Obomunism 120: The subprime predatory lending scheme that engineered the 2008 economic crisis

[jetxnet]

Information extrapolated and formulated from Blogsphere. The last vestiage of free speech!

The subprime predatory lending scheme that engineered the 2008 economic crisis

There are two loan terms in this artcle, one is "micro-finance" and the other is "subprime" loans. Both types of loans are designed to "get rich off the poor" by lending to those who cannot afford them. It has been referred to by some economists as "predatory lending".

Though micro-finance loans have been extended to the mortgage industry, subprime loans were already available using the same common "rule-set" for loaning to people with little income and no credit. In short, both loan types are similar, but are active on somewhat different scales.

The $160,000 question.

If i were a Marxist or part of some Communist (new) party that wanted to expand the American government by getting stakes in private companies, how would this get accomplished??

What type of scheme would have to be set up to acquire assets (i.e. property, credit, inventory etc.)?

You probably guessed the subprime loan lending method.

To invoke this scheme, it should start with the banks and cause major markets to go bankrupt. If the banks stop lending money, then every major market is adversly affected. It goes something like the following:

Step 1) Mandate the banks to give out loans to people who can't afford them

The Civilian Reinvestment Act (CRA) requires mortgage lenders, through force of law, to meet government mandated quotas for handing out bad loans (aka subprime loans). If lenders fail to meet those quotas, there are penalties. The CRA was started by Jimmy Carter's administration and expanded by the Clinton administration removing almost all restrictions. George Soros may be the "brainchild" behind this scheme.

Step 2) After the banks lose enough money because everyone is foreclosing on their loans, they will stop lending money to buy homes, vehicles or get credit otherwise.

Speaking of fraud and corruption, Fannie Mae and Freddie Mac played a critical role in facilitating the Clinton “enhancements” to the CRA. It was their job as government sponsored CRA loan-regulators to purchase and securitize mortgages in order to ensure that funds are consistently available to the institutions that lend money to home buyers. They failed to do this on purpose. They not only conveniently failed to secure the loans, but they encouraged the banks to do more lending.

Senior executives at Fannie Mae manipulated accounting to collect millions of dollars in undeserved bonuses and to deceive investors. The junior Illinois senator collected more money from Fannie Mae than any other Washington politician except Senator Dodd in the last decade.

The banks thought they were "good to go" in lending out subprime loans. The banks continued giving out loans unaware these loans would fail to be secured by Fannie Mae and Freddie Mac. The end result, the banks lost the money on those loans from the scandel and quit giving out new loans (to businesses and virtually anyone) while later declaring bankruptcy.

See the list of major banks that went bankrupt in 2008: http://timandjulieharris.com/2008/07/20/list-of-bank-failure-watch-list/

The bank failure triggered a "domino effect" or chain reaction, in that the automobile and credit industries - both major markets - were no longer getting loans from the banks for clients who would buy their products. A virtual halt to the entire economy all at once. Not only this, but businesses were raising prices on products to stay in business because banks were no longer giving out loans. So, logically then, you'd expect several companies in the major markets to go bankrupt. All you had to do was wait for it.

Step 3) Wait for the bankrupt companies to request a bailout, once requested, come up with a offer, but make it clear that if the government bails them out, the government has part ownership in that company

Now the beginnings of Socialism. The government, by bailing these major market players out, now has part ownership of the company bailed out.

The government will "back stop" $308 billion in Citi's troubled assets. ... for the time being, the Treasury effectively owns that bank. ...

http://www.247wallst.com/2008/11/citigroup-c-get.html

Obama's family history and connections to a micro-financing loan lending network that extends to the Islamic Banking Cooperative.

The last things Barack Obama wants is anyone sniffing around his family’s Hawaiian banking past or his family’s Indonesian banking past as it leads right into Chicago banking and New York finance collapse that Barack Obama has a part in.

So far, there is a solid link between the Islamic Banking Cooperative, Fannie Mae, Freddie Mac, The Ford Foundation, Devron Bank of Chicago and the Bank of Indonesia (Stanley A. Dunham was a research coordinator at this bank and a program officer for the Ford Foundation).

Stanley Ann worked at a bank called Bank Rakyat of Indonesia (also referred to as the Bank of Indonesia).

"Dunham worked as a program officer for the Ford Foundation and as research coordinator for Bank Rakyat Indonesia"

Quote above taken from: http://archives.starbulletin.com/2008/09/13/news/story09.html

Bank Rakyat is also a big part of the “Islamic Banking Cooperative”.

Bank Rakyat also happens to part of a The International Micro-financing Network. Bank Rakyat (A.K.A Bank of Indonesia) is the largest micro-finance player in Malaysia.

What’s interesting, is the “microfinacing program” does nearly the same thing that Fannie Mae and Freddie Mac do, but on a somewhat smaller scale (though has been extended to home mortgages).. by giving loans to people with poor/no credit and/or low incomes.

Fannie Mae invested at least 10 million into the Islamic banking Cooperative micro-financing network.

Here is the press release by Fannie Mae with their announcement to invest in the Islamic Banking Cooperative.

http://tyo.ca/islambank.community/modules.php?op=modload&name=News&file=article&sid=1097

Another link exists between the Islamic Banking Cooperative and Fannie Mae/Freddie Mac through a bank in Chicago called Devron. Devron is also a member of the "global micro-financing network".

Devron began selling Islamic home refinancing products for Muslims to Freddie Mac (see below).

CHICAGOLAND, ILLINOIS – Devon Bank today announced it would begin selling its Islamic home financing products to Freddie Mac, effectively expanding opportunities for Muslims living in Illinois and nine other states to become homeowners while observing traditional Islamic restrictions on paying interest on mortgages and other types of debt. Based in McLean, Va., Freddie Mac is one of the nation's largest investors in mortgages and Islamic home financing products.

A global effort - the glue that holds the world micro-financing network together

ACCION International is a non-profit microlending organization that sponsors the Bank of Indonesia, Devron Bank in Chicago and several other micro-finance lenders across the world. ACCION refers to the scheme as the "global micro-fiancing network".

ACCION also has working partnerships with Fannie Mae and Freddie Mac.

In 2003 ACCION had an operating budget of $11 million and was awarded major grants from Citigroup Foundation, and the Ford Foundation.

http://accionbogota.org/media_media_kit.asp

[Travis McGee]

[redhead]

Talk about an oxymoron: "Get rich off the poor..." Didn't anybody tell the race-baiting quota-queens that if people are POOR, it usually means they can't AFFORD stuff. Didn't anybody think to ask where they figured the poor were going to get the wherewithal to pay down these mortgages?? Oh, I forgot...Liberals only need to have good intentions. OK.