HOW DEMOCRATS CREATED THE ECONOMIC CRISIS
Posted by FactReal on March 6, 2009
HOW DEMOCRATS CREATED THE MORTGAGE CRISIS
VIDEOS: AN EASY WAY TO UNDERSTAND HOW THE ECONOMIC CRISIS STARTED
|1. Timeline & warnings||2. Dems: There is no crisis||3. Dems forced the banks|
|4. How Dems did it||5. Dems blocked regulators||6. Dem: Benefit from a crisis|
SUMMARY: HOW FINANCIAL CRISIS WAS CREATED
1. GOVERNMENT INTO PRIVATE SECTOR: Two quasi-government mortgage firms (Fannie Mae & Freddie Mac) went unpunished for their scams.
2. DEMOCRATS WERE BRIBED: Democrats received millions from Fannie Mae & Freddie Mac:
|● massive bonuses to their Democrat executives:|
|Democrats: Rahm Emanuel, Jamie Gorelick, Franklin Raines, Jim Johnson|
|● massive donations to their Democrat politicians:|
|Democrats Chris Dodd, John Kerry, Barack Obama, Hillary Clinton|
3. DEMOCRATS PROTECTED THE SCAMMERS: Democrats opposed regulations and defended Fannie Mae & Freddie Mac even though they were cooking their books to ensure bonuses and donations.
4. GOVERNMENT FORCED BANKS: The Community Reinvestment Act (CRA) (signed into law by Democrat President Jimmy Carter in 1977 and extended by Democrat President Bill Clinton in 1995 ) and ACORN (leftist agitator group) forced Banks to give loans to unqualified borrowers.
5. FINANCIAL OASIS: Financial firms bought huge packages of loans from Fannie & Freddie because they were backed by government.
6. MORTGAGE MELTDOWN: When some borrowers stopped paying, foreclosures increased dramatically which led to mortgage meltdown which led to the financial crisis.
7. DEMOCRATS BEHIND BUSH FAILED BAILOUT OF 2008:
In 2008, a majority-Democrat Congress and Bush abandoned free-market principles and started the failed bailouts as a response to the financial crisis. Who were advising Bush?
● DEMOCRAT TIM GEITHNER
Geithner, Obama’s Treasury Secretary, was the President of the Federal Reserve Bank of New York (which oversees Wall Street) and the main architect, of the Bush Administration response to the financial crisis in the form of bailouts.
● IN-THE-CLOSET-DEMOCRAT HANK PAULSON
Although Paulson was appointed by Bush as Treasury Secretary, his Democrat DNA was evident in his actions as a transition-to-the-next-Democrat-Treasury-Secretary, former CEO of Goldman Sachs (one of Obama’s top contributors, more); he named activist democrats to work with him; although he contributed to 2004 Bush fundraiser, he contributed to Bill Clinton in 1992, leftist feminist Emily’s List and Democrat Senator Chuck Schumer. His wife donated to Hillary Clinton. He supported Al Gore’s Global Warming Hoax while working in Goldman Sachs and has been instrumental to the growth of Chinese economic power….allowing China to purchase strategic U.S. companies and assets….and backing up American bailouts.
Bush believed in bi-partisanship, so he appointed and trusted Democrats in his cabinet. Big mistake. Communists always find useful fools who trust them and help them. For this, Bush was criticized by Conservatives.
8. DEMOCRATS BENEFITING FROM THE CRISIS: Democrats are now using their created crisis to ram their leftist 40-Year Wish List.
● DEMOCRAT RAHM EMANUEL
Emanuel, Obama’s Chief of Staff, said: A CRISIS IS “AN OPPORTUNITY TO DO THINGS YOU THINK YOU COULD NOT DO BEFORE.” (video #6)Democrats created the financial crisis. Americans are affected and are now willing to relinquish power to government and allow excessive government expansion in the form of bailouts, stimulus, change.
9. OBAMA AGREES
Obama defends the idea of subprime lending (audio)
DEMOCRATS & THE STRATEGY OF MANUFACTURED CRISIS
● COMMUNITY REINVESTMENT ACT (CRA):
“…And now we have the mortgage crisis, which has sent a shock wave through Wall Street and panicked world financial markets like no other since the stock market crash of 1929. But this is a problem created in Washington long ago. It originated with the Community Reinvestment Act (CRA), signed into law in 1977 by President Jimmy Carter. The CRA was Carter’s answer to a grassroots activist movement started in Chicago, and forced banks to make loans to low income, high risk customers.
● ACORN aggressively sought to expand loans to low income groups using the CRA as a whip….In the 1980s, groups such as the activists at ACORN began pushing charges of “redlining”-claims that banks discriminated against minorities in mortgage lending. In 1989, sympathetic members of Congress got the Home Mortgage Disclosure Act amended to force banks to collect racial data on mortgage applicants; this allowed various studies to be ginned up that seemed to validate the original accusation. In fact, minority mortgage applications were rejected more frequently than other applications-but the overwhelming reason wasn’t racial discrimination, but simply that minorities tend to have weaker finances.
ACORN showed its colors again in 1991, by taking over the House Banking Committee room for two days to protest efforts to scale back the CRA. Obama represented ACORN in the Buycks-Roberson v. Citibank Fed. Sav. Bank, 1994 suit against redlining. Most significant of all, ACORN was the driving force behind a 1995 regulatory revision pushed through by the Clinton Administration that greatly expanded the CRA and laid the groundwork for the Fannie Mae, Freddie Mac borne financial crisis we now confront. Barack Obama was the attorney representing ACORN in this effort. With this new authority, ACORN used its subsidiary, ACORN Housing, to promote subprime loans more aggressively….
DEMOCRATS GAVE MORTGAGE TO LESS QUALIFIED MINORITY (ProudToBeCanadian)
● CLINTON & DEMOCRAT CONGRESS LIT THE TIME-BOMB
….This crisis was caused by political correctness being forced on the mortgage lending industry in the CLINTON ERA.
Before the Democrats’ affirmative action lending policies became an embarrassment, the Los Angeles Times reported that, starting in 1992, a majority-DEMOCRATIC CONGRESS “mandated that FANNIE and FREDDIE increase their purchases of mortgages for low-income and medium-income borrowers. Operating under that requirement, Fannie Mae, in particular, has been aggressive and creative in stimulating minority gains.” by selling their houses. A decade later, the housing bubble burst and, as predicted, food-stamp-backed mortgages collapsed. Democrats set an affirmative action time-bomb and now it’s gone off.
Instead of looking at “outdated criteria,” such as the mortgage applicant’s credit history and ability to make a down payment, banks were encouraged to consider nontraditional measures of credit-worthiness…
THREATENING LAWSUITS, Clinton’s Federal Reserve demanded that banks treat welfare payments and unemployment benefits as valid income sources to qualify for a mortgage. That isn’t a joke—it’s a fact.
● DEMOCRAT ANDREW CUOMO – THE ENFORCER (see video #3)
Under Clinton, the entire federal government put massive pressure on banks to grant more mortgages to the poor and minorities. Clinton’s secretary of Housing and Urban Development, ANDREW CUOMO, investigated Fannie Mae for racial discrimination and proposed that 50 percent of Fannie Mae’s and Freddie Mac’s portfolio be made up of loans to low-to moderate-income borrowers by the year 2001.
● THE MEDIA COOPERATED & PRAISED THE DEMOCRATS RESPONSIBLE FOR THE MELTDOWN
In 1999, liberals were bragging about extending affirmative action to the financial sector. Los Angeles Times…hailed the Clinton administration’s affirmative action lending policies as one of the “hidden success stories” of the Clinton administration, saying that “black and Latino homeownership has surged to the highest level ever recorded.”
● BUSH & ECONOMISTS WARNED
Meanwhile, economists were screaming from the rooftops that the Democrats were forcing mortgage lenders to issue loans that would fail the moment the housing market slowed and deadbeat borrowers couldn’t get out of their loans
In BUSH’s first year in office, the White House chief economist, N. Gregory Mankiw, warned that the government’s “implicit subsidy” of Fannie Mae and Freddie Mac, combined with loans to unqualified borrowers, was creating a huge risk for the entire financial system.
● DEMOCRATS ATTACKED FURTHER
REP. BARNEY FRANK denounced Mankiw, saying he had no “concern about housing.” How dare you oppose suicidal loans to people who can’t repay them! The New York Times reported that Fannie Mae and Freddie Mac were “under heavy assault by the Republicans,” but these entities still had “important political allies” in the Democrats.
● BAILOUTS = GOVERNMENT EXPANSION
Now, at a cost of hundreds of billions of dollars, middle-class taxpayers are going to be forced to bail out the Democrats’ two most important constituent groups: rich Wall Street bankers and welfare recipients. Political correctness had already ruined education, sports, science and entertainment. But it took a Democratic president with a Democratic congress for political correctness to wreck the financial industry.
DEMOCRATS ARE BENEFITING FROM THEIR CREATED CRISIS
● POLITICIANS ARE BRIBED
Democrats received millions in donations from Fannie and Freddie.
Fannie and Freddie have spent $140 million on lobbying Washington, mostly Democrats:
#1 Democrat C. Dodd (D-CT)
#2 Democrat J. Kerry (D-MA)
#3 Democrat B. Obama (D-IL)
#4 Democrat H. Clinton(D-NY)
● POLITICIANS BUY FUTURE DEMOCRAT VOTES
Obama and Democrats orgy-spending and expanding government at the same time.
○ STIMULUS BILL ($1 TRILLION)
a.k.a. PORKULUS, BRIBE $850 BILLION BILL
Obama is using our taxpayer money to payback his interest groups and all the spending will not stimulate the economy:
–$21 million for sod
–$75 million for smoking cessation
–$200 million for the National Mall
–$600 million for new cars for the federal government
–$650 million for digital TV coupons
–$6 billion for colleges/universities (many which have billion dollar endowments)
–$50 million in funding for the National Endowment of the Arts
–$44 million for repairs to U.S. Dept. of Agriculture headquarters
–billions of taxpayer dollars to left-wing groups like ACORN
–funding for contraceptives and the abortion industry
○ OMNIBUS SPENDING BILL ($410 BILLION)
a.k.a. BRIBERY BILL since it includes almost 9,000 Earmarks, as a form to bribe their special interest groups.
More wasting of our taxpayer money in items that won’t stimulate the economy
–$1.8 million pig/swine and manure odor treatment
–$200,000 for Tattoo Removal Violence Prevention Outreach Program (pg. 283)
–$6.6 million for termite research
–$2.2 million for grape genetics in New York
–$1.05 million for crickets
–$2 million for promotion of astronomy in Hawaii
–$250,000 lobsters in Maine (pg. 173)
–$5.8 million earmark for the Ted Kennedy Institute for the Senate (pg. 232)
–$473,000 for radical leftist National Council of La Raza (pg. 212)
–$3.8 million for Tiger Stadium
(Hat tip: Taxpayers for Common Sense, Try 2 Focus, MichelleMalkin, more)
Vote updates: 3/3/2009, 3/5/2009, 3/10/2009, final vote 3/10/09
WARNINGS: REPUBLICANS TRIED TO STOP THE CRISIS (see above video #2, #5)
● DEMOCRAT OPPOSED REGULATIONS
Democrats opposed bills giving power to regulators to control Freddie & Fannie (Bloomberg)
○ MAXINE WATERS (D-CA): “We do not have a crisis at Freddie Mac”-
○ GREGORY MEEKS (D-NY): “I am PISSED OFF at OFHEO [the regulators]“
○ BARNEY FRANK (D-MA): “I think it is clear that Fannie Mae and Freddie Mac are sufficiently secure so they are in no great danger… I don’t think we face a crisis; I don’t think that we have an impending disaster.”
–>Check the Congressional Records that show how Democrats opposed regulating Fannie Mae & Freddie Mac (two of the seeds of today’s financial meltdown):
–>Hearing of the House Committee on Financial Services (H.R. 2575) (2003)
–>Hearing on Accounting Failure at Fannie Mae (2004) (PDF)
● REPUBLICANS TRIED TO AVOID THE CRISIS
Contrary to what the main-stream media (MSM) is unwilling to report, the record shows Republicans tried to avoid the crisis
○ SENATOR JOHN MCCAIN
–>2005 Bill to Address the Regulation of Secondary Mortgage Market Enterprises (S.190)
John McCain said “If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.” PDF of Congressional Record (center column)
○ BUSH ADMINISTRATION(2002-2008)
–>2002-2007: Washington Post Tracks Efforts From Bush Administration to Avoid Financial Crisis
–>2008: Bush Called For Reform of Fannie Mae & Freddie Mac 17 Times in 2008 Alone…Dems Ignored Warnings
● FINANCIAL CRISIS 101
● Bloomberg: How Democrats created the financial crisis
● Great example: How we got to the credit market meltdown
● Behind the law & regulations
● MORE SOURCES: How Democrats created this Financial Crisis
● Obama’s 6% Degree of Separation to Financial Crisis (source: Babalulog)
● Obama sued Citibank under CRA to force it to make bad loans/
● Community Organizer’s Job: To pressure banks to make bad loans
● Los Angeles Times praised the very people most responsible for the meltdown