I do not know what more to say about the mortgagecollapse, but this item names names and ends the fiction of Democrat innocenceor even Republican tardiness. Iunderstood the danger itself in 1998 and watched it all then unfold withoutmuch grasp of the details. Many othershave the necessary depth to have done the same and they certainly present amongthe elected republicans.
In the end, a few hundred men and women will haveto be tried for treason to set the system right. That is what actually took place.
And understand something else. The real victims are the poor and lowermiddle class who lost their dead end jobs and loan sharked houses. The rest are diminished but survived wellenough.
This was a financial swindle that used thevulnerable to loot the financial system itself. It would have been better and cheaper to simply have written them all aone time check for the sum of $50,000. Think about that. Instead allthat money is now hiding somewhere else mostly offshore.
No wonder the Russians wonder if we have gone mad.
The Republicans are back in charge in theHouse of Representatives this week, and not a moment too soon!
Forget “stimulus” bills and “shovel-ready” bailouts(for public school teachers, who need shovels for what they’re teaching),the current financial crisis, which is the second Great Depression, wascreated slowly and methodically by Democrat hacks running Fannie Mae andFreddie Mac over the past 18 years.
As even Obama’s treasury secretary admitted incongressional hearings, “Fannie and Freddie were a core part of what went wrongin our system.” And if it’s something Tim Geithner noticed, it’s probablysomething that’s fairly obvious.
Goo-goo liberals with federal titles pressured banks intomaking absurd loans to high-risk borrowers — demanding, for example,that the banks accept unemployment benefits as collateral. ThenFannie repackaged the bad loans as “prime mortgages” and sold them to banks,thus poisoning the entire financial market with hidden bad loans.
Believe it or not, the loans wentbelly up, banks went under, and the Democrats used taxpayer money tobail out their friends on Wall Street.
So far, Fannie and Freddie’s default on loans thatshould never have been made has cost the taxpayer tens of billions of dollars.Some estimates say the final cost to the taxpayer will be more than $1trillion. To put that number in perspective, for a trillion dollars, PresidentObama could pass another stupid, useless stimulus package that doesn’t create asingle real job.
Obama’s own Federal Housing Finance Agencyreported recently that by 2014, Freddie and Fannie will cost taxpayers between$221 billion to $363 billion.
Over and over again, Republicans tried to reinin the politically correct policies being foisted on mortgagelenders by Fannie Mae, only to be met by a Praetorian Guard of Democratshowling that Republicans hated the poor.
In 2003, Republicans on the Senate BankingCommittee wrote a bill to tighten the lending regulation of Fannie and Freddie.Every single Democrat on the committee voted against it.
In the House, Barney Frank angrily proclaimedthat Fannie Mae was “just fine.”
Rep. William Clay, D-Mo., accused Republicansof going on a “witch hunt” against Fannie Mae and attempting a “politicallynching of Franklin Raines” (which, in a game of “bad metaphor Scrabble” wouldhave been a double word score).
Fannie was pressuring banks to write mortgages withno money down and no proof of income. What could go wrong?
In 2004, Bush’s White House Chief Economist GregoryMankiw warned that Fannie was creating “systemic risk for our financialsystem.” In response, Barney Frank went to a champagne brunch with his partner“just because.”
Democrats saw nothing of concern in the Fanniedebacle. Bad mortgages don’t contain sodium, do they? They don’tengage in “hate speech.” And they don’t emit carbon dioxide. There was nothingto catch a Democrat’s eye.
In 2005, when the housing bubble burst, Sen.Chuck Schumer, D-N.Y., introduced a bill allowing Fannie Mae to buy up evenmore schlock mortgages, apparently reasoning that if owning some toxic mortgages isbad, owning lots of them must be better!
He accused Republican opponents of hissuicidal bill of being against affordable housing. (And that is a specificexample of how liberals love the poor so much, they promoted policies to createmillions more of them.)
As late as 2008, Sen. Chris Dodd, D-Conn., whohad received more than $133,000 in political contributions from Fannie Mae,called Fannie “fundamentally strong” and “in good shape” — which is the kind ofthing the Politburo used to say about Yuri Andropov right after he died.
(Amazingly, Dodd was only the second mostembarrassing Democrat to run for president in 2008, but only because JohnEdwards was also running that year.)
As the titanic losses were racking up, FannieMae’s operators, Franklin Raines and Jamie Gorelick, disguised the catastropheby orchestrating a $5 billion accounting fraud — all the whilecontinuing to pressure banks to make absurd, politically correct loans anddenouncing Republicans as enemies of the poor.
In Gorelick’s defense, at least when she waswrecking the economy, she wasn’t able to wreck national security by building anymore walls between the FBI and the CIA.
Have you ever noticed that whenever there’s amajor calamity in this country, the name “Jamie Gorelick” always pops up? Ithink I’ll pull some articles about the Great
Fire from Nexis to see if there was a“Gorelick” living on Catherine O’Leary’s block. Chicago
As Peter Schweizer points out in hismagnificent book “Architects of Ruin,” which everyone should read, Enron’saccounting fraud was a paltry $567 million — and it didn’t bring down theentire financial system. Those involved in the Enron manipulations went toprison. Raines and Gorelick not only didn’t go to jail, they walked away withmultimillion-dollar payouts, courtesy of the taxpayer.
(Here’s more fascinating Jamie Gorelicktrivia: That giant wall she built between the FBI and the CIA, making 9/11possible? It was financed with a risky loan from Fannie Mae.)
Under the Democrats’ 2010 “Financial Reform”bill (written by Chris Dodd, Barney Frank and Goldman Sachs), Raines keeps his$90 million, Jamie Gorelick keeps her $26.4 million, and Goldman keeps its $12billion from the AIG bailout.
Let’s get it back. Twelve billion, one hundredand sixteen point four million dollars might not sound like a lot to you, butit starts to add up.