There were other notable speeches last night, though not as many as Tuesday. I thought Sandra Fluke, the amazing Sister Simone Campbell, Planned Parenthood’s Cecile Richards, and preacher/Congressman Emanuel Cleaver, who actually started marching in his speech, did a great job.
But I have to call attention to California Attorney General Kamala Harris, who drew the short straw of having to defend this Administration’s housing policy. And she delivered in all its disingenuousness. Maybe she knew the lie at the heart of her claims, because she gave as flat a speech as I’ve ever seen her give. I saw Harris give a surrogate speech for Obama in 2008 at the California Democratic Party convention, going up against Bill Clinton, and give the better speech than the former President. She knows how to do this. Yesterday, she didn’t. And maybe she just couldn’t put her back into these words:
“President Obama stood with me and 48 other attorneys general in taking on the banks and winning $25 billion for struggling homeowners,” Harris said, noting that Obama also supported credit card and Wall Street reform.
The saddest part of that exchange is that it was practically the only part in Harris’ speech that drew applause from the crowd. That the foreclosure fraud settlement would lead to applause by anyone represents complete public ignorance on housing issues. And I have to label this a total failure of the media to understand exactly what happened in that fight.
At the risk of repeating myself for the umpteenth time, nobody “took on the banks” in the foreclosure fraud settlement. It was designed to deliver immunity for the crimes that created the Great Recession, the largest consumer fraud in history. You should not describe a penalty for documented crimes as “winning $25 billion for struggling homeowners.” And homeowners will never see the bulk of that money. Dozens of states have stolen the hard dollars out of that settlement to plug their budget holes, and that includes Harris’ home state of California. The money designated for homeowners in “credits” has not materialized into principal reduction thus far, but has almost entirely gone to short sales, which banks were engaged in for at least a year prior to the settlement. A short sale is just a kinder, gentler foreclosure which ends with the homeowner out of the home. At the root, it’s a waiver of a deficiency judgment on a home sale (where the sale price is less than the price of the mortgage, a “deficiency judgment” allows banks to go after the individual homeowner for the balance), and in a dozen states – including Harris’ home state of California – banks can’t sue for a deficiency judgment anyway.
And the key thing you have to understand about housing is that nothing has fundamentally changed in the relationship between homeowner and loan servicer. I just got an email yesterday from someone being abused by HAMP, waiting months upon months for a loan modification, spending hours on the phone with his servicer trying to get an answer. The broken servicing market has not been fixed, and given the fact that there were no consequences the first time around, it’s pretty clear that it will never be fixed.
Mitt Romney has no answers on housing. His new housing section on his website consists of vague imitations of what the current Administration is already doing. But Obama is indefensible on this issue. Completely. Totally. Utterly. Harris praises him for “leadership,” but generating a foreclosure mitigation system that was nothing more than “foaming the runway” for the banks, so they could absorb foreclosures more slowly, was anything but leadership.
Eric Schneiderman had the right idea by just not going to this convention, where he would have to defend the indefensible. Harris couldn’t help herself.





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Sold her soul.
Just another cog in the Democratic machine that is California politics. Liberal fascists. Working for the man while pretending to be for the people.
Only frauds advance in politics. Principled politians can only go so far then they are ignored but kept around for appearance sake like Shakespearian beards.
When Dday says Kamala Harris “drew the short straw” it makes me think she is auditioning for a federal position in preznit’s second term. Any guesses?
I bet Deputy Attorney General, who is basically DOJ’s chief operating officer. She has not served long enough as CA AG to get nominated as U.S. Attorney General. Given her financial enforcement interests, she might have accepted nomination to be director of CFPB, if some other large blue state AG (Cordray from OH) decides to run for governor or Senate, but I don’t know Ohio’s state election cycles.
Or, could it be … , ambassador to India? Her Indian heritage is complicated: her mother is from Tamil Nadu and the Tamil folks are creating a major stink with Sri Lanka right now, so maybe the diplomatic corps is not her best bet.
I speculate to avoid confronting the nauseating spectacle of Dems publicly flogging preznit as a foreclosure fighter. Such foul lies.
‘Took on the banks’? They paid probably $.01 on the dollar, if that, to buy a Stay Out of Jail card.
And not even a kiss for the Butt-fucking homeowners took on the deal.
“maybe she knew the lies at the heart of her claims…”
How could anyone in her position NOT know.
All of these speeches are directed at “low-information voters”, which is to say people who don’t have a clue.
But to say that Obama “took on the banks” is a pernicious lie.
If he had done so, they wouldn’t have allowed him a second term.
In order to embarrass oneself, one has to have a moral basis. Kamala Harris is an amoral corporate flunky, ergo she can’t embarrass herself.
That’s it. I am unfriending her on FB.
DD she knows about this I’m sure and yes I agree she looking to move up and that’s just find with me in Calli.
http://www.counterpunch.org/2012/09/04/obamas-secret-plan-to-prop-up-housing-prices/
Just more of that hopism for the well off and the hell with Main Street.
Harris is often touted as the presumptive front-runner for an Obama Supreme Court nomination.
http://www.abajournal.com/news/article/who_will_be_obamas_next_supreme_court_pick_blog_points_to_california_ag_kam/
That will bring her to her knees.
Repeat away. It’s not gonna hurt my feelings.
I saw her little song-and-dance, also, and my takeaway was that she has designs on higher office. This whole Attorney General of California thing is merely a stepping stone.
Well whoopty-doo. I get all giddy and shot-in-the-ass just thinking about all that
chump changeBig-Time Money spread over the entire country.Hahahaha!!!
Obama has yet to do anything that really hurts his principle sponsors, the Wall Street banks. His only defense is to lie, just like the Republicans do.
Most frustrating speech to listen to, by far — and I blame David Dayen that I know that! I would have been very happy to clap along with all the delegates who loved the pretty lady in the white suit from California, but, nooooooo. David Dayen had to let me know, for as long as he’s been writing about this, that Kamala Harris is a lying liar.
Damn.
Exactly.
She’s just another sociopath doing whatever it takes to climb the ladder of power.
Reading comments, yes — I have to agree that she’s on a SCOTUS path. How else to explain all the energy drained from her speaking style, trying to remake herself into the kind of cipher Obama prefers to nominate?
Kamala Harris for SCOTUS now there is another reason we Must vote for Zero.
I guess i should be shocked by how easily these Pols are turned. Maybe she was allowed to stroke the Slick Willie of Power and couldn’t resist the thrill.
Same goes for the person whose policies she talked up.
while i love david dayen and think he is possibly the smartest man in the world, (with teddy partridge a close second,) i am not okay with this particular post. i think the president is playing the long game. i do not think he could be re-elected if he played the mortgage crisis differently. had he gone after the banks more seriously, he would have less money and the other side would have even more, (exponentially more, they’re banks afterall.) he would be done. by picking his battles and swallowing his fist the president is living to fight another day; another 1,460 days to be precise. i am anxious to see if he comes through in the 2nd term. more, i am hopeful he will. i think he will be well positioned to take on the most difficult issues like reinstating glass-steagall and hopefully turning around or undoing some of the stuff he has been so guilty of in his first term like killing american citizens without a trial, etc.
that’s right. they would not have allowed him a second term.
Obama is the second or third best Republican President of my lifetime.
Thanks for reminding us of the definition of insanity.