Burning Down The House: What Caused Our Economic Crisis?

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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Category:

News & Politics

Tags:

• Obama
• McCain
• Freddie
• Mac
• Bailout
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[3kidmami]

WOW! Things than I had forgotten... Excellent summary, too long but NECESSARY.

Thank you.

By the way, I'm a registered democratic, but, in this elections, I'm following my values and already mailed my vote for McCain/Palin

[investortownhall]

Even if you take the politics out of the video this is an excellent analysis of how government policies and Agencies put fuel on the fire and now that want to blame "The Man" for the problem. Great Educational Video!

[12235117657598502586]

Q: Whos to blame?

A: EVERYONE!

Why?..

1) Home buyers signed up without properly checking that they could still make payments if times got hard for them.

2) Greedy banks created wacky loans & gave credit to folks who were not credit-worthy.

3) Wall St. investment houses that packaged these bogus loans and then leveraged them at 30:1

[12235117657598502586]

4) Federal regulators didn't police properly the greedy banks and Wall St. - it's their job to do so!

5) Govenment didnt ENFORCE the CONTROLS that their federal regulators were recommending,. When the problems were on the horizen, the governments turned a blind eyeuntil its too late!

Bush could have forced regulation sooner if he can force you into a war with less support, he could have enforced regulation of Fannie & Freddie sooner!

[PhotonDrive]

Is this a joke? Like McBlame telling gov. to FIRE COX! Then we find that Cox was subject to "volunteer" bank inspections! Who "volunteered"? NO ONE YOU FOOLS! McPain is a would-be military dictator CRIP! Who is in ULTIMATE DENIAL due to his VICTIM FIXATIONS! Wake UP! McDead will take you all - not to "Rapture" but to a highly suffering DEATH! (Even Palin doesn't LIKE him!)

[mick0057]

The notion that the government "forced" these bad loans on the banks is laughable. If any one is interested in facts as opposed to fiction, they should read a series of articles in open salon. com that detail these highly profitable loans from the prespective of a "loan officer" that was intimately involved.

It explains the willingness and EAGERNESS of these institutions to churn out these risky loans to improve their bottom line. Gaming the regulations they caused this meltdown.

[bankruptfeller]

Predicted crisis in 2007, and over 1.5 mil views ?

watch?v=zORv8wwiadQ

It stunned me!

[plzIneedhelp]

So sad and So true