----------------------------------------------------This [financial crisis] was completely foreseeable and in fact many people did foresee it. One political party, in Congress and in the executive branch, tried repeatedly to tighten up the rules. The other party blocked every such attempt and tried to loosen them.
Would the Last Honest Reporter Please Turn On the Lights?
Furthermore, Freddie Mac and Fannie Mae were making political contributions to the very members of Congress who were allowing them to make irresponsible loans. (Though why quasi-federal agencies were allowed to do so baffles me. It's as if the Pentagon were allowed to contribute to the political campaigns of Congressmen who support increasing their budget.) ...
If you who produce our local daily paper actually had any principles, you would be pounding this story, because the prosperity of all Americans was put at risk by the foolish, short-sighted, politically selfish, and possibly corrupt actions of leading Democrats, including Obama.
If you who produce our local daily paper had any personal honor, you would find it unbearable to let the American people believe that somehow Republicans were to blame for this crisis. ...
So I ask you now: Do you have any standards at all? Do you even know what honesty means?
Is getting people to vote for Barack Obama so important that you will throw away everything that journalism is supposed to stand for? ...
... tell the truth about John McCain: that he tried, as a Senator, to do what it took to prevent this crisis. You will tell the truth about President Bush: that his administration tried more than once to get Congress to regulate lending in a responsible way.
This was a Congress-caused crisis, beginning during the Clinton administration, with Democrats leading the way into the crisis and blocking every effort to get out of it in a timely fashion.
If you at our local daily newspaper
continue to let Americans believe — and vote as if — President Bush and
the Republicans caused the crisis, then you are joining in that lie.
DEMOCRATS NOT TO BLAME? NONSENSE !
About Nancy Pelosi. She says the Democrats share absolutely none of the blame for the current financial goings-on. She's wrong. In fact, she's lying because she knows her statement to be untrue ... here's your primer:
1. Almost all of the financial problems we see today are based on bad mortgage lending. That would be lending money to people to buy homes who didn't qualify for a loan.
2. The Democrats, under Clinton, strengthened a government-created monster called the "Community Reinvestment Act." This law was then used by "activists" and "community organizers" (like Obama?) to coerce lending institutions to make these bad loans ... millions of them.
3. Now we see what happens when political "wisdom" supplants good loan underwriting. When private financial institutions are virtually forced to make loans to people with a bad credit and job history ... this is what you get. Enjoy it.
The Democrats have offered us a candidate who is very anti-private sector. Obama believes that America is great because of government and those who, like him, deride the profit motive. ...
-- Neal Boortz at http://boortz.com/nuze/200809/09192008.html
The Financial Sector Meltdown
"The reasons for [the financial sector problems] are not obscured. There are several of them.
"One of them is that the Federal Reserve under Alan Greenspan kept the punch bowl open for a long time with [unusually low] loan interest rates after 9-11, which led to a wild borrowing spree on Wall Street and Main Street.
"Secondly, for two decades you've had Republicans and Democrats in the Presidency and also in Congress who pushed to expand lending for housing for people who hadn't had it before, particularly African-Americans who'd been denied it because of discrimination and racism, and encouraged sub-prime loans which, in the end, collapsed in a fury and in a wave.
"And thirdly, what we had was a kind of advance in computers in which people derived these esoteric instruments of debt, which was understood, not as a way to cheat and hide, but as a way to spread the risk of mortgages. But ultimately, because it was [so] obscure, it had the opposite effect of spreading the liability in a way that people aren't even sure how much they own.
"The reason Lehman collapsed is because it looked at its books and doesn't understand how much of a liability it has, and a run starts on it, and it can't answer.
"Both are appealing
mindlessly to populism [blaming Republicans or Wall Street instead of the
politicians who started the whole mess when, for years and years, so many
of those politicians had the government coerce the financial sector into
selling all those risky mortgages]." -- Charles Krauthammer on Special
Report with Brit Hume, Sept. 18, 2008
Fannie Mae Eases Credit To Aid Mortgage Lending [to minorities and uncreditworthy]
By Steven A. Holmes, The New York Times, September 30, 1999 at http://tinyurl.com/4clng5
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has
been under increasing
pressure from the Clinton Administration to expand mortgage loans among
low and moderate income people and felt pressure from stock holders
to maintain its phenomenal growth in profits.
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By Stephen Labaton, New York Times, September 11, 2003 at http://tinyurl.com/6lp5qu
The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.
The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.
The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates. ...
''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''
Representative Melvin L. Watt, Democrat of North Carolina, agreed.
When the Bush administration tried to rein in Freddie and Fannie from continuing to engage in risky practices, guess who stepped in to block their efforts? Democratic senators Chris Dodd, John Kerry, Hillary Clinton, and -- are you ready? -- Barack Obama.
Meanwhile, guess who were the top four recipients of campaign contributions from Fannie and Freddie between 1988 and 2008?
Senators Chris Dodd, John Kerry, Hillary Clinton, and -- still ready? -- Barack Obama.
A coincidence, I tell you -- just a coincidence.
More mere coincidences: Franklin Raines -- a former Carter- and Clinton-administration official and former head of Fannie Mae, now under investigation for cooking its books -- had a lot of powerful people in Congresss beholden to his agency. Here is a list of his campaign-contribution recipients. Meanwhile, Democratic honcho Jim Johnson, another former Fannie Mae CEO, has been an economic adviser to and major fundraiser for Barack Obama, and even ran his vice-presidential search committee until growing scandals over his Fannie management forced him to step down in July.
-- Robert Bidinotto, here:
On May 25, 2006, Sen. John McCain spoke forcefully on behalf of the Federal Housing Enterprise Regulatory Reform Act of 2005. He said on the floor of the Senate:
"Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.
"The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.
" The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.
"For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac–known as Government-sponsored entities or GSEs–and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.
"I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.
"I urge my colleagues to support swift action on this GSE reform legislation."
Democrats and some Republicans opposed reform in part because Fannie and Freddie were very good at greasing palms. Fannie has spent $170 million on lobbying since 1998 and $19.3 million on political contributions since 1990.
The principal recipient of Fannie Mae's largesse was a Democrat, Sen. Chris Dodd (D, CT), chairman of the Senate Banking Committee. No. 2 was another Democrat, Sen. Barack Obama (D, IL).
Mr. Dodd was also the second largest recipient in the Senate of contributions from Countrywide's political action committee and its employees, and the recipient of a home loan from Countrywide at well below market rates. The No. 1 senator on Countrywide's list? Barack Obama.
"Congressman Frank and Senator Dodd wanted the government to push financial institutions to lend to people they would not lend to otherwise, because of the risk of default.
"The idea that politicians can assess
risks better than people who have spent their whole careers assessing risks
should have been so obviously absurd that no one would take it seriously."
-- Dr. Thomas Sowell, Professor Emeritus, Ecconomics, Stanford University,
politicians and pundits claim that the credit crunch and high mortgage
foreclosure rate is an example of market failure and want government to
step in to bail out creditors and borrowers at the expense of taxpayers
who prudently managed their affairs. These
financial problems are not market failures but government failure.
... The credit crunch and foreclosure problems are failures of government
policy." -- Dr. Walter E. Williams,
"Barack Obama wasn't just the second-largest recipient of Fannie Mae and Freddie Mac political contributions. He was also the senator from ACORN, the activist leader for risky 'affirmative action' loans. ... [The CRA] gave groups such as ACORN a license and a means to intimidate banks ... ACORN employed its tactics in 1991 by taking over the House Banking Committee room for two days to protest efforts to scale back the CRA. ... Obama represented ACORN in a 1994 suit against redlining. ACORN was also a driving force behind a 1995 regulatory revision pushed through by the Clinton administration that greatly expanded the CRA and helped spawn the current financial crisis. Obama was the attorney representing ACORN in this effort." -- IBD Editorials
"The Woods Fund report makes it clear Obama was fully aware of the intimidation tactics used by ACORN's Madeline Talbott in her pioneering ["community organizer"] efforts to force banks to suspend their usual credit standards. Yet he supported Talbott in every conceivable way. He trained her personal staff and other aspiring ACORN leaders, he consulted with her extensively, and he arranged a major boost in foundation funding [via CAC and Woods Fund] for her efforts." -- Stanley Kurtz, HERE
"If Obama wins, it means hiring
an arsonist to fight a fire." -- Mona Charen, HERE
OBVIOUSLY, DEMOCRATS DESERVE
A GREAT DEAL, IF NOT ALL, OF THE BLAME.
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Most of the media is in the tank for Obama. Do you REALLY expect THEM to review this information? Of course not. That's why it's up toYOU.
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