Bernanke cites wrong culprits

Waterbury Republican-American ^ | April 18, 2012 | Editorial

[Graybeard58]

Federal Reserve Chairman Ben Bernanke got it precisely backward last week when he blamed the Chris Dodd Bear Market and Recession on years of high leverage, unstable funding, and deficient risk management by the financial industry. The housing bubble with its subprime mortgages, he asserted, served merely as the trigger.

Yes, banks irresponsibly wrote mortgages for millions of unqualified borrowers. Wall Street exacerbated matters by bundling toxic loans and selling them to unsuspecting investors and to Fannie Mae and Freddie Mac, government-sponsored enterprises that knew exactly what was going on when they assumed wave after wave of toxic mortgages to recapitalize banks so they could issue more bad loans. But beginning in 1999, lenders only did what they were told so then-Sen. Christopher Dodd, D-Conn., and his sidekick, Rep. Barney Frank, D-Mass., could test their ludicrous theory that with Big Government manipulating the free markets, almost anyone could fulfill the American dream of homeownership.

Wielding the Community Reinvestment Act, the weight of government and their political influence, they strong-armed banks into abandoning time-honored lending standards; Fannie and Freddie to take the lead in writing, underwriting and buying subprime mortgages; bureaucrats to set unsustainably high home-ownership goals; and regulators to ignore the buildup of untenable risk in the financial industry. Before long, mortgage-denial rates reached historic lows and the housing bubble was blossoming. After its collapse, however, millions of Americans lost their houses, and many millions more were left owing more than their homes were worth. The housing and subprime crises and all the banking shenanigans don't happen without Sen. Dodd and Rep. Frank pushing the buttons and pulling the levers.

[Graybeard58]

Ping to a Republican-American Editorial.

If you want on or off this ping list, let me know.

[facedown]

Bernanke has become a mere toady.

[sickoflibs]

Bush pushes minority homeownership (FR post | June 15, 2002 | By KATHY A. GAMBRELL)

Bush seeks to increase minority homeownership (FR post USA Today ^ | 1-20-04 | Thomas Fogarty )

President Bush Mortgage Speech 2002(Helping those w bad credit buy houses)

Speaker Hastert Touts Law Closing the Homeownership Gap for Minorities (FR Post Wednesday, October 01, 2003 )

[LomanBill]

 

 

" Uhhhh, that's not ours either! "

---Weiner, Obama, Perry, Pelosi, Frank, Pritzker and Associates, LLLP.

 

 

Follow the....

http://www.campaignmoney.com/finance.asp?type=in&cycle=08&criteria=pritzker&fname=penny

 

Billionaire business mogul Penny Pritzker is a member of one of America’s richest families and was the Finance Chair for the presidential campaign of Barack Obama.  It was Pritzker that led the prolific, and illegal, fundraising that helped power Barack Obama’s presidential campaign.  She was the chair of Chicago-based Superior Bank’s board for five years.  Pritzker was into subprime lending before it became all the rage starting in around 2000.  Prtizker's chairmanship was to concentrate on sub prime lending, principally on home mortgages, but for a while in subprime auto lending, too, after the Pritzkers' bank acquired its wholesale mortgage organization division, Alliance Funding, in December 1992. Back then they called it "predatory lending." Superior Bank went belly up in 2001 with over $1 billion in insured and uninsured deposits; 1,406 depositors lost much of their life savings.  This collapse came amid harsh criticism of how Superior’s owners promoted sub-prime home mortgages. On Nov. 1 [2002] the Federal Deposit Insurance Corp. pointed the finger at Ernst & Young, Superior’s auditor, in a fraud suit filed in federal court here.  But that action came two months after a group of Superior depositors accused the bank’s owners and directors, including two members of the Pritzker family, of racketeering....

[snip]

...Pritzker is chairman of Classic Residence by Hyatt, luxury senior living communities in 11 states; chairman of The Parking Spot, which owns and operates off-airport parking facilities in nine cities; chairman of the credit data company TransUnion and chairman of Pritzker Realty.  She also sits on the board of Global Hyatt and plays a role in numerous non-profit groups, including serving as chairman of the Olympic village portion of Chicago’s bid to win the 2016 Summer Games. 

 

http://www.theobamafile.com/_associates/PennyPritzker.htm

 

 

 

Nudge nudge nudge...

 

[LomanBill]

Dear Fabian Socialist Jackwagons,

 

 

Up Yours.

 

 

Regards,

=LomanBill

[khelus]

Thought you might enjoy this; hat tip to baddog219

[khelus]

http://www.freerepublic.com/focus/news/2873568/posts?page=7#7

[khelus]

Both the D’s and the R’s set the stage and passed the consequences of risk onto the tax payer; the banksters and fanciers ran with it.

[sickoflibs]

RE :”Both the D’s and the R’s set the stage and passed the consequences of risk onto the tax payer; the banksters and fanciers ran with it.”

Yep.
I cant count the number of times I had to use those links to counter bogus posts that GWB was a victim of CRA that was forced on him and a Republican majority by Barney Frank who they fought on it. This was standard 2008 election year Republican Koolaid.

The problem with this myth is all the times the GWB administration bragged about achieving it's CRA type goals that are easy to find on the internet,.

I don't know how so many Republicans can repeat indefensible arguments over and over(Hannity is the King of that) , in that way they really are like Dems. I can't do it.

[stephenjohnbanker]

” The problem with this myth is all the times the GWB administration bragged about achieving it’s CRA type goals that are easy to find on the internet,.”

Correct

[ding_dong_daddy_from_dumas]

khelus: Both the D’s and the R’s set the stage and passed the consequences of risk onto the tax payer; the banksters and fanciers ran with it.

SOL: Yep. I cant count the number of times I had to use those links to counter bogus posts that GWB was a victim of CRA that was forced on him and a Republican majority by Barney Frank who they fought on it. This was standard 2008 election year Republican Koolaid.

Of course now many of us on FR realize that GWB was talking out of both sides of his mouth. You deserve credit for telling the truth in the previous decade, when such criticism was blasphemy (for those who quoted only GWB's comments that seemed to be anti-CRA).

[stephenjohnbanker]

I warned every FReeper what was going in in the summer of 06. I was ridiculed : )

FReepers are nice people, with good intentions, but on the whole, are still daft.

[stephenjohnbanker]

I was “international american” back then.

[sickoflibs]

LOL

[advertising guy]

I remember it to the day

some were not kind and some needed their butts kicked

[khelus]

Aren’t there times you wished we all had been wrong?

[stephenjohnbanker]

Penny inherited her money & power....guilt complex 101

[stephenjohnbanker]

Yes

[sickoflibs]

RE :”Aren’t there times you wished we all had been wrong?”

I WAS wrong. I was a committed GWB supporter and defended during his first term and I have a pretty good idea why. Certain media figures I trusted were creating a superman myth about him during his first term.

That is why I vowed to not allow Republicans to whitewash GWB history. Even in 2009 contradicting Bush here brought on being told to :”Go back to DU” but there were also many here like me that were disgusted with what the GOP had become. I met the others on this ping list while invading “Miss Bush yet?” threads after he left office.

Sometime late 2010 or 2011 it because 'cool' to dis the Bush legacy. The Bush worship threads ended and the remaining committed Bush-bots disappeared.