggested that Puritanism provided American democracy with a firm foundation.

The Geneva Bible appeared in 144 editions between 1560 and 1644. The Geneva Bible was eventually driven from prominence. Alister McGrath’s book In the Beginning bluntly drives the point that James I’s agenda was “to destroy, discredit, or displace [the Geneva Bible].” (McGrath, In the Beginning, p. 129).
The appearance of the King James translation of 1611, the third authorized version by and for the Church of England, was widely promoted. But, the King James Bible was met with ridicule and was a marketplace failure due to non stop printing errors. King Charles I (1625-1649) and Archbishop of Canterbury William Laud forbade printing of the Geneva Bible in England. Archbishop Laud made the vending, binding, or importation of the Geneva Bible a high-commission crime. “Archbishop Laud, who had from his youth a great dislike of this version, and had shown it strongly when president of St. John College, for bad the importation of copies. This prohibition was one of the special charges brought against him on the trial which ended in his execution.” (John Eadie, The English Bible, p. 52). When the Geneva Bible disappeared from circulation, the people complained that “they could not see into the sense of Scripture for lack of the spectacles of those Genevan annotations.” When the Puritans took over England and abolished the monarchy, it was time for pay backs. The career of Archbishop Laud came to a cutting end with “mass demonstrations, petitions, and leaflets” against him.” On January 10, 1645, Archbishop Laud was beheaded.” On January 30, 1649, King Charles I was beheaded. During the Commonwealth with Oliver Cromwell (1653–1658) as Lord Protector, the King James version of the bible in English was published with the notes from the Geneva Bible. It was not until 1660 that the King James version completely displaced the Geneva Bible.

The revolutionary nature of the Calvinistic notes and teachings within the Geneva Bible, and other translations of the bible into European languages, was evidenced in The Thirty Years’ War (1618–1648). Reformer John Calvin, it should be remembered, was the man to first use the term Great Architect of the Universe (GAOU), which Freemasons now use to designate deity. This was the last great religious war, which ironically birthed the secular nation state in the wake of the Protestant Reformation. The horrors of the Thirty Years’ War inspired my ancestors on my father’s side, Etienne and Antoine Hebert, to leave France for Nouvelle France, what is now Canada’s Prince Edward Island, during the reign Louis XIII. America’s many deist founders, Freemasons, separated the church from the state and enshrined freedom of speech and religion in the First Amendment of the Bill of Rights to the U.S. Constitution of 1789. And thus, as ironic as it may seem, the Geneva Bible with its notes on just rebellion was instrumental in forging a novus ordo seclorum, that Latin phrase on the back of the dollar bill.

August 16, 2012

Peter Hebert, First Hour Guest: Time Out With Kevin Gallagher

Filed under: Commentary — Peter Hebert @ 4:09 AM


August 3, 2012

Bankers Arrested In Iceland, Ireland, UK, USA, Switzerland, India, France, Russia, Austria…

Filed under: Commentary — Peter Hebert @ 3:58 AM

July 24, 2012

“Aurora massacre: Several links between James Holmes and US Gov’t research,” By Wayne Madsen

Filed under: Commentary — Peter Hebert @ 4:06 PM

Aurora massacre: Several links between James Holmes and US Gov’t research

By Wayne Madsen Posted: July 23, 2012


WASHINGTON — James Holmes, the 24-year old suspect in the mass shooting of Batman “The Dark Knight Rises” movie goers in Aurora, Colorado that left 12 people dead and 58 injured, has had a number of links to U.S. government-funded research centers. Holmes’s past association with government research projects has prompted police and federal law enforcement officials to order laboratories and schools with which Holmes has had a past association not to talk to the press about Holmes.

Holmes was one of six recipients of a National Institutes of Health Neuroscience Training Grant at the University of Colorado Anschutz Medical Campus in Denver. Holmes is a graduate of the University of California at Riverside with a Bachelor of Science degree in neuroscience. Although Holmes dropped out of the PhD neuroscience program at Anschutz in June, police evacuated two buildings at the Anschutz center after the massacre at the Aurora movie theater. Holmes reportedly gave a presentation at the Anschutz campus in May on Micro DNA Biomarkers in a class titled “Biological Basis of Psychiatric and Neurological Disorders.”

Initial reports of Holmes having an accomplice in the theater shooting have been discounted by the Aurora police. However, no explanation has been given by police why the Anschutz campus buildings were evacuated after Holmes was already in custody in the Arapahoe County jail.

The Anschutz Medical Campus is on the recently de-commissioned site of the U.S. Army’s Fitzsimons Army Medical Center and is named after Philip Anschutz, the billionaire Christian fundamentalist oil and railroad tycoon who also owns The Examiner newspaper chain and website and the neo-conservative Weekly Standard. The Anschutz Medical Campus was built by a $91 million grant from the Anschutz Foundation.

In 2006, at the age of 18, Holmes served as a research intern at the Salk Institute at the University of California at San Diego in La Jolla. It is noteworthy that for the previous two years before Holmes worked at the Salk Institute, the research center was partnered with the Defense Advance Research Projects Agency (DARPA), Columbia University, University of California at San Francisco, University of Wisconsin at Madison, Wake Forest University, and the Mars Company (the manufacturers of Milky Way and Snickers bars) to prevent fatigue in combat troops through the enhanced use of epicatechina, a blood flow-increasing and blood vessel-dilating anti-oxidant flavanol found in cocoa and, particularly, in dark chocolate.

The research was part of a larger DARPA program known as the “Peak Soldier Performance Program,” which involved creating brain-machine interfaces for battlefield use, including human-robotic bionics for legs, arms, and eyes. DARPA works closely with the Defense Science Office on projects that include the medical research community. Fitzsimons was at the forefront of DARPA research on the use of brain-connected “neuroprosthetic” limbs forsoldiers amputated or paralyzed in combat.

According to his LinkedIn profile, James Holmes’s father, Dr. Robert Holmes, who received a PhD in Statistics in 1981 from the University of California at Berkeley, worked for San Diego-based HNC Software, Inc. from 2000 to 2002. HNC, known as a “neural network” company, and DARPA, beginning in 1998, have worked on developing “cortronic neural networks,” which would allow machines to interpret aural and visual stimuli to think like humans. The cortronic concept was developed by HNC Software’s chief scientist and co-founder, Robert Hecht-Nielsen. HNC merged with the Minneapolis-based Fair Isaac Corporation (FICO), a computer analysis and decision-making company. Robert Holmes continues to work at FICO.

It has also emerged that Holmes, when he was 20, worked as a camp counselor at Camp Max Straus of the Jewish Big Brothers and Sister of Los Angeles. According to the Jewish Journal, among other tasks, Holmes helped to teach boys between the ages of 7 to 10 archery. In another unusual detail, the car Holmes used to drive to the Aurora movie theater had Tennessee plates. Holmes is originally from San Diego.

James Holmes is the grandson of Lt. Col. Robert Holmes, one of the first Turkish language graduates of the Army Language School, later the Defense Language Institute, in Monterey, California. Graduating from the Turkish language class in 1948, Holmes spent a career in the Army, which likely included more than a few intelligence-related assignments. Typically, U.S. military officers conversant in Turkish served with either the Defense Intelligence Agency or the Central Intelligence Agency at either the U.S. embassy in Ankara or the Consulate General in Istanbul, or both.

Terrence Sejnowski, the Francis Crick Professor at the Salk Institute for Biological Studies and the director of the Computational Neurobiology Laboratory, in an interview with Cognitive Science Online in 2008, had the following comment about recent studies of the human brain: “Alan Newell [cognitive psychology researcher at the intelligence community-linked RAND Corporation] once said that when AI [artificial intelligence] was founded not enough was known about the brain to be of any help and in the early 1980s, symbol processing was the only game in town. That has changed and we now know a lot about the brain, perhaps more than we need to know [emphasis added].”

More than we need to know!

The links between the younger and elder Holmes and U.S. government research on creating super-soldiers, human brain-machine interfaces, and human-like robots beg the question: “Was James Holmes engaged in a real-life Jason Bourne TREADSTONE project that broke down and resulted in deadly consequences in Aurora, Colorado?” In any event, if the Batman movies are now serving as a newer version of J.D. Salinger’s Catcher in the Rye subliminal messaging triggering mechanism, — Salinger’s novel was of interest to a number of American political assassins — keep in mind that August 10 is the opening date of The Bourne Legacy. It may be wise to skip that film in the theater for a while.

Copyright 2012 Wayne Madsen Report

July 4, 2012

Citibank, 666, and the Public Chopping Block in LA

Filed under: Commentary — Peter Hebert @ 6:22 AM

July 2, 2012

“Painful Lessons From the Crippling Bank Lawsuits,” By Peter Hebert, The Niche Report

Filed under: Commentary — Peter Hebert @ 5:00 PM

The Niche Report

    Saturday, May 26th, 2012 | Posted by TheNicheReport magazine

    Painful Lessons From the Crippling Bank Lawsuits

    The Dam Economy

    The Dam Economy

    (TheNicheReport) — When Bank of America’s logo is transformed by an angered customer to read Bend Over America, something is wrong with banking. That bank took bailout money in 2008, paid no federal taxes in 2010, and fired 30,000 of its employees in 2011. The public sentiment for just this prima facie absurdity is that Bank of America deserves to be sued for being an incorrigible deadbeat. But, let’s set aside the rhetoric and satire and look closer. The fact is, all of the banks are deadbeats given the nature of the lawsuits against them.[i] There are too many to count, and they come in all shapes and sizes. And, they’ve all been repeatedly sued for securities fraud, origination fraud, false claims, and on and on.

    It’s 1933 all over again. We have a repeat performance of the bank panic and foreclosure crisis from the past, but this time it is so much more worse. How did we get here? There was high-level and widespread incompetence and dishonesty across the financial sector. The federal government then undermined the free market and blocked the judicial process from clearing the markets. The federal government then passed a series of one-sided laws that favored corporations at the expense of the government and the tax-paying public. In the process, the Federal Reserve—the nation’s leading banking regulator—was bestowed with more regulatory powers, though it had not competently regulated the banking system that was under its oversight. In fact, back-to-back rounds of quantitative easing and sustained low interest rates have served only to benefit stockholders, but have done nothing for employment, which is part of the central bank’s mandate.

    Are the countless lawsuits against the banks and “the system” justified? Are there any real lessons we can learn from the complaints? Has the system been gamed beyond repair? As of April 2010, about 2,000 lawsuits had been filed against appraisers, of which 75 percent were filed by borrowers claiming $100 million in aggregated damages.[ii] There are indeed several painful lessons from the many lawsuits. We will take a big picture and systematic approach to examine a few representative complaints in this article.

    Deception, Deception, and More Deception

    “It’s not a crisis, it’s a cover up!” This is the first and foremost lesson from the bank lawsuits. Sentiments like that concerning the financial sector and its inordinate influence on the federal government abound in social media, some academic circles, and paneled discussions before packed audiences. When a regional bank representative that funds an academic chair states, “We’ve been here before,” it should come as no surprise that business professors with an understanding of history roll their eyes in disbelief and contempt. You don’t need to be an economist or jaded to respond, “No kidding.”

    When it comes to understanding the financial crisis, a very real information war is being waged. Deception is used to create confusion, reshape a narrative, control perception, and thereby conceal the facts. Yes, it’s a cover up.

    The entire apparatus of academic preparation, managing public perception, the media narrative, and the legislative process is shrewd and cunning. Like warfare, it’s all based on many layers of deception. Industry publications, understandably, function as propaganda mechanisms to keep the morale up for rank-and-file employees. The academic world remains complicit in pushing failed academic theories and models as if they were proven facts. The mainstream media is complicit in misinforming the general public, which is easily manipulated for public support of misguided laws.

    Many high-sounding phrases were created to function as sanitized labels to conceal widespread fraud and predation. Appropriating these phrases did not change any of the facts. Instead, these sophisticated-sounding phrases simply covered up the facts. Let’s consider just five.

    First, the financial crisis opened with former Goldman Sachs chief executive officer Henry Paulson as U.S. Treasury Secretary pushing the phrase “toxic assets” out to all of the media outlets. The mortgage bonds were not “toxic.” They were fraudulently originated and they defrauded investors. As a result, they were not assets. How were investors to be made whole? Taxpayer money, of course.

    Second, Ben Bernanke of the Federal Reserve blamed Asia for a “savings glut” as the reason for the housing bubble. In this absurd “debt is good” view of the world that can only come from the nation’s central bank—a perpetual debt machine—frugality and savings are a threat to the banks.

    Third, business-oriented publications like Business Week, Forbes, Wall Street Journal, and others promoted the phrase “mispricing of risk,” a concept more appropriate for academic journals and text books. “Mispricing of risk” was due to credit default swaps, which offset the risk onto others as insurance. The actual “mispricing” was due to the cost of buybacks as a result of fraud.

    Fourth, “regulatory capture” was used to describe the inordinate influence of banking executives within the fourth branch of government; a range of voices speaking in Capitol Hill testimony and other venues opted for a sanitized phrase rather than labeling this as political corruption.

    Fifth, corporations control both political parties, throw large amounts of money at law firms to shape bills that become laws, and at public relations firms to shape public perception. This is called “managing legislative risk” rather than fascism, which is what happens when the corporation controls the state. As we’ve all heard before, government is the handmaiden of business.

    Since deception is at the heart of all organized frauds, schemes designed to skirt regulation, and rackets designed to exploit the system, sometimes lawsuits come to play to put out the light.

    Consider Aaron Krowne’s ML-Implode.com, which was perhaps the first to archive and document the series of lawsuits against mortgage brokers and the banks. Krowne’s website was ahead of the curve and became the go-to-source for industry trends and the sordid details that characterize the nature of a legal complaint. Krowne’s efforts, which were often cited in the business and financial media, were met with frivolous lawsuits for the purpose of shutting down ML-Implode.com.

    Ml Implode

    Ml Implode

    Gaithersburg, Maryland-based AmeriDream, run by Christopher Russell and Ryan Hill, filed a frivolous suit against Aaron Krowne for the purpose of shutting down ML-Implode.com after a post appeared on that website concerning AmeriDream’s no-down-payment purchase scheme that placed the government at risk. Russell and Hill’s concerns were that ML-Implode.com pulled 100,000 visitors each day, and that the site served as an archive of legal complaints against lenders for the purpose of not letting anyone forget how we got into an economic mess. The two argued that their inclusion on ML-Implode.com harmed them. The fact, however, is that as noted in one of the motions, “The public benefits from the fruits of legitimate discussion ….”[iii] The business magazine Forbes labeled Russell’s scheme “a racket.” The definition of “a racket” is “an illegal or dishonest scheme for obtaining money.” Russell and Hill, however, did not file a libel complaint or demand a retraction from Forbes.[iv]

    When frivolous lawsuits don’t work to silence onlookers, then nondisclosure terms are used to keep out-of-court settlements forever in the dark. The fact is most complaints settle out of court prior to trial since it mitigates costs and permits the defendant to “save face” by not only burying many shameful details, but also including an admission of no wrongdoing provision as part of the settlement’s terms. This is part of the judicial process and is the way our system works. Settling cases out of court without admissions of wrongdoing serves the interests of corporations, not the general public.

    Federalism and Its Discontents

    Federalism, the constitutional doctrine of preemption, and the judicial doctrine of standing are oppressive and destructive to freedom. Moreover, members of the federal government know how to behave like backward ignoramuses when they want. This is the second critical lesson from the bank lawsuits. The founding fathers were conspirators against the states and their citizens. And, we the people knew it. Though the newly freed colonists were able to negotiate a Bill of Rights as a concession by the conspirators, who wanted to create a federal government, no one anticipated too-big-to-fail banks or systemic economic risk of interdependent firms in a global economy, or the wanton greed for more profit that led to commingling deposit accounts with speculative accounts as in the case of MF Global. The federal government has served to protect the interest of national corporations at the expense of the states and its citizens, because that is what it was designed to do.

    The night after the filing of Robert L. Schulz v. United States Federal Reserve System, Ben S. Bernanke, United States Department of Treasury, Henry M. Paulson, Jr., and the United States, Paulson and Geithner waged a fear-mongering campaign through the halls of Congress. Paulson submitted a three-page bill that was ridiculed. Then, the shadow government—the unelected agency heads—pulled out all stops.

    On October 2, 2008, Congressman Brad Sherman (D-California) complained on the House floor about the orchestrated fear mongering and environment of panic that was clouding the better judgement of lawmakers. He said, “The only way to pass a bad bill is to keep the panic pressure on. Do not panic. Hold hearings. Let’s write this bill well.”[v] Sherman’s comments about “creating and sustaining a panic atmosphere” ironically gave the U.S. Congress a taste of its own medicine when it signed the Patriot Act into law, which placed every American under possible surveillance in contravention to the Bill of Rights. Under the Patriot Act, one of the definitions of domestic terrorism is “to influence the policy of a government by intimidation or coercion.” The U.S. Treasury and the Federal Reserve catering to the financial sector did exactly that—they influenced public policy through intimidation and coercion.[vi]

    The House of Representatives produced a 100-page bill, which the public did not want as evidenced by a meltdown of the Congressional switchboard: “All circuits are busy. Please hang up and call again.” Then, the Senate produced a 400-page bill, which was evidence of a backward process since that version came into law. On October 3, 2008, President Bush signed into law the Emergency Economic Stabilization Act of 2008, which should have been titled the No Banker Left Behind Act of 2008.

    Dodd-Frank, the Wall Street Reform and Consumer Protection Act of 2009, had no criminal provisions for further destroying the economy. In other words, the next time around no big bank executive will wear an orange jumpsuit with white socks and flip flops and then be handed soap on a rope as he is put behind bars. That is not going to happen. Civil offenses mean civil penalties. There will be no jail time.

    Class Action Complaints Only Limit Liability

    Before the Subprime Meltdown of 2007 and the Panic of 2008, Roland Arnall of Ameriquest had institutionalized predatory lending. Though the fraud complaints came to the attention of the attorneys general across the nation, the entire lending industry followed Ameriquest’s lead. This was all driven by credit-score-based target marketing and the “democratization of credit” with the goal of creating a customer base of ongoing repeat business. In any other business this would be fine. But, in mortgage lending where credit functions as a public utility, this is predatory.

    On January 23, 2006, attorneys general, prosecuting on behalf of their states’ citizens as well as lending regulators in 49 states and Washington, D.C., announced a $325 million class action settlement with Ameriquest.[vii] Ameriquest’s settlement per borrower averaged a mere $1,354 per claimant, which in some cases was less than the cost to file for bankruptcy and less than trustee fees that accrue in the foreclosure process. In some states the average award per claimant was less, given that each state had different numbers of borrowers and different loan amounts. Ironically, Ameriquest’s former employees were better compensated as part of separate suits against the company for not being paid overtime while with the company.

    The payout to settle the claims against Ameriquest amounted to roughly just a one point refund. The settlement, however, provided no relief for the loss of a home to foreclosure, bankruptcy, damaged credit, stress-induced heart attacks or stroke, or suicide. The settlement, moreover, did not take into account impediments that could take place in a job search if an employer required a credit check as a condition of employment. The settlement, finally, required no admission of wrongdoing.

    Then, the sordid details of the foreclosure scams perpetrated by law firms representing Fannie Mae, Freddie Mac, and the big banks made the news due to local journalists, not mainstream media reporters. Improper foreclosures, fraud on the courts, and the Mortgage Electronic Registration Systems business model made headlines.

    On October 13, 2010, the attorneys general from the 50 states announced a joint investigation into mortgage loan servicing and foreclosure fraud. They, however, did not call for a moratorium. Instead, they sought to determine whether or not the big banks had made fraudulent or misleading statements in court in order to secure the court’s permission to evict a homeowner in default.

    On that day, approximately 1.8 million foreclosure actions stopped in the judicial foreclosure states while 1.3 million foreclosures continued in the non-judicial foreclosure states. In the national pipeline, however, there were as many as 9 million foreclosure actions that potentially came into question as a result of servicers not exercising due diligence so as not to defraud the courts.[viii]

    The attorneys general from 49 states and the federal government then negotiated a $25 billion settlement with leading servicers to the financial sector’s benefit, because damages were arbitrarily capped. These banks have three years to locate and pay between $1,500 to $2,000 to approximately 750,000 families who wrongfully lost their homes. This amount is about a few months worth of groceries, and that’s it. The problem for these families, which benefits the banks, is that many cannot be reached. Some are homeless, some are now living with extended family, some have left the country, and some have committed suicide.

    Size Matters

    Allied Home Mortgage

    Allied Home Mortgage

    Industry-wide lawsuits warn that no company is untouchable. Consider Houston, Texas-based Allied Home Mortgage Capital Corp., a lender that boasted in its marketing pieces that “size matters.” This mortgage company at its peak had over 600 offices and functioned as the nation’s largest privately held mortgage company. Critics and analysts, however, charged that Allied was made up of net branches that existed to skirt government regulation. Like all mortgage companies, Allied Home Mortgage Capital Corp. pushed the envelope and sought opportunities to exploit grey areas in regulation.

    On November 1, 2011, the government filed United States of America ex rel. Peter Belli v. Allied Home Mortgage Capital Corp., Jim C. Hodge, and Jeanne L. Stell. Since this is a civil mortgage fraud complaint, there is no protection for Jim C. Hodge, the company’s chief executive officer, and Jeanne L. Stell, the company’s chief compliance officer. Due to the fraud allegation, the corporate shield of protection drops and these individuals must give an account. The complaint demanded $2.5 billion, or triple damages, stemming from the Federal Housing Administration’s payout of $843 million in losses. The government claimed that one third of Allied’s government loans originated between 2001 to 2010 went bad, which was evidence of “reckless mortgage lending, flouting the requirements of the FHA mortgage insurance program, and repeatedly lying about its compliance.” Between 2006 and 2007, the default rate on these government loans climbed to 55 percent, evidence that suggests the False Claims Act had been violated.

    Hodge had one of the company’s quality control operations set up as an off-shore corporation in St. Croix, and had only two quality control employees in the corporate office. Though Hodge collected management fees through this tax benefit scheme, he provided the government with fraudulent reports according to the United States Attorney’s Office. Moreover, Allied “falsely certified that none of its employees had been convicted of a crime and that it had a clean record in the states in which it operated.”[ix] In fact, Allied had employed convicted felons who had spent time in federal prison. In an email exchange between Stell and employees, she stated, “Serves [Jim Hodge] right never listening and thinking he didn’t have to play by the rules.”[x] Hodge, however, stated that the complaint against him and the tattered remains of his company was “so absurd.”

    This “last man standing” broker—Allied Home Mortgage Capital Corp.—may end up proving the adage ever true: the bigger they are, the harder they fall. After the details are covered up with hundreds of pages of counter claims and motions, the facts, along with the other deadbeat lenders, will be buried in the heap of the many other failures.

    Concluding Thoughts

    Has anything really changed since the Great Depression? The financial sector’s drunken stupor from the gluttony of profit at all costs exists as an object lesson for all to see and understand what an “abomination that makes desolate” looks like. Like the Great Depression, the painful lessons from the many bank lawsuits will be closely examined for years by academics, law students, and some in the industry. Many, however, will choose either denial due to the need “to make a living” or “bliss that comes from ignorance.”

    The reality is nothing has changed for the better since the Great Depression. In fact, the legislative, regulatory, and judicial environments have worsened. As uncomfortable as it may be for Tea Party adherents on the political right to admit, the fact is the Constitution, as applied by the courts on behalf of corporations, has been destructive. The token gesture legislative remedies that are in Dodd–Frank to “correct” the excesses of preemption cannot undo the damage that’s already been done to America. Moreover, denying Americans access to judicial standing serves to justify those who believe that the government is corrupt beyond remedy, and that Thomas Jefferson was right—a revolution is needed every generation. Finally, the legislative process was meant to follow procedures that were circumvented during the Wall Street bailout hearings. That fact, along with the sideshow called the Financial Crisis Inquiry Commission that had no bearing on the legislative process, served to undermine the credibility of Congress.

    The many lawsuits are a windfall for law firms. Like it or not, without lawyers and a court system, there would be blood in the streets. But, there is no such thing as perfect justice. The reality is, justice is an expensive commodity, and those without adequate resources are automatically disadvantaged. For those “fortunate enough” to benefit from a class action victory, the victors in such actions are the attorneys. The math, not the decree, is evidence of this disturbing fact.

    Government policies are typically based on kicking the can down the road, but we’re approaching the end of the road. In other words, none of the policies, new laws, or court decisions have produced real solutions. Social unrest is growing as more Americans awaken from the stupor fostered by the mainstream media and corporate-oriented economics promoted in business schools. The Occupy Wall Street Movement is an expression of that awakening, though it provides no concrete solutions other than throwing bodies onto the mindless machinery called “the system.”

    What have we really learned? The American Dream of homeownership is based on the debt-based economy that feeds Wall Street at the expense of Main Street. We have confused debt with affluence and freedom. The many credit props pushed onto Americans at the expense of our institutions are required to produce home price run-ups, which have been viewed as sure bets for retirement planning. The many lawsuits in the aftermath of the subprime meltdown and financial collapse suggest that all of this was just an illusion orchestrated by a few and implemented by a network of useful idiots.

    As Frank Zappa once observed, “The illusion of freedom will continue as long as it’s profitable to continue the illusion. At the point where the illusion becomes too expensive to maintain, they will just take down the scenery, they will pull back the curtains, they will move the tables and chairs out of the way and you will see the brick wall at the back of the theater.” All one has to do is look at the riot police ready to take out Americans deemed “terrorists” to understand that it’s all indeed just an illusion.

    Some still believe in coincidences. In 2012, the National Defense Authorization Act became law and the Department of Homeland Security ordered a half billion rounds of high-powered ammunition. The show is over. Hit the light switch. That “brick wall at the back of the theater” is the rumored 100-year charter of the Federal Reserve, which may in fact be perpetual.[xi]

    About the Author

    Peter Hebert

    Peter Hebert

    Peter Hébert is a mortgage finance and real estate industry subject-matter expert with a master of business administration degree in finance and marketing from Mount St. Mary’s University in Emmitsburg, Maryland. Hébert runs Freedom House Press and is the author of Mortgaged and Armed (Freedom House Press, July 2010), which is available on Amazon.com.
    He can be reached at PeterHebert@Verizon.Net.

    End Notes

May 9, 2012

Painful Lessons from the Crippling Bank Lawsuits

Filed under: Commentary — Peter Hebert @ 8:25 PM

“Painful Lessons from the Crippling Bank Lawsuits” appeared as the feature article in the May 2012 issue of The Niche Report. This PDF copy is readable when viewed in actual size.
Painful Lessons.pdf

April 27, 2012

The Gospel According to John

Filed under: Commentary — Peter Hebert @ 7:34 PM

Before the King James Version of 1611 came out, the Roman Catholic Church put out an English language version of the New Testament in 1582 at the English language (cathedral) college at Reims, France. (Below is that English language translation adapted into a manuscript format I produced. It is the opening to the Gospel according to John the apostle and evangelist). In 1610, the Old Testament was translated from the Latin Vulgate into English at the English language (cathedral) college at Douay, France. The Roman Catholics were ahead of the curve, the Anglicans used the Catholic version of the New Testament to influence the King James Version, but lost the public relations battle in the reformation, counter reformation, and English language translations of the Bible that followed. The fact is, the Douay-Reims Version is rather obscure, yet provides a superb English language translation.

As an obscure point, Acts 12:4 in the New Testament translates the word pesach (Hebrew is pronounced PAY-sock) into Passover in the Douay-Reims version. The King James Version translated pesach into Easter … though the Greek and Latin were accurate …. pesach. Most Christians, Catholic, Orthodox, Anglican, and Protestants celebrate Easter (the resurrection) though it should be called the Feast of First Fruits.

“The fifteenth of Nisan begins Hag HaMatzah (the Feast of Unleavened Bread), which is a high sabbath …. It is a seven day feast to the Lord. The day following the sabbath during Passover is called the Feast of First Fruits (Leviticus 23:10-11).” (Taken from http://www.mayimhayim.org/Festivals/Feast5.htm).

Peter Hebert

March 15, 2012

The Deception of Media and Surprise Prediction at End

Filed under: Commentary — Peter Hebert @ 3:00 PM

Are Americans being dumbed down by the corporate run media so that widespread political realism does not take hold within the United States?
CNN, MSNBC, FOX News are media giants collapsing from the weight of their own poor journalistic judgements.

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