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FIRE's Recovery (aka the Mad Dog Scramble)

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  • FIRE's Recovery (aka the Mad Dog Scramble)

    Wall Street has created a financial opportunity for itself from the very carnage that it precipitated, and is now preying on cash strapped local agencies whose income has been gutted by the decline in real estate tax revenues. The correct solution is to make sure that local tax agencies have the resources to handle the issues at the local level, as has always been done in the past, not by largely unregulated national commercial interests. Unfortunately, this is just part of the ongoing privatization of local functions that benefit only the financial community. For example, witness the latest trend that is emerging sell “services” to local agencies recover the cost of emergency services from accident victims.

    An example of such a company is Fire Recovery USA, located in Roseville, California. They’re part of a growing number of companies ‘helping’ strapped communities bill for emergency services. This is a particularly insidious way of creating a private ‘business’ opportunity to extract funds from a public service as someone has to pay the @20%-plus fees typically charged by such companies. Note that these schemes are essentially a direct give-away of public property or data, (sometimes in response to campaign donations as in the attempts to privatize reporting of Federal weather reporting by NOAA) as none of them require any investment by the private party in the underlying existing infrastructure and its maintenance. E.g. Building maintaining and staffing fire and police stations, providing police cars and fire trucks, training staff, etc.

    Here’s a couple of quotes from the Fire Recovery USA website apparently inviting communities to circumvent regulations to gain extra cash.

    http://www.firerecoveryusa.com/


    “We bill on your behalf, for the services you provide during a Motor Vehicle Incident, Vehicle Fire, Structure Fire, Hazmat Clean-up, False Alarms, Gas Pipeline and Power Line Incidents, Water Incidents, and Special Rescues.

    We have developed a proprietary method to allow a local department/government to bill to recovery the costs of mitigating an emergency. These “incident response mitigation rates” allow some departments to bill within a regulated environment that discourages service cost recovery.”






    http://somewhatlogically.com/?p=342

    (Another case where the old rule of thumb- never trust a corporation that has a flag prominent in it's brand-
    applies)





  • #2
    Re: FIRE's Recovery (aka the Mad Dog Scramble)

    (Another case where the old rule of thumb- never trust a corporation that has a flag prominent in it's brand applies)

    I had a passing curiosity once about why all the obvious flag-waving going on at WalMart. Figured out soon enough- they're the biggest seller of made-in-China stuff in the USA.

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    • #3
      Re: FIRE's Recovery (aka the Mad Dog Scramble)

      This is the story that really exemplifies this to my mind:


      http://www.huffingtonpost.com/2010/1..._n_766169.html

      "Nearly a dozen major banks and hedge funds, anticipating quick profits from homeowners who fall behind on property taxes, are quietly plowing hundreds of millions of dollars into businesses that collect the debts, tack on escalating fees and threaten to foreclose on the homes of those who fail to pay.
      The Wall Street investors, which include Bank of America and JPMorgan Chase & Co., have purchased from local governments the right to collect delinquent taxes on several hundred thousand properties, many in distressed housing markets, the Huffington Post Investigative Fund has found.
      In many cases, the banks and hedge funds created new companies to do their bidding. They gave the companies obscure, even whimsical names and used post office boxes as their addresses, masking Wall Street's dominant new role as a surrogate tax collector.
      In exchange for paying overdue real estate taxes, the investors gain legal powers from local governments to collect
      the debt and levy fees. At first, property owners may owe little more than a few hundred dollars, only to find their bills soaring into the thousands. In some jurisdictions, the new Wall Street tax collectors also chase debtors over other small bills, such as for water, sewer and sidewalk repair."

      (I posted this earlier but it seemed like a not-to-be-missed HOLY SH!T moment so here it is again.)

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      • #4
        Re: FIRE's Recovery (aka the Mad Dog Scramble)

        Here's an excerpt from Taibbi's new book about the next phase of the heist:

        My buddy was a young guy who'd come up working on the derivatives desk of one of the more dastardly American investment banks. After a few years of that he decided to take a step up morally and flee to the Middle East to go to work advising a bunch of sheiks on how to spend their oil billions.
        Aside from the hot weather, it wasn't such a bad gig. But on one of his trips home, we met in a restaurant and he mentioned that the work had gotten a little, well, weird.
        "I was in a meeting where a bunch of American investment bankers were trying to sell us the Pennsylvania Turnpike," he said. "They even had a slide show. They were showing these Arabs what a nice highway we had for sale, what the toll booths looked like . . ."
        I dropped my fork. "The Pennsylvania Turnpike is for sale?"
        He nodded. "Yeah," he said. "We didn't do the deal, though. But, you know, there are some other deals that have gotten done. Or didn't you know about this?"
        As it turns out, the Pennsylvania Turnpike deal almost went through, only to be killed by the state legislature, but there were others just like it that did go through, most notably the sale of all the parking meters in Chicago to a consortium that included the Abu Dhabi Investment Authority, from the United Arab Emirates.
        There were others: A toll highway in Indiana. The Chicago Skyway. A stretch of highway in Florida. Parking meters in Nashville, Pittsburgh, Los Angeles, and other cities. A port in Virginia. And a whole bevy of Californian public infrastructure projects, all either already leased or set to be leased for fifty or seventy-five years or more in exchange for one-off lump sum payments of a few billion bucks at best, usually just to help patch a hole or two in a single budget year.
        America is quite literally for sale, at rock-bottom prices, and the buyers increasingly are the very people who scored big in the oil bubble. Thanks to Goldman Sachs and Morgan Stanley and the other investment banks that artificially jacked up the price of gasoline over the course of the last decade, Americans delivered a lot of their excess cash into the coffers of sovereign wealth funds like the Qatar Investment Authority, the Libyan Investment Authority, Saudi Arabia's SAMA Foreign Holdings, and the UAE's Abu Dhabi Investment Authority.


        http://www.rollingstone.com/politics...RS_show_page=0

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