Telemarketing

Adam Thierer of the Cato Institute expresses his bafflement over why people have such faith that instituting government regulations to enforce net neutrality will result in beneficial protection for free speech, when historically Congress has shown little support for the principle. He points out the irony of Hillary Clinton calling for net neutrality in the name of protecting free speech, when she has on multiple occasions called for and supported government restrictions on free speech, including on the Internet. She supported the Communications Decency Act, most of which was overturned by the U.S. Supreme Court as unconstitutional. She supports regulation of video game content. She pushed the V-chip. Does anyone really believe that the regulated Internet Hillary Clinton wants to see won’t ultimately result in any new restrictions on freedom of speech? Especially since the net neutrality bills propose giving regulatory authority over the Internet to the FCC, the same agency that is more aggressive at fining broadcasters for “indecent” content than addressing telemarketing fraud? ...

An Associated Press story: Key figures in a phone-jamming scheme designed to keep New Hampshire Democrats from voting in 2002 had regular contact with the White House and Republican Party as the plan was unfolding, phone records introduced in criminal court show. The records show that Bush campaign operative James Tobin, who recently was convicted in the case, made two dozen calls to the White House within a three-day period around Election Day 2002 as the phone jamming operation was finalized, carried out and then abruptly shut down. The national Republican Party, which paid millions in legal bills to defend Tobin, says the contacts involved routine election business and that it was “preposterous” to suggest the calls involved phone jamming. The scheme involved repeated hang-up calls from a telemarketing firm to the Democratic get-out-the-vote headquarters. The owner of the firm is under indictment for the scheme. Apart from Tobin, there have already been two other convictions in the case. UPDATE: TPM Muckraker has more details on the calling records that show calls to the White House.

The last few years have seen a lot of creative financing to purchase homes as prices rose out of control, with a huge increase in the percentage of adjustable rate mortgages (ARMs) used by first-time home buyers in order to stretch the limits of what they could afford to buy. About 25% of all current mortgages in the U.S. are ARMs. Unfortunately, many of those who got them did not understand what they were signing up for, and one in five subprime ARM homeowners in West Virginia, Alabama, Michigan, Missouri, and Tennessee was more than 30 days late with a payment at the end of last year. The peak of ARM interest-rate resets will occur in 2007-2008, which leads one researcher to predict that up to 1 million of 7.7 million homeowners who took out ARMs in the last two years will end up losing their homes to foreclosure in the next five years, with banking losses of up to $100 billion–painful, but less than the S&L crisis. The last time interest-only ARMs were popular was in the 1920’s, when the fall of home prices caused many of those who had them to lose their homes. In the last few years, they’ve been pushed hard by sleazy mortgage lenders with things like illegal telemarketing calls and deceptive direct mail pieces that look like they’re something important from your current lender, a refund check, or something else highly desirable or urgent in order to get you to open it. More at Ben Jones’ Housing Bubble Blog.