Sunday Funnies (Beware Bad Dogma edition)

When banks rob people

This time the banks are zeroing in on Geithner's cash giveaway bonanza, the "Public Private Investment Partnership" (PPIP). As expected, Bank of America and Citigroup have angled their way to the front of the herd, thrusting their snouts into the public trough and extracting whatever morsels they can find amid a din of gurgling and sucking sounds. Here's the story from the New York Post:

"As Treasury Secretary Tim Geithner orchestrated a plan to help the nation's largest banks purge themselves of toxic mortgage assets, Citigroup and Bank of America have been aggressively scooping up those same securities in the secondary market, sources told The Post...

But the banks' purchase of so-called AAA-rated mortgage-backed securities, including some that use alt-A and option ARM as collateral, is raising eyebrows among even the most seasoned traders. Alt-A and option ARM loans have widely been seen as the next mortgage type to see increases in defaults.

One Wall Street trader told The Post that what's been most puzzling about the purchases is how aggressive both banks have been in their buying, sometimes paying higher prices than competing bidders are willing to pay.

Recently, securities rated AAA have changed hands for roughly 30 cents on the dollar, and most of the buyers have been hedge funds acting opportunistically on a bet that prices will rise over time. However, sources said Citi and BofA have trumped those bids."("Double Dippers; Citi and B of A buy laundered loans at lower rates", Mark DeCambre, New York Post)

Thus begins the next taxpayer-subsidized feeding frenzy, featuring all the usual suspects. The race is on to vacuum up as much toxic mortgage paper as possible so it can be dumped on Uncle Sam at a hefty profit. These are the same miscreants the Obama administration is so dead-set on rescuing. Better to let them sink from their own bad bets.

More here.

Harris County's plan for voter registration

I like the sound of this, so let's keep an eye out for how effectively it is implemented:

County Tax Assessor-Collector Leo Vasquez has put together a coalition of private organizations and large employers to make sure that residents who move within or to the county get an on-the-spot chance to fill out fresh voter registration applications.

Moving into an apartment or buying a dwelling involves signing lots of papers. Now the Houston Apartment Association and the Texas Land Title Association will make sure the papers include voter registration forms, Vasquez said Wednesday.

Continental Airlines and the Houston Independent School District are the first employers to join the coalition by ensuring that registration forms go to workers who update their personnel records with new addresses.

“Let’s hit people when they are trying to make one of those moves,” said Vasquez, who was appointed in December to succeed fellow Republican Paul Bettencourt, who resigned from his elected post.

Some poor word choices there, Leo, but the effort seems to be well-directed:

Vasquez said he created the voter registration coalition without regard to such controversies. He also said he does not plan to play a partisan role.

Registered voters who move without updating their registrations can, in most cases, vote on Election Day at the polling place for the precinct where they formerly lived. With the rise of early voting participation, where voters live within the county matters less because they can vote at any early voting station.

Having to return to an old neighborhood to vote sometimes discourages voters from casting ballots, Vasquez pointed out, so updated registrations make participation easier.

Vasquez also hopes the program will make the volume of voter registrations more consistent through the year. Typically, address changes and other registrations peak a few weeks before each election. These spikes lead to last-minute errors by those who fill out the cards and a processing backlog at the voter registrars’ office, according to Vasquez.

Fair enough. Let's see how it goes.