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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Crony Capitalism rears its ugly head in Michigan (Part II).

    By KG One, Section News
    Posted on Sun Apr 01, 2012 at 03:31:39 PM EST
    Tags: SB-992, Sen. Meekhof, Sen Richardville, Schostak Brothers & Company, David Schostak, Brother of Bobby Schostak - Michigan GOP Chairman, What are the odds? (all tags)

    Republicans would NEVER think about using Michigan Government to protect their own bottom line.

    True Believers, a recently signed bill makes the ongoing dele-gate scandal looking like amateur night in Dixie.

    {Continued below the fold}.

    So, the first question out of the gate is, "Okay KG, exactly what are you talking about here?"

    This is going to take a little bit of explaining to get everyone up to speed.

    Back in February, Sens. Meekhof and Richardville introduced SB-992. The purpose of the bill was to clarify language in mortgage loan contracts which contain language regarding a "non-recourse loan provision". This language could not be changed into a recourse loan by a "post closing solvency covenant" or other device.

    Running this through the Financial geek speak-to-plain English translator, we get this: If someone owes money money on a loan for something that they couldn't afford, the bank can only go after the property the mortgage was taken out on. The lending institution cannot go after any other assets the borrower has.

    About a week later, the bill was reported out of the Senate Economic Development Committee with amendment language changing the bill to not only affect future loans, but current ones as well (Bottom of Page 5 of 9).

    Ex Post Facto problems aside, you're now asking,"Financial minutiae language, why should I care?"

    Well, it just so happens that after a recent legal setback in the Michigan Court of Appeals, there is someone who is benefiting very profitability from that little legislative slight-of-hand.

    Is it the movers and shakers in the Michigan Real Estate Industry?

    In a word: Yes.

    But, more specifically one mover and shaker is especially benefiting...to the tune of at least $2.4-million.

    That person is David Schostak from Schostak Brothers & Company.

    You might have heard of his brother, Bobby Schostak, Chairman of the Michigan Republican Party.

    What are the odds of all of this republican support in the Michigan Senate, to say nothing about in the Michigan House?

    Seriously, what are the odds?

    < Top Michigan GOP Republicans Resign Amidst Delegate Scandal! | Native Agenda 21 >

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    The Dems have their reasons too (none / 0) (#1)
    by JGillman on Sun Apr 01, 2012 at 04:07:26 PM EST
    (95% of the Dems in the house voted for it, 83% of them in the Senate) So it is NOT only the Republicans, but it was a clear opportunity for the Rs to show they are better, and they blew it.

    While I understand how it could be spun in a way that makes it look like the poor small business model was being hurt, the retroactive nature is troubling.  It looks like pure payola.

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