The Obama Mafia Funneled Money Extorted By The DOJ From Settlements To Progressive Groups

Ok, coming back to this now.

The first thing to note is that the ‘sequence’ of cause-and-effect leading up to the financial crisis is not a ‘sequence’. It’s a bunch of things blended together.

Your statement “First the Feds DEMANDED that banks lend to unqualified borrowers” starts out with the word “First”. There is no ‘first’. There is an “add to the blender” of many things.

The chronology of the collapse is one of many events in parallel. There is no ‘first’, then ‘second’, etc. There is only “a lot of things were blended to create a meltdown mess”. That’s how the history happened. But some ingredients broke the machine. Those I will discuss below.

Yes, the dems were calling to force loans be made to minorities as part of their discrimination accusations in banking. Seven decades of establishing sound banking practices and necessary government regulations did not stop them from calling for changing the way banking works. The CRA (1977, signed by Carter) was always being pushed but never really grew. Banks were not required to subscribe to it but any bank bucking Congress could be denied FHA and other similar insurance. Many banks said “Fine, we don’t need your stinking FHA”.

So the CRA didn’t get very far and appeared to not be going anywhere. It was an annoying political squeal to democrats that wanted to be reelected, but never much more than that. Where it was tried out, it failed miserably.

The financial collapse really starts with the S&L Crisis of which the Keating Five were a symbol of its criminality and the Keating Five included a crook named John McCain, another named Neil Bush, and still many. many others. It also included one of their lawyers named Alan Greenspan who is an abettor of many banking crooks.

But I will skip over the S&L Crisis and go straight to the repeal of Glass-Steagall. Not all depression era bills were bad and Glass-Steagall was a very good one early in FDR’s first term. FDR signed it because it was pushed through Congress by republicans and because the American people were livid that their savings had been lost in the bank collapses of the early 1930s. It was a bill that the American people wanted badly to make sure their money was safe.

But as it was in the 1990s, the whizbang technology of the internet, electronic banking, including electronic transactions and clearing on equity and bond exchanges made the Wall St.-DC crowd think the world was changing so fast in the face of advancing technology that it was time to consider upgrades to banking and investment regulations. There’s something about bells. whistles, and flickering lights that tend to hypnotize persons to abandon their good sense. And that is what happened in the repeal of Glass-Steagall led by a republican named Phil Gramm who these days will not show his face because he knows how wrong he was and how hated he would be if his name started to get tossed around in the media again.

Repealing Glass-Steagall (GS Repeal) allowed the Wall St. sharks to once again swim into commercial banking. The Wall St. investment banks wasted no time buying up and forming mega-banks with their hands in the mortgage cookie jar. And as they sized up the stable mortgage market, they came up with some seductive schemes which I am going to lay out. When they needed political support they relied on GW Bush and the ... wait for it ... the CRA.

A hairbrained scheme was hatched to bundle mortgages together as securities with tranches of prime rated mortgage contracts offsetting bottom rated liar loans. What drove all this was the oldest driver in human history, GREED.

How much GREED?

Well as an example, say we create a new innovative, gravity-defying financial security that bundles a tranche of 1000 mortgages together with an average loan amount of $350,000. That’s a $350 million dollar valued security and we can get say 2% in fees off that baby. We pocket $7 million from one security. We do about 10, 20, 30 of those lovely little fliers and we can buy our own island. Don’t laugh, because that is what happened, on a massive scale. (Read the true story in Michael Lewis’s book ‘The Big Short’ to get an education; real people made into a Hollywood movie, here’s some background http://www.historyvshollywood.com/reelfaces/big-short).

The securities dealers on Wall St. looked at the new securities as a type of insurance pool and those dealers were damned good salesmen, real good at talk and charts, and equations and graphs, and spreadsheets, and white papers, and lotsa-lotsa-lotsa jargon. Man, they were real circus performers. And the GS Repeal cleared the way for these dealers to hatch these new ‘ingenious’, ‘state of the art’, ‘boundary extending’ securities to be rated, issued and sold, but with a few ‘minor’ items yet to be worked out.

Alan Greenspan as Fed Chair is on record as having a hands-off policy to these new ‘innovative’ securities. Later into the crisis he even called off bank examiners from getting to the bottom of failing bank performance. This is the guy that came associated with the Keating Five and made it to becoming Fed Chair where he proceeded to raise interest rates 17 quarters in a row causing ARM’s to blow up a large part of the mortgage industry.

So the securities dealers/bankers were allowed to do pretty much whatever they wanted without fear of Fed bank examiners making their lives complicated.

And on Wall St.? Pretty much the same. GW Bush’s people told the SEC to stand down or look the other way. Many seasoned, experienced, and successful SEC investigators were hot on the trail to bring a prosecution against Wall St. sharks but were reassigned or forced into early retirement. Some of those SEC law enforcement persons blew the whistle and were in the news, news that was posted here on FR about 10 years ago.

All of these things happened so as ‘not to talk down the economy’, ‘not to ruin President Bush’s economic legacy’, etc.

The key facts that most of the American public missed in the grand fraud leading up to the financial collapse are what I will describe now, put in all caps so that they stand out from all the above.

1. THE MONEY FOR THE MORTGAGE-BACKED SECURITIES (MBS) HAD TO COME FIRST BEFORE THE MORTGAGE LOANS COULD BE MADE. WHERE WOULD IT COME FROM? HOW WOULD IT BE ACQUIRED?

2. WITHOUT MORTGAGES TO BUNDLE, HOW COULD THE MBS’S BE RATED AND SOLD?

(Chicken and Egg Problem)

3. THE SOLUTION WAS TO CREATE FICTITIOUS MORTGAGES INSIDE AN MBS SPREADSHEET, YEAH, REALLY! BUT IT WAS ONLY A ‘TEMPORARY’ LITTLE THING, SEE? ONCE A FICTITIOUS MBS GOT SOLD FOR $300 MILLION OR $400 MILLION, THEN PART OF THAT MONEY COULD BE USED TO DISPATCH ‘MORTGAGE BROKERS’ ALL ACROSS THE FRUITED PLAIN TO CAJOLE AMERICAN HOMEOWNERS INTO REFINANCING THEIR EXISTING MORTGAGES! AND SO REAL MORTGAGES WOULD BE SUBSTITUTED FOR THE FICTITIOUS ONES, SEE? AND IF IT WENT SLOW, WELL, JUST SIGN UP A FEW UNQUALIFIED PEOPLE IN LIAR LOANS AS PART OF THE RED LINE POOL AND VOILA! EVERYBODY WINS! WALL ST. WINS! CRA WINS! OH MAN! TALK ABOUT HITTING THE JACKPOT IN VEGAS!

4. 60 MILLION MORTGAGES WERE DRAWN INTO THIS SCHEME.

5. TENS OF THOUSANDS OF MBS’S WERE RATED, ISSUED, SOLD. BILLIONAIRES WERE CREATED. BUT THERE WAS A LITTLE PROBLEM ON THE WAY TO THIS FINANCIAL UTOPIA.

6. THE NUMBER OF REAL MORTGAGES THAT COULD BE MADE TO BACKFILL THE FICTITIOUS MORTGAGES WAS A NUMBER THAT WAS FINITE AND WAS GETTING SMALLER. AS LONG AS THERE WERE PLENTY OF REAL MORTGAGES TO CREATE, THE ‘SUB-PRIME’ DEFAULTS COULD BE COVERED UP BY SHIFTING FUNDS FROM SALES OF NEW MBS TO COVER THE INTEREST PAYOUTS. EVER HEARD OF A PONZI SCHEME? YEP.

7. AS THE NUMBER OF REAL MORTGAGES DRIED UP IN THE MARKET, THE PONZI SCHEME WAS EXPOSED, AND WE ALL KNOW A GOOD BIT OF WHAT FOLLOWED.

So who was at fault here? Was it the Wall St. sharks? Nah, I don’t think it was so much them. A shark’s gonna do what a shark’s gonna do. Anyone could expect for the Wall St. boys to do what they did under the circumstances. They are not boy scouts.

So who was at fault? Or ‘what’ was at fault? What one thing would have prevented this whole meltdown?

The one thing that could have stopped this from ever happening would have been stopping the repeal of Glass-Steagall.

Enter Barack Hussein F*ckup extraordinaire.

If he had been a good egg, he would have immediately called on Congress to bring back some sort of Glass-Steagall protections and set about to disgorge the obscene profits that the banksters and the bank institutions they worked for had amassed. He would then have settled with all the parties involved and prosecuted the fictitious fraud and Ponzi crimes that occurred. But Obama was just another huckster with a hand out “gimme some of that green”. And so the story of this thread is to start a discussion of what Obama failed to do and what he criminally fostered and underwrote.

Incidentally, President Trump called out in his campaign to bring back some form of Glass-Steagall, not the exact same but something that would keep the Wall St. sharks from feeding on the population. He is indeed an incredibly knowledgeable and experienced man. I think God for him every day.

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