ThinkProgress Logo

Economy

CEO Who Led Nation’s Biggest Subprime Lender Says He Has ‘No Regrets’

During the buildup of the housing bubble, one subprime lender stood above all others: Countrywide, which issued $97 billion of subprime loans, nearly $17 billion more than the next largest lender. The bank blew itself up via these loans, and was bought by Bank of America in early 2008.

The $40 billion in losses and thousands of foreclosures caused by Countrywide don’t bother former CEO Angelo Mozilo though, who said that his bank was a “world class company” and that he has “no regrets”:

Mozilo, who led the lender blamed by lawmakers and regulators for contributing to the housing collapse, spoke in a June 2011 deposition as part of a lawsuit between his firm, which was bought by Bank of America Corp. (BAC), and MBIA Inc. (MBI), according to documents filed this week in New York. [...]

Mozilo was responding to questions from an MBIA attorney who asked if he regretted how Calabasas, California-based Countrywide was run after “all the foreclosures and ruined lives and lawsuits.” Mozilo called the lawyer’s question “nonsensical and insulting.”

“I have no regrets about how Countrywide was run,” Mozilo said. “We were a world-class company in every respect.”

Mozilo once called homeowners looking for relief on their mortgages “disgusting” and “outrageous.” Countrywide was also notorious for using VIP loans to secure favorable public policy.

Justice

Hours After Connecticut Kindergarten Shooting, Michigan GOP Calls For Allowing Guns In Schools

Hours after the terrible shooting in a Newtown, Connecticut elementary school, the Michigan House Republicans issued demanded that Governor Rick Snyder (R) sign a bill that would make it easier for people to receive a gun permit and open up “gun free zones,” including schools. A statement attributed to Press Secretary Ari B. Adler shrugged off any link between guns in schools and school shootings:

What happened in Connecticut, however, is not because of nor related in any way to actions taken by the Michigan House yesterday in approving Senate Bill 59. …

It is the belief of many representatives in our caucus that it is criminals who have no intention of following any law that are the perpetrators of such heinous crimes as school shootings. Strict gun-control laws do not stop criminals from committing evil acts, they merely infringe on the rights of law-abiding citizens who might be able to take action against evil if given the chance.

The vast majority of mass killers in the United States use legally acquired weapons. A significant body of evidence suggests the wide availability of guns is strongly linked with higher murder rates.

Adler’s statement concludes by saying “Regardless of where anyone stands on the gun-rights debate, however, we will encourage everyone to try to refrain from politicizing the tragedy in Connecticut.”

NEWS FLASH

Uganda Parliament Adjourns Until February | The Ugandan Parliament has once again avoided taking action on the “Kill the Gays” Anti-Homosexuality bill, adjourning for the holidays. The bill will still be up for consideration when lawmakers return in February, but as Jim Burroway notes, enthusiasm for its passage appears to be waning, as it continues to be lowered down the “Notice of Business to Follow.”

Justice

Prisons Will Consume 30 Percent Of Justice Department’s Budget By 2020

The latest numbers from the Urban Institute add a budgetary reason on top of the human reasons to reform the United States’ massive rates of incarceration: at current trends, spending on prisons will take up 29 percent of the Justice Department’s budget by 2020. Given the possibility of cuts to federal spending from either the fiscal cliff’s sequestration or an alternative budget deal, funding this growth in prison spending could crowd out other crucial agency operations such as investigations and support for state and local governments. The report concludes that reforming front-end decisions about sentencing would do the most to tackle the problem — reducing both sentencing length and the number of offenders sentenced, and most especially reducing those numbers for drug offenses.

NEWS FLASH

Workers’ Earnings Show No Gains In 2012 | The average hourly earnings of American workers remained flat throughout 2012, according to new data released by the Bureau of Labor Statistics Friday. “Real average hourly earnings were unchanged, seasonally adjusted, from November 2011 to November 2012,” according to the report, and as a result weekly earnings were flat as well. After three consecutive months of losses, average hourly earnings increased by 0.5 percent in November. Wages as a percent of the economy are at historic lows, even as corporate profits are at record highs.

Climate Progress

Over 10,000 Americans Tell Congress To Stop Pushing Us Over The Climate Cliff

by Brad Johnson

“If our country goes over the fiscal cliff, we will be able to climb back up. But if our planet goes over the climate cliff, we will plunge into an abyss of impacts that we cannot reverse.”

With these words, Rep. Ed Markey (D-MA) exposed the essential absurdity of the “fiscal cliff” debate in a Washington, DC address last week. Over 10,000 Americans have spoken out in agreement, calling on Washington to turn to the looming climate cliff.

The leaders of the “fiscal cliff” debate claim their stances are based on their sober-minded obligations to our children and grandchildren, even as they shirk their true responsibility to confront the fossil fuel industry, whose rogue behavior threatens the very existence of future generations.

During his debates with Mitt Romney, President Barack Obama argued that “reducing the deficit” is a “moral obligation to the next generation.” House Speaker John Boehner told the National Religious Broadcasters that “leaving our debt on its unsustainable and immoral path” will “truly cause pain and suffering.”

Some leaders in Washington are speaking out against the absurdity of climate silence during the fiscal debate. Watch Markey’s remarks:

In a Senate floor speech last week, Senate Budget Committee member Sheldon Whitehouse (D-RI) juxtaposed the moral rhetoric of his Republican colleagues around the stimulus, health care, and the debt with their continued refusal to even acknowledge climate change:

Read more

Health

It’s Easier For Americans To Access Guns Than Mental Health Services

Details about Friday’s horrific shooting spree at a Connecticut elementary school are still emerging, and it remains unknown whether the suspected shooter suffered from underlying mental health issues. But the fact remains: in America, it’s currently easier for a poor person to get a gun than it is for them to get treatment for mental health issues.

Most murders committed in the United States involve a firearm — particularly handguns. A quick search shows that a typical handgun can be purchased for anywhere between $250 and $500. A .223-caliber semi-automatic rifle — which some reports indicate was the type of firearm used in today’s attack — costs between $700 and $2000. And contrary to the gun lobby’s most ardent hysteria about Barack Obama, gun ownership has actually been rising over the past four years, as has the use of guns in violent crimes.

By comparison, access to mental health services remains spotty, its funding and beneficiary requirements subject to the whims of governments attempting to balance their bloated budgets. People often do not know when they are entitled to preventative care services for mental health, and the people who do often forgo care due to the stigma associated with receiving such care.

And then there’s the cost of more extensive care. According to the National Survey on Drug Use and Health (NSDUH), a mere 7.1 percent of all American adults receive mental health services. Most of these Americans’ care is covered by private insurance, with children, poorer, and more elderly Americans being covered through public insurance programs such as Medicare and Medicaid. An additional ten percent are uninsured. But out-of-pocket costs for both inpatient and outpatient mental health services remain staggeringly high:

Obamacare will require health plans on statewide exchanges to cover mental health services as one of its “essential health benefit” categories. But states ultimately carry most of the discretion when it comes to defining what these services are and how much funding they get, and the coverage won’t help Americans in the absence of active efforts to identify and treat mental health disorders.

The National Alliance on Mental Illness (NAMI) reports that Connecticut’s public mental health system currently provides coverage for less than one in five Connecticut residents with a serious mental health problem. The other four may not be able to afford to pay for those services on their own, particularly since mental health issues tend to disproportionately affect poor people.

Many states do require mental health evaluations and background checks before allowing their residents to purchase a gun. But doing an evaluation isn’t the same thing as actually treating people with ongoing mental health conditions.

Update

There are reports that the alleged perpetrator, Adam Lanza, had a history of mental illness. There are also reports that Lanza’s mother — who Lanza also allegedly killed — bought the guns legally.

Alyssa

If You Care About Gun Control, Watch This Episode of ‘Sons of Anarchy’

When, earlier this year, Sons of Anarchy aired its fifth episode of its fifth season, entitled “Orca Shrugged,” I mostly wrote about motorcycle gang leader Jax Teller’s decisions, and Walton Goggins’ performance as a transgender prostitute who was enlisted in a blackmail scheme. But the most important scene is actually one that happens at the end of the episode.

One of the subplot of this recently concluded episode of Sons was a series of violent home invasions, blamed on an African-American gang, but in reality, the work of white Nomad members of the Sons of Anarchy, who had been recruited as part of a scheme by one faction of the club to destabilize the other. And in “Orca Shrugged,” the home invaders broke into the home of Charming, Calif. Sheriff Eli Roosevelt. Roosevelt and his wife Rita’s challenges getting pregnant had been a storyline earlier in the show, and by this season, she was pregnant. When the home invaders arrived, she was the only person home. She wasn’t expecting the Nomads to break into her house, of course. And the Nomads, as it turned out, weren’t expecting her to have a handgun in her home, loaded and easily available to her for personal protection.

In a lot of American popular culture, in that situation, Rita would have fought back bravely. Even in a dark, chaotic bedroom, she would have had chances to get off shots, and her bullets would have found their targets. Rita would have been survived, and she would have become, in that moment, a Strong Female Character.

Instead, Rita was shot accidentally. She lost her child. And she died. This episode and the one that followed were a stark rebuke to the idea that having guns in, say, a movie theater in Aurora, or a classroom in Connecticut, would have been an effective defense against a determined killer wearing body armor using a weapon capable of shooting many people quickly. In chaos in the dark, another gun is a multiplier of the potential for violence, a tool that depends on calm, time, good light, and a clear line of sight to be reasonably accurate. I’m so grateful to Sons of Anarchy for making that painfully clear, and acting as a counter to the tropes that suggest any of us can pick up a gun, defend ourselves, and become heroes.

Politics

Obama Calls For ‘Meaningful Action’ To Prevent Tragic Shootings

An emotional President Obama spoke out against the tragic shooting in Newtown, Connecticut on Friday afternoon, remembering the children and teachers who died in today’s tragedy. The president reflected on the nation’s high rate of massacres and called on lawmakers to take “meaningful action” to prevent these kind of massacres from taking place in the future. Preliminary reports indicate that at least 27 people, including 20 children and 6 adults, were killed by a 24-year-old gunman who also died at the scene.

“As a country, we have been through this too many times,” Obama said. “We’re going to have to come together and take meaningful action to prevent more tragedies like this regardless of the politics.” Watch it:

During a press conference earlier today, White House Press Secretary Jay Carney refused to discuss specific actions Congress or the president could take to strengthen the nation’s gun laws. “Today is not the day, I believe as a father, a day to engage in the usual Washington policy debates,” he said.

Update

The administration isn’t offering any more details on “meaningful action” today:


NEWS FLASH

Michigan Lawmakers Abandon Numerous ‘License To Discriminate’ Bills | The Republican-controlled Michigan state legislature has abandoned several anti-gay “license to discriminate” bills, opting not to hold final votes on them during the lame-duck session. Senate Bill 975 would have allowed healthcare providers to refuse any treatment to any patient if it violates their ““religious beliefs, moral convictions, or ethical principles.” House Bills 5763 and 5764 would have allowed adoption agencies to discriminate against same-sex couples and would prevent the state from penalizing them for doing so. This is a reprieve from numerous other extreme bills that have passed, including the anti-union “right-to-work” law and an extreme ban on abortion.

Older

Newer

Switch to Mobile
ThinkProgress Signup Overlay Skip and Continue to ThinkProgress Skip and Continue to ThinkProgress

Sign Up