On that note...today a local radio station was playing clips about the 700b bail out. Which I totally disagree with. That's another topic. The Obama piece was about how we need to solve this problem, and how it's the republican's fault. This administration. The McCain clip highlighted him saying "now is not the time to fix this problem." That could have been about ANYTHING!
Perhaps those who think Obama isn't partially responsible should see this? Since I can't post a power point file, I will share with you some of the facts from that document.
Fannie May is a GSE (Government Sponsored Entity) regulated by Congress.
Fannie May buys mortgages from other companies
Fannie May is backed by the tax payers for all losses, and they get to KEEP their profits.
President Clinton (HELLO CLINTON) looses home loan requirements
Banks begin making THOUSANDS of bad loans. $0 down, no documentation up to 120% from 1998 - 2008
Executives at Fannie may get HUGE bonuss if loan targets are met.
Franklin Raines and Jamie Garelick from the Clinton Administration are appointed to run Fannie May. Did you catch CLINTON???
President Bush, that's right President BUSH, proposes an oversignt committee to CLEAN UP Fannie May. BUT the DEMOCRATES derail the effort. Convenient, isn't it?
- REP Melvyn Watt (D-NC) Committee on Financial Institutions and Consumer Credit said, "I don't see much other than weaking the bargaining power poorer families to get affordable housing"
1994 - 2004
- Raines earns $100 MILLION in bonuses
- Garelick earns $75 MILLION in bonuses
- In 2004 ENRON collapses, congress investigates, Executives Skilling and Lay go to JAIL! for fraudulent bookkeeping
- Congress responds with the Sorbanes-Oxley (SOX) Act, more heavy regulations of cooporations. (FYI, I have to deal with the SOX documentation Quarterly!)
- An OMB investigation finds massive fraudulent bookkeeping at Fannie May.
- False Numbers triggered executive bonuses EVERY YEAR!
- Congress holds NO hearing, NO ONE goes to jail or gets punished.
In 1999 - 2005
- Fannie Mae gives MILLIONS to Democrate causes. Examples: Jesse Jackson & ACORN.
- Fannie Mae pays out MILLIONS to 354 Congressman and Senators from BOTH Parties.
Who got the most MONEY???
- The number 1 payout goes to Sen. Chris Dodd (are you surprised) (D-CT) Chairman of the Banking, Housing and Urban Affairs Committee.
- The number 2 payout goes to Sen. BARRACK OBAMA (D-IL) Federal Financial Mgmt Committee.
- The number 3 payout goes to Sen. Chuch Schumer (D-NY) Chairman of the Financial Committee.
- The number 4 payout goes to Rep. Barney Frank (D-MA) Chairman of the House Financial Services Committee.
- Franklin Raine and top exec are FORCED to resign from Fannie Mae.
- They DO NOT go to jail.
- There is NO MEDIA "Perp Walk".
- They get to keep ALL their Bonuses. (if you forgot that's MILLIONS)
- They finially pay $31.4 million in civil fines.
The Federal Housing Ent. Regulatory Reform Act is sponsored by...... (wait for it).......
- Sen. John McCain (R-AZ) "If congress does not act, American Taxpayers will continue to be exposed to the enormous risk that Fannie and Freddie pose to the housing market, the overall financial system and the econony as a whole"
Still in 2005........
- None of the top 4 recipents support the legislation
- The reform act is blocked by democrates! It never even makes it out of the committee!
- None of the politicians return ANY of the mony tainted by Fraud!
- Fannie & Freddie go bankrupt and the government takes them over completely
- Lehman brothers goes bankrupt from investing in bad mortgages
- AIG gets 85 million in loan guarantees afterinsuring bad loans and projects
- Tax payers ultimately pay BILLIONS!
Franklin Raines is now an advisor to the Obama Campaign, which want the government to take over more of the economy.
Question? Did Government involvement in the mortgage market work out? How will more government involvement make it better? Do you want to be Sweden?
McCain favors revising regulations & loan standards (YES!!!!) and selling off Fannie and Freddie.
Congressional Record 5/26/06
Hannity & Colmes "Fox News" 9/16 - 9/17/08
Herald Tribune 4/18/08
NY Times 9/13/03