Posts Tagged ‘fail’

Is This Economic Recovery? ‘1,000 Banks To Fail In Next Two Years’

August 31, 2009

Studies galore have demonstrated the bias of the media.  They have documented that more than 80% of supposedly objective journalists are Democrats.  And they have documented that their personal bias shaped their professional bias, with the media overwhelmingly favoring their “first love,” Barack Obama in the presidential campaign.

Their bias runs to even the smallest and most seemingly trivial matters, on the apparent theory that there is nothing to small to use to attack and undermine a Republican: journalists who stumbled all over themselves to praise Obama’s strenuous exercise rituals and his “chiseled pectorals” found Bush’s exercise “obsessive” and “creepy.” The media wouldn’t even allow President Bush to golf without attacking him for abandoning his duties, whereas they don’t attack Obama – even though he’s playing gold far more often than Bush did – and even golfing with a CEO of a firm in the midst of a tax corruption investigation.

So it really shouldn’t surprise anyone that the media would show its bias in big matters such as the economy.

University of Maryland senior research scientist John Lott Jr. says news coverage of the economy is slanted. Lott writes, “Over 78 percent more negative news stories discussed a recession when the economy — under a Republican president was soaring than occurred under a Democrat when the economy was shrinking.”

Lott — who researched 12,500 newspaper and wire service articles from 1985 through 2004 — also found that Democratic presidents got positive headlines 15 percent more of the time than Republican presidents for the same economic news.

Of his findings Lott writes, “The media’s focus on the negative side of everything surely helps explain people’s pessimism… Indeed, research has indicated that media bias is real.”

The media helped Obama fearmonger the economy when he wanted them to fearmonger the economy to push through his stimulus; but now they’re are trying to talk up the economy when Obama wants them to talk up the economy.  They are dutifully reporting that the recession seems to be over.

But it isn’t.  And it won’t be.

1,000 Banks to Fail In Next Two Years: Bank CEO
Published: Thursday, 27 Aug 2009
By: Natalie Erlich

The US banking system will lose some 1,000 institutions over the next two years, said John Kanas, whose private equity firm bought BankUnited of Florida in May.

“We’ve already lost 81 this year,” Kanas told CNBC. “The numbers are climbing every day. Many of these institutions nobody’s ever heard of. They’re smaller companies.” (See the accompanying video for the complete interview.)

Failed banks tend to be smaller and private, which exacerbates the problem for small business borrowers, said Kanas, who became CEO of BankUnited when his firm bought the bank and is the former chairman and CEO of North Fork bank.

“Government money has propped up the very large institutions as a result of the stimulus package,” he said. “There’s really very little lifeline available for the small institutions that are suffering.”

This comes at a time when the FDIC has established new rules on bank sales. Private equity, for instance, would have to hold double the capital of their competitors in order to buy such an institution, said Kanas.

“This will have somewhat of a chilling effect on our participation,” he said. “As a result of having to keep higher capital levels, we’ll see lower prices coming from that sector.”

Of the 81 failed banks this year, two have been successfully acquired by private equity, he said. Kanas’ private equity firm bought UnitedBank, the failed Florida-based bank, from the FDIC in May. Regulators also allowed the sale of IndyMac Bank of California earlier this year.

“We are seeing more people step up and lobby bids in this situation,” he said. “We’re seeing more players mostly as a result of being attracted to the sector. I’m not so sure that will continue now that the rules have been ratchet it up.”

Meanwhile, much of the commercial realty problem resides in the regional and small community banks, said Kanas, because larger banks haven’t fueled that sector in the past.

“The market is expecting about the way we were expecting,” he said. “Unfortunately, we’re not seeing any evidence of a recovery in the real estate market in the southern Florida market,” he said.

It’s rather interesting that there’s a strong argument that Obama’s regulations are actually hurting our recovery, but Obama doesn’t have to worry about that message getting out to the public.  His secret, clearly,  is completely safe with the mainstream media.

The FDIC – the government entity which is supposed to step in if a bank goes bankrupt – is itself on the verge of going bankrupt:

March 4 (Bloomberg) — Federal Deposit Insurance Corp. Chairman Sheila Bair said the fund it uses to protect customer deposits at U.S. banks could dry up amid a surge in bank failures, as she responded to an industry outcry against new fees approved by the agency.

And think about it: one thousand banks failing over the next two years is to the notion of “economic recovery” what a giant asteroid hurtling toward us from space is to the statement “things are looking up for us.”  But again, the mainstream media is so focused on talking up the economy that they don’t have much time for such distractions.

What’s going to happen to unemployment?  The media made such a big deal about a temporary 1/10th of one percent drop in the unemployment rate.  But the longer term trend isn’t good.  It isn’t good at ALL:

Banks Stronger But Outlook Clouded by Job Loss: Whitney

Unemployment is likely to rise to 13 percent or higher and will weigh on the economy for several years, countering government efforts to stabilize the banking industry, analyst Meredith Whitney told CNBC.

While Whitney raised her short-term outlook for banks, causing stocks to open in positive territory after pointing lower earlier, she said the long-term outlook for the economy remains murky.

Consumers will not be able to spend as they continue to lose jobs and credit conditions stay tight, she said in a live interview. The result will provide a vivid display of how critical housing and lending are to economic growth. Unemployment is currently at 9.5 percent but is expected to keep rising.

We underestimate how much the whole economy is dependent on the mortgage industry, and that has to change,” Whitney said. “This is what happens when you delay the inevitable. We’re buying time here, but we’re not restructuring the economy.”

We’re looking a situation in which nearly half of American homes will be “underwater” – with the mortgages being higher than then homes are worth – by 2011.

And Obama’s policies are not helping to actually deal with the core problem facing the mortgage industry.

The dire assessment comes amid a slight stabilization in the U.S. housing market after three years of price drops, according to the National Association of Realtors.

The report states that the drop in home prices is fueling a vicious cycle of foreclosures as it eliminates homeowner equity and gives borrowers an incentive to walk away from their mortgage.

But, the foreclosed homes are not coming onto the market because people are finding out they can stay living in them and not pay their mortgage, according to Kudrle.

“The Obama administration is putting so much pressure on the banks and lenders to slow down the foreclosure process to try and keep people in their homes,” Kudrle said. “We have people who have not made a payment for 12 to 18 months and the bank still hasn’t come in to foreclose.”

That’s not a policy that is going to correct our financial woes; it’s just a delaying tactic that will ultimately make a bad problem far, far worse by postponing and in fact stockpiling the coming misery.

Government Supported Enterprises (GSEs) Fannie Mae and Freddie Mac – created by a Democrat-congrolled Congress and long run by connected Democrats – have been at the epicenter of the mortgage meltdown fiasco.

Peter Wallison predicted a future Fannie Mae and Freddie Mac failure in 1999 in a New York Times article, saying of Fannie Mae’s enormous financial exposure and risky policies:

”From the perspective of many people, including me, this is another thrift industry growing up around us,” said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.” . . .

Franklin Raines, Jamie Gorelick, Jim Johnson, Daniel Mudd.  That’s just part of your list of Democrats who ran Fannie Mae into the ground and profited wildly in doing so.  The Wall Street Journal cites the first three names for disgrace in the Fannie Mae Enron-scheme they produced.  The fourth figure, Fannie CEO Daniel Mudd, showed just how far to the left Fannie Mae was politically when he said to THE most radically liberal wing of the Democrat Party – the Congressional Black Caucus – the following:

So many of you have been good friends to Fannie Mae and our mission. You’ve been friends through thick and thin. We have indeed come upon a difficult time for Fannie Mae…  In many ways I want to tell you today you are also the conscience of Fannie Mae.

President Bush tried SEVENTEEN TIMES to create tighter regulation of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.

Bush’s efforts led to two major Republican efforts to push through regulations that would have limited the mess that Fannie and Freddie could create, but their every move was fiercely resisted by Democrats.  The first time, Barney Frank – leading the Democratic effort to shield Fannie and Freddie from necessary regulatory reform in 2003, said:

”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.”

Again, in 2005, Republicans tried and failed to establish necessary regulatory reforms of Fannie Mae and Freddie Mac at a time when reforms could have averted the 2008 disaster.  Again Democrats unanimously rose up to block any such effort.  John McCain warned:

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.

But Democrats refused to heed the warnings.  And when the economy DID collapse BECAUSE of their refusal to deal with the GSEs that they had politically-benefited from, the very people who created the disaster in the first place poised themselves to benefit from it by demagoguing Republicans whose greatest sin was not being strong enough in their efforts to stand up and stop Democrats from advancing a ruinous agenda.

Think about it: seventeen calls for regulatory reform of the housing mortgage industry, all resisted by Democrats.  Two major efforts at regulatory reform, both blocked by fierce and united Democrat opposition.  And then Democrats demonized Republicans for refusing to enact regulations.  That’s called ‘chutzpah.’  And when the mainline media reported it as if it were somehow true, it was called ‘propaganda.’

In only a couple short years in the Senate, Barack Obama racked up the 2nd highest total in campaign contributions from Fannie Mae and Freddie Mac (2nd only to fellow Democrat and Senate Finance Chairman Chris Dodd).  Barack Obama was second in receipts of campaign contributions from corrupt Wall Street leveraging companies such as Lehman Brothers behind only Hillary Clinton.  Lehman Brothers profited and profited by playing the insane Wall Street insiders game until it went belly up from its own bloated practices.  And somehow that parasitic leech of a company was under the impression that financing one Barack Hussein Obama’s political career would be good for it’s greedy special interests.

And now we’re in such good hands to fix the mess that Democrats almost exclusively created.

And hey, don’t worry.  If anything bad happens, you can count on the mainstream media to honestly and objectively keep you informed — NOT.

Advertisements

Wanda Sykes: Anything Less Than Blind Devotion To Obama Is Treason

May 11, 2009

Barack Obama greeted the White House Press Corespondents by saying, “My name is Barack Obama.  Most of you covered me.  All of you voted for me.”

I don’t know how funny that was, but it certainly had the virtue of being true.  The media is so completely biased today, and has turned into such a pro-liberal, pro-Obama propaganda operation, that it is positively unreal.

But it was Wanda Sykes who expressed the unspoken zeitgeist of the mainstream media.

Youtube link

Sykes said:

Rush Limbaugh, one of your big critics, boy, Rush Limbaugh said he hopes this administration fails. So, you’re saying “I hope America fails,” it’s like, I don’t care about people losing their homes, or their jobs, our soldiers in Iraq. He just wants the country to fail. To me, that’s treason. He’s not saying anything differently than what Osama bin Laden is saying. You know, you might want to look into this, Sir, because I think maybe Rush Limbaugh was the 20th hijacker, but he was just so strung out on oxycontin he missed his flight.

And you’ll notice if you watch the video that Obama clearly laughs at the rabid punchline.

And then Sykes says:

Rush Limbaugh, I hope the country fails, I hope his kidneys fail, how ’bout that? Needs a little waterboarding, that’s what he needs.

And the President of the United States thinks it’s also quite hilarious that one of his fellow citizens’ kidneys fail.  Because that’s just the kind of guy he is, I guess.

And waterboarding is only torture when it is applied to terrorist murderers who want to kill Americans by the millions.  It is most definitely NOT torture if its done to conservatives.  Obama laughs at the thought of Rush Limbaugh being waterboarded.  But the waterboarding of a terrorist responsible for over three thousand American lives is a proof that we have lost our moral bearings.

Let me contrast Obama with a President that actually had some class.  Show me footage of George Bush laughing at the idea of a terrible wasting disease befalling, oh, I don’t know, Wanda Sykes.  The fact of the matter is, we used to have a President who was above that kind of rabid and clearly hateful partisanship.

And its the sheer, total, all-encompassing hypocrisy of the left that will never cease to continue to surprise me.

These same people who were for that war before they were against it, who literally hoped Bush would fail in Iraq and our troops would lose (recall Harry Reid’s proclamation of surrender when our troops were still fighting for victory: “I believe that this war is lost“), used to call dissent “the highest form of patriotism” when it suited them.

Dissent has NEVER been “the highest form of patriotism,” of course, and liberals had to butcher Thomas Jefferson the same way they butchered the Constitution to obtain that understanding.  But Democrats had a “standard” that they clung to when it suited them, only to show their hypocrisy by turning on the same standard they had just held.

Kind of like the war in Iraq itself.  Wanda Sykes speaks of conservatives such as Rush Limbaugh somehow betraying our soldiers in Iraq.  Let’s look at who REALLY undermined and betrayed our soldiers in Iraq.

This is what these cut-and-run-cowards USED to say before they publicly claimed “this war is lost” while our troops were still in the field fighting to win:

http://www.truthorfiction.com/rumors/b/bushlied.htm
http://www.freedomagenda.com/iraq/wmd_quotes.html
http://www.snopes.com/politics/war/wmdquotes.asp

These liberals, who backstabbed, undermined, blocked, obstructed, demonized, and demagogued Bush and his agenda at every single turn – including hoping we failed in time of war – now have a frankly terrifying view of loyalty and patriotism.

If we are against Obama, we are against the country.  Because Barack Hussein Obama is our Fuhrer, and in him does the destiny of the new Reich lay.  He is our Big Brother, and we owe our lives, our fortunes, and our sacred honor not to our principles, but to our messiah.

You tell me: was that these hypocrite liberals’ view of the Bush presidency during the last eight years?

Obama is NOT America.  He is NOT our Big Brother, he is NOT our messiah, and he is most certainly not MY Fuhrer.  And I will fight with words, with fists, or even with weapons if anyone tries to take away my right to say otherwise.

Rush Limbaugh has very patiently explained to some incredibly stupid and immoral people that he hopes Obama fails FOR THE GOOD OF THE COUNTRY.  Obama is a hard core socialist who has already spent more money than every single president from George Washington to George W. Bush COMBINED.  He is imposing a debt upon us that we and our children can never hope to repay.  The average 30 year-old planning to retire at age 70 will have to pay $136,932.75 just for the interest on President Obama’s 2010 budget.  And that doesn’t include the MUCH greater cost of paying for the overal deficit black hole to which Obama has added $12.8 TRILLION.  The interest on the national debt–interest alone–currently amounts to over $800 million a day, and about $300 billion per year.  In ten years we will be paying more than $800 billion a year in interest to finance our debt.

And we are already at a position that in order to make payments on the debt, we have to borrow more money.  A Washington Post article entitled, “U.S. Debt Set to Soar This Year” points that factoid out:

But about 40 percent of the debt held by private investors will mature in a year or less, according to Treasury officials. When those loans come due, the Treasury will have to borrow more money to repay them, even as it launches perhaps the most aggressive expansion of U.S. debt in modern history.

We’re broke, but that doesn’t stop Barack Obama from trying to nationalize another one-sixth of our economy (health care) at the cost of another $634 billion – just for starters.  He wants to nationalize our energy industry.  He wants to nationalize the student loan program.  He’s already nationalized the banks and the auto industry.

Obama’s spending will go on and on and on.  If all goes well, he will only put us $9.3 trillion in the hole. Even the Congressional Budget Office acknowledges that such reckless spending is totally unsustainable.

And I’m supposed to be akin to Osama bin Laden for hoping that Barack Hussein fails in his task of bankrupting the country?  Excuse me?

This was all been predicted before the election by men and women who knew a hell of a lot better than Wanda Sykes.

In a poll of chief executive officers taken prior to the election, 74 percent of the executives said they feared “that an Obama presidency would be disastrous for the country.”  And some of the CEOs predicted that “some of his programs would bankrupt the country within three years, if implemented.”  And with the Congress in nearly total Democratic control, they ARE being implemented.

Rush Limbaugh explained what he meant in an address that is worth reading.  He explained why we should ALL hope Obama fails.

I hope Obama fails – and fails big – and that the people recognize his failure and turn on him before America goes into a hole that it will never be able to claw its way out of.

And in the meantime, I’ll wear Democrats’ charges of treason as a badge of personal honor.  Being called a “traitor” by Democrats bothers me about as much as it would bother me if a child molester (whom Democrats protect as sacred cows, btw) called me “a bad person.”

How ‘Failed Policies’ Of Democrats Were Responsible For Financial Crisis

October 1, 2008

Why should anyone blame Democrats for the housing finance crisis?  Because they laid virtually all the landmines that would eventually explode in the first place, and then they wouldn’t allow Republicans to reform or even regulate the impending disaster before it occurred, that’s why.

From the New York Times in September 30, 1999:

“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. . . .

Fannie Mae has expanded home ownership for millions of families in the 1990’s by reducing down payment requirements,” said Franklin D. Raines, Fannie Mae’s chairman and chief executive officer. ”Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.” . . .

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.

”From the perspective of many people, including me, this is another thrift industry growing up around us,” said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.” . . .

The LA Times writes on May 31, 1999 that:

It’s one of the hidden success stories of the Clinton era. In the great housing boom of the 1990s, black and Latino homeownership has surged to the highest level ever recorded. The number of African Americans owning their own home is now increasing nearly three times as fast as the number of whites; the number of Latino homeowners is growing nearly five times as fast as that of whites….

Under Clinton, bank regulators have breathed the first real life into enforcement of the Community Reinvestment Act, a 20-year-old statute meant to combat “redlining” by requiring banks to serve their low-income communities. The administration also has sent a clear message by stiffening enforcement of the fair housing and fair lending laws. The bottom line: Between 1993 and 1997, home loans grew by 72% to blacks and by 45% to Latinos, far faster than the total growth rate.

Lenders also have opened the door wider to minorities because of new initiatives at Fannie Mae and Freddie Mac–the giant federally chartered corporations that play critical, if obscure, roles in the home finance system. Fannie Mae and Freddie Mac buy mortgages from lenders and bundle them into securities; that provides lenders the funds to lend more. . . . .

Another article in the New York TImes from September 11, 2003:

The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago. . . .

This reform – and another in 2005/06 – were blocked by Democrats who threatened to filibuster the bill in the Senate.

In that 2003 New York Times article, we find the extent of Republicans’ concerns, and of Democrats’ intransigence:

Fannie Mae, which was previously known as the Federal National Mortgage Association, and Freddie Mac, which was the Federal Home Loan Mortgage Corporation, have been criticized by rivals for exerting too much influence over their regulators.

The regulator has not only been outmanned, it has been outlobbied,” said Representative Richard H. Baker, the Louisiana Republican who has proposed legislation similar to the administration proposal and who leads a subcommittee that oversees the companies. ”Being underfunded does not explain how a glowing report of Freddie’s operations was released only hours before the managerial upheaval that followed. This is not world-class regulatory work.”

Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.

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.

”I don’t see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,” Mr. Watt said.

Democrats such as Watt and Maxine Waters played the race card to label any effort to prevent poor and black families from buying homes they couldn’t afford as racist.

But when the fecal matter hit the rotary oscillator as a direct result of Democrats’ policies, Nancy Pelosi trots and says:

“The — what we have now is a manmade disaster, a disaster that sprang — comes from the Bush failed policies, the failure of the Bush administrations to steward our economy in a responsible way.”

I am telling you, if you vote for Democrats in November, you will be putting the very people who caused this disaster in power, and you will be entrusting the people who created a crisis in charge of averting the very crisis they caused.  By putting these irresponsible demagogues in charge of our economy during one of the most vulnerable periods in our nations’ history, you will in effect be saying, “I want the Great Depression.  I want my children to suffer.”