Are the Clintons the Real Housing Crash Villains?

Townhall.com ^ | May 29, 2016 | Larry Kudlow

[Captain Peter Blood]

Bush policies helped accelerate the problems Clinton started and so yes he deserves a lot of blame also.

[Pelham]

“Not a dime’s worth of difference between the Bushes and the Clintons.”

Pretty much. They were getting their financial policy from the very same set of people.

[himno hero]

AND what was BO’s role in all this????
Wasn’t he a contributor to the ninja loans for blacks?

[Pelham]

“and the ceiling on leverage was essentially taken off risk for banks and mortgage companies.”

The rise of ‘shadow banking’ lenders was also a huge factor. In the low interest rate regime that Greenspan pushed after 9-11 investors like pension funds and insurance companies had to go hunting for yield in new places.

Wall Street responded by farming an untapped region, potential homebuyers who didn’t qualify for conforming mortgages. That market provided high yield and was large enough for them to plow some seriously large money into it.

It happened to be going in the same direction at the same time as the nanny state policies fostered by the CRA, so it’s easy for people who don’t follow the arcana of financial markets to think that it all originates with the CRA. It didn’t, the shadow banks were cranking out trillions of high yield paper and using subprime loans as the basic fodder, and doing so entirely voluntarily. They were pushing their army of independent loan writers to make as many subprime loans as possible. The CRA didn’t cover them and they did this because it made good business sense to them. They were wrong in a huge way, but at the time none of the big players wanted to listen to the Cassandras.

[Captain Peter Blood]

Very few people can or will be able to understand all of this.

[Cementjungle]

I still thank my lucky stars for the housing bubble. That's what finally freed me after 30 years of slaving away in the corporate world.

In the start of 2005 I was wrapping up a year-long project at work, my wife was increasingly nagging me about working too much... but I kept saying there's no way I can try and start my own business and still afford our mortgage and live in L.A.

I was well aware of the absurd housing values in the area, and knew that they were artificially high. I had this nagging sense that this was a once in a lifetime opportunity.

So we made a plan... and in June of 2005 we sold both our house (had been in only 5 years) and our investment triplex (owned 2 years). After taxes and paying off the mortgages and gains taxes, we cleared about $1.3 million. That allowed us to buy a beautiful waterfront home in WA and a handful of rental properties all for cash, and I set out on my own doing consulting (which worked pretty well too).

The housing market in Los Angeles crashed big time literally about 2 weeks after we closed escrow on those 2 properties.

The woman that bought our residence never moved in and eventually lost it to foreclosure. The couple that bought the triplex (their first investment property) wound up losing their asses and got divorced over the episode (our broker/friend knew they guy's brother so he heard all the gory details).

I definitely think God was looking out for me back then... and I'm still very grateful for being freed from living paycheck to paycheck in the corporate rat race.

[Pelham]

True. I figured I’d post it for the few who do follow this stuff. Of which I suspect that you are one.

[Pelham]

Well done. I warned a friend of mine in late 2003 that LA/OC was in uncharted territory, way beyond where the affordability index usually stops a boom. And yet the bubble just kept growing.

[Captain Peter Blood]

The problem is that is very complicated and you can’t easily explain it to anyone. The blame crosses both party lines and just shows how corrupt they both are.

[FreedomPoster]

Bfl

I think I have some similar links to add when I’m on my desktop.

[Pelham]

Right. It was really a perfect storm, a whole bunch of factors collided to make the brew. And it was bipartisan greed and stupidity.

I just think that people, conservative activists in particular, should know that this wasn’t something that can be explained by the CRA or any other particular government meddling. That didn’t help, but an enormous amount of the trouble came out the private sector financial engineering world. And they weren’t involved for any other reason than that there appeared to be a huge amount of money to be made.

Finance is different from other markets. Left totally unregulated you can get massive booms and busts. Glass Steagall was in effect for 40 or 50 years. I don’t think it is a coincidence that as it was whittled away more and more the 2008 financial crisis followed in its awake. Not a direct result but I think that bills like the Commodities Futures Modernization Act 2000 opened the door.

[dsc]

As I remember it, the SJWs who invented the concept of red-lining caused the problems.

People who can’t qualify for housing loans are often concentrated in low-income areas. Coincidentally, some of those areas are primarily black.

It is obvious, therefore, that racist bankers were drawing “red lines” around black areas and refusing them loans for racist reasons. Right?

To put a stop to the racist practice of red-lining, the Clintesterones unofficially let lenders know that if they didn’t start making loans to X number of blacks, they were going to be Hildebeested. Being cowards and incapable of cooperation, they caved in and made a metric buttload of bad loans.

To get their personal posteriors out of the line of fire, the holders of these bad loans “securitized” them and sold worthless shares in these worthless securities to suckers. The exposure of this secondary market as utterly without value triggered the crash.

[dsc]

“have in reality been in a Deep Recession or Depression since the Tech Bust in 2000.”

One often-repeated fact about the First Great Depression is that unemployment reached 25%. I’m told that 94 million Americans are out of work. What percentage is that?

We see photos of the breadlines during the First Great Depression; what would the lines be like today, if not for computerization and food cards?

America needs to wake up and smell the mulligan stew. We have been in the Second Great Depression for years. I will leave it to others to fix the precise onset.

[Liz]

ONCE UPON A TIME, OBAMA'S COS EMANUEL HAD TWO JOBS Soon as they occupied the WH, Obama and the Chicago con artists (a) took control of the US Census; (b) Obama placed his COS Rahm Emanuel in control of the US Dept of the Treasury (oversees the IRS).

PAUSE TO REFLECT First-term Obama had tight control of Treasury; Obama calculatedly placed his then-COS Rahm Emanuel in a dual role.......in the WH and at Treasury. Obama had a stranglehold on Treasury via COS Rahm Emanuel's dual role Read on.

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THE SMOKING GUN---WSJ REPORT--On Jan 20, 2009 Timothy Geithner was appointed Obama's Secy of the Treasury. But within three weeks, the Obama White House tightened its grip on Treasury. Obama put his COS, Rahm Emanuel, in charge of Treasury---Rahm Emanuel's dual role was an unusual move.

When he got to Treasury, WH COS Rahm Emanuel was so involved in the inner workings that the phrase "Rahm wants it" had become an unofficial mantra among subservient govt staffers, prostrate in obeisance, scurrying to accede to Rahm's wishes, according to Treasury government officials. Reported by WSJ / 05/31/09

More here: http://online.wsj.com/article/SB124113406528875137.html

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EXCERPT---FOURTEEN TRILLION DOLLARS Behind The Real Size of the Bailout; A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street
SOURCE motherjones.com
Mon Dec. 21, 2009 12:23 PM PST

The price tag for the Wall Street bailout is popularly put at $700 billion—---the actual size of TARP--the Troubled Assets Relief Program. But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside untraceable money to bail out financial firms and inject money into the markets.

To get a sense of the size of the real $14 trillion bailout, see MJ chart at web site. A guide to the pieces of the puzzle includes massive untraceable Treasury Department bailout programs.

Money Market Mutual Fund: In September 2008, the Treasury controlled by Obama/Emanuel announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].

Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokerages—as much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].

TARP: As part of the Troubled Asset Relief Program, the Treasury controlled by Obama/Emanuel made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid.

Government-sponsored enterprise (GSE) stock purchase: The Treasury controlled by Obama/Emanuel bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets."

GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury controlled by Obama/Emanuel may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion ---SNIP---.

LONG READ---go to web site to read more and checkout the shocking financial charts.

SOURCE http://motherjones.com/politics/2009/12/behind-real-size-bailout

[Liz]

Mortgage fraud? Pres Trump needs to look at the activities
of the tax-funded Congressional Hispanic Caucus.

MASSIVE MORTGAGE FRAUD---TAXPAYERS GET SOCKED A 2009 Wall Street Journal investigative report WRT the subprime mortgage borrowing spree that wreaked havoc on the US economy revealed that----according to the Federal Financial Institutions Examination Council---financial schemes by low-income housing groups, Hispanic lawmakers on Capitol Hill, including a congressional Hispanic housing initiative, subprime mortgage lenders and brokers, colluded together in fraudulent schemes to increase homeownership among Latinos using falsified applications, and other tricks of the trade.

The massive mortgage fraud ended in disaster for which no one has been held responsible. Taxpayers got saddled with billions of dollars in bailout bills.

These subprime activities were not simply the mortgage market at work. They were fueled by avarice, greed, stupidity--all enabled by Congressmen and other groups which leave a trail at the door of then-Cong Joe Baca (D-Cali).

Between 2000 and 2009, Hispanic populations increased; but Hispanic home ownership grew even faster, increasing by 47%, to 6.1 million from 4.1 million, according to the US Census Bureau. Over that same period, homeownership nationally grew by an enemic 8%. In 2005 alone, mortgages to Hispanics jumped by 29%; Latinos with multiple fraudulent identities in low-paying jobs obtained costly non-prime mortgages---soaring to a shocking 169%, (Research provided by Wall Street Journal)

The subprime mortgage bank fraud network was spearheaded by then-Cong Joe Baca (D-Calif 43rd), in his powerful position as chairman of the Congressional Hispanic Caucus. Baca's district ranks No.5 among all US Congressional districts in percentage of home loans tailored to sub-prime borrowers.

Baca used his the legislative power of his office and his leadership position in the Congressional Hispanic Caucus to calculatedly launch a housing initiative called "HOGAR"-- Spanish for home.

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CONSPIRACY AND COLLUSION---The Congressuial Hispanic caucuss has been quiet about its role in financing, and, earmarking, the blood-thirsty America-hating La Raza. race-based "La Raza" was given tax dollars and Congressionsl earmarks to finance its so-valled mortgage activities. La Raza's "strategic partnerships” with Wachovia and Bank of America forced the fraudulent mortgage-application requirements and documentation standards.......whuch caused taxpayers to be socked w/ billions in bailouts......decimating the US economy. economy.

La Raza aided and abetted risky federal and private-home loans to latinos over the last decade. thanks to the lending industry’s version of “don’t ask, don’t tell.”

In addition to millions of federal tax dollars, La Raza also collected a $1 million Democratic earmark that funded “community-development” projects. Analysts report that much of it went to "mortgage counseling." (cue laugh machine)

[Liz]

Honest ta God...anymore of that phony "Clinton Solidarity" and I'll puke.

THE CLINTON SOLIDARITY ACT CAPTURED ON FILM
One Clinton lies and the other swears to it.

"I never had sexual relations with that woman...Miss Lewinsky."

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STROLL DOWN MEMORY LANE

VINTAGE TIME COVER The Clintons leave the WH
arm-in-arm after Bill got lewinskied. Plotting to exploit
Bill's BJ for votes, the Clintons' political apparat never faltered.

Hillary later went on network TV all decked out in virginal pearls,
denying everything, blaming Billy's B/J on "an invention of
the VRWC." Bill later admitted to it, was impeached, and disbarred.

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NOTE---Pres Clinton was a tax-paid employee using tax -paid offices .....
but the sucker claimed it was his business what he did there (groan).

[Liz]

Trump needs to get on this Dem scam ASAP.....he should ask financial guru Carl Icahn to check into how Hillary is benefitting from lawlessness----and by Obama’s forcing banks to give millions in penalties to La Raza and ACORN.....for voter registration initiatives and other voter fraud schemes.

Donald should also ask his banking pals what they think about the WH half-caste and his cronies inflicting these extortionate penalties on banks.

The details:

Obama and Congressional Democrats----with a huge assist from then-AG Eric Holder----have given NeighborWorks America (formerly ACORN) and La Raza a huge funding source of tax dollars to achieve Obama's dream of a permanent Democrat majority.

Obama/Holder/Dems are forcing taxpayers via DOJ litigation WRT bank settlements----into paying off these nefarious organizations.

DOJ went after CitiCorp and ordered them to pay $50 million to La Raza and NeighborWorks America as part of the settlement.

Another clause in the agreement makes it possible for La Raza and NeighborWorks America to rake in even larger amounts of money.

Of the remaining money the banks needed to pay in settlements, the banks were able to contribute additional money to La Raza and NeighborWorks America. For every dollar they contribute, it reduces their debt to the government by 2 dollars. That’s some mighty powerful incentive to give generously.

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House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and House Financial Services Chairman Jeb Hensarling have questioned why this money was sent to the ACORN clone and the blood-thirsty LaRaza----rather than to the alleged victims of the bank’s crime. The administration of course declined to answer.

Here's part of the Congressmen's letter to Holder: “It seems that the alleged victims are not the primary beneficiaries of these multi-billion dollar settlements. Instead, the terms in the Justice Department’s two latest settlements look less like consumer relief and more like a scheme to funnel money to politically favored special interest groups.”

“This makes donations to activist groups far more attractive to banks than providing direct relief to injured consumers. As a result, the settlements appear to serve as a vehicle for funding activist groups rather than as a means of securing relief for consumers actually harmed.”

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So now, with tons of money to fix the presidential election, the largest and most successful voter fraud campaign may alter the course of the elections not to mention the future of the United States.

NO WONDER HILLARY KEEPS SMILING.

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Obama bullied bank to pay racial settlement without proof: report
NY Post ^ | 2/7/2016 | Paul Sperry / FR Posted by DCdude

Newly uncovered internal memos reveal the Obama administration knowingly exaggerated charges of racial discrimination in probes of Ally Bank and other defendants in the $900 billion car-lending business as part of a racial justice campaign that's looking more like a massive government extortion and shakedown operation

Obama's Consumer Financial Protection Bureau has reached more than $220 million in settlements with several auto lenders since the agency launched its anti- discrimination crusade against the industry in 2013. Several other banks are under active investigation. That's despite the fact that the CFPB had no actual complaints of racial discrimination--- it was all just based on half-baked statistics.

A 23-page internal report detailing CFPB's strategy for going after lenders shows why these companies are forking over millions of dollars in restitution and fines to the government despite denying any wrongdoing.

CFPB applied the screws to Ally, saying it had statistical evidence showing its participating dealers were œmarking up loan prices for blacks and Hispanics vs. whites (by an average of $3 a month). Ally fought back, insisting non-discriminatory factors, such as credit history, down payments, trade-ins, promotions and rate- shopping, explained differences in loan pricing. After conducting a preliminary regression analysis, the bank found these factors alone accounted for at least 70 percent of the “racial disparities” the government was claiming.

CFPB admits in the memo that it never considered these or other legitimate business aspects of the car deals it investigated

Also in its initial rebuttal, Ally complained CFPB's entire case was based on disparate impact statistics, not actual complaints by consumers, and that those estimates relied on guesswork about the race of the borrowers. (The auto industry does not report borrower race, so CFPB tried to ID race by last name and ZIP code, a so-called proxy method that is wildly inaccurate.)

(Excerpt) Read more at nypost.com ...

[Churchillspirit]

Excellent reminders, Liz. Thank you.

[kaehurowing]

Cintonites Franklin Raines and Jamie Gorelick at FNMA put the wheels in motion to drive the lending industry over the cliff.

[Intolerant in NJ]

In a word - yes.....