http://www.kentuckypoliticalreview.com/?p=188
Filed Under Opinion/Editorial
History is a beautiful thing, but not if you’re a Congressional Democrat. History also bears out that our current financial crisis can be placed at the Democrat’s doorstep. For many that is no surprise, but for those who are not up to date on their facts, lest you be fooled by more Democrat blame shifting, here are the facts as reported in part in Bloomberg.com to back it up.
Fannie Mae and Freddie Mac has been the problem for several years and had the Republicans gotten their way back in 2005 this whole mess would never have happened. The turning point historically was back in 2005 when Fannie and Freddie were embroiled in accounting scandals. In late 2004 the Securities and Exchange Commission’s chief accountant told Barak Obama’s advisor, Franklin Raines who was Chief of Fannie Mae, that Fannie’s position on pertinent accounting issues was essentially off the charts of allowable interpretations. Legislation emerged in an attempt to create a “regulator” that would oversee Freddy and Fannie, imposing strict requirements on excessive risks.
Alan Greenspan in 2005, advised Congress of the need for the legislation and that it was of the utmost urgency. Referring to Fannie and Freddie, Greenspan said that if they “continue to grow, continue to have the low capital that they have, continue to engage in the dynamic hedging of their portfolios, which they need to do for interest rate risk aversion, they potentially create ever-growing potential systemic risk down the road,” …. “We are placing the total financial system of the future at a substantial risk.”
A serious Fannie and Freddie reform bill was reported in the Senate Banking Committee, wherein a regulator could crack down and eliminate their risky investments. The bill didn’t become law because Democrats opposed it on a party-line vote in the committee. Republicans could not get the Senate to vote on the matter.
Peter J. Wallison, as reported in the American Enterprise Institute back in 2005, stated, “It is a classic case of socializing the risk while privatizing the profit. The Democrats and the few Republicans who oppose portfolio limitations could not possibly do so if their constituents understood what they were doing.”
What the Senate Democrats did in 2005 is unforgivable in view of the current collapse when the Democrats had an opportunity to stop it. Barack Obama, Hillary Clinton and Chris Dodd received substantial amounts of financial support from Freddie and Fannie over the years. Those senators and other Democrats threw the nation to the wolves in furtherance of their own political careers. In return for killing the reform of Freddie and Fannie, Obama got more than $125,000 and Dodd $165,000 in campaign contributions from employees and PACs of Fannie Mae and Freddie Mac. Clinton got $75,000.
Senator McCain was one of three sponsors of Senate bill 190 that would have prevented the crisis we are now in. Because we elected so many corrupt socialist Democrats to Congress, we are now going to pay the biggest price/tax, ever in a bailout of institutions once lead by none other than the same people who are now advising Obama on economic matters.
Jack L. Richardson, IV
There's a piece at Bloomberg.com today by Kevin Hassett. Kevin Hassett is director of economic policy studies at the American Enterprise Institute. He's also a Bloomberg News columnist, and he is an advisor to McCain. Let's be up-front in this presidential campaign. "How the Democrats Created the Financial Crisis." He says it's not complicated. It really isn't complicated. "Enough cards on this table have been turned over that the story is now clear. The economic history books will describe this episode in simple and understandable terms: Fannie Mae and Freddie Mac exploded, and many bystanders were injured in the blast, some fatally. Fannie and Freddie did this by becoming a key enabler of the mortgage crisis. They fueled Wall Street's efforts to securitize subprime loans by becoming the primary customer of all AAA-rated subprime-mortgage pools."
It's interesting, too, you've seen the list of donations that have gone to all the Democrats of Fannie Mae. At the top of the list of course is Chris Dodd; number two is Obama. However, if you reorder that list and look at the people who have received the most in the least amount of time, Obama is at the top of the list by far and away. He's been in the Senate two and a half years, and he's the leader. Dodd got his money over the course of many years. So you have to ask, "Why in the hell was Obama given so much money by Freddie Mac so fast, so quickly?" The tentacles, my friends, the tentacles here -- and I say this with all candor -- reach deep into the Democrat Party. Let's talk change for a moment. The most important and far-reaching change needed has been brought home definitively by all this turmoil in the financial markets, precipitated by the subprime mortgage crisis.
This is the most far-reaching government takeover of a huge chunk of our economy ever, and it still isn't enough. It's still not enough for Barney Frank. Paulson wants a slush fund. He basically wants $700 billion to buy up bad loans as he and only he sees fit. Now you have Obama and Pelosi saying they want oversight. Ha. That means ACORN is going to get 500 mill here, some other little Democrat group, teachers union is going to get some money here, Maxine Waters is going to get about a thousand dollars for each of her constituents to pass around out in California. I mean none of this is official, but this is the way these things work. Now, keep in mind these are bad loans in the sense that they were risky. But the loans have not actually defaulted yet, so unlike the savings and loan failure, this would be far more reaching. The government's going to buy up loans before they default. That's called affordable housing, the way the Democrats define it. Barney Frank, among other things, says that this is unacceptable unless even more money is spent helping more people facing foreclosure. Barney Frank's definition of affordable housing is that if they're about to be foreclosed on for not being able to pay, they get to stay in the house.
Barack Obama sure hangs out with guys who love to defraud the U. S. government, such as campaign fundraiser Tony Rezko, who received big money from the federal government for housing projects in Chicago which were never completed, and Franklin Raines and Jim Johnson, advisers for Obama, who ran Fannie Mae into the ground with millions of loans to unqualified applicants, as well as, Chris Dodd and Barney Frank in Congress, who with Obama and Hillary Clinton obstructed republican attempts to reform Fannie Mae and Freddy Mac, more than a few attempts by President Bush and John McCain, as detailed at http://hotair.com, the articles posted Sept. 16 and 17 on the subject, and so, we are now faced with this financial meltdown from the mortgage market fraud perpetrated by the Democrats.
The Democrats have covered for Fannie Mae for years, while Johnson and Raines loaned billions of dollars to unqualified loan recipients, because of their color often, affirmative action infiltrated into financial markets, which obviously is a recipe for disaster, because, afterall, if you aren’t judging the ability of someone to pay back a loan, then effectively, you are giving the money away, knowing that the government will have to step in later to stand up for the debt, at the american taxpayers’ expense. It’s an affirmative action redistribution of wealth through fraudulent business practices, nurtured by the Democrats, opposed by the Republicans led by presidential candidate John McCain and his brilliant runningmate selection, Sarah Palin, who are polling very well now, as Americans are learning more about Obama’s destructive alliances.
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