baylian
Cathlete
Tripped upon this and found it interesting . .
The cause, in a nutshell:
1. Congress (under Jimmy Carter) passes a bill making it illegal for banks to “redline” (that is, they can’t ignore poor neighborhoods because that would be discrimination).
2. In 1992, Clinton can’t get elected by saying “Vote for me and I’ll give $250,000 in tax dollars to all poor people so they can buy a house” so he instead says “I feel your pain” to get into office.
3. Clinton changes the rules so that banks are faced with $10,000 fines (or 1% of assets, whichever is less) per-loan-application if they discriminate against the poor. In other words, the government FORCES banks to make bad loans.
4. To soften the load, Clinton reduces the Fannie Mae “reserve requirement” to an astoundingly low 2.5%! (They need to keep only $2.50 in cash for every $100 loaned!) Banks, faced with $10,000 fines, respond by making bad loans and immediately dumping them on Fannie Mae.
5. Clinton rule changes also require banks to count WELFARE CHECKS AND FOOD STAMPS as “income” for loan applications!
6. Senate Democrats demand that Fannie Mae buy more bad loans to “help the poor become homeowners.”
7. Radicals Islamists attack the U.S. on 9/11. To keep the economy from tanking because of the terrorist attack, the Federal Reserve keeps interest rates artifically low - to stimulate the economy. These low interest rates make it even easier for people to get mortgages.
8. Because Fannie Mae is buying up bad loans like candy, banks keep making them.
9. Conservatives see the handwriting on the wall and start complaining.
10. Fannie Mae CEOs James Johnson and Franklin Raines “cook the books” to give themselves, and other former Clinton buddies at Fannie Mae, bigger bonuses.
11. Raines (like, Johnson, later an Obama advisor) is forced to resign and pay back millions.
12. Because many poor people entered the housing market, there are MORE buyers chasing the same number of houses available. That makes prices go up - much faster than the inflation rate. (Duh! If more people want the same house, the seller can charge more!)
13. More conservatives warn Congress of trouble ahead. Barney Frank (D-MA) and other Dems say “Don’t worry, be happy.” Maxine Waters (D-CA) says Republicans are racists for wanting to rein in Fannie Mae to prevent poor blacks from buying houses. Waters praises the crook Franklin Raines.
14. John McCain submits a Fannie Mae reform bill in 2005. Senator Chris Dodd (D-CN) gets his fellow Dems to promptly vote against it; it never leaves his banking committee and thus never gets voted on by the full Senate. Dodd gets a boatload of cash from Fannie Mae for his campaigns, more than any other Senator (Obama is in second place).
15. Everything explodes in 2008.
16. Secretary Paulson (a Democrat) persuades a non-functioning President Bush to go along with a bailout.
17. At a White House meeting, Dems feed their talking points to Obama so he can look good. He screws up, and lambasts the Republicans - angering them enough so that they have no desire to help.
18. Frank, Dodd, Reid, Pelosi blame the Republicans. The media piles on, ignoring the real cause of the crisis, in an effort to elect their socialist pal Obama. They all know the Dems caused the problems, but why burden Americans with the truth?
19. Conservatives in Congress say NO to socialism.
20. Americans say NO to socialism.
21. Democrats say THIS IS CRITICAL, WE MUST ACT! and then take a day off for a Jewish holiday. (Better to risk destroying the economy than lose Jewish votes in November 4.)
22. McCain - foolishly - supports the bailout, reprising his role as the “Democrat-lite” candidate.
23. Sarah Palin will hopefully expose the Dems for their part in the mess during her debate with Biden.
24. Americans are screwed, no matter what happens.
The full details at:
http://colony14.net/id46.html
The cause, in a nutshell:
1. Congress (under Jimmy Carter) passes a bill making it illegal for banks to “redline” (that is, they can’t ignore poor neighborhoods because that would be discrimination).
2. In 1992, Clinton can’t get elected by saying “Vote for me and I’ll give $250,000 in tax dollars to all poor people so they can buy a house” so he instead says “I feel your pain” to get into office.
3. Clinton changes the rules so that banks are faced with $10,000 fines (or 1% of assets, whichever is less) per-loan-application if they discriminate against the poor. In other words, the government FORCES banks to make bad loans.
4. To soften the load, Clinton reduces the Fannie Mae “reserve requirement” to an astoundingly low 2.5%! (They need to keep only $2.50 in cash for every $100 loaned!) Banks, faced with $10,000 fines, respond by making bad loans and immediately dumping them on Fannie Mae.
5. Clinton rule changes also require banks to count WELFARE CHECKS AND FOOD STAMPS as “income” for loan applications!
6. Senate Democrats demand that Fannie Mae buy more bad loans to “help the poor become homeowners.”
7. Radicals Islamists attack the U.S. on 9/11. To keep the economy from tanking because of the terrorist attack, the Federal Reserve keeps interest rates artifically low - to stimulate the economy. These low interest rates make it even easier for people to get mortgages.
8. Because Fannie Mae is buying up bad loans like candy, banks keep making them.
9. Conservatives see the handwriting on the wall and start complaining.
10. Fannie Mae CEOs James Johnson and Franklin Raines “cook the books” to give themselves, and other former Clinton buddies at Fannie Mae, bigger bonuses.
11. Raines (like, Johnson, later an Obama advisor) is forced to resign and pay back millions.
12. Because many poor people entered the housing market, there are MORE buyers chasing the same number of houses available. That makes prices go up - much faster than the inflation rate. (Duh! If more people want the same house, the seller can charge more!)
13. More conservatives warn Congress of trouble ahead. Barney Frank (D-MA) and other Dems say “Don’t worry, be happy.” Maxine Waters (D-CA) says Republicans are racists for wanting to rein in Fannie Mae to prevent poor blacks from buying houses. Waters praises the crook Franklin Raines.
14. John McCain submits a Fannie Mae reform bill in 2005. Senator Chris Dodd (D-CN) gets his fellow Dems to promptly vote against it; it never leaves his banking committee and thus never gets voted on by the full Senate. Dodd gets a boatload of cash from Fannie Mae for his campaigns, more than any other Senator (Obama is in second place).
15. Everything explodes in 2008.
16. Secretary Paulson (a Democrat) persuades a non-functioning President Bush to go along with a bailout.
17. At a White House meeting, Dems feed their talking points to Obama so he can look good. He screws up, and lambasts the Republicans - angering them enough so that they have no desire to help.
18. Frank, Dodd, Reid, Pelosi blame the Republicans. The media piles on, ignoring the real cause of the crisis, in an effort to elect their socialist pal Obama. They all know the Dems caused the problems, but why burden Americans with the truth?
19. Conservatives in Congress say NO to socialism.
20. Americans say NO to socialism.
21. Democrats say THIS IS CRITICAL, WE MUST ACT! and then take a day off for a Jewish holiday. (Better to risk destroying the economy than lose Jewish votes in November 4.)
22. McCain - foolishly - supports the bailout, reprising his role as the “Democrat-lite” candidate.
23. Sarah Palin will hopefully expose the Dems for their part in the mess during her debate with Biden.
24. Americans are screwed, no matter what happens.
The full details at:
http://colony14.net/id46.html
