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Pro Obama?
Waldo says:
Only cynicism could coerce a negative opinion of the idealism, honour and optimism of Barrack Obama. That this site hasn’t been leading the fight for him with all of their friends still surprises me.
Obama now wants to give the war-criminal Colin Powell a role in his administration:
"He will have a role as one of my advisers," Barack Obama said on NBC’s "Today" in an interview aired Monday, a day after Powell, a four-star general and President Bush’s former secretary of state, endorsed him.
"Whether he wants to take a formal role, whether that’s a good fit for him, is something we’d have to discuss," Obama said.
Which leads me reformulating Waldo’s post:
Only cynicism could coerce a positive opinion of the alleged idealism, honour and optimism of Barack Obama. That this site hasn’t been leading the fight against him with all of their friends still surprises me.
That said, I expect a more benign administration from Obama than the current one. He will probably put some decent judges into the Supreme Court and may raise taxes on the richest 5%.
But apart from that, I do not expect less lies or less belligerence in foreign policy from an Obama administration than from Bush. I hope that financial constrains will limit his abilities to wage wars.
Reinvestment Act
The following is a condensation of a series from the Investor’s
Business Daily explaining “What Caused the Loan Crisis”:
1977: Pres. Jimmy Carter signs the Community Reinvestment Act into
Law. The law pressured financial institutions to extend home loans to
those who would otherwise not qualify. The Premise: Home ownership
would improve poor and crime-ridden communities and neighborhoods in
terms of crime, investment, jobs, etc.
Results: Statistics bear out that it did not help.
How did the government get so deeply involved in the housing market?
Answer: Bill Clinton wanted it that way.
1992: Republican representative Jim Leach (IO) warned of the danger
that Fannie and Freddie were changing from being agencies of the public
at large to money machines for the principals and the stockholding few.
1993: Clinton extensively rewrote Fannie Mae and Freddie Mac’s rules
turning the quasi-private mortgage-funding firms into semi-nationalized
monopolies dispensing cash and loans to large Democratic voting blocks
and handing favors, jobs and contributions to political allies. This
potent mix led inevitably to corruption and now the collapse of Freddie
and Fannie.
1994: Despite warnings, Clinton unveiled his National Home-Ownership
Strategy which broadened the CRA in ways congress never intended.
1995: Congress, about to change from a Democrat majority to
Republican, Clinton orders Robert Rubin’s Treasury Dept to rewrite the
rules. Robert Rubin’s Treasury reworked rules, forcing banks to satisfy
quotas for sub-prime and minority loans to get a satisfactory CRA
rating. The rating was key to expansion or mergers for banks. Loans
began to be made on the basis of race and little else.
1997 – 1999: Clinton, bypassing Republicans, enlisted Andrew Cuomo,
then Secretary of Housing and Urban Development, allowing Freddie and
Fannie to get into the sub-prime market in a BIG way. Led by Rep.
Barney Frank and Sen. Chris Dodd, congress doubled down on the risk by
easing capital limits and allowing them to hold just 2.5% of capital to
back their investments vs. 10% for banks. Since they could borrow at
lower rates than banks their enterprises boomed.
With incentives in place, banks poured billions in loans into poor
communities, often “no doc”, “no income”, requiring no money down and
no verification of income. Worse still was the cronyism: Fannie and
Freddie became home to out-of work-politicians, mostly Clinton
Democrats. 384 politicians got big campaign donations from Fannie and
Freddie. Over $200 million had been spent on lobbying and political
activities. During the 1990’s Fannie and Freddie enjoyed a subsidy of
as much as $182 Billion, most of it going to principals and
shareholders, not poor borrowers as claimed.
Did it work? Minorities made up 49% of the 12.5 million new
homeowners but many of those loans have gone bad and the minority
home ownership rates are shrinking fast.
1999: New Treasury Secretary, Lawrence Summers, became alarmed at
Fannie and Freddie’s excesses. Congress held hearings the ensuing year
but nothing was done because Fannie and Freddie had donated millions to
key congressmen and radical groups, ensuring no meaningful changes
would take place. “We manage our political risk with the same
intensity that we manage our credit and interest rate risks,” Fannie
CEO Franklin Raines, a former Clinton official and current Barack Obama
advisor, bragged to investors in 1999.
2000: Secretary Summers sent Undersecretary Gary Gensler to
Congress seeking an end to the “special status”. Democrats raised a
ruckus as did Fannie and Freddie, headed by politically connected CEO’s
who knew how to reward and punish. “We think that the statements
evidence a contempt for the nation’s housing and mortgage markets”
Freddie spokesperson Sharon McHale said. It was the last chance during
the Clinton era for reform.
2001: Republicans try repeatedly to bring fiscal sanity to Fannie
and Freddie but Democrats blocked any attempt at reform; especially
Rep. Barney Frank and Sen. Chris Dodd who now run key banking committees
and were huge beneficiaries of campaign contributions from the mortgage
giants.
2003: Bush proposes what the NY Times called “the most significant
regulatory overhaul in the housing finance industry since the savings
and loan crisis a decade ago”. Even after discovering a scheme by
Fannie and Freddie to overstate earnings by $10.6 billion to boost
their bonuses, the Democrats killed reform.
2005: Then Fed chairman Alan Greenspan warns Congress: “We are
placing the total financial system at substantial risk”. Sen. McCain,
with two others, sponsored a Fannie/Freddie reform bill and said, “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”. Sen. Harry Reid accused the GOP ;of trying to “cripple the
ability of Fannie and Freddie to carry out their mission of expanding
home ownership” The bill went nowhere.
2007: By now Fannie and Freddie own or guarantee over HALF of the
$12 trillion US mortgage market. 20The mortgage giants, whose executive
suites were top-heavy with former Democratic officials, had been
working with Wall St. to repackage the bad loans and sell them to
investors. As the housing market fell in ’07, subprime mortgage
portfolios suffered major losses. The crisis was on, though it was 15
years in the making.
2008: McCain has repeatedly called for reforming the behemoths, Bush
urged reform 17 times. Still the media have repeated Democrats’
talking points about this being a “Republican” disaster. A few
Republicans are complicit but Fannie and Freddie were created by
Democrats, regulated by Democrats, largely run by Democrats and
protected by Democrats. That’s why taxpayers are now being asked for
$700 billion!!
If you doubt any of this, just click the links below and listen to
your lawmakers own words. They are condemning!
http://www.youtube.com/watch?v=68D9XrqyrWo&feature=related#
http://www.youtube.com/watch?v=pIgqfM5C8lY#
http://www.youtube.com/watch?v=H9juJr8CSY4&feature=related#
Postscript: ACORN is one of the principle beneficiaries of Fannie/
Freddie’s slush funds. They are currently under indictment or
investigation in many states. Barack Obama served as their legal
counsel, defending their activities for several years.
Please share this with everyone you know. Send it. Print it. Talk
about it.
America needs to know!!!
Posted by: Jason | Oct 21 2008 21:16 utc | 41
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