This is exhibit A in Santelli’s tea party.
This is outrageous that you and I will spend our tax dollars to help these parasites.
Throw their butts out on the street...
“This is exhibit A in Santelli’s tea party.”
Here’s the video:
http://www.cnbc.com/id/15840232?video=1039849853
Problem #1: The CRA required that lending institutions make a certain number of loans they knew would be bad.
Problem #2: Those lending institutions went to the government saying “you need to cover us on those bad loans you’re making us extend.” The government agreed to do so with Fannie & Freddie.
Problem #3: The government, spending tax dollars as usual, didn’t use ANY diligence (let alone “due diligence”) to make sure that excessive numbers of bad loans were being made. The more, the merrier. Plus, there was no oversight (thanks to the Chris & Barney show) over the management at Fannie & Freddie. In secularizing the bad loans, as well as through “cooked books,” Fannie & Freddie looked like much better investments than they were. And people like Franklin Raines and Jamie Gorelick became multimillionaires from bogus bonuses. They (and many others within Fannie & Freddie) should have been arrested and tried for fraud and all sorts of securities violations.
Problem #4: Corrupt lenders knew they could charge exhortation front end fees on loans they knew would never be paid, and then sell them off to the government, so they went into that market and made a killing, knowing that the government would never look into the abuses of the tax payers.
There’s LOTS of blame to go around. But people should have to pay for their bad decisions. And certain people in government and the lending industry should be in federal prison for the fraud they perpetrated.
Mark