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Who's behind the meltdown? Not McCain.
This video was not made by me. All credit
goes to TheMouthPiece. Replaced soundtrack
with piano because original pulled down for
WB song, it has Dodd saying that the root
cause was just bad mortgages. Enjoy and
spread the word.
The Affirmative Action Economic Meltdown
Hus on First Asian Week September 26, 2008
I thought Id never live to see my bank go
bust. Wamu? Boo Hoo! Back in 1999, Fannie Mae
first introduced rules for sub-prime loans to
increase minority homeownership and boost
profits. The government subsidized
corporation was founded as part of the New
Deal in 1938 before it was spun off in the
1960s. Once a monopoly, it still has about
half the market of reselling mortgages backed
with guarantees of payment. At the time,
economists warned that relaxed lending rules
might lead to a giant failure that would have
to be bailed out by the government if the
real estate market cooled like it did in the
1980s. [1]
As we all know, that just happened as Uncle
Sam took Fannie Mae back. Talk about obscene
executive pay, over $100 million was spent on
the paychecks of just three Democrats. James
Johnson, who was briefly on Obamas VP
committee, earned $21 million in just one
year of being CEO for 7 years. Obamas housing
policy advisor Franklin Raines earned $90
million in his five years as CEO, and Jamie
Gorelick earned $26 million as vice chairman,
even as Raines and other top executives were
caught using accounting tricks to trigger
massive bonuses and understate their pay.
It was left wing meddling inspired by
affirmative action that led to politically
correct credit decisions. As Ann Coulter put
it, They gave your mortgage to a less
qualified minority. The Clinton
administration investigated Fannie Mae for
discrimination. Ending redlining of minority
neighborhoods became the new crusade, even if
factors such as credit histories, job
stability, loan-to-value ratios and income
levels were completely different between
communities. It was urged that half of Fannie
Mae and Freddie Macs portfolio be made up of
low / moderate income borrowers by 2001.
Discriminatory criteria such as credit
history and down payment ability would become
less important, as welfare and unemployment
payments would be counted, and stated income
allowed borrowers to make up their own
income, whether it was backed up by a cash
business or nothing but thin air. People were
rewarded for signing up loans, not for making
sure they would be repaid when they were
resold. When G.W. Bush entered office, his
economist warned that loans to
under-qualified borrowers created a risk for
the entire financial system. In 2003,
Treasury Secretary John Snow proposed
oversight with strict controls over risk and
capital reserves.
When Senator John McCain joined the fight for
reform of corruption, the effort was stopped
by Democrats such as Barney Frank who stated
there was no financial crisis at Fannie Mae /
Freddie Mac, and such pressure would reduce
affordable housing. As McCain observed that
Obama collected the 2nd highest amount of
Fannie and Freddie contributions in his short
career, Senator Obama may be taking their
advice and he may be taking their money but I
want to tell you in a McCain/Palin
administration, there will be no seat for
these people at the policy making table.
Whatever the proper role government has in
cleaning up this mess, one thing must be
clear. A diverse nation cannot commit to
spend whatever it takes to put everybody in a
solar house and hybrid car, all-you-can-eat
medical coverage, college, preschool, and
high test scores for all. Yet this is
precisely what Obama promised to do at the
debate. Only John McCain committed to fight
to control spending which threatens the
entire American economy with imploding so
badly that no one will be able to will bail
out Uncle Sam.
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