CATCH 22: GOVERNMENT IDIOCY AND FRAUD IS BAKED INTO THE CAKE BY PROGRESSIVES ...

One Citizen Speaking...

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CATCH 22: GOVERNMENT IDIOCY AND FRAUD IS BAKED INTO THE CAKE BY PROGRESSIVES  Posted: 01 Nov 2015 03:00 PM PST By law, lenders are prohibited from collecting data on the race or ethnicity of its borrowers. And, yet the government alleges racial discrimination on the basis of statistical formulas with no examination of the underlying loan documents or the borrower’s actual risk profile that would justify a higher interest rate commensurate with the borrower’s risk of defaulting on a loan. To compound this idiocy, the government’s regulatory agency extorts millions from lenders and then proceeds to distribute these funds – not to those who actually have been damaged, but to those whose surname and zip code indicates they have a high probability of being a minority. With a reminder to return the check if you are not a minority. And, you wonder why the government experiences the loss of billions of dollars in waste, fraud, and abuse? U.S. Government Uses Race Test for $80 Million in Payments -- Checks are ready for minority borrowers allegedly discriminated against on Ally Financial auto loans Regulators have been sending letters in recent months to people they believe were minority borrowers overcharged for auto loans from Ally Financial. By the end of this week, the U.S. government will be a step closer to sending out millions of dollars to minority borrowers who were allegedly discriminated against by auto lender Ally Financial Inc.But there is a potential hitch: No one knows for certain whether all the people getting the checks will actually be minorities. To find minority borrowers, the U.S. Consumer Financial Protection Bureau and Justice Department opted to essentially make educated guesses using an algorithm that assigns probabilities to whether borrowers are minorities based on their last names and locations. They have been sending letters in recent months to Ally customers they believe were overcharged based on the results. One version of the letter, sent to borrowers that the CFPB estimates have at least a 95% probability of being minorities, tells recipients that they qualify for a payment and don’t need to do anything more. It asks borrowers to write back if they aren’t minorities. Another version, sent to borrowers whose likelihood of being a minority under the CFPB algorithm falls between 50% and 95%, asks recipients to sign and return the letter confirming that they are minorities. Recipients have until Saturday to respond to qualify for a payment. The government is expected to start sending out checks, often for hundreds of dollars, later this year or in early 2016. Read more at:U.S. Government Uses Race Test for $80 Million in Payments - WSJ Amazingly, the Consumer Financial Protection Bureau (CFPB) was designed by Senator Elizabeth “Fauxcohantas” Warren, and the proceeds will be distributed in an election year to remind recipients that voting for progressive socialist democrats means freebies and rebates,. However egregious, it is not as potentially dangerous or destructive as the lie behind “no profiling” and the TSA’s “No fly” list … Profiling works: you look for threats where they are most likely to appear first, and secondarily screen the rest. The truth the government does not want you to know is that terrorists normally do not fly under their real names; most terrorists adopt another religious name for jihad, there are numerous ways to transliterate non-English languages, and without biometric or other information, the list is worthless. But you are supposed to feel safe and secure knowing the government is “doing something” and that politicians “care.” Bottom line … I am not against regulatory safeguards. Bring back Glass-Steagall that separates banking and brokerage. Bring back the gaming laws that prohibit derivatives, demand that derivatives used as insurance on stock/bond asset plays be regulated like insurance using sound actuarial principles. And, most of all, eliminate the type of crony capitalism that we saw during the Bush years when politically-appointed leadership at the key financial regulators failed to investigate and prosecute financial fraud. Let us not forget the Federal Reserve which appears to be a criminal enterprise that is re-capitalizing technically insolvent financial institutions by artificially capping the return on investments and bank accounts held by seniors and others on a fixed income. THE KEY TO OUR FUTURE IS TO REDUCE THE CORRUPTION IN POLITICS AND REINSTATE COMMONSENSE SOLUTIONS! -- steve