Posted on 01/17/2010 4:44:37 AM PST by yoe
Last week, new research from Edward Pinto, a former chief credit officer for Fannie Mae and a housing expert, began to penetrate the media fog. Pinto has documented that as far back as 1993, Fannie and Freddie were buying risky subprime and Alt-A loans, but routinely misrepresenting them as prime.
Let me drive this point home. Without Fannie and Freddie’s certification of millions of bad loans as safe, other banks both domestic and foreign wouldn’t have bought them. More importantly, world financial markets wouldn’t have relied on those packaged loans as collateral and collapsed when they went bad. Fannie and Freddie, both government-sponsored enterprises that are guaranteed and funded by U.S. taxpayers, committed fraud so massive it dwarfs the Enron scandal.
We Austrian economists saw this coming three decades ago. I warned in the 1980s that government involvement in the housing market would inevitably produce catastrophe. Even Republicans attacked me as an enemy of home ownership. The theory, held by many in both parties, was that owning a home made Americans stakeholders in the system and stabilized our economy. Others pushed the envelope further, using Fannie and Freddie as a way to give homes to low-income individuals. All very noble, of course, but it was always doomed. I hate to say I told you so but… well, actually, I don’t.
Our current administration is, of course, sticking to the story line that this “great recession” is a failure of capitalism. This won’t change because so many high-ranking administration officials profited from the mortgage fraud business.
The beginning of the Fannie and Freddie fraud that Pinto documents took place under the watch of Jim Johnson. You may know Johnson as the “trusted adviser” to the president who helped pick his running mate, Joe Biden.
(Excerpt) Read more at whiskeyandgunpowder.com ...
Obama and Tinny Tim will call for more bail outs.......
Government-sponsored enterprises crash part two.
In the end,when the history books are written,it will be a failure not of capitalism but a failure of government. They encouraged,they aided,they abetted.
Both side stand around and point fingers at one another but the truth is the dems saw housing as another social program and the pubbies,for the most part,in their eagerness to be politically correct,went along with it.
Obama was elected as fresh blood,someone outside the system. In truth new blood is needed throughout the political spectrum. Of course his agenda is neither fresh nor different,only the same old wearing a mask.
The American people will once more go for fresh blood throwing out the old,as they should. That will be the dominant factor in Tuesday vote as well as Novembers mid terms. Scott Brown represents the new blood while madame Coakley with all her ties to the state establishment is the old. Dodd may have made his announcement so as to give the party a chance to win the seat but in fact,early polls regardless,his annointed successor will be seen as Dodds attempt to be re elected in spirit rather than fact and we see how well that theme is playing out in Mass.
Phony Mae - Fraudie Mac alert!
Bush’s fault
(ignore the fact that there was a Dem administration for 8 years prior to him taking office and that they not only repealed Depression era regulations on banking, they signed laws that gave us an unregulated derivatives business and pushed banks into lending even more $$ to less than qualified)
If this can, in fact, be documented, this is big - there should be indictments, trials and prison terms.
SO far Obama has tried to blame the dirty rotten banks, while lining the pockets of his banker/supporters, and attempting to ruin the banks who do not support this "under the table" welfare lending policy.IT HAS RUINED AMERICA.
IT HAS TO BE STOPPED!
Fannie Freddie Execs, Chris Dodd, Barney Franks, all need to be investigated for misrepresenting welfare loans as low risk secondary market mortgages.CRIMINAL FRAUD justified by welfare banking policies NOT APPROVED by the PEOPLE OF AMERICA!!!!
IT HAS TO BE STOPPED! Obama is still pressuring banks to lend on illegal government dictated welfare policies. ( You better lend or else!) Banks have NO place in advancing illegal welfare lending policies , nor does the executive arm of government without a law passed by congress, (which will NEVER HAPPEN.)
Freddie Fannie FRAUD WAS PERPETRATED ON THE WORLD, not just the USA.Those responsible should be tried and executed. It is treasonous for this to be done in time of war.
WHAT BANKS PERPETRATED THE 500 Billion Dollar ELECTRONIC BANK RUN ON THE FED SEPT, 18, 2008???????? WHY DON"T THE AMERICAN PEOPLE KNOW?????????
Barney Frank who again is already advocating cheap loans for people who can’t pay back any loan”
Reminder:
This was all started under Jimmah Carter with the CRA of 1977.
Clinton, Henry Cisneros, and Janet Reno put it on steroids. When did Dodd get elected? Dood was in on this during Clinton, also.
The main theme song was that “EVERYONE deserved to OWN THEIR OWN HOME”.
Loans were ordered to be given- Welfare $$, Food Stamps, WIC, and Earned Income Credit was all to be counted as INCOME by the bank for the loan.
There was no documentation of a job or income, or credit history, or criminal history.
Banks were told to hand out depositors money in the form of loans to persons who didn’t qualify to buy a T-Shirt on time payments.
My Grandad was a banker...in a day & time when he was the ONLY shareholder, and he had to have triple his own money as the amount of money on deposit.
Grandad would have closed the doors under the CRA.
Count me as another one who would like that explained.
Once again, I am behind the cruve, what technological innovations?
THIS ARTICLE PUTS THE BLAME FOR THE MORTGAGE DEBACLE AND THE RECESSION WHERE IT GENUINELY BELONGS.
SO far Obama has tried to blame the dirty rotten banks, while lining the pockets of his banker/supporters, and attempting to ruin the banks who do not support this "under the table" welfare lending policy. IT HAS RUINED AMERICA.
. . . It was our $.
In a Swiss bank, now, huh?
[Thanks Candor7.]
I guess we are back to start however here in the New Media headquarters. Without being in power we are the first check on the socialists.
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