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Archive for September, 2008

What Caused the Economic Crisis?

Posted by rightwinger on September 30, 2008

1. The seeds of today’s financial meltdown lie in the Community Reinvestment Act – a law passed (under Carter) in 1977 and made riskier by unwise amendments and regulatory rulings in later decades.

2. In 2000 while Clinton was still in office, the economy tanked.  Do you remember the dot com bubble? I remember it. I was lucky that I was able to keep my job. Bush inherited an economy in recession.

3. January 2001, Bush takes office while the economy is in a recession inherited from the Clinton administration. September 11, 2001 was the largest most devastating terrorist attack. Our economy was already in a recession. We were fortunate with the Bush policies that we didn’t go into a deep depression.

4. Glass-Steigel Act was repealed in 1999 under Clinton.  Yes Senator Phil Gram championed it, but he also championed the Gramm-Ruman-Hollings Balanced Budget and Emergency Deficit Control Act of 1985 that the Dems are always trying to take credit for.  Senator Phil Gram was directly responsible for the massive tax cuts that came about under Reagan. The top tax rate before Reagan was in office was 70%.

5. This Fannie Mae debacle goes back to Clinton and passing legislation to force banks to make loans to low income bad risk individuals.  Up to 50% of Fannie Mae’s portfolio was required to be these junk mortgages.

6.  Around 2003, Accounting irregularities are discovered at Fannie Mae.  Franklin Raines made $90 million in 6 years.  Fannie was cooking the books.  By the way, Obama was number 2 or 3 on the take at Fannie Mae.

7.  In 2003, the Bush Administration tried to sound the alarm while Dems blocked any new regulations.  Yes the Republicans had a majority, but not enough not 60%.  Not enough to stop the Dems from blocking these new regulations. See Video of Dems covering up Fannie Mae Corruption.

Nancy, I agree this greed must end.  Let’s start with Franklin Raines who made $90 million in six years after cooking the books at Fannie Mae.  I want him investigated and brought up on charges.  I want him in jail.  What is good for Ken Lay is good for him.  Until you do that, I won’t listen to you or any of your corrupt Democrat friends.

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more about “Liar, Liar, Liar – STOP the LIES Nancy“, posted with vodpod

Posted in Economy | Tagged: , , | Leave a Comment »

The Obama Factor

Posted by rightwinger on September 30, 2008

Have you noticed that the O’Reilly Factor has turned into the Obama Factor?  Like saying Michelle Obama is a patriot for dancing while ripping The View’s Elisabeth Hasselbeck.  Not reporting on Franklin Raines corruption and how the Economic Crisis originated under Clinton.  No mention of Fannie Mae’s ties to Obama who was number 3 on the take.  How the first draft of the bailout bill had 20% allotted to ACORN, an Obama supported organization.  Its sad to say but there is something going on with Fox News.

Read the full article for yourself.

Posted in Uncategorized | Tagged: , | Leave a Comment »

Democrats in their own words – Covering up the Fannie Mae corruption

Posted by rightwinger on September 30, 2008

This video proves that the Democrats are to blame for covering up the Fannie Mae corruption.

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Posted in Economy, Fannie Mae | Tagged: , | 2 Comments »

Sue Myrick Votes No to Bailout

Posted by rightwinger on September 30, 2008

Way to Go Sue!  Thanks for looking out for the American taxpayer!!!

My conservative colleagues have successfully made a dangerous plan safer for the American people, and they deserve credit for standing up for the average taxpayer. That said, I don’t believe that the bill before us today addresses some of the most serious problems facing our financial system, and I don’t believe that simply buying up bad assets with taxpayer money is in the interest of free enterprise, the government, or the taxpayer. The plan, unfortunately, creates bad incentives for poor management and risky business practices.

This financial problem was caused by government intervention in the mortgage market that encouraged if not forced lenders to make risky loans and created a housing bubble that finally burst. Financial institutions made loans to people with little or no income verification and limited creditworthiness. The poorly-designed, poorly-managed Government Sponsored Enterprises, Freddie Mac and Fannie Mae, bought these sub-prime mortgages and packaged them as securities, with the implicit understanding that they were backed by the federal government.  Wall Street got greedy and leveraged assets at far from responsible ratios to obtain easy credit and capital to gobble up these securities.  Finally, insurance institutions were far too quick to offer insurance for these securities, which were often given the highest credit ratings despite the underlying weakness of the mortgages of which they were comprised.

Sooner or later, this house of cards had to fall.  Unfortunately, the financial institutions involved are so large and the sums of money so great that the crisis has affected nearly every sector of our economy.  Banks are suspicious of one another and they’re no longer extending credit.  Without the exchange of commercial paper, it’s difficult for businesses to get loans.  Homebuilders can’t sell their properties because the mortgage market has frozen.

I believe that there are alternatives to the risky plan that is before us, including, but not limited to the following:

Don’t put Taxpayers on the Hook:

– Offer secured loans from Treasury at a punitive interest rate to provide needed capital and give firms time to restructure, while still holding shareholders and debt holders accountable. This is better than directly involving the government in the mortgage backed securities market.

– Allow FDIC to purchase “net worth certificates” in troubled banks that are determined to be potentially viable, but need secure capital. Once the FDIC issues a note, banks agree to strict supervision. No huge subsidy necessary. This was done to resolve the savings and loan crisis in the 1980s.

– Provide a significant and immediate tax credit for purchasing homes.

– Implement targeted tax relief for the financial services sector to provide an immediate infusion of liquidity and capital without handing a check to the Treasury Department. This could include a sharp reduction in capital gains taxes in order to get investors to provide needed liquidity.

Fix Problems:

– Require the SEC to immediately suspend fair value accounting standards as applied to mortgage backed securities, or “mark to market” accounting standards. This would more accurately reflect the value of assets.

– End “naked” short selling: Don’t allow short sellers of stock to short a stock without actually possessing it. Short sellers could only sell when there are up ticks in the market.

– Mandate that the GSEs no longer securitize any unsound mortgage that is: (1) not fully documented to meet minimum requirements for work, assets, and income, (2) not backed by private mortgage insurance for no less than half the value of the loan, (3) written to comply with the Community Reinvestment Act and otherwise would violate a firm’s lending rules.

Avoid Abuses:

– Mandate that no financial firm can both participate in the purchasing program and act as an agent of the government in order to limit potential conflicts of interests.

– Require the Treasury Department, in conjunction with the Federal Reserve, to publish a list of financial firms who pose a legitimate systemic risk to the entire economy, those truly “too big to fail,” and limit the purchasing program to those firms.”

Posted in Economy, Sue Myrick | Tagged: , , | Leave a Comment »

The Democratic ACORN bailout: Update

Posted by rightwinger on September 26, 2008

Update: Thanks for contacting your representatives. The ACORN provision has been removed from the bill.

20% to ACORN – No Way. Talk about earmarks, Obama already has his hands in the till.   Read more about Obama’s association with ACORN

Vodpod videos no longer available.

What Is ACORN?

WASHINGTON, Sept 25, 2008 /PRNewswire-USNewswire via COMTEX/ — James Terry, Chief Public Advocate for the Consumers Rights League, today testified at a joint House Administration and House Judiciary Committee oversight hearing on “Federal, State and Local Efforts to Prepare for the General 2008 Election,” where he highlighted “corruption at every level of ACORN including embezzlement, cover-ups, misuse of taxpayer funds and voter fraud.”

See Hot Air for more information.

more about “The Democratic ACORN bailout“, posted with vodpod

Posted in Economy | Tagged: | 1 Comment »

What Is Behind This Financial Crisis

Posted by rightwinger on September 26, 2008

The other day I heard the stupidist thing on the radio from a so called expert.   What he said was From now on all loans will be based on the ability to pay.  Excuse me this what a loan should be and this is why we are in this mess.  People who could not afford home loans were given home loans.  Now we all have to pay for this failed home mortgage welfare system.  Some people will always be renters.  Sorry but the Constitution  does not guarantee that all Americans deserve a home.  That is communism not the free market.

From New York Times March 5, 2000:

The federal government has proposed new rules that would make it easier for low-income house buyers to qualify for mortgage loans, a move intended to help blacks and other minorities buy houses.

The proposed rules from the Department of Housing and Urban Development would require two of the largest housing finance companies in the country, Fannie Mae and Freddie Mac, to increase the percentages of overall loans that they offer to lower-income families from the current standard of 42 percent to 48 percent in 2000 and to 50 percent in 2001.

Read the article for yourself.

Posted in Economy | Tagged: , | 2 Comments »

Out of Control Immigration is skewing economic report

Posted by rightwinger on September 26, 2008

Just last week, the Census Bureau released its annual study of household incomes, poverty and health insurance — often called the nation’s “economic report card.” Its hard numbers seemed to confirm how many Americans feel. Sure, we’re prosperous, but prosperity is fraying. Except for the rich, living standards are stagnant. Poverty is up; health insurance coverage is down. Naturally, both Barack Obama and John McCain seized upon the report to claim that their policies would restore progress.

Hold it.

Though echoed by policy wonks, pundits and politicians — last week, Bill Clinton — the conventional wisdom is wrong or, at least, misleading. Here’s a more accurate assessment. For most Americans, living standards are increasing, albeit slowly, over any meaningful period. But rising health spending is eroding take-home pay, and immigrants are boosting both poverty and the lack of health insurance. Unless we control health spending and immigration, the economic report card will continue to disappoint. Unfortunately, neither Obama nor McCain seriously addresses these problems.

Read the article for yourself.

Posted in Economy | Tagged: , , | Leave a Comment »

Democrats get Talking Points from Communist Party!

Posted by rightwinger on September 23, 2008

Can you believe this?  The Democrats talking points are the same as the Communist Party!  I can’t tell the difference between what the Communist Party wants and the Democrats.

Statement of the Communist Party USA

The Bush Administration has proposed a massive bailout plan of at least $700 billion (maybe as much as $1.7 trillion) to stabilize the financial system amid the biggest economic crisis since the Great Depression. Treasury Secretary Henry Paulson, a Bush appointee, and the President are pushing for the U.S. Congress to rapidly pass the plan this week with little debate and no amendments. The rightwing and the banks want a plan that gives a blank check to Wall Street with no oversight.

We join with others who call on Congress to slow down the process to ensure there is no bailout of Wall Street without a bailout of Main Street. The process should include full debate and transparency.

While the full extent of the current crisis and its impact on working people cannot now be fully known, we do know that the crisis is deep and not easily resolved. Furthermore, we must insist that the criteria for any plan to solve the crisis must be what’s good for the working people of this county and the world, not what’s good for the mega-rich and massive monopolies that got us into this mess.

The situation is so dire that some type of dramatic action is needed to avoid disaster for U.S. workers. Organized labor, community groups and others are increasingly angry at the bailout currently on the table. Any plan before Congress must:

1) Protect homeowners faced with foreclosure by restructuring mortgage rates to be in line with family income.
2)
Create economic stimulus for working people and small business
3)
Provide $100 billion in emergency relief to state and local governments wracked with budget cuts and diminished tax revenue
4) Bar CEO severance packages and cap the pay of executives receiving a bailout
5) Regulate banking and finance with transparent public oversight
6) Maintain public control over monopolies like Fannie Mae and Freddie Mac that have a decisive role in the economy
7) Control speculation and increase revenues by taxing large financial transactions
8 ) Ban predatory lending and cap interest rates on all types of debts
9) End the war in Iraq, which is draining $700 million a day from public coffers

Developments are moving quickly and their full impact has yet to be felt, but let’s make sure that American workers—those who made this country rich—do not further suffer at the expense of the financial elites, those who have created this crisis.

Call Congress today! Tell them no blank check for Wall Street!

National Board
Communist Party USA

Read the article for yourself.

Thanks to Sweetness and Light.com

Posted in Uncategorized | Leave a Comment »

Obama lied about Bush’s Social Security Plan

Posted by rightwinger on September 22, 2008

Ok America, in 10-15 years Social Security is going broke.  Bush actually proposed a plan so that I might actually have something in Social Security when I retire.  Anyway he was stopped by Dems who lied and said there’s not a problem.  Anyway, Obama is lying again.  This time its about Bush’s plan.

In Daytona Beach, Obama said that “if my opponent had his way, the millions of Floridians who rely on it would’ve had their Social Security tied up in the stock market this week.” He referred to “elderly women” at risk of poverty, and said families would be scrambling to support “grandmothers and grandfathers.”

That’s not true. The plan proposed by President Bush and supported by McCain in 2005 would not have allowed anyone born before 1950 to invest any part of their Social Security taxes in private accounts. All current retirees would be covered by the same benefits they are now.

Read the article for yourself.

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CAGW says Obama not the worst Senator on waste — Biden is

Posted by rightwinger on September 22, 2008

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