CBS NEWS – POLITICAL HOTSHEET JUST POSTED:

John Boehner walks away from debt talks

By Brian Montopoli
Updated 6:05 p.m. Eastern Time
House Speaker John Boehner has walked away from negotiations with President Obama over a deal to raise the debt limit.“In the end, we couldn’t connect. Not because of different personalities, but because of different visions for our country,” Boehner said in a letter to colleagues. He said Mr. Obama ” is emphatic that taxes have to be raised” and “adamant that we cannot make fundamental changes to our entitlement programs.””For these reasons, I have decided to end discussions with the White House and begin conversations with the leaders of the Senate in an effort to find a path forward,” he said.House Republican leadership aides told CBS News that Boehner will work with the Senate leadership in an attempt to reach a deal that meets the GOP’s two central requirements: That spending cuts are equal to or greater than debt limit increase and that there are no new taxes.Without action, the debt limit will be breached on August 2 – 11 days from now –
potentially plunging the U.S. economy into chaos. A GOP leadership aide said Boehner has set next Wednesday as the date by which the House must pass a bill in order to get it signed into law in time, with both the House and Senate presenting some sort of plan to members Monday. [more on CBS Post]
___________________________________________________________________

By DEADLY CLEAR

Both sides of the political isle are taking heat.  Apparently, Congress plans on going  home for the weekend to try and cope with their constituents who are protesting the 6-pack’s new deals.  “Gang” is really a much better word.

It looks like Congress is finally realizing that the “Gang” has no qualms about throwing them under the bus to save their pals on Wall Street.  Sounds like the Gang philosophy is – “so what if they don’t get re-elected, we’ll still have the banks….”  And then look who will be ruling the country.

We know these cuts and slashes are about more than the economy and every day more is coming to light through the courts.  Recent rulings court ruling like China Dev. Indus. Bank v Morgan Stanley & Co. Inc. from the New York Supreme Court Appellate Division, First Department on July 7, 2011 should make the gang and their bankster pals shake in their boots.  The Court’s Decision ended with a bang:

“China’s allegations were sufficiently particularized to support a claim for fraudulent inducement.  As the validity of the parties’ 2007 investment transaction is challenged by the allegations, the motion court properly concluded that the jury waiver provision in the agreement was inapplicable to the fraudulent inducement cause of action (see generally Wells Fargo Bank, N.A. v. Stargage Films, Inc., 18 AD3rd 264 [2005])….

Morgan argues that China ratified the parties 2007 transaction agreement, when in May 2009, it executed an amendment to the 2007 agreement.  Morgan claims that at such time,China should have been on inquiry notice of the alleged fraudulent conduct.

However, because China claimed it signed the amendment under economic duress, and damage attributable to the fraud may already have accrued (see e.g. Braddock v Braddock, 60 AD3d 84, 94-94 [2009]), there are issues of fact which preclude judgment for Morgan.”

DECISION AND ORDER OF THE SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT, Entered July 7, 2011.
_________________________

As my colleague from Florida remarks, “[T]he banksters definitely need to be very afraid of China, though.  They defrauded China just like the rest of us.  However, China has the death penalty for these types of crimes and is not afraid to use it.”

Homeowners and investors have the same claims.  Neither were in control of the appraisals, the over-rated bonds or the underwriting.  If there was fraud on the investor – then it was certainly fraud on the homeowner who didn’t even have the benefit of disclosure… whether in foreclosure or not!

I’m telling you – one smart attorney is going to find a way for homeowners to claim SEC 10(b)-5 and it will be lights out GAME OVER.