Posted on 09/18/2008 10:28:25 AM PDT by Free ThinkerNY
John McCain shifted gears in Iowa today and reminded voters in Cedar Rapids that he predicted the outcome of the credit crisis two years ago, and few bothered to act. McCain also aggressively painted Barack Obama as a prime example of do-nothing politicians co-opted by lobbyist money. His speech pointed out the amount of money Obama has received from Fannie/Freddie donors and the advisers he uses that helped create the crisis (emphases mine):
Senator Obama talks a tough game on the financial markets but the facts tell a different story. He took more money from Fannie and Freddie than any Senator but the Democratic chairman of the committee that regulates them. He put Fannie Mae’s CEO who helped create this disaster in charge of finding his Vice President. Fannie’s former General Counsel is a senior advisor to his campaign. Whose side do you think he is on? When I pushed legislation to reform Fannie Mae and Freddie Mac, Senator Obama was silent. He didn’t lift a hand to avert this crisis. While the leaders of Fannie and Freddie were lining the pockets of his campaign, they were sowing the seeds of the financial crisis we see today and enriching themselves with millions of dollars in payments. That’s not change, that’s what’s broken in Washington.
(Excerpt) Read more at hotair.com ...
I don't think you do.
So unless Americans send a separate check to the U.S. Gov for every tax that is confiscated, this means were really not paying?
No. Because tax dollars are not being used to bailout AIG, unless you mailed a check to AIG, you're not bailing them out.
Come on Todd, you can defend this monster Fedgov and socialism better than that.
If I ever decide to defend this monster Fedgov and socialism, I'll be sure to ping you first. Don't hold your breath.
To the Federal Reserve.
HIT HIM AGAIN, HIT HIM AGAIN, HARDER, HARDER!!!
LLS
Just to illustrate how “competent” the Fanny Mae CEO is, McCain blames him for picking Biden. Another great example of Obama’s poor judgment.
Link please... osamabama never sponsored any bill in the senate... never wrote a bill... only co-sponsored. O’Reilly 9/17/08
LLS
I know, I know....Don't fight it.
there was also a lot of noise about the financial reaction. You want that to clear first before getting your message out
Glad you realized your error.
AIG isn’t in his liberal talking points. The ‘book’ says raise taxes, be for abortion...nothing about AIG or what to do if California is burning up.
:)
I am sure the MSM will lead off with this this evening
He must have take Dick Morris’s advice. That’s what he suggested McCain should do. And also stick it to him by pointing out to the unknowing American public that these guys are Obama’s economic advisery team...
Why should I be be bailing out a zillion dollar company?
Why should I bail out your investments, retirement funds etc?
Are you going to bail out the tens of thousands facing foreclosures?
Are you going to bail me out if I make an investment that goes belly up?
If not, why not?
I'll re-arrange these...
Why should I bail out your investments, retirement funds etc?
No good reason. Of course, a bail-out has to be defined, and sometimes a bail-out is a side effect, not a purpose.
If there's one difference between the solutions proposed by RATS and pubs, it's that RATS want to help the little people, in all cases; pubs want to avoid a financial meltdown.
In the case of Fannie/Freddie, the government will probably turn a profit, unless there's law requiring them to write down the face amount of some loans.
In the case of AIG, the govt will make a profit.
Are you going to bail me out if I make an investment that goes belly up?
Not unless there's great systemic risk, as opposed to individual pain.
Are you going to bail out the tens of thousands facing foreclosures?
It may very well come to that, if systemic collapse is likely.
Why should I be be bailing out a zillion dollar company?
You aren't. This is a bridge loan so that AIG can sell the assets it needs to sell without conducting a fire sale. The alternative is financial meltdown of Great Depression proportions.
I think that addressed all your questions...
This isn't a matter of pulling someone's fat out of the fire; this is a matter of avoiding a major financial crisis, one that would take years to work out. I think the feds have done well so far, taking the lowest cost approach to each circumstance.
If you want to understand the financial issues involved, the housing market is a good place to start. Four years ago there were all kinds of mortgages that, frankly, didn't make financial sense. 100% financing for folks with 600 credit scores, combined with historically low interest rates. That created a lot of demand for housing, some artificial.
Okay...mortgage rates start to go up. Suddenly houses aren't as affordable anymore. Demand levels off, as do prices.
ARMs start to mature with interest rates significantly higher than the start rate. For A credit, mortgages index up from 3% to 5%. For sub-prime, mortgages index up from 6% to 9%.
Folks are increasingly unable to refinance, because many who refi'd took out equity, and they don't qualify at the new amount and rate. For those who are sub-prime, their new payment is based upon a 9%-10% rate. Houses start to get foreclosed.
This starts a slide in house prices. As lenders take possession, they put the houses on the market, at a discount; prices slide at an accelerated rate. This causes more foreclosures, as lower house prices cause lending standards to tighten, which along with lower house prices causes more foreclosures...and you've witnessed the start of a vicious and destructive cycle.
The Feds have stepped in in limited ways. They've increased conforming loan limits and expanded eligibility for FHA refinances. They hoped to stop the tide, and I think they've succeeded in slowing it. They don't have the resources to stop a housing rout, and hope to avoid one by starting early.
Now, turbocharge that process, and you'll understand what's at stake with the likes of AIG.
The “credit” crisis is a bipartisan problem and the Republican party, including Open Borders/CFRer’s John McCain and George Bush are NO exceptions!! Here you have it....the very REASON we are where we are TODAY!!
For Immediate Release
Office of the Press Secretary
June 17, 2002
President Calls for Expanding Opportunities to Home Ownership
Remarks by the President on Homeownership
St. Paul AME Church
Atlanta, Georgia
....”Now, we’ve got a problem here in America that we have to address. Too many American families, too many minorities do not own a home. There is a home ownership gap in America. The difference between Anglo America and African American and Hispanic home ownership is too big. (Applause.) And we’ve got to focus the attention on this nation to address this.
And it starts with setting a goal. And so by the year 2010, we must increase minority home owners by at least 5.5 million. In order to close the homeownership gap, we’ve got to set a big goal for America, and focus our attention and resources on that goal. (Applause.)
And I picked a good man to help realize that goal, in Mel Martinez. I don’t know if you know Mel’s story, but — (applause) — it’s an interesting story. Mel was born in Cuba. (Applause.) Yes. Mel brought his cousins with him. (Laughter.) All two of them, anyway. (Laughter and applause.)
But Mel’s mother and daddy — Mel’s mother and dad put him on an airplane to come to America when he was a young boy, because they didn’t want his son growing up in a country that wasn’t free. Think about that, think about the courage of a mom or a dad, and their love for freedom — love freedom so much, they had put their child in the hands of loving Americans, and mom and dad eventually came. And here he now sits, as a member of the President’s Cabinet. What a great country we have. (Applause.)
My point is, Mel understands what it means to dream, and then to work to realize the dreams. I’ve also picked a fine friend of mine from Texas, named Alphonso Jackson, to serve as the Deputy of HUD. And where are you, Alphonso? There he is; I appreciate you. (Applause.) These are can-do people. So when we set a goal, they understand their job is to work toward that goal. “.....
JOHN MCCAIN:
“John McCain will bolster groups like Neighborworks America that provide mortgage assistance to homeowners in their communities.”—JohnMcCain.com
http://www.nationaljournal.com/campaigns/2008/wh08/promises_mccain.htm
Anybody remember what Neighborworks is?
Press Release
FOR IMMEDIATE RELEASE
June 17, 2002
Contact:
Mark Burneko
202/220-2360
America’s NeighborWorks® Organizations Join Coalition to Increase Homeownership Opportunities for Minority and Immigrant Families
NeighborWorks Organizations Will Provide 400,000 Families With Financial Fitness, Housing Counseling Education As Part of President’s Initiative
Washington, DC—An estimated 400,000 minority and immigrant families seeking home ownership will receive assistance from America’s NeighborWorks® organizations over the next decade as part of the initiative announced today by President Bush.
Additionally, NeighborWorks organizations will provide direct home ownership assistance to more than 130,000 families, of which more than 59 percent will be minority and immigrant first-time homebuyers.
Organizations participating in the NeighborWorks Campaign for Home Ownership, the nation’s most successful community-based homeownership initiative, already have helped more than 60,000 lower-income families—of which more than 52 percent are ethnic or racial minorities—achieve home ownership in recent years. The NeighborWorks network, founded and supported by Neighborhood Reinvestment Corporation, is comprised of more than 230 locally based nonprofit affordable housing and community development organizations serving more than 2,100 urban suburban and rural communities nationwide.
“There are tremendous opportunities for minority and immigrant families to enjoy the benefits of home ownership,” said Ellen Lazar, executive director of Neighborhood Reinvestment Corporation. “Providing a strong financial literacy education, coupled with flexible, affordable mortgage products; NeighborWorks organizations are opening doors to homeownership that would otherwise remain closed to these families.”......
http://www.nw.org/network/newsroom/pressReleases/061702.asp
Key to the Dream Coalition: Neighborhood Reinvestment Commitment Letter [DOC, 28KB]
http://www.nw.org/network/newsroom/pressReleases/doc/NRCommitmentLetter.doc
Key to the Dream Coalition: NHSA Letter of Support [DOC, 28KB]
http://www.nw.org/network/newsroom/pressReleases/doc/NHSASupportLetter.doc
Key to the Dream Coalition: Letter from Sponsoring Organizations [DOC, 44KB]
http://www.nw.org/network/newsroom/pressReleases/doc/SponsorOrganizationsLetter.doc
When discussing the economy/housing crisis...we MUST put responsibility where it belongs and we MUST acknowledge how much illegal immigration and the race to provide ILLEGAL ALIENS with mortgages and banking priviledges has cost us now. We are feeling the effects of defaults on mortgages...I wonder how many auto loans and how much credit illegals have defaulted on as well?
I’d also like to know who’s responsible for silencing the media on this. The ‘silence’ on ILLEGAL IMMIGRATION lately is DEAFENING!!
Not unless there's great systemic risk, as opposed to individual pain.
LOL! Are you going to bail out the tens of thousands facing foreclosures?
It may very well come to that
Uh, don't know if you follow the news, but for tens of thousands of other Americans, it's *way* too late for that.
bump
Situations like this separate those who have run things from those who only run their mouths. If you have a serious comment, make it.
bump
If not, why not?
What about all the homeowners and small businesses that are going belly up?
And yes, globalism, exporting hundreds of thousands of American jobs and their entire companies overseas for the peasant low wage labor, while at the same time flooding America with literally tens of millions of illegal, low wage workers is a major factor in this disaster.
Boy, this has all worked out really well huh?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.