Does anyone notice that whenever something bad happens, the guilty party says, ” There is enough blame to go around”. What they mean is that everyone is equally to blame. Not true! It was the Democrat party that started this financial disaster with the help of the MSM ignoring the internal fight that has been going on within the two parties since the Democrats took control in 2006.
Most financial people I spoke with are convinced that it was bad loans that were made by the quasi governmental morgage giants, Fannie Freddie, who are the largest financers of home mortgagers in the U.S. Last year, federal regulators charged Freddie Mac with negligent conduct for its role in a four-year securities fraud accounting scandal.
I will include exerpts from World Net Daily below but the complete article can be found at: http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=76191
“In 2006, the Office of Federal Housing Enterprise Oversight accused former Fannie Mae Chief Executive Franklin D. Raines and two other executives of manipulating earnings from 1998 to 2004 so they would receive bonuses totaling $115 million. Civil charges were filed against Raines, who is also a former budget director for President Bill Clinton.” “Democrats received the largest political contributions from the companies. As WND reported, Obama in his three complete years in the Senate is the second largest recipient of Freddie Mac and Fannie Mae campaign contributions, behind only Sen. Christopher Dodd, D-Conn., the powerful chairman of the Senate banking committee.”“According to OpenSecrets.com
“In 2005, McCain warned of the coming mortgage crisis and pressed for regulatory reform of Fannie Mae and Freddie Mac.”
“A Washington Post profile published July 17 said Raines was then playing a role advising the Obama presidential campaign on mortgage and housing policy. As WND reported, he also received $90 million in his five years as Fannie Mae CEO, from 1999 to 2004. He was forced to retire when reports surfaced that the company had hidden profit fluctuations. Fannie Mae was the biggest buyer of Countrywide mortgages.”
“Another former CEO of Fannie Mae and former adviser to Sen. Barack Obama’s presidential campaign, James Johnson, is reported to have accepted more than $7 million in FOAs from Countrywide. Johnson was appointed to head Obama’s vice-presidential selection committee, but he was forced to step down when the Countrywide controversy surfaced in June. As WND reported, Johnson earned $21 million in just his last year at Fannie Mae.”
“Sen. Christopher Dodd, D-Conn., chairman of the Senate Banking Committee, also received an FOA from Countrywide Financial. At the same time, he recently proposed the federal government bail out failing mortgage lenders, including Countrywide. According to Condé Nast Portfolio, Dodd also received $21,000 in campaign donations from the company since 1997. From 1989 to 2008, Dodd also received $165,400 in Fannie Mae and Freddie Mac campaign contributions, including contributions from PACs and individuals, followed by Obama, who received $126,349 in such contributions since being elected to the Senate in 2004.”
“IndyMac Bancorp Inc. was sent into freefall after Sen. Chuck Schumer, D-N.Y, escalated the crisis by publicly leaking his June 26 letter to the Office of Thrift Supervision and the Federal Deposit Insurance Corp. He warned that the bank was on the brink of collapse.”
“Schumer said he was “concerned that IndyMac’s financial deterioration poses significant risks to both taxpayers and borrowers and that the regulatory community may not be prepared to take measures that would help prevent the collapse of IndyMac,” according to the Wall Street Journal.”
“Schumer’s letter sent IndyMac customers into widespread panic, and they quickly withdrew their money from the bank – to the tune of $1.3 billion.”
“OTS Director John Reich told the Journal Schumer’s letter gave the bank “a heart attack.” However, Schumer has not expressed remorse for the letter. He says he was simply doing his job when he cautioned regulators about an impending collapse.”
“It’s what legislators are supposed to do,” Schumer told the Journal. He said faulting him is like blaming “the fire on the guy who called 9-1-1.”
“While the bank had experienced some mortgage portfolio losses prior to the incident, OTS has directly attributed IndyMac’s closing to Schumer’s letter.”
What is going on here is an attemp by the Democrats to issue more entitlements to low income Americans for the purpose of getting votes. It’s Socialism and has it’s ties to Marxism by way of putting the American people in different classes to separate them and to put these classes against one another. This works well in a dumbed down society.
Republicans want oversight and the Democrats want regulation. Regulation is a politically correct term for government control and interference in private enterprise. Is this what we want? Think carefully!