Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

How Chuck Schumer Set Off a Bank Panic (and caused the economic collapse)
http://townhall.com/Columnists/JerryBowyer/ ^ | July 15, 2008 | by Jerry Bowyer

Posted on 03/29/2009 8:05:06 PM PDT by Maelstorm

...FlashBack So why a 30s style bank panic now? Why Indymac?

Because the left hated them. Indymac has been in the crosshairs for some time. The trial lawyers started going after them about a month ago. Not long after that, Schumer started sending letters to regulators attacking Indymac, questioning the financial viability of a bank which he had never examined. Neither Schumer, nor any of his staff even bothered to contact Indymac with any questions. Unsatisfied with the response, Schumer leaked his letters to the press. The local paper in Pasadena (where the bank is located) played along, and ran the story with a headline strongly suggesting insolvency. Of course, the next day depositors lined up at the door and started withdrawing money. Over the next 11 days, $1.3 billion came out. Indymac, just a regional bank, could not stand that kind of tsunami and it was forced to close its doors. So far about half their workforce has been laid off; and roughly 10,000 depositors are without full insurance coverage for their lost deposits. The shareholders have lost nearly everything.

While Schumer was writing his letters, a left of center ‘community’ group named the Committee for Responsible Lending was preparing its own attack on the bank. The same week as Schumer’s leak, they released material to the press accusing Indy of mistreatment of minority applicants. There are literally hundreds of small activist ‘public interest’ law firms, ‘community’ activists, think tanks and advocacy groups around the country that make their living attacking mortgage lenders. These groups label bankers racist if they hesitate to lend in neighborhoods in decline or to minority applicants with spotty credit histories. If the banks then decided to approve the loans, but charge a higher level of interest to compensate for the higher level of risk, then these groups accuse them of ‘predatory lending’. If the banks are proven right, and the borrowers refuses to repay the borrowed money, then the banks are smeared for their ‘greed’ in making the loans in the first place. The Committee for Responsible Lending is a sort of umbrella organization for these groups. Large donors can donate to the cause by donating to CRL and letting them spread the money around.

Well, they went after Indymac, and the result is the second largest bank failure in US history. Of course, we’ll hear a lot about ‘greed’ this week, and we should. But whose greed? Schumer’s greed for power? Community activists' greed for shakedown money? Trial lawyers greedy for huge class action settlements? Hedge fund managers who write big checks to these groups and the Democratic Party (including Schumer’s Democratic Senatorial Campaign Committee) and then turn around and make mountains of money shorting mortgage paper? No, we’ll hear about none of the above from most in the media. The real culprits will have gotten away with it, and the victims will bear the blame.


TOPICS: Business/Economy; Extended News; Front Page News; News/Current Events; Politics/Elections
KEYWORDS: 111th; 2008; banking; clowardpiven; congress; democratcongress; democrats; economy; indymac; octobersurprise; piven; pivenstrategy; schumer
Navigation: use the links below to view more comments.
first previous 1-2021-39 last
To: Maelstorm; ChessExpert
((((PING-a-Ling))))

ChessExpert, I remember your post dated March 12th:

http://www.freerepublic.com/focus/news/2206522/posts

21 posted on 03/29/2009 8:52:13 PM PDT by Chgogal (Don't look at me, Comrade. You elected him, our very own President Mugabe!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Chgogal

For the archive:

http://www.freerepublic.com/focus/news/2206522/posts?page=17#17


22 posted on 03/29/2009 8:56:28 PM PDT by Chgogal (Don't look at me, Comrade. You elected him, our very own President Mugabe!)
[ Post Reply | Private Reply | To 21 | View Replies]

To: Man50D
The Cloward-Piven strategy depended on surprise. Once society recovered from the initial shock, the backlash began. New York's welfare crisis horrified America, giving rise to a reform movement which culminated in "the end of welfare as we know it" -- the 1996 Personal Responsibility and Work Opportunity Reconciliation Act, which imposed time limits on federal welfare, along with strict eligibility and work requirements.

This is key, my FRiends.

This is the reason that Marxist Obama is doing such a Crazy Ivan.

He wants to push us into the Full Hugo before peeps wake up and smell the re-education camp.

The alleged "stimulus" package is a fine example. The last thing they wanted was a debate, or even hesitation.

Obama's entire "change" plan for us depends on his own Stalinistic surge; and if it's delayed, he's lost the element of surprise.

Perhaps some, you know Republicans in Congress might address this some day.

Nah.

.

23 posted on 03/29/2009 9:06:13 PM PDT by Seaplaner (Never give in. Never give in. Never...except to convictions of honour and good sense. W. Churchill)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Maelstorm

ping


24 posted on 03/29/2009 9:13:59 PM PDT by lonestar (Obama is turning Bush's "mess" into a catastrophe.)
[ Post Reply | Private Reply | To 1 | View Replies]

bfl


25 posted on 03/29/2009 9:15:47 PM PDT by Trailerpark Badass (Happiness is a choice!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cquiggy

A BETTER place to look at would be how many MAKED SHORT SALES were outstanding on Indymac in the days leading up to the IndyMac collapse...


26 posted on 03/29/2009 9:19:29 PM PDT by tcrlaf ("Hope" is the most Evil of all Evils"-Neitzsche)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Maelstorm
Photo Sharing and Video Hosting at Photobucket

Never trust a guy who looks like he had a lead role in “Who Framed Roger Rabbit.”

Chucky seen here fresh from his starring role in “Who Screwed the American People (Again!).”


27 posted on 03/29/2009 9:38:32 PM PDT by Dick Bachert
[ Post Reply | Private Reply | To 1 | View Replies]

To: Chgogal

Thanks!


28 posted on 03/29/2009 9:44:17 PM PDT by ChessExpert (The Dow was at 12,400 when Democrats took control of Congress. What is it today?)
[ Post Reply | Private Reply | To 21 | View Replies]

To: Maelstorm

Boy, he sure looks like he likes his fudge, from that photo.


29 posted on 03/29/2009 9:59:21 PM PDT by ConservativeMind (Cancel liberal newspaper, magazine & cable TV subscriptions (Free TV-dtv.gov). Stop funding the MSM.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: HelloooClareece
This would be a Pulitzer prize winning blockbuster of a story if Schumer were a Republican.

Democrats are slicker than Republicans and have more sway over the press. They don't make their involvement too obvious and the media then looks the other way, guaranteeing they get their way.

30 posted on 03/30/2009 12:14:34 AM PDT by TheThinker (Even though Obama is President, I'm more American than that imposter will ever be.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Dems_R_Losers
IndyMac was taking market share away from JPMorganChase and Citigroup. This was an orchestrated hit. IndyMac never knew what hit it. It had no lobbyist in Washington and no PAC.

Indymac was growing too fast and didn't give the Dems their expected handouts. Down they go, there will be no independence in this economy.

31 posted on 03/30/2009 12:17:17 AM PDT by TheThinker (Even though Obama is President, I'm more American than that imposter will ever be.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: Maelstorm

btrl


32 posted on 03/30/2009 12:20:35 AM PDT by TigersEye (Cloward-Piven Strategy)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Maelstorm
This will be the story of our lives for more than the next 1.300 days. OMG!

Charlie's boyhood pal. Only his pal knows for sure!

Heaven help us! He's still at but has changed his "pals"!

Here's the "Heaven Help Us" photo of the life time, with Zer0's appointment to lead GM going forward.

One can only note that MM is more efficient than Charlie, as he uses both his finger and his thumb.

33 posted on 03/30/2009 12:27:35 AM PDT by jws3sticks (Hillary can take a very long walk on a very short pier, anytime, and the sooner the better!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Maelstorm

"As Democrats, we are ALL "above the law"."

34 posted on 03/30/2009 2:22:34 AM PDT by Diogenesis
[ Post Reply | Private Reply | To 1 | View Replies]

To: Maelstorm
Look who wrote the checks to fund Schumer’s political campaign(s). These same people he then took their dollars and pulled the rug right out from under them. And yet I do not hear the ‘community activist’ drum beat out of these people who paid for their candidate, now demanding retribution for having their lobbying dollars used to literally destroy their wealth.
35 posted on 03/30/2009 4:05:22 AM PDT by Just mythoughts (Bama and Company are reenacting the Pharaoh as told by Moses in Genesis!!!!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Maelstorm
Chuckie Cheeze Schumer at work...

Maybe he did not get any kickback money from the bank, so he attacked the bank...

Gotta greaze those sweaty palms of Chuckie Cheeze Schumer...

After all, that is what "Palm Sunday is all about to Chuckie Cheeze Schumer -- getting money into his greazy/sweaty palms...

36 posted on 03/30/2009 5:29:00 AM PDT by topher (Let us return to old-fashioned morality - morality that has stood the test of time...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Man50D

Thanks. Very sobering.

Have you knowledge of a counter strategy to Cloward-Piven?

Or are we just going to have to bend over and take it?


37 posted on 03/30/2009 5:41:00 AM PDT by Taxman (So that the beautiful pressure does not diminish!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Taxman

They need money to dole out welfare. Tax money. Especially now.


38 posted on 03/30/2009 8:04:59 AM PDT by sheikdetailfeather (Rush Limbaugh Has An Army)
[ Post Reply | Private Reply | To 37 | View Replies]

To: Taxman
Have you knowledge of a counter strategy to Cloward-Piven?

Yeah, they're called tea parties.
39 posted on 03/30/2009 1:10:34 PM PDT by Man50D (Fair Tax, you earn it, you keep it!)
[ Post Reply | Private Reply | To 37 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-39 last

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson