Zipline Conservative

November 6, 2011

Once Again: Community Reivestment Act + Greedy Banks & Cronies

Filed under: Politics — SwittersB @ 7:36 AM
Tags: , ,

“…the Community Reinvestment Act, a 1977 federal law which required banks to extend credit to undercapitalized, high-risk borrowers in low-income, mostly-minority areas – and which ultimately helped cause the U.S. financial crisis of 2008.”

“…[Clinton administration] Housing and Urban Development (HUD) Secretary Andrew Cuomo today announced a policy to require the nation’s two largest housing finance companies [Fannie Mae and Freddie Mac] to buy $2.4 trillion in mortgages over the next 10 years to provide affordable housing for about 28.1 million low- and moderate-income families. (1999)”

Fact No. 1: It was liberal Democrats, led by Sen. Christopher Dodd and Rep. Barney Frank, who for years – including this year – denied that Fannie Maeand Freddie Mac were taking big risks that could lead to a financial crisis. It was Mr. Dodd, Mr. Frank and other liberal Democrats who for years refused requests from the Bush administration to set up an agency to regulate Fannie Mae and Freddie Mac.”

“It was liberal Democrats, again led by Mr. Dodd and Mr. Frank, who for years pushed for Fannie Mae and Freddie Mac to go even further in promoting subprime mortgage loans, which are at the heart of today’s financial crisis.”

“You look at Obama’s economic advisers, the guys he has counted on from day one and who have raised him a ton — and I mean a ton — of money:Franklin Raines and Jim Johnson, both of them are waist to neck deep in the mortgage debacle.”

“Both Raines and Johnson have served as CEO of Fannie Mae, with Raines taking over from Johnson. Both are key political and economic advisers to Obama….How can Obama go out with a straight face and saw it was Republicans who made this mess, when it is his key advisers who ran the agencies that made the big mess what it is?” says a Democrat House member who supported Sen. Hillary Rodham Clinton.”

“President-elect Barack Obama’s newly appointed chief of staff, Rahm Emanuel, served on the board of directors of the federal mortgage firm Freddie Mac at a time when scandal was brewing at the troubled agency and the board failed to spot “red flags,” according to government reports reviewed by ABCNews.com.”

“During the campaign, Barack Obama had to fight off assertions that Freddie Mac and Fannie Mae had him in their pocket while the two GSEs committed fraud and declined to their collapse.  Obama didn’t help that perception when he chose Jim Johnson, Fannie Mae’s former CEO and chair, as the leader of his VP search committee, a position Johnson resigned shortly afterwards.  Now ABC reports that Obama’s new chief of staff, Rahm Emanuel, sat on the board of Freddie Mac…”

“The portfolio of Fannie Mae and Freddie Mac is worth roughly $1.5 trillion. The collapse of the market for mortgage-backed securities has made them even more crucial to the current functioning of the housing market. The pair and the Federal Housing Administration together now guarantee about 90 percent of all new mortgages, far above their historic level.”

Sources for the above clips is Zipline Conservative, where each remark is fully sourced. Use Search Window to find prior posts. Thank you.

10 Comments »

  1. I love Republican propoganda! How does your article explain this?

    http://money.cnn.com/2004/06/17/real_estate/lowcost_housing/index.htm

    Comment by Jim — November 6, 2011 @ 8:41 AM | Reply

    • Obviously, the builders associations lost out. The Cronie Bankers of Bush and Obama won out as did Fannie and Freddie. I am not a Republican. As corrupt as the Dem’s. But, seriously, address the connections I listed. You don’t address them. They didn’t/don’t exist? Just a ‘yeah but’ is all you have?

      Comment by SwittersB — November 6, 2011 @ 8:52 AM | Reply

  2. Oh no. That’s not all I have. Your attempt at placing the blame solely on the Democrats was a failure. Shouldn’t you delete my posts? It’s more convenient that way. I missed the part of your posting where you allowed the Republicans, who had a Republican President, a Republican majority in the house and a Republican majority Senate to resolve the issue in 6 years. I’m sorry Obama hasn’t cleaned up the mess the Republicans left… you did place responsibility on Obama didn’t you? Address the issues?… oh yeah… let’s address a one sided article on THOSE issues. That’s why it’s called propoganda.
    Do you recall who appointed Bernanke?… Yep,, GW. Bernanke said the subprime mortgages were not the cause of the financial collapse. Do you understand the implications of the Glass-Steagal Act and it’s contributions to the global economic collapse. Do you know who sponsored the Glass-Steagal act? Do you know what derivatives are? Do you know what collateralized debt obligations or credit default swaps are? The Greek economy is not collapsing because a bunch of poor people took out loans they couldn’t repay. It’s collapsing because of shoddy banking practices and risk. But…. I know… you think a bunch of poor people in trailers collapsed the economy. LOL!

    Let me enlighten you Festus…. Google “Derivatives Collapse”. unless of course education rots your mind.

    Comment by Jim — November 6, 2011 @ 10:26 AM | Reply

    • Keeping drinking the Kool-Aid…wipe your chin…you’re drooling useful idiot!

      Comment by SwittersB — November 6, 2011 @ 10:33 AM | Reply

  3. Let me gently prick your conciousness. Do you know why GW bailled out AIG? AIG didn’t own any poor people’s houses.

    Comment by Jim — November 6, 2011 @ 10:47 AM | Reply

    • Jim you cannot keep throwing GW at me. I never cared for the man. This goes way back before GW. I have a conscious and acknowledge greedy bastards took advantage of the dereg and the ignorance of Democrat legislation re giving loans to those that could not sustain them. Tipping point, total cause, I don’t know nor care. If you are applauding the likes of Barney Frank and Chis Dodd and all the other ilk that raped the system then we will not meet in the middle to agree on the crooks at hand. Goldman Sachs? On and on it goes. It is more than poor folks in trailers. It is the system being worked by the greedy and their cohorts in govt.

      http://www.sjsu.edu/faculty/watkins/subprime.htm

      Comment by SwittersB — November 6, 2011 @ 10:55 AM | Reply

  4. Your article, and the link you provided, give shelter through omission for the Republicans. Fannie Mae was created under Republican Richard Nixon. Your Article mentions nothing about Glass-Steagal repeat, sponsored by 3 Republicans. Your article mentions nothing about GW pressing Fannie Mae for more subprime mortgages. You claim to be a Conservative, which is convenient after having voted for a President who spent like a mad fiend, and signed off on the Prescription Drug Plan, passed by Congress in the middle of the night. I don’t recall seeing Conservative listed as a voting choice. I think it goes mostly Republican or Democrat. Your article is part of the same old distortion of reality portrayed by Republicans/Conservatives.

    If GW tried to stop Fannie Mae, then the link I provided earlier for him pressing Fannie Mae shouldn’t exist. And as far as giving Democrat Loans, What the hell did the Republican House, Republican Senate and Republican President do. as a majority? Were they just the Minority Party puppets? Yeah…. we need another powerless Republican majority.
    http://consumerist.com/2008/04/blame-the-subprime-meltdown-on-the-repeal-of-glass-steagall.html

    Comment by Jim — November 6, 2011 @ 12:09 PM | Reply

    • You are funny Jim. No balance to your assault. No acknowledgement to the assault upon your liberty, the dignity of the poor (you do care don’t you Jim?) by the Left creating a dependency class. I have no love for Neo Con’s like Bush or Progressives like McCain. Big Govt whether for a Nanny State and/or to wage endless wars is not to my taste. See I can truly find much fault with Republicans, but I long ago abandoned my father’s populist Democrats as they moved ever left ward. If you are happy with the Pelosi/Reid ilk have a good time. I am not happy with either party nor your type caught up in ‘yeah but’s’ while the ship is sinking. Enjoy the ride Jim…

      Comment by SwittersB — November 6, 2011 @ 12:16 PM | Reply

  5. Yeah…. welfare. So far, foreign banks and American banks and investments of sorts have received over 28 trillion dollars in money from the Federal Reserve. Let’s not forget the massive billions given to bankers in bonuses. But hey…. we better go after those “poor” people who caused this crisis. Yeah… the entitlement class… lets turn a blind eye to the hundreds of billions given to bankers in bonuses and focus on those without a job, or who’ve lost their homes because of a financial collapse engineered by politicians and bankers. In 2003, I knew the Republicans were going to crash the.economy and it was going to collapse. I tried to tell people, but of course they were like sheep. I cashed out my retirement fund and refinanced my house and took my savings out of the bank and bought gold and silver. 8 years later, I read articles about how the Democrats crashed the economy with Fannie Mae and the Community Reinvestment Act, and Liberals. Your article is part of the sleeping masses program. I don’t believe Obama, Republicans, Democrats or the Easter bunny are going to save me. The game that’s being played is much, much bigger than that. Republicans/Conservatives spend time watching the left hand do magic while the right hand is doing something else. The Democrats are caught in the same trap. It’s okay with me. The house is burning down but there’s a great show on t.v. It’s never too late to unplug from the matrix.

    http://theeconomiccollapseblog.com/archives/the-coming-derivatives-crisis-that-could-destroy-the-entire-global-financial-system

    Comment by Jim — November 6, 2011 @ 1:05 PM | Reply

    • “The game that’s being played is much, much bigger than that. Republicans/Conservatives spend time watching the left hand do magic while the right hand is doing something else. The Democrats are caught in the same trap. It’s okay with me. The house is burning down but there’s a great show on t.v. It’s never too late to unplug from the matrix.”

      Perhaps….maybe then each can count on the other. Just not on Nanny, BigBro or other similar Puppet Masters. Take Care.

      Comment by SwittersB — November 6, 2011 @ 5:00 PM | Reply


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