Posted on 12/13/2012 7:11:04 AM PST by SeekAndFind
Suppose you saw a building on fire. Would you seek counsel from the arsonist who set it ablaze for advice on how to put it out?
You say, "Williams, you'd have to be a lunatic to do that!" But that's precisely what we've done: turned to the people who created our fiscal crisis to fix it. I have never read a better account of our doing just that than in John Allison's new book, "The Financial Crisis and the Free Market Cure."
Allison is the former CEO of Branch Banking and Trust, the nation's 10th largest bank. He assembles evidence that shows that our financial crisis, followed by the Great Recession, was caused by Congress, the Federal Reserve, Freddie Mac and Fannie Mae, and was helped along by the Bill Clinton, George W. Bush and Barack Obama White Houses.
The Federal Reserve, under the chairmanship of Alan Greenspan, created the massive housing bubble by overexpanding the money supply. President Bush and members of Congress, through the Community Reinvestment Act, intimidated banks and other financial institutions into making home loans to people ineligible for loans under traditional lending criteria. They became subprime lenders.
Lending institutions made these loans, now often demeaned as predator loans, because they knew they'd be sold to government-sponsored enterprises (GSEs) Freddie and Fannie.
The GSEs had no problem taking this risky path, because they knew that Congress would force taxpayers to bail them out. Current Fed Chairman Ben Bernanke is following in the footsteps of his predecessor by massively expanding the money supply by purchasing Treasury debt. He is creating prime conditions for a calamity by the end of this decade.
(Excerpt) Read more at news.investors.com ...
Walt Williams is my fave along with Tom Sowell.
A very good explanation of how we got into this mess.
The truth is that the Bush administration repeatedly tried to reign in this madness and was thwarted primarily by Barny Frank and Chriss Dodd. Don't believe me? Look it up. There are even multiple Youtube videos of the hearings for those of you who don't like to read.
RE: The truth is that the Bush administration repeatedly tried to reign in this madness and was thwarted primarily by Barny Frank and Chriss Dodd.
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Some videos for people who want references (and who still blame Bush for the subprime mess, like most of the Obama voters):
http://www.youtube.com/watch?v=cMnSp4qEXNM
http://www.youtube.com/watch?v=LPSDnGMzIdo
But then, Bush was also willing to play along and he isn’t entirely blameless. See here:
http://www.youtube.com/watch?v=kNqQx7sjoS8
the gutless Republicans wouldn’t make an issue of this during the ‘08 election.. I tried to talk to Kansas Senator Pat Roberts office about this in ‘08, and heard crickets. This Tuesday I talked to his office about the Lord Monckton/Joe Arpaio Birth Certificate Affidavit. Pat believes 0bama is legal, and anyone who believes otherwise is a conspirator. The rinos are more dangerous than the democrats
But Bush was trying to have a war in Iraq which meant giving in to the Democrats on the things that they wanted. It was dumb.
They are my 1st choices. MUCH rather have either of these 100% American blacks than the half-baked pseudo-black African there now.
They did and they have done so on purpose.
One of the biggest problems with the post-mortems on the financial crisis is that too many people want to limit the blame to one sector, instead of realizing something this screwed up takes many, many culprits at all levels.
I’m currently reading Paul Sperry’s “The Great American Bank Robbery.” Sperry puts the lion’s share of the blame on Bill Clinton. While he does not absolve Bush II of some sins, he accuses Clinton of starting the whole mess under the guidelines of the CRA (Community Reinvestment Act). Bush didn’t help by trying to relax some regulations, but he also tried to reform the FMs and was resisted by the Dems. But no CRA, no election of Clinton, and the financial crisis would never have happened. Tom Sowell’s book “The Housing Boom And Bust” mostly arrives at the same conclusions as Sperry. Clinton and his AG Janet Reno the arch-criminals here.
Bush is not entirely blameless, but he did recognize the problem and tried to reform things. He was rebuffed a number of times in his efforts. Bill Clinton is the arch-villain in the whole sorry mess.
Nah, it was their fault, not ours. Simple thinking for simple people. You’re asking for intellectual honesty, good luck with that.
They could have shut the door on mortgages, but once the banks started playing with derivatives, it was only a matter of time before they took everybody down with them.
William Flax
I'm with you!!! I certainly prefer these two Phd's/Drs to the two famous/infamous irreverent "Reverends" as "leaders" of the "people of color" in this country!!!
I just crack up when Rush calls the "Black Cawcuss" the "Black Caucasions." I know... I'm sorry... that was just so rayshist to even crack a smile at such a remark...
There’s another book that also documents this discussion almost perfectly called “Reckless Endangerment!” It’s never ever gotten enough press or promotion or perusal by enough people!!!
Don’t forget to mention Maxine Waters with her new up-lifted face defending Raines at FANMA (Fannie Mae) to the hilt, as well as Dodd and Fwank.
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