Posts Tagged ‘financial’

Why Did Our Economy Melt Down In 2008? (Email This To Your Friends)

October 25, 2010

Note: I did not write the following; I am only passing it along.  I hope you read it and then pass it along as well.

Remember the LONG-TERM Causes of the Financial Sector Meltdown (an email pre-formatted for sending)
FreedomKeys.com ^ | 20101010 | various
Posted on 10/23/2010 12:49:32 PM PDT by FreeKeys

Would the Last Honest Reporter Please Turn On the Lights?
by novelist Orson Scott Card, a Democrat
_________
.. 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.
..
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. …
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So I ask you now: Do you have any standards at all?  Do you even know what honesty means?
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[Was] getting people to vote for Barack Obama so important that you will throw away everything that journalism is supposed to stand for? …
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… 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.
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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.
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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.
– Novelist Orson Scott Card, a Democrat, on October 5, 2008,HERE
..
.. The Financial Sector Meltdown ..
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” [first foisted upon the country under Jimmy Carter].  This law was then used by “activists” and “community organizers” …  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. — Neal Boortz, here ..


.
Enough cards on this table have been turned over that the story is now clear. The economic history books will describe this episode in simple and understandable terms: Fannie Mae and Freddie Mac exploded, and many bystanders were injured in the blast, some fatally.
..
Fannie and Freddie did this by becoming a key enabler of the mortgage crisis. They fueled Wall Street’s efforts to securitize subprime loans by becoming the primary customer of all AAA-rated subprime-mortgage pools. In addition, they held an enormous portfolio of mortgages themselves.
..
In the times that Fannie and Freddie couldn’t make the market, they became the market.
.. — Kevin Hassett, Bloomberg News, here ..

 


.. Obama choice helped Fannie block oversight
National security adviser tied to discrediting of probe ..
By Jim McElhatton, The Washington Times,October 13, 2010 here
..
UNDER SCRUTINY: Thomas E. Donilon worked as a registered lobbyist for Fannie Mae from 1999 to 2005.
..
Years before Fannie Mae foundered amid a massive accounting scandal, President Obama’s choice for national security adviser oversaw an office inside the mortgage giant that orchestrated a negative publicity blitz to fight attempts by Congress to increase government oversight, records show.
..
Thomas E. Donilon, who won the job as national security adviser this month, worked as a registered lobbyist for Fannie Mae from 1999 to 2005 at a time the company’s officials insisted finances were sound. He also earned more than $1.8 million in bonuses [from Frannie Mae] before the government took over the troubled company in the wake of an accounting scandal.
..
Vice President Joseph R. Biden Jr. and Mr. Obama, who railed against lobbyists on the campaign trail, hailed Mr. Donilon’s appointment last week, but made no mention of his time as a registered lobbyist.st wee
..

 


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Democrats and some [big-government] 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.
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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. Check it out here:  http://tinyurl.com/4h9955
..

 


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“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, Economics, Stanford University, HERE
..

 


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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.
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Meanwhile, guess who were the top four recipients of campaign contributions from Fannie and Freddie between 1988 and 2008?
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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 Congress 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.
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“I urge my colleagues to support swift action on this GSE reform legislation.”
..
It died at the hands of the DEMOCRATS —
HERE’s a video clip showing their anger.
..

 


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“Many 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, the John M. Olin distinguished professor of economics at George Mason University, HERE
..

 


..
“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
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“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, “BARACK’S ‘ORGAANIZER’ BUDS PUSHED FOR BAD MORTGAGES”HERE
.

 


.
Bloomberg News has an excellent recap of
the history of the financial meltdown:.HERE.
.

 


 

Barney Frank, Chris Dodd, Jimmy Carter, Barack Obama
not shown: Bill Clinton


..

 


“Scratch the surface of an endemic problem — famine, illness, poverty —  and you invariably find a politician at the source.” —  Simon Carr

 


“One of the methods used by statists to destroy capitalism consists in establishing controls that tie a given industry hand and foot, making it unable to solve its problems, then declaring that freedom has failed and stronger controls are necessary.” — Ayn Rand

 


“I think that we all need to consider the possibility … just the possibility … that Obama is engaged in a conscious effort to destroy our free market economy so that he can build a government-controlled socialist party on the rubble.” — Neal Boortz, here
[Conscious effort or not, we have an emergency on our hands.]

 

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Demagoguing Hypocrite Obama Buys His Lobbyists By The Dozen

April 2, 2010

Whenever Obama is talking, he’s lying.  I can make that sentence present-tense because he’s lied so many times in the past.

Obama promised to usher in unprecedented transparency and end the process of bringing lobbyists into the White House.  He broke both promises without so much as blinking.

Obama’s Biggest Lobbyist Winners from Left-Wing Advocacy Organizations
April 1, 2010
By Warner Todd Huston

On the campaign trail, now President Obama regularly excoriated lobbyists. He said he’d make the government “open and transparent” and said he’d make it hard for lobbyists to “curry favor” with his administration “based on how much they can spend on a fancy dinner.” Once elected, John Podesta, a member of his transition team, said that Obama would be implementing the “strictest ethics rules ever applied” to those scoundrel lobbyists. In his 2009 State of the Union address Obama puffed up his chest, proud of himself that he “excluded lobbyists” from important jobs in his administration.

With all that bombast and populist wind from Obama and his cohorts, then, one would expect to see a dearth of lobbyists in important positions in Obama’s Washington. One’s expectation, however, would easily be dashed by the truth.

Remember the rarefied air of Obama’s campaign for president? Wanna see some, shall we say, “broken promises”?

[Link to video embedded on Publius article]

Oh, the dreamy dream of hope-n-change. It’s what you voted for, America. So did we get it?

Not even close.

In fact, at least 50-some lobbyists have won the Obama lottery and found themselves landing plumb jobs in the Obama administration. All sorts of Obama’s favorite special interests have found their lobbyists suddenly riding the gravy train. From Big Agriculture, to Big Financial and Big Banking, to Trial Lawyers, to Military, Communications, and Big Bio, Obama’s buddies have lined up around the block to get his favor and found the honey pot well supplied.

Alarmingly, though, the biggest winners seem to be lobbyists from ideologically left-wing think tanks and issue advocacy groups.

Here are some of the known lobbyists that have hit the Obama jackpot:

Left-Wing Organizations
Barnes, Melody: ACLU; Center for Reproductive Rights
Barrien, Jacquelin: NAACP Legal Defense Fund
Butts, Cassandra: Center for American Progress
Coven, Martha: Center on Budget & Policy Priorities
Crowley, Phillip J: Center for American Progress
Frye, Jocelyn: Nat’l Partnership for Women & Families
Corr, William: Campaign for Tobacco-Free Kids
McDonough, Dennis: Center for American Progress
Munoz, Cecilia: National Council of La Raza
Perciasepe, Robert: National Audubon Society
Rundlet, Peter: Center for American Progress
Stoner, Nancy: Natural Resources Defense Council
Trasvina, John: Mexican American Legal Defense Fund
Douglas, Derek: Center for American Progress

Banking/Insurance/Financial
Beliveau, Emmett: PriceWaterhouseCoopers; Worldwide Medical Technologies; Shaw Group
Donilon, Thomas: Fannie Mae
Klain, Ron: Time Warner; Fannie Mae
Patterson, Mark: Goldman Sachs
Turton, Dan: Freddie Mac; Visa
Singiser, Dana: Insurance
Wilkins, William J.: Swiss Bankers Association
Sutphen, Mona: Angliss Int’l

Biotech/Military/Energy
Hayes, David: Sempra Energy; San Diego Gas & Electric; General Cigar Holdings
Eric L. Hirschhorn: Lockheed Martin; Sun Chemicals
Hoffman, Alan: RAND Corporation, Unocal
Holder, Eric: Global Crossing; Large Scale Biology Corporation
Lynn, William J.: Raytheon
Strickland, Thomas: Amgen

Technology/Internet/ Communications
Harris, Scott: Microsoft; Cisco; Dell; Sprint
Kennedy, Sean: AT&T
Marantis, Demetrios J.: Lucent Technologies
Punke, Michael: Time Warner
Sapiro, Miriam: VeriSign

Union Lobbyists
Gaspard, Patrick: American Federation of Teachers
Liebowitz, Jon: Motion Picture Association of America
Vilsack, Thomas: National Education Association

Big Agriculture
Harden, Krysta: Gordley Associates
Isi Siddiqui: CropLife America
Taylor, Michael: Monsanto

Medicine/Hospitals/Big Pharma
Sher, Susan: University of Chicago Hospitals
Sussman, Robert M.: Amphastar Pharmaceuticals, Navistar, Business Roundtable

Trial Lawyers
Sebelius, Kathleen: Kansas Trial Lawyers Association
Strautmanis, Michael: Association of Trial Lawyers of America

Hollywood/Entertainment
Litt, Robert: Recording Industry Association of America

Car Makers
Varney, Christine: Hogan & Hartson

Others
Panetta, Leon: Seismic Safety Coalition
Perrelli, Thomas J.: American Survivors of 8/7/98 Bombings of Embassies in Kenya and Tanzania
Poneman, Daniel: Payless Shoe Source
Verma, Richard: Cigna; National Association of Convenience Stores; U.S.-India Business Council

Timothy P. Carney of the Washington Examiner has been Keeping a list of the lobbyists that have won the Obama Lottery and he has some rich details of from which firms they’ve come and what clients were represented.

So much for being post partisan, non-ideological, transparent…. all those bight and shiny hope-n-changie sort of things Obama told us all he’d force Washington to observe.

Looks to me like it is business as usual with Obama’s Washington.

Transcript of video clip: (My bold for emphasis)

I’ll also institute an absolute gift ban so that no registered lobbyist can curry favor with members of my administration based on how much they can spend on a fancy dinner. I’ll make our government open and transparent so that anyone can ensure that our business is the people’s business. Justice Louis Brandeis once said “Sunlight is the greatest disinfectant,” and as president I am going to make it impossible for congressmen or lobbyists to slip pork barrel projects or corporate welfare into laws when no one’s looking because when I’m president meetings where laws are written will be more open to the public… no more secrecy, that’s a commitment I make to you as president. No more secrecy!

And, when there’s a bill that ends up on my desk as president, you the public will have five days to look on-line and find out what’s in it before I sign it so that you know what your government’s doing. When there are meetings between lobbyists and a government agency we’ll put as many as pos… as many of those meetings as possible on-line for every American to watch. When there’s a tax bill being debated in Congress you will now the names of the corporations that would benefit and how much money they would get. And we will put every corporate tax break and every pork barrel project on-line for every American to see, you will know who asked for them and you can decide whether your representative is actually representing you!

That’s a lobby full of lobbyists in your lobbyist-free administration, Barry Hussein.

Russian Pravda Jeers As Obama Destroys America With Marxism

June 3, 2009

The onetime-official organ of the Central Committee of the Communist Party and the voice of it’s Marxist propaganda had the following article.

Clearly, if anyone would recognize the essence of socialism and Marxism, it would be Pravda.  And to paraphrase the often mocked Bush take on Putin, Pravda has now looked into the eyes of Barack Obama and found him to be a socialist and a Marxist.

American capitalism gone with a whimper

By: Stanislav Mishin     Source: Pravda.Ru

It must be said, that like the breaking of a great dam, the American decent into Marxism is happening with breath taking speed, against the back drop of a passive, hapless sheeple, excuse me dear reader, I meant people.

True, the situation has been well prepared on and off for the past century, especially the past twenty years. The initial testing grounds was conducted upon our Holy Russia and a bloody test it was. But we Russians would not just roll over and give up our freedoms and our souls, no matter how much money Wall Street poured into the fists of the Marxists.

Those lessons were taken and used to properly prepare the American populace for the surrender of their freedoms and souls, to the whims of their elites and betters.

First, the population was dumbed down through a politicized and substandard education system based on pop culture, rather then the classics. Americans know more about their favorite TV dramas then the drama in DC that directly affects their lives. They care more for their “right” to choke down a McDonalds burger or a BurgerKing burger than for their constitutional rights. Then they turn around and lecture us about our rights and about our “democracy”. Pride blind the foolish.

Then their faith in God was destroyed, until their churches, all tens of thousands of different “branches and denominations” were for the most part little more then Sunday circuses and their televangelists and top protestant mega preachers were more then happy to sell out their souls and flocks to be on the “winning” side of one pseudo Marxist politician or another. Their flocks may complain, but when explained that they would be on the “winning” side, their flocks were ever so quick to reject Christ in hopes for earthly power. Even our Holy Orthodox churches are scandalously liberalized in America.

The final collapse has come with the election of Barack Obama. His speed in the past three months has been truly impressive. His spending and money printing has been a record setting, not just in America’s short history but in the world. If this keeps up for more then another year, and there is no sign that it will not, America at best will resemble the Wiemar Republic and at worst Zimbabwe.

These past two weeks have been the most breath taking of all. First came the announcement of a planned redesign of the American Byzantine tax system, by the very thieves who used it to bankroll their thefts, loses and swindles of hundreds of billions of dollars. These make our Russian oligarchs look little more then ordinary street thugs, in comparison. Yes, the Americans have beat our own thieves in the shear volumes. Should we congratulate them?

These men, of course, are not an elected panel but made up of appointees picked from the very financial oligarchs and their henchmen who are now gorging themselves on trillions of American dollars, in one bailout after another. They are also usurping the rights, duties and powers of the American congress (parliament). Again, congress has put up little more then a whimper to their masters.

Then came Barack Obama’s command that GM’s (General Motors) president step down from leadership of his company. That is correct, dear reader, in the land of “pure” free markets, the American president now has the power, the self given power, to fire CEOs and we can assume other employees of private companies, at will. Come hither, go dither, the centurion commands his minions.

So it should be no surprise, that the American president has followed this up with a “bold” move of declaring that he and another group of unelected, chosen stooges will now redesign the entire automotive industry and will even be the guarantee of automobile policies. I am sure that if given the chance, they would happily try and redesign it for the whole of the world, too. Prime Minister Putin, less then two months ago, warned Obama and UK’s Blair, not to follow the path to Marxism, it only leads to disaster. Apparently, even though we suffered 70 years of this Western sponsored horror show, we know nothing, as foolish, drunken Russians, so let our “wise” Anglo-Saxon fools find out the folly of their own pride.

Again, the American public has taken this with barely a whimper…but a “freeman” whimper.

So, should it be any surprise to discover that the Democratically controlled Congress of America is working on passing a new regulation that would give the American Treasury department the power to set “fair” maximum salaries, evaluate performance and control how private companies give out pay raises and bonuses? Senator Barney Franks, a social pervert basking in his homosexuality (of course, amongst the modern, enlightened American societal norm, as well as that of the general West, homosexuality is not only not a looked down upon life choice, but is often praised as a virtue) and his Marxist enlightenment, has led this effort. He stresses that this only affects companies that receive government monies, but it is retroactive and taken to a logical extreme, this would include any company or industry that has ever received a tax break or incentive.

The Russian owners of American companies and industries should look thoughtfully at this and the option of closing their facilities down and fleeing the land of the Red as fast as possible. In other words, divest while there is still value left.

The proud American will go down into his slavery without a fight, beating his chest and proclaiming to the world, how free he really is. The world will only snicker.

Socialism doesn’t work next time around.  It is based on economic, theological, and philosophical presuppositions that are simply false.  It has always failed, and it always will fail.

When even Vladimir Putin, former KGB agent, former president of Russia, says the United States should take a lesson from the pages of Russian history and see the devastating consequences of its own failed experiment with socialism, we should stop looking out the window of the bus Barack Obama is driving us on and start rushing to the front to wrest control of the vehicle before we go off a cliff.

McCain Right, Obama Wrong On Suspending Campaign To Lead In Washington

September 25, 2008

John McCain said that the crisis in Washington demanded unity, and called upon Barack Obama to join him in suspending the campaign and using his influence over Democrats to help solve the financial crisis.

Obama snootily said that he could multitask, and that he could engage in bitter and cynical partisan political attacks, and help unify the country behind an essential economic plan, at the same time.

McCain was right; Obama was wrong.

Democratic Senate Majority Leader Harry Reid proved just how bitterly partisan and demagogic Democrats are determined to be by first claiming that John McCain’s personal leadership was essential, and then claiming it was irrelevant.

President Bush has announced a crisis summit to address the financial meltdown.  Barack Obama is presumably going to attend, which means that Obama is going to do what John McCain suggested he do in the first place.

If John McCain can rally Republicans to agree to a solution to the financial crisis, he will be able to claim victory and credit.  Barack Obama will be able to claim that he was there (albeit against his will and against his desire to place politics first) too.