Thanks for “fundamentally transforming” our economy, Barry Hussein!
We’re constantly being told that Obama has done a great deal to make our economy stronger. Because who wouldn’t rather have 9.1% unemployment than that 7.6% that Obama started out with.
The thing that most killed the US economy in 2008 was the sheer weight of godawful subprime mortgages that Democrats imposed on Fannie Mae, Freddie Mac and all the other mortgage lenders in order to create more “fairness” and allow everyone (especially racial minorities) to have “the right” to own a home whether they could actually afford to do so or not. Fannie Mae and Freddie Mac were “Government Sponsored Enterprises,” all the investors knew. So even as Fannie and Freddie began bundling together thousands of riskier and ever riskier mortgages into giant mortgage backed securities to advance Democrat-enacted policies, large investment houses continued to gobble them up. After all, this was an arm of the United States Government – and the United States Government ALWAYS pays its debts.
Like all scams, it worked for a while. But as soon as there was a correction in the dramatically overvalued housing market, the whole boondoggle began to implode. And since Fannie and Freddie had bundled all kinds of bad mortgages in with the good ones, there was absolutely no way for anyone to know how much risk was contained in any of these giant investment vehicles all these giant private banking houses found themselves holding.
And suddenly the perception that Government Sponsored Enterprises Fannie Mae and Freddie Mac were “safe investments” turned into a “misperception.” And the fecal matter began to hit the rotary oscillator bigtime.
Fannie and Freddie were the first to collapse. The big private players who had played ball with them shortly followed.
President George Bush tried SEVENTEEN TIMES to reform Fannie and Freddie when there was actually a chance to do something. Go back to what the New York Times stated in 2003:
WASHINGTON, Sept. 10— The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.
The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.
Republicans were demonized for “deregulation” by the dishonest Democrat Party machine. But they TRIED to regulate what needed to be regulated. Democrats stopped them.
Many Republicans like John McCain literally begged Democrats to do something before it was too late. But Democrats threatened to filibuster any bill that in any way prevented Fannie and Freddie from continuing the reckless economy-killing policies. Conservative economists such as Peter Wallison had been predicting the Fannie and Freddie boondoggles would cause an economic collapse since at least 1999. Wallison had warned back then:
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.”
But rigid opposition from Democrats – especially Democrats like Senator Barack Obama – who took more campaign money from Fannie and Freddie and dirty crony capitalism outfits like corrupt Lehman Bros. than ANYONE in his short Senate stint – prevented any “hope and change” of necessary reform from saving the US economy.
Fannie Mae and Freddie Mac are so big — they own or guarantee roughly half of the nation’s $12 trillion mortgage market — that the thought that they might falter once seemed unimaginable. But now a trickle of worries about the companies, which has been slowly building for years, has suddenly become a torrent.
And it was FANNIE and FREDDIE that collapsed FIRST before ANY of the private investment banks, which collapsed as a result of having purchased the very mortgaged backed securities that the Government Sponsored Enterprises SOLD THEM. It wasn’t until Fannie and Freddie collapsed that investors began to look with horror at all the junk that these GSE boondoggles had been pimping.
The man who predicted the collapse in 1999 wrote a follow-up article titled, “Blame Fannie Mae and Congress For the Credit Mess.” It really should have read, “Blame DEMOCRATS.” Because they were crawling all over these GSEs that they had themselves created like the cockroaches they are. But Wallison is nonpartisan.
That same New York Times article that said President Bush was trying to reform Fannie Mae and Freddie Mac ended with this demonstration of Democrats standing against necessary reform:
”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.
Why was Barney Frank deceitfully claiming that Fannie and Freddie weren’t facing “any kind of financial crisis”? BECAUSE REPUBLICANS WERE RIGHTLY WARNING THAT THEY WERE.
Only about a month before the whole Fannie and Freddie boondoggles Democrats had fiercely protected collapsed – taking the entire US economy with it – Democrat Barney Frank was on the record saying THIS:
REP. BARNEY FRANK, D-MASS.: “I think this is a case where Fannie and Freddie are fundamentally sound, that they are not in danger of going under. They’re not the best investments these days from the long-term standpoint going back. I think they are in good shape going forward.”
So we blew up nearly COMPLETELY BECAUSE OF DEMOCRAT POLICIES. But Democrats along with an ideological mainstream media that is the worse since Joseph Goebbels was the Nazi Minister of Propaganda were ready. They ran on a platform that it happened while Bush was president, and that therefore Bush was entirely responsible for the thing he tried over and over again to fix while Democrats used their power to block those efforts.
Let me just say “Franklin Raines.” Raines as Fannie CEO presided over Enron-style accounting policies and got $90 million in his account because of those corrupt policies. But Raines was the first BLACK CEO of Fannie Mae. And even though he was a Democrat and a Clinton guy, President Bush lacked the courage to push the “first black Fannie Mae CEO” out. Which of course is the same reason that the “first black Fannie Mae CEO” didn’t do hard time in prison where he belonged. “Political correctness” is a demonic device by which liberals protect themselves – usually from going to prison where they ought to go. He got a sweetheart deal basically so Republicans wouldn’t be accused of being racists by
Democrats who of course call them racists no matter what they do. My main point is simply that it was Democrats, Democrats, DEMOCRATS who did this to us.
Fannie Mae was well politically-connected Democrats went to make millions as they bounced back and forth between “public” employment where they developed contacts and “private” crony capitalism to get rich.
Here’s the conclusion of New York Times financial markets writer Gretchen Morgenson about DEMOCRAT Jim Johnson:
Morgenson focuses on the managers of Fannie Mae, the government-supported mortgage giant. She writes that CEO James Johnson built Fannie Mae “into the largest and most powerful financial institution in the world.”
But in the process, Morgenson says, the company fudged accounting rules, generated big salaries and bonuses for its executives, used lobby and campaign contributions to bully regulators, and encouraged the risky financial practices that led to the crisis.
And of course DEMOCRAT Jim Johnson who got rich plundering Americans was an OBAMA Democrat.
Morgenson – again a New York Times writer and not someone from Fox News – said of Fannie Mae on Larry Kudlow’s CNBC program on Monday, June 13: “Whatever Fannie Mae did, everybody else followed.” And of course they all followed right into an economic Armageddon created by Democrats for Democrats.
But who got blamed? Republicans, of course. George Bush and Republicans were to Obama and the Democrats what Emmanual Goldstein was to Big Brother in 1984. George Bush and Republicans were what the Jews were to Adolf Hitler. Fascists always need a bogeyman. And so the people who were truly to blame turned the people who tried futilely to stop them into the scapegoats. All with the mainstream media’s complicity.
The analogy would be holding the police officer who tried but failed to catch the rapist for the rape of the woman rather than holding the actual rapist who raped her responsible. But it was easier to say “This is the result of President Bush’s failed Republican policies” than it was to actually explain the facts to an enraged Attention Deficit Disorder-ridden ignorant pop culture – particularly when virtually no one in the biased mainstream media had any intention whatsoever of telling the truth.
Barack Obama – the ACORN community organizer who pushed these very America-killing policies – ran a demagoguing campaign promising to fix everything.
But has he?
How about a great big giant “NOT”???
What has Zero Obama done to fix that housing market that he helped collapse? How about NOTHING??? After nearly three years of Obama, housing isn’t the worst since 2008; it’s gotten WAY WORSE than 2008 and is the worse since the Great Depression!!! Obama started out with a terrible plan. And we have terrible results to show for his terrible plan. And yet this disgraceful fool actually keeps claiming he’s made things better!!!
Before you read this article, check out the “current account balance” compiled by the CIA. Ours is a negative figure that dwarfs everyone else’s by so much it’s a joke. Which is to say that Gross’s assessment is 1000% correct.
US Is in Even Worse Shape Financially Than Greece: Gross
Published: Monday, 13 Jun 2011 | 10:33 AM ET
By: Jeff Cox
CNBC.com Staff Writer
When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimco’s Bill Gross told CNBC Monday.
Much of the public focus is on the nation’s public debt, which is $14.3 trillion. But that doesn’t include money guaranteed for Medicare, Medicaid and Social Security, which comes to close to $50 trillion, according to government figures.
The government also is on the hook for other debts such as the programs related to the bailout of the financial system following the crisis of 2008 and 2009, government figures show.
Taken together, Gross puts the total at “nearly $100 trillion,” that while perhaps a bit on the high side, places the country in a highly unenviable fiscal position that he said won’t find a solution overnight.
“To think that we can reduce that within the space of a year or two is not a realistic assumption,” Gross said in a live interview. “That’s much more than Greece, that’s much more than almost any other developed country. We’ve got a problem and we have to get after it quickly.”
Gross spoke following a report that US banks were likely to scale back on their use of Treasurys as collateral against derivatives and other transactions. Bank heads say that move is likely to happen in August as Congress dithers over whether to raise the nation’s debt ceiling, according to a report in the Financial Times.
The move reflects increasing concern from the financial community over whether the US is capable of a political solution to its burgeoning debt and deficit problems.
“We’ve always wondered who will buy Treasurys” after the Federal Reserve purchases the last of its $600 billion to end the second leg of its quantitative easing program later this month, Gross said. “It’s certainly not Pimco and it’s probably not the bond funds of the world.”
Pimco, based in Newport Beach, Calif., manages more than $1.2 trillion in assets and runs the largest bond fund in the world.
Gross confirmed a report Friday that Pimco has marginally increased its Treasurys allotment—from 4 percent to 5 percent—but still has little interest in US debt and its low yields that are in place despite an ugly national balance sheet.
“Why wouldn’t an investor buy Canada with a better balance sheet or Australia with a better balance sheet with interest rates at 1 or 2 or 3 percent higher?” he said. “It simply doesn’t make any sense.”
Should the debt problem in Greece explode into a full-blown crisis—an International Monetary Fund bailout has prevented a full-scale meltdown so far—Gross predicted that German debt, not that of the US, would be the safe-haven of choice for global investors.
America is going down because her stupid citizens wickedly voted for corrupt dishonest Democrat fools – the very fools who imploded our economy – to have complete power. Nancy Pelosi took over dictatorial control in the House of Representatives, and Harry Reid took over the US Senate, in 2006.
Thanks to Obama, America is now worse off than Greece. But that didn’t stop Obama from offering to bail out Greece. Maybe it’s because George Soros is Greek; maybe because the American left has always adored the European-style socialism in spite of Thomas Jefferson’s warning that “the comparison of our governments with those of Europe is like a comparison of heaven and hell.” Maybe because Obama simply WANTS hell for America. But there you have it.
Republicans acknowledged they failed to live up to their values and spent too much. But the last Republican budget (Fiscal Year 2007) passed in 2006 had only a $161 billion deficit. The very next Democrat budget for FY 2008 had a deficit of $459 billion – nearly three times larger than the one they’d demonized Republicans for. Then their FY-2009 budget dwarfed that deficit with a black hold of red ink deficit of $1.4 TRILLION. That was more money than any government in the history of the world had ever contemplated. But Democrats dwarfed that the very next year with a FY-2010 budget with a $1.6 trillion deficit. And as for FY-2011, the Democrat Congress simply refused to perform its most basic duty of governance and didn’t even bother to pass a budget. Republicans are now forced to do the last disgraced Democrat-controlled Congress’ job for them – and Democrats are demonizing them for it.
That’s how this game is played. Democrats are fascist demagogues who shrilly launch into Republicans as they try to save the American people from unparalleled future suffering. They are people who ROUTINELY demonize, demonize, demonize until THEY are the ones forced to call for the very things they demonized and tried to prevent from happening. But by the time they react this time, just as before, it will be too late.
Try this on for size: our actual debt isn’t the $14 trillion we constantly hear about; it’s more like $200 trillion. And even THAT gargantuan number doesn’t take into account the massive debts that all the liberal labor unions have amassed in state pensions (e.g., California’s public pension system has unfunded liabilities of $500 billion). We cannot possibly hope to pay this – and yet Democrats demand more and more and more, and demagogue Republicans for even trying to cut millions when we need to cut TENS OF TRILLIONS or collapse.
Democrats run ads showing a look-a-like of Republican Rep. Paul Ryan pushing an old lady off a cliff; but they want every single senior citizen to die terribly as the Medicare system completely collapses while they refuse to do anything to fix it – as even Bill Clinton openly acknowledged.
We are going to end like the PIIGS – Portugal, Ireland, Italy, Greece and Spain- because we elected Democrat swine to ensure we perished like pigs.
Greece just got downgraded to the point where they are the lowest-rated currency in the history of the planet. And it happened yesterday.
When that happens to us it will be the worst nightmare in history. 300 million Americans are going to go into an insanity of panic – and of course the violence will begin with the left. If you don’t have an arsenal, someone will kick down your door and murder your whole family just to eat the food in your house. And that hell on earth will be entirely because you trusted Democrats like Anthony Weiner to run your health care, your pension, your economy, your life.
I hope you vote in 2012 like your very LIFE was at stake in these elections. Because this time it truly is.