Financial Crisis History 1977 - 2008 (According to public record) HOW IT REALLY HAPPENED AND WHO DID IT ! ! ! It is mandatory that each and every one of us learn who committed theacts that created this mess. Please read, retain, print, keep forreference and send it on to everyone you know. 1977: Pres. Jimmy Carter signs into Law the Community ReinvestmentAct (CRA) the foundation and cornerstone for the impending disaster.The law pressured financial institutions to extend home loans to thosewho would otherwise not qualify.The publicized premise: Home ownership would improve poor andcrime-ridden communities and neighborhoods in terms of crime,investment, jobs, etc.The Results: Statistics bear out that it did not help.How did the government get so deeply involved in the housing market?Answer: Bill Clinton wanted it that way.1992: Republican representative Jim Leach (IO) warned of the dangerthat Fannie and Freddie were changing from being agencies of thepublic at large to money machines for the principals and thestock-holding few.1993: Clinton extensively rewrote Fannie Mae and Freddie Macs rulesturning the quasi-private mortgage-funding firms intosemi-nationalized monopolies dispensing cash and loans to largeDemocratic voting blocks and handing favors, jobs and contributions topolitical allies. This potent mix led inevitably to corruption andnow the collapse of Freddie and Fannie.1994: Despite warnings, Clinton unveiled his National Home-OwnershipStrategy, which broadened the CRA in ways congress never intended.1995: Congress was about to change from a Democrat majority toRepublican. Clinton orders Robert Rubins Treasury Dept to rewrite therules. Robert Rubins Treasury reworked rules, forcing banks tosatisfy quotas for sub-prime and minority loans in order to get asatisfactory CRA rating. The rating was key to expansion or mergers for banks.Loans began to be made on the basis of race and little else.1997 - 1999: Clinton, bypassing Republicans in Congress, enlistedAndrew Cuomo, then Secretary of Housing and Urban Development,allowing Freddie and Fannie to get into the sub-prime market in a BIGway. Led by Rep. Barney Frank and Sen. Chris Dodd, Congress doubleddown on the risk by easing capital limits and allowing them to holdjust 2.5% of capital to back their investments vs. 10% for banks.Since they could borrow at lower rates than banks their enterprisesboomed.With incentives in place, banks poured billions in loans into poorcommunities, often no doc, no income, no assets, requiring nomoney down, no verification of income, no nothing. Worse still wasthe cronyism: Fannie and Freddie became home to out-of-workpoliticians, mostly Clinton Democrats. 384 politicians got bigcampaign donations from Fannie and Freddie. Over $200 million hadbeen spent on lobbying and political activities. During the 1990sFannie and Freddie enjoyed a subsidy of as much as $182 Billion, mostof it going to principals and shareholders, not poor borrowers asclaimed.Did it work? Minorities made up 49% of the 12.5 million newhomeowners but many of those loans have gone bad and the minorityhomeownership rates are shrinking fast.1999: New Treasury Secretary, Lawrence Summers, became alarmed atFannie and Freddies excesses. Congress held hearings the ensuingyear but nothing was done because Fannie and Freddie had donatedmillions to key congressmen and radical groups, ensuring no meaningfulchanges would take place. We manage our political risk with the sameintensity that we manage our credit and interest rate risks, FannieCEO Franklin Raines, a former Clinton official and current BarackObama advisor, bragged to investors in 1999.2000: Secretary Summers sent Undersecretary Gary Gensler toCongress seeking an end to the special status. Democrats raised aruckus as did Fannie and Freddie, headed by politically connectedCEOs who knew how to reward and punish. We think that thestatements evidence a contempt for the nations housing and mortgagemarkets Freddie spokesperson Sharon McHale said. It was the lastchance during the Clinton era for reform.2001: Republicans try repeatedly to bring fiscal sanity to Fannieand Freddie but Democrats blocked any attempt at reform; especiallyRep. Barney Frank and Sen.Chris Dodd who now run key bankingcommittees and were huge beneficiaries of campaign contributions fromthe mortgage giants.2003: Bush proposes what the NY Times called the most significantregulatory overhaul in the housing finance industry since the savingsand loan crisis a decade ago. Even after discovering a scheme byFannie and Freddie to overstate earnings by $10.6 billion to boosttheir bonuses, the Democrats killed reform.2005: Then Fed Chairman Alan Greenspan warns Congress: We areplacing the total financial system at substantial risk. Sen. McCain,with two others, sponsored a Fannie/Freddie reform bill and said, IfCongress does not act, American taxpayers will continue to be exposedto the enormous risk that Fannie Mae and Freddie Mac pose to thehousing market, the overall financial system and the economy as awhole. Sen. Harry Reid accused the GOP of trying to cripple theability of Fannie and Freddie to carry out their mission of expandinghomeownership The bill went nowhere.2007: By now Fannie and Freddie own or guarantee over HALF of the $12trillion US mortgage market. The mortgage giants, whose executivesuites were top-heavy with former Democratic officials, had beenworking with Wall St. to repackage the bad loans and sell them toinvestors. As the housing market fell in 2007, subprime mortgageportfolios suffered major losses. The crisis was on, though it was15 years in the making.2008: McCain has repeatedly called for reforming the behemoths, andBush urged reform 17 times. Still the media have repeated Democratstalking points about this being a Republican disaster. A fewRepublicans are complicit but Fannie and Freddie were created byDemocrats, regulated by Democrats, largely run by Democrats andprotected by Democrats. Thats why taxpayers are now being asked for$700 billion!!If you doubt any of this, just click the links below and listen toyour lawmakers own words. They are condemning!youtube/watch?v=68D9XrqyrWo&feature=related #youtube/watch?v=pIgqfM5C8lY#youtube/watch?v=H9juJr8CSY4&feature=related #Postscript: ACORN is one of the principal beneficiaries of Fannie/Freddies slush funds. They are currently under indictment orinvestigation in many states. Barack Obama served as their legalcounsel, defending their activities for several years. Last year theDemocratic Congress gave ACORN $500 million and attempted to sneak in$20 BILLION (Yes BILLION) into the first version of the bailout.Thats why Republicans voted no.
Posted on: Sun, 21 Dec 2014 15:51:06 +0000