Big Bad Bureaucratic Bust: Government Intervention in Housing Caused Financial Crisis and Economic Recession–Progressive Government Failure!

Posted on June 2, 2009. Filed under: Blogroll, Books, Communications, Economics, Employment, Energy, Homes, Immigration, Investments, Law, liberty, Life, Links, People, Philosophy, Politics, Quotations, Rants, Raves, Regulations, Talk Radio, Technology, Video | Tags: , , , , , , , , , , , , , , , , |

 

loan_application

“The worst evils which mankind has ever had to endure were inflicted by bad governments.” 

~Ludwig von Mises 

 

“Who can seriously doubt that the power which a millionaire, who may be my employer, has over me is very much less than that which the smallest bureaucrat possesses who wields the coercive power of the state and on whose discretion it depends how I am allowed to live and work?” 

~Friedrich August von Hayek

 

“Hell hath no fury like a bureaucrat scorned.”

 

~Milton Friedman

  

Two people that I read and listen to are economist Thomas Sowell and investment portfolio manager Peter Schiff.

Both share my own classical liberalism philosophy and interest in economics as articulated in the writings of Ludwig von Mises, Friedrich A. Hayek, and Milton Friedman.

For background information I recommend viewing the videos from the late Bill Seidman, Marshall Black interviewed by Bill Moyers and several professors at the Wharton School of the University of Pennsylvania. 

Economist Dr. Thomas Sowell on the financial crisis

 

Glenn Beck & Thomas Sowell, Housing Boom and Bust 06 01 09

 

The Housing Boom & Bust

 

Thomas Sowell – Obama’s Vision

 

Thomas Sowell 1 of 8 People Late House Payment or in Foreclosure

 

Peter Schiff’s Predictions (2002-2009)

“…This is a set of clips of Peter Schiff from 2002 – 2009. Peter Schiff has been the dominant voice for the American people during this financial crisis. Going up against corporate shills in the media, his predictions have come true about the economy. You should listen to this man. …”

 

Why the Meltdown Should Have Surprised No One

 

Nov 2006 Peter Schiff Mortgage Bankers Speech Part 1 of 8

 

Nov 2006 Peter Schiff Mortgage Bankers Speech Part 2 of 8

 

Nov 2006 Peter Schiff Mortgage Bankers Speech Part 3 of 8

 

Nov 2006 Peter Schiff Mortgage Bankers Speech Part 4 of 8

 

Nov 2006 Peter Schiff Mortgage Bankers Speech Part 5 of 8

 

Nov 2006 Peter Schiff Mortgage Bankers Speech Part 6 of 8

 

Nov 2006 Peter Schiff Mortgage Bankers Speech Part 7 of 8

 

Nov 2006 Peter Schiff Mortgage Bankers Speech Part 8 of 8

 

Peter Schiff On The USA Financial Market Crisis–June 2, 2009

 

“Liberalism and capitalism address themselves to the cool, well-balanced mind. They proceed by strict logic, eliminating any appeal to the emotions. Socialism, on the contrary, works on the emotions, tries to violate logical considerations by rousing a sense of personal interest and to stifle the voice of reason by awakening primitive instincts.”

~Ludwig von Mises

“To act on the belief that we possess the knowledge and the power which enable us to shape the processes of society entirely to our liking, knowledge which in fact we do not possess, is likely to make us do much harm.”

~Friedrich August von Hayek 

“Many people want the government to protect the consumer. A much more urgent problem is to protect the consumer from the government.”

~Milton Friedman

red_houses_green_house

 

Background Articles and Videos

Thomas Sowell

“…Thomas Sowell (born June 30, 1930), is an American economist, social commentator, and author of dozens of books. He often writes from an economically laissez-faire perspective. He is currently a senior fellow of the Hoover Institution at Stanford University. In 1990, he won the Francis Boyer Award, presented by the American Enterprise Institute. In 2002 he was awarded the National Humanities Medal for prolific scholarship melding history, economics, and political science. …”

http://en.wikipedia.org/wiki/Thomas_Sowell

Thomas Sowell and a Conflict of Visions


 

Thomas Sowell – Bureaucracy

 

Thomas Sowell – The Vision of the Anointed

 

Peter Schiff

“…Peter David Schiff (born March 23, 1963)[1] is an American economic commentator, author and licensed stock broker who currently serves as president of Euro Pacific Capital Inc., a fully accredited brokerage firm based in Darien, Connecticut.[2]

Schiff is best known for his bearish views on the United States economy and for having predicted the economic crisis of 2008.[3] He has risen to media prominence following the publication of his book Crash Proof: How to Profit From the Coming Economic Collapse, published in 2007.

Aside from his writings, Schiff maintains a significant media presence, often appearing on American financial news programs on networks such as CNBC, CNN, CNN International, Fox News, Bloomberg TV and Fox Business. Schiff also hosts a live Internet/shortwave radio show called “Wall Street Unspun, which is available in podcast format.”[4]

Schiff is a supporter of the Austrian School of Economics and the Ludwig von Mises Institute[5], and was an economic adviser for Ron Paul’s campaign in the 2008 Republican Party primaries, through which Schiff also expressed support for sound money, limited government, and free market capitalism. …”

http://en.wikipedia.org/wiki/Peter_Schiff 

Bill Seidman

“…Lewis William Seidman (April, 29, 1921 – May 13, 2009)[1] was an American economist, financial commentator, and former head of the FDIC.

Born in Grand Rapids, Michigan. His wife was Sally Seidman; they had six children.

Seidman received his undergraduate education at Dartmouth College, his law degree from Harvard University, and his MBA from the University of Michigan’s Ross School of Business. Seidman began working in United States government as an economic adviser to President Gerald Ford from 1974 to 1976, and later in a related capacity to President Ronald Reagan from 1982-1984. In 1985, he became the chairman of the Federal Deposit Insurance Corporation and served until 1991, working extensively during the American savings and loan crisis to restore solvency to the failing savings and loan sector of American banking. He was the first chairman of the related agency, the Resolution Trust Corporation, which was created specifically to address issues arising from the savings and loan crisis, from 1989 until his retirement from active government in 1991.

He worked as a chief financial commentator for the CNBC network, as well as an occasional speaker at various financial conferences worldwide. Seidman also joined SecondMarket, Inc. in December 2008 and served as a senior advisor to the firm.[2] In 2005, he debated former Vice-President Al Gore on economic matters at The Asian Banker Summit in Singapore March 15-17, 2005.[3][4] He spoke at four events in Asia from 2005-2007.[5]

The FDIC office complex in Arlington, VA is named for Seidman.

Seidman was one of the principal founders of Grand Valley State University, helping galvanize local support for the establishment of a public four-year university in West Michigan. [6]

In 1978, Seidman also founded The Washington Campus [7], an executive education organization which began as a consortium of U.S. business schools dedicated to educating business leaders on the public policy process.

Seidman died of natural causes in Albuquerque, New Mexico at the age of 88. …”

http://en.wikipedia.org/wiki/L._William_Seidman

 

 Economic Crisis: Causes & Cures (2 of 7)

 

Economic Crisis: Causes & Cures (3 of 7)

 

Economic Crisis: Causes & Cures (4 of 7)

 

Economic Crisis: Causes & Cures (5 of 7)

 

Economic Crisis: Causes & Cures (6 of 7)

 

Economic Crisis: Causes & Cures (7 of 7)

Moyers 1 of 3: Sharing the Blame for the Economic Crisis?

 

Moyers 2 of 3: Sharing the Blame for the Economic Crisis?

 

Moyers 3 of 3: Sharing the Blame for the Economic Crisis?

 

 

The Liars’ Poker: Economists Explain Why Hints of the Economic Crisis Eluded Them

Martin Feldstein’s Plan (part 1)

Martin Feldstein’s Plan (part 2)

Deconstructing the Subprime Crisis

 

Jeremy Siegel on the Resilience of American Finance

 

Franklin Allen on Lessons from the Subprime Crisis

 

Joseph Gyourko on Fannie, Freddie, and the Housing Bust

 

Richard Herring on What’s Next for Investment Banks

 

Wall Street’s Day of Reckoning: The Fannie & Freddie Bailout

 

Wall Streets Day of Reckoning: Turmoil in the Global Market

 

Franklin Allen on Past Crises

 

Richard Herring on Mortgage-backed Securities

 

Susan Wachter on Securitizations and Deregulation

 

Todd Sinai on Home Values

 

Richard Marston on Risk Credit Crisis

 

Marshall Blume on the Evolving Marketplace

 

Wharton Faculty Teach-In October 21, 2008

  

 

Uncommon Knowledge: The Great Depression with Amity Shlaes

 

The End

Michael Lewis

“…That’s when Eisman finally got it. Here he’d been making these side bets with Goldman Sachs and Deutsche Bank on the fate of the BBB tranche without fully understanding why those firms were so eager to make the bets. Now he saw. There weren’t enough Americans with shitty credit taking out loans to satisfy investors’ appetite for the end product. The firms used Eisman’s bet to synthesize more of them. Here, then, was the difference between fantasy finance and fantasy football: When a fantasy player drafts Peyton Manning, he doesn’t create a second Peyton Manning to inflate the league’s stats. But when Eisman bought a credit-default swap, he enabled Deutsche Bank to create another bond identical in every respect but one to the original. The only difference was that there was no actual homebuyer or borrower. The only assets backing the bonds were the side bets Eisman and others made with firms like Goldman Sachs. Eisman, in effect, was paying to Goldman the interest on a subprime mortgage. In fact, there was no mortgage at all. “They weren’t satisfied getting lots of unqualified borrowers to borrow money to buy a house they couldn’t afford,” Eisman says. “They were creating them out of whole cloth. One hundred times over! That’s why the losses are so much greater than the loans. But that’s when I realized they needed us to keep the machine running. I was like, This is allowed?” …”

http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-Wall-Streets-Boom

 

 

Jim Rogers: They’re Printing So Much Money That Stocks Will Go To 30,000

Monetary Policy By Federal Reserve Will Cause “Double Digit” Inflation

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The Financial Crime of The Century: William K. Black On Massive Mortgage Fraud –Videos

Schiff, Forbers and Bloomberg Nail The Financial Crisis and Recession–Mistakes Were Made–Greed, Arrogance, Stupidity–Three Chinese Curses!

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Bailed Out Bank Trillion Dollar Derivative Exposure

Banking–Videos

Creature from Jekyll Island: The Federal Reserve System–Videos

The Monopoly Men: The Federal Reserve Bank Cartel–Videos

L. William Seidman on The Economic Crisis: Causes and Cures–Videos

The Financial Crime of The Century: William K. Black On Massive Mortgage Fraud –Videos

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President Obama–Killer of The American Dream and Market Capitalism–Stop The Radical Socialists Before They Kill You!

 

US Federal Government Fails Stress Test–Insolvent: Time Has Arrived For Downsizing–Departments and Subsidies To Be Eliminated!

The 12 Trillion–$12,000,000,000,000 Crime of The Century: The Decline and Fall of United States of America By Radical Socialist Spending–Look Before You Leap!

The Financial Crime of The Century: William K. Black On Massive Mortgage Fraud –Videos

Bailed Out Bank Trillion Dollar Derivative Exposure

The Mother of All Bailouts–2 to 3 Trillion Dollars–$2,000,000,000–$3,000,000,000!–Rewarding Greed, Arrogance and Stupidity–Pay for Play!

Federal Government Extortion Of Sound Banks–You Decide?–Take This TARP and Shove It!

The United States is Broke!–Chapter 11 Bankruptcy Time For GM and Ford Is Now! 

White House Memo: Carbon Dioxide Is Not A Pollutant and A Cap And Trade Program (Carbon Dioxide Tax) Serious Economic Impact –The Smoking Gun Video!

Gore Grilled & Gingrich Gouged–American People Oppose Massive Carbon Cap and Trade Tax Increase–Videos

Save Your Job and Life–Abolish The Environmental Protection Agency!

MAJOR REDUCTIONS IN CARBON EMISSIONS ARE NOT WORTH THE MONEY DEBATE–Videos

Barrack Obama’s Kansas Values–Killing Babies in Cold Blood?

Eugenics, Planned Parenthood, Population Control, and Designer Babies–Videos

Cap and Trade Carbon Dioxide Tax: Gore’s and Obama’s Revenge on The American People–Let Them Freeze and Sweat!

Barack Obama’s Socialist Green Commissar Carol Browner

ANWR: Pristine–Pristine–Pristine–Desolute–Desolute–Desolute–Drill–Drill–Drill– McCain/Romney: Drill Here. Drill Now. Pay Less!

Al Gore 2.0 and The Coming Renewable Energy Ice Age–The Big Chill

National Center for Policy Analysis–A Global Warming Primer

Global Warming is The Greatest Hoax, Scam and Disinformation Campaign in History

Global Warming Videos

Global Warming Books

Global Warming Sites

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Facing Fundamental Facts

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Bailout Bill vs. Rescue Economy American People (REAP) Law

Posted on October 1, 2008. Filed under: Blogroll, Economics, Investments, Life, Links, Politics, Raves, Regulations, Resources, Taxes, Video | Tags: , , , , , , , , , , , , , |

Charlie Rose – Al Hunt & Floyd Norris

Bush Implores Congress to Act to Rescue Markets

 

Financial meltdown timeline

 

“Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously.”

~ 2 Corinthians 9:6

Forget about Treasury Secretary Paulson’s bailout bill that Congress voted down on Monday.
The Treasury does not need to purchase from financial institutions assets whose current value is temporarily depressed due to the decline in real estate prices. There are alternative courses of action to get liquidity or capital to financial institutions whose capital structure is impaired. Either loan money or invest funds in the financial institutions for up to five years. Let the financial institutions keep and sell the assets themselves when real estate prices recover. Then have the financial institutions repay the loan or buy back the preferred stock. There is no need for the Federal Government to purchase these assets. I know it, the American people know, and so does the Treasury Secretary and the President.

What will the American people support to rescue the economy?

1. Increase the Federal Deposit Insurance Corporation (FDIC) from $100,000 to $250,000.

2. Increase the Securities Investor Protection Corporation insured ceiling from $500,000 to $1,000,000 per customer and increase the maximum of $100,000 for cash claims to $250,000.

3. Decrease the capital gains tax from 15% to 0%.

4. Repeal the mark to market accounting rules.

5. Allow financial institutions facing severe liquidity problems to borrow funds from the Federal Reserve for up to five years at an interest rate equal to prime plus three percent to encourage early repayment of the loan.

The greed, arrogance and stupidity (GAS) of the American elites in Washington and Wall Street needs to stop.

The American people no longer trust the American elites of both political parties and have lost confidence in their ability to either tell the truth or understand what urgently needs to be done.

 

Background Articles and Videos 

FDIC Insurance Explained

FDIC Insurance Fund Under Strain

 

FDIC

http://www.fdic.gov/

 

 

 

Federal Deposit Insurance Corporation (FDIC)

The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass-Steagall Act of 1933. It provides deposit insurance which guarantees the safety of checking and savings deposits in member banks, currently up to $100,000 per depositor per bank. The vast number of bank failures in the Great Depression spurred the United States Congress to create an institution to guarantee deposits held by commercial banks, inspired by the Commonwealth of Massachusetts and its Depositors Insurance Fund (DIF).

The FDIC insures accounts at different banks separately. For example, a person with accounts at two separate banks (not merely branches of the same bank) can keep $100,000 in each account and be insured for the total of $200,000. Also, accounts in different ownerships (such as beneficial ownership, trusts, and joint accounts) are considered separately for the $100,000 insurance limit. The Federal Deposit Insurance Reform Act of 2005 raised the amount of insurance for an Individual Retirement Account to $250,000. …”

“…Insurance requirements

To receive this benefit, member banks must follow certain liquidity and reserve requirements. Banks are classified in five groups according to their risk-based capital ratio:

  • Well capitalized: 10% or higher
  • Adequately capitalized: 8% or higher
  • Undercapitalized: less than 8%
  • Significantly undercapitalized: less than 6%
  • Critically undercapitalized: less than 2%

When a bank becomes undercapitalized the FDIC issues a warning to the bank. When the number drops below 6% the FDIC can change management and force the bank to take other corrective action. When the bank becomes critically undercapitalized the FDIC declares the bank insolvent and can take over management of the bank. …”

http://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation 

 

Securities Investor Protection Corporation

“The Securities Investor Protection Corporation (SIPC) is a federally mandated non-profit corporation in the United States that protects securities investors from harm if a broker/dealer defaults. Investors are not insured for any potential loss while invested in the market.

SIPC was created by the 1970 Securities Investor Protection Act, 15 U.S.C. § 78aaa et seq, but it is not a government agency; rather, it is a membership corporation funded by its members.

SIPC serves two primary roles in the event that a broker-dealer fails. First, SIPC acts to organize the distribution of customer cash and securities to investors. Second, to the extent a customer’s cash and/or securities are unavailable, SIPC provides insurance coverage up to $500,000 of the customer’s net equity balance including up to $100,000 in cash. …”

http://en.wikipedia.org/wiki/Securities_Investor_Protection_Corporation

 

Clark SIPC Explained

Securities Investor Protection Corporation

http://www.sipc.org/

 

Capital gains tax

“…A capital gains tax (abbreviated: CGT) is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations.

For equities, an example of a popular and liquid asset, each national or state legislation, have a large array of fiscal obligations that must be respected regarding capital gains. Taxes are charged by the state over the transactions, dividends and capital gains on the stock market. However, these fiscal obligations may vary from jurisdiction to jurisdiction because, among other reasons, it could be assumed that taxation is already incorporated into the stock price through the different taxes companies pay to the state, or that tax free stock market operations are useful to boost economic growth.

http://en.wikipedia.org/wiki/Capital_gains_tax

 

Capital gains tax in the United States

“In the United States, individuals and corporations pay income tax on the net total of all their capital gains just as they do on other sorts of income. Capital gains are generally taxed at a preferential rate in comparison to ordinary income. This is intended to provide incentives for investors to make capital investments and to fund entrepreneurial activity. The amount an investor is taxed depends on both his or her tax bracket, and the amount of time the investment was held before being sold. Short-term capital gains are taxed at the investor’s ordinary income tax rate, and are defined as investments held for a year or less before being sold. Long-term capital gains, which apply to assets held for more than one year, are taxed at a lower rate than short-term gains. In 2003, this rate was reduced to 15%, and to 5% for individuals in the lowest two income tax brackets. These reduced tax rates were passed with a sunset provision and are effective through 2011; if they are not extended before that time, they will expire and revert to the rates in effect before 2003, which were generally 20%.

The reduced 15% tax rate on eligible dividends and capital gains, previously scheduled to expire in 2008, was extended through 2010 as a result of the Tax Reconciliation Act signed into law by President George W. Bush on May 17, 2006. As a result:

  • In 2008, 2009, and 2010, the tax rate on eligible dividends and long term capital gains is 0% for those in the 10% and 15% income tax brackets.
  • After 2010, dividends will be taxed at the taxpayer’s ordinary income tax rate, regardless of his or her tax bracket.
  • After 2010, the long-term capital gains tax rate will be 20% (10% for taxpayers in the 15% tax bracket).
  • After 2010, the qualified five-year 18% capital gains rate (8% for taxpayers in the 15% tax bracket) will be reinstated.

Technically, a “cost basis” is used, rather than the simple purchase price, to determine the taxable amount of the gain. The cost basis is the original purchase price, adjusted for various things including additional improvements or investments, taxes paid on dividends, certain fees, and depreciation.

The United States is unlike other countries in that its citizens are subject to U.S. tax on their worldwide income no matter where in the world they reside. U.S. citizens therefore find it difficult to take advantage of personal tax havens. Although there are some offshore bank accounts that advertise as tax havens, U.S. law requires reporting of income from those accounts and failure to do so constitutes tax evasion. …”

http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States

 

Capital Gains Tax

 

Mark to Market

“In accounting and finance, mark to market is the act of assigning a value to a position held in a financial instrument based on the current market price for the instrument or similar instruments. For example, the final value of a futures contract that expires in 9 months will not be known until it expires. If it is marked to market, for accounting purposes it is assigned the value that it would fetch in the open market currently. …”

Simple example

Example: If an investor owns 100 shares of a stock purchased for $40 per share, and that stock now trades at $60, the “mark-to-market” value of the shares is equal to (100 shares × $60), or $6,000, whereas the book value might (depending on the accounting principles used) only equal $4,000.

Similarly, if the stock falls to $30, the mark-to-market value is $3,000 and the investor has lost $1,000 of the original investment. If the stock was purchased on margin, this might trigger a margin call and the investor would have to come up with an amount sufficient to meet the margin requirements for his account.”

“…Emergency Economic Stabilization Act of 2008

Section 132 of the proposed Emergency Economic Stabilization Act of 2008, titled “Authority to Suspend Mark-to-Market Accounting” restates the Securities and Exchange Commission’s authority to suspend the application of FAS 157 if the SEC determines that it is in the public interest and protects investors.

Section 133 of the proposed Act, titled “Study on Mark-to-Market Accounting,” requires the SEC, in consultation with the Federal Reserve Board and the Department of the Treasury, to conduct a study on mark-to-market accounting standards as provided in FAS 157, including its effects on balance sheets, impact on the quality of financial information, and other matters, and to report to Congress within 90 days on its findings.[4] …”

http://en.wikipedia.org/wiki/Mark_to_market

 

SEC gives banks more leeway on mark-to-market

“U.S. securities regulators on Tuesday gave the financial industry a reprieve from marking hard-to-value assets down to fire sale prices, throwing a lifeline to an industry beset by strained credit markets and the latest round of bank failures.

The U.S. stock market added to gains on the news, in hopes that regulators’ new interpretation of fair value, or mark-to-market, accounting rules, will slow or reverse the heavy flow of mortgage-related losses on banks’ balance sheets.

In the new guidance, first reported by Reuters, the U.S. Securities and Exchange Commission reminded financial services firms that they don’t need to use fire sale prices when evaluating their hard to price assets.

“This is a significant first step and adds stability, confidence, and liquidity within the capital markets,” said Steve Bartlett, president and chief executive of The Financial Services Roundtable. “By clarifying how to treat assets in an uncertain market, the SEC is continuing to provide transparency to investors and helping institutions to provide credit in periods of market stress.” …”

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&date=20080930&id=9211897

 

Special Report Mark To Market

http://www.youtube.com/watch?v=GL5s1Q7OxlY

 

Subprime Crisis: The Role of Off Balance Sheet Entities

 

Subprime: The Role of Off Balance Sheet Entitities Part 2

 

Subprime: Is Mark to Market Accounting Marking Things Worse


 

Newt Gingrich Bailout Proposal – Part 1

 

Newt Gingrich Bailout Proposal – Part 2


 

Heritage’s JD Foster Explains the Credit Crisis

Three Things to Know About Fannie Mae and Freddie Mac

1) Federal action is needed to restore confidence.
2) The companies are creations of big-government policies.
3) Breaking up the companies is long-term fix.

 

Wall Streets Day of Reckoning: Turmoil in the Global Market

 

Wall Street’s Day of Reckoning: The Fannie & Freddie Bailout

 

Richard Herring on What’s Next for Investment Banks

 

Franklin Allen on Lessons from the Subprime Crisis

 

LOL

Subprime crisis explanation by The Long Johns

 

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Stop The Bailout: The American Elites’ Bum Rush of The American People–No Sale!

Posted on September 25, 2008. Filed under: Blogroll, Economics, Investments, Life, Links, People, Politics, Rants, Raves, Regulations, Resources, Taxes, Video, War | Tags: , , , , , , , , , , , , , , , , , , |

“…deficits don’t matter…”

~Vice-President Dick Cheney

 

President Reagan – Government is the problem

 

President Bush Addresses Nation on Economic Crisis

 

Michael Bloomberg – Origins of the Economic Crisis

 

Milton Friedman: The Purpose of the Federal Reserve

 

Milton Friedman – Greed

 

Milton Friedman – Regulation – The Government Industrial Complex

 

 

The rush by the American elites of both political parties in the Federal Government and Congress to have the American people or taxpayers bailout financial institutions to avoid a financial crisis and in turn an economic recession should be stopped.

The case for the bailout simply has not been made.

Full, complete and fair disclosure of all the risks and rewards of the bailout needs to clearly stated  and analyzed.

Alternatives need to be explored and discussed in depth. This includes both alternative courses of action and alternative scenarios.  One course of action based on one scenario recommended by the Treasury Secretary is not only unacceptable, but dangerous.

Remember it is was government internvention in the mortage market requiring lenders to make loans to people that would normally never qualify that is the root cause of the problem.

The government is the problem and is certainly not the solution. 

The rush to socialism in the form of a massive government intervention in the financial markets should be defeated not encouraged.

Let the discipline of the market place penalize those who were financially irresponsible.

No believer in free enterprise would propose or for that matter even consider President Bush’s bailout or rescue plan.

The same American elites of both political parties that tried to cram down comprehensive immigration reform with amnesty and open borders are now trying to cram down a comprehensive financial bailout of financial institutions.

Only you can prevent socialism in America.

 

Goodbye America, We’ll Miss You!

 

Background Articles and Videos 

Ron Paul and Peter Schiff – America Financial Meltdow

 

Lobbying for a bailout – Lou Dobbs

 

 

CNN McCain bailout fate

 

Senator Jim Bunning Comments on Federal Bailout

 

Hannity Colmes Newt Oppose This BailOut CALL Capitol

 

Shocking!—Democrats Trying to Give Bailout Money to Obama’s Owner ACORN

 

Newt Lays It Out – Part 1 of 3 – Former Speaker of the House Newt Gingrich says the bailout plan is a disaster.

 

Newt Lays It Out – Part 2 of 3 – Former Speaker of the House Newt Gingrich says the bailout plan is a disaster.

 

Newt Lays It Out – Part 3 of 3 – Former Speaker of the House Newt Gingrich says the bailout plan is a disaster.

 

Wall Street “Socialism”, the new moral hazard

 

Charlie Rose – Fannie Mae & Freddie Mac

 

Barack Obama & Friends Caused U.S. Economic Crisis

 

Bill Moyers Housing Market Meltdown 1 of 2

 

Bill Moyers Housing Market Meltdown 2 of 2

 

Ron Paul on the Global Financial Crisis

 

Ron Paul talks about Bernanke’s testimony

 

 

Majority of Americans oppose $700 billion bailout, poll finds

http://www.newsday.com/business/ny-libzreax0925,0,1707264.story 

 

To the Speaker of the House of Representatives and the President pro tempore of the Senate:
 
As economists, we want to express to Congress our great concern for the plan proposed by Treasury Secretary Paulson to deal with the financial crisis. We are well aware of the difficulty of the current financial situation and we agree with the need for bold action to ensure that the financial system continues to function. We see three fatal pitfalls in the currently proposed plan:
 
1) Its fairness. The plan is a subsidy to investors at taxpayers’ expense. Investors who took risks to earn profits must also bear the losses.  Not every business failure carries systemic risk. The government can ensure a well-functioning financial industry, able to make new loans to creditworthy borrowers, without bailing out particular investors and institutions whose choices proved unwise.
 
2) Its ambiguity. Neither the mission of the new agency nor its oversight are clear. If  taxpayers are to buy illiquid and opaque assets from troubled sellers, the terms, occasions, and methods of such purchases must be crystal clear ahead of time and carefully monitored afterwards.
 
3) Its long-term effects.  If the plan is enacted, its effects will be with us for a generation. For all their recent troubles, America’s dynamic and innovative private capital markets have brought the nation unparalleled prosperity.  Fundamentally weakening those markets in order to calm short-run disruptions is desperately short-sighted.
 
For these reasons we ask Congress not to rush, to hold appropriate hearings, and to carefully consider the right course of action, and to wisely determine the future of the financial industry and the U.S. economy for years to come. 
 

Signed (updated at 9/25/2008 8:30AM CT) …”

 

http://faculty.chicagogsb.edu/john.cochrane/research/Papers/mortgage_protest.htm

 

Bailout: Opposition to Bush proposal among GOP lawmakers

“…Alabama Sen. Richard Shelby, the top Republican on the Senate Banking Committee, told NPR this morning that he wouldn’t vote for the proposal as it stands.

“I believe it will be reconfigured,” he says. One of Shelby’s biggest concerns is the lack of specifics about the plan’s overall cost. He says doing “nothing’s always an alternative.”

“I think they might pass something, but I don’t think we should just pass a three-page proposal and give this kind of power, unfettered power, to the secretary of the treasury — and with more to come probably,” Shelby says.

Sen. Jim DeMint, R-S.C., an outspoken critic of the bailout, says he plans to slow down the bill.

“There’s no question we’ve got a big mess here. But I’ll tell you the one sure thing is this mess was caused by the government. They broke it. I don’t trust them to fix it at this point,” he tells Fox News. “I see this as a trillion dollar band-aid that’s designed to get people past the next election, but it is not going to solve our problem. I think it’s going to make it worse by expanding our national debt, lowering the value of our dollar.” …”

http://blogs.usatoday.com/ondeadline/2008/09/bailout-opposit.html

 

Kill the bailout: Newt Gingrich gets on board

By Michelle Malkin 

“I said it yesterday.

Newt Gingrich said it today.

Hans Bader sums it up succinctly: The Bush/Paulson bailout is “Inflationary, Unnecessary, and Unconstitutional.”

Yes, it’s time for ideological purity.

Kill it. …” 

http://michellemalkin.com/2008/09/23/kill-the-bailout-newt-gingrich-gets-on-board/

 

A Political “Solution”: Part II

by Thomas Sowell  

“…But bailing out people who made ill-advised mortgages makes no more sense that bailing out people who lost their life savings in Las Vegas casinos. It makes political sense only to people like Senator Dodd, who are among the reasons for the financial mess in the first place.

People usually stop making ill-advised decisions when they are forced to face the consequences of those decisions, not when politicians come to their rescue and make the taxpayers pay for decisions that the taxpayers had nothing to do with.

The Wall Street Journal, which has for years been sounding the alarm about the riskiness of Fannie Mae and Freddie Mac, recently cited Senator Christopher Dodd along with Senator Charles Schumer and Congressman Barney Frank among those on Capitol Hill who have been “shilling” for these financial institutions, downplaying the risks and opposing attempts to restrict their free-wheeling role in the mortgage market.

As recently as July of this year, Senator Dodd declared Fannie Mae and Freddie “fundamentally strong” and said there is no need for “panicking” about them. But now that the chickens have come home to roost, Senator Dodd wants to be sure to get some goodies from the rescue legislation to pass out to people likely to vote for him. …”

http://townhall.com/Columnists/ThomasSowell/2008/09/24/a_political_solution_part_ii

 

Laugh Line of The Day

By Michelle Malkin 

“…From Bush’s address to the nation tonight, urging taxpayers to fork over a trillion dollars to Treasury Secretary Hank Paulson to distribute to whichever failing banks he chooses, at home or abroad, in order to rescue them from their bottomless pit of toxic debt:

“I’m a strong believer in free enterprise.”  …” 

http://michellemalkin.com/2008/09/24/laugh-line-of-the-day/

 

Why Bailouts Scare Stocks

by Alan Reynolds

“…Owners of common stock are supposed to be last in line during an actual bankruptcy, getting leftover scraps after creditors pick a firm’s assets to the bone. But in anything short of that, patient stockholders stand a decent chance of eventually seeing some recovery in the share price, if and when the firm gets back on its feet.

And in the recent crises, bankruptcy was involved only in the case of Lehman – the one time the feds kept their hands off.

From Treasury Secretary Hank Paulson and Fed chief Ben Bernanke on down, top officials have shown too little confidence in markets and too much confidence in themselves. As a result, anyone who’s still holding stock in a financial firm now faces a big new risk premium – because these companies are now subject to compulsory mergers on unfavorable terms (as with Bear Stearns, where the feds initially tried to force stockholders to take just $2 a share) or quasi-nationalization.

This new risk of forced mergers or a government takeover artificially depresses the stock prices of vulnerable firms. And Standard and Poors incorporates equity prices into its credit ratings – so the risk can also bring a downgraded credit rating. And a credit-rating drop triggers regulations that oblige the company to increase its capital – while simultaneously making it nearly impossible to raise capital.

Heavy-handed federal bailouts started this mutually reinforcing spiral rolling downhill by scaring anyone still holding stock in similar firms. And other regulations make it more likely to end badly. …”

http://www.cato.org/pub_display.php?pub_id=9650 

 

‘Wall Street’ No Longer Exists

by Alan Reynolds

“…Since the 1933 regulatory wall has collapsed as definitively as the Berlin Wall, all the giant financial conglomerates now face oversight and regulation by the Federal Reserve, the Securities and Exchange Commission, the Comptroller of the Currency and the Federal Deposit Insurance Corp. Innocents who seek security in regulation need to recall, however, that not one of those august agencies exhibited timely foresight or concern about the default risk among even prime mortgages in some locations, or about any lack of transparency with respect to bundling mortgages into securities. People do not become wiser, more selfless or more omniscient simply because they work for government agencies.

Wall Street was always a metaphor, of course, but so are words like “bailout” and “toxic” debt. Nationalization of Fannie Mae and Freddie Mac was a bailout for creditors (who received windfall gains), not for stockholders or executives. The federally enforced shotgun marriage between J.P. Morgan and Bear Stearns at the initially ridiculous price of $2 a share was no bailout for Bear. The 11.3% federal loan to AIG, contingent on the potential expropriation of 80% of shareholder value, is no bailout either.

By contrast, what was done to stop a run on the money-market funds is a real bailout which could encourage them to hold risky paper and also make it tougher for commercial banks to attract deposits. The proposal to buy up mortgage-backed securities is a bailout too, though the beneficiaries are not just the tattered remains of Wall Street. The bailout consists of shifting the risk of loss to taxpayers. Actual losses could not reach $700 billion unless the securities were literally worthless, which would mean the value of the underlying real estate fell to zero.

What was “toxic” for investment banks is not equally toxic for the Treasury Department because the government does not even bother to keep a balance sheet, much less abide by mark-to-market accounting rules. A powerful motive for converting investment banks into commercial banks is to get around those onerous balance-sheet rules that required fire-sale pricing of securities that were virtually unmarketable during a panicky scramble for liquidity. Strict adherence to those rules made patience a vice and a “buy and hold” approach impossible. This confirms what many of us have long been saying about the foolishness of letting arbitrary bookkeeping rules dominate economic reality.

Turning Wall Street into a bunch of commercial banks is a solution of sorts to a problem aggravated by foolish mark-to-market regulations, not by the inevitable demise of the 1933 wall between investment banks and commercial banks. Something good may yet come out of all this, because that wall never made much sense in the first place. …”

http://www.cato.org/pub_display.php?pub_id=9660

 

The Financial Bailout (and the New Resolution Trust Corp.) Must Restore the Markets and Protect the Taxpayer

by David C. John

“…The House and Senate must have two objectives when putting together their versions of the financial bailout proposal made by the Treasury and Federal Reserve: They must (1) restore the markets and (2) protect the taxpayers. Congress should act clearly and decisively to address the turmoil in the financial markets and not burden this legislation with other issues, problems, or projects.

These objectives should be resolved in the regular order of business. This legislation must not become a Christmas tree. If it does, it will likely backfire, and the intentions of either or both objectives will fail. Sadly, the Senate’s version is already on the wrong track, and the House’s is likely to follow suit. …”

http://www.heritage.org/Research/Economy/wm2072.cfm

 

No bailout necessary

Earl Thompson 

“…Our country’s leading financial officials (the heads of our Department of Treasury and Federal Reserve Bank) have proposed to bail out an enormous array of overpaid wall street phonies in order to become a foreclosing creditor for 700 billion dollars worth of real estate debt — even though they know nothing whatever about collecting or foreclosing on non-performing real estate debt. They cannot possibly do their traditional jobs, which they have normally done quite respectably, under such an administrative burden. The mess would continue, perhaps even worsen.
All the Fed Chairman has to do is do is spend half that amount of fresh Federal Reserve Notes on U.S. Government Bonds and stop making a fool of himself by begging Congress for a favor that would just create a nightmare for him, and ergo the rest of us. What that simple inflationary monetary shock would do is immediately increase the U.S. price-level by just about 20%. The dollar would sink that much in the world’s money markets and this would (1) stimulate our economy out of its current recessionary threat; (2) raise the value of real estate by 20% and immediately end the wave of current real estate foreclosures; and (3) immediately restore liquidity and financial flexibility to our banks and financial institutions so as to end our current financial woes on the spot. …”

More on the diversity racket and the home loan debacle

By Michelle Malkin  

 

“…Referencing my column yesterday on illegal immigration and the mortgage mess, Hans Bader at Open Market shares his experience. I’ve been getting a lot of e-mails with similar stories. Tip of the iceberg:

When I and my wife, a legal alien, bought our house, the mortgage company told me that if my wife were an illegal alien, rather than legal, we would have qualified for certain loan programs with big banks. But because she was a legal alien waiting for her green-card (which she had recently applied for), we didn’t qualify.

Mark Krikorian, an activist against illegal immigration, argues that “we’re in this mess, ultimately, because our political elites thought it was good social policy to encourage banks to give mortgages to uncreditworthy people, resulting in what Sailer months ago called the “Diversity Recession” (if this doesn’t work, make that the Diversity Depression). In other words, if poor people in general, or blacks or Hispanics in particular, were less likely to be approved for a mortgage, the only possible reason was racism or classism or whatever. Thus ‘creditworthiness’ was an illegitimate, dead-white-male concept, like middleclassness. Because, after all, isn’t everyone entitled to credit?” …”

A Bailout We Don’t Need

By James K. Galbraith

“…Is this bailout still necessary?

The point of the bailout is to buy assets that are illiquid but not worthless. But regular banks hold assets like that all the time. They’re called “loans.”

With banks, runs occur only when depositors panic, because they fear the loan book is bad. Deposit insurance takes care of that. So why not eliminate the pointless $100,000 cap on federal deposit insurance and go take inventory? If a bank is solvent, money market funds would flow in, eliminating the need to insure those separately. If it isn’t, the FDIC has the bridge bank facility to take care of that.

Next, put half a trillion dollars into the Federal Deposit Insurance Corp. fund — a cosmetic gesture — and as much money into that agency and the FBI as is needed for examiners, auditors and investigators. Keep $200 billion or more in reserve, so the Treasury can recapitalize banks by buying preferred shares if necessary — as Warren Buffett did this week with Goldman Sachs. Review the situation in three months, when Congress comes back. Hedge funds should be left on their own. You can’t save everyone, and those investors aren’t poor. …”

Glenn Beck Explains Fannie & Freddie & Racism & Extortion

 

Kudlow & Company, September 22, 2008

 

Bernie Sanders “You’re a socialist, Larry [Kudlow]” w Allard

 

Dodd and Kyle on the Bailout Package (part 1)

 

Dodd and Kyle on the Bailout Package (part 2)

 

Bernanke Warns Congress of Possible Recession

 

Dick Armey Discusses the Dodd/Frank Bailout Bill

 

Deconstructing the Subprime Crisis

 

Richard Herring on Mortgage-backed Securities

 

Joseph Gyourko on Fannie, Freddie, and the Housing Bust

 

Franklin Allen on Past Crises

 

Franklin Allen on Lessons from the Subprime Crisis

 

Jeremy Siegel on the Resilience of American Finance

 

Susan Wachter on Securitizations and Deregulation

 

See I.O.U.S.A. themovie, visit the YouTube site

 

IOUSA Live – Panel Discusses our Fiscal Crisis

 

Buffett on Fannie / Freddie and Oil

 

Wall Street’s Day of Reckoning: The Fannie & Freddie Bailout

 

Housing Bailout For Deadbeats Gamblers Liars Thieves

 

 

Part 1 – Exposing Fannie Mae and Freddie Mac: Origins

New York Investing meetup organizer Daryl Montgomery discusses the origins of Fannie Mae and Freddie Mac in the first episode of a multi-part series. The New York Investing meetup is an organization of 1800 independent traders and investors that provides unbiased stock market education and analysis. We also have a blog,”The Helicopter Economics Investing Guide” which can be found at:

http://nyinvestingmeetup.blogspot.com

 

Part 2 – Exposing Fannie Mae and Freddie Mac: Origins

 

Part 3 – Exposing Fannie Mae and Freddie Mac: Origins

 

Part 4 – Exposing Fannie Mae and Freddie Mac: Origins

 

Part 5 – Exposing Fannie Mae and Freddie Mac: Origins

 

The Big Lie – The U.S. GDP Figures

 

Ron Paul vs. Ben Bernanke

 

Constitution Rally4Republic

 

LOL

Democrats responsible for Economic Disaster…

 

Solution to Our Economic Problems…

 

We’ve been lied to AGAIN…

 

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Obama–ACORN–CRA–Congress–Democratic Party–Fannie Mae–Freddie Mac–Bailout–Socialism– Just Say No!

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Slugger McCain Hits a Grand Slam Homerun: Selects Alaskian Governor Sarah Palin as Vice-President Running Mate!

The 2008 U.S. Presidential Election–Wedge Issues Now (WIN)?

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2008 Presidential Choice: Leader or Diletant–McCain or Obama

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Identity Politics: Blacks, Lesbians, Gays, Bisexuals and Transsexuals for Obama?

Barack Obama: The First Previable Puppet Presidential Candidate!

Barack Obama–A Reader Not A Leader!

Barack Obama: A Watermelon Man–Green on The Outside–Red on The Inside

Barack Obama–Damaged Goods–Birds of A Feather Flock Together

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Why immigration will be the number 1 political issue in the 2008 Presidential Election! — Gum Balls

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The Cost of Comprehensive Immigration Reform–McCain and Obama Are Hopeless–It is the Economy Stupid!

Presidential Election 2008: American Elites Vs. American People

Alan Keyes on Immigration

US Immigration Videos   

Unconstrained Obama vs. Constrained McCain: A Conflict of Vision

Let Them Eat Cake Act: American Elites Killing and Starving The

Obama and McCain–Socialism and Appeasement!

Senator Obama: The Experience Challenged Candidate of Change

Clinton’s Cap and Trade Tax on The American People for Consuming Electricity and Driving Cars, SUVs and Trucks!

Facing Fundamental Facts

Presidential Election 2008: American Elites Vs. American People

Let Them Eat Cake Act: American Elites Killing and Starving The American People 

Clinton’s Cap and Trade Tax on The American People for Consuming Electricity and Driving Cars, SUVs and Trucks!

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Presidential Election 2008: American Elites Vs. American People

Let Them Eat Cake Act: American Elites Killing and Starving The American People

Saving The World: The Importance of Getting The Priorities Right

McCain: Cut–Drill–Victory vs. Obama: Increase–Talk–End

Read Full Post | Make a Comment ( 14 so far )

Obama–ACORN–CRA–Congress–Democratic Party–Fannie Mae–Freddie Mac–Bailout–Socialism– Just Say No!

Posted on September 23, 2008. Filed under: Blogroll, Economics, Investments, Links, Music, People, Politics, Rants, Raves, Regulations, Resources, Taxes, Video, War | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , |

For What It’s Worth – Buffalo Springfield

 

Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis

 

Explosive Video, Fannie Mae CEO calling Obama and the Dems the “Family” and “Conscience” of Fannie Mae

OBAMA CAUGHT SAYING ACORN AND FRIENDS WILL SHAPE HIS PRESIDENTIAL AGENDA

EVIDENCE FOUND!!! Clinton administration’s “BANK AFFIRMATIVE ACTION” They forced banks to make BAD LOANS and ACORN and Obama’s tie to all of it!!!

 

Jim Rogers Speaks the Truth about Fannie Mae and Freddie Mac

 

Jim Rogers: Socialism for the Rich.

 

Reaction To Fannie Mae, Freddie Mac Rescue Plan

 

Will Congress Pass Bailout Plan?

 

Kevin Phillips on Bill Moyers – Economic crash 2008 (3/3)


 

Wall Streets Day of Reckoning: Turmoil in the Global Market

 

Dollar Collapse – Chicken Little Was Right – Goodbye Dollar

 

The American people are outraged by the corruption in Washington.

The American people are opposed to any bailout of Fannie Mae, Fannie Mac, AIG, investment, commerical, security and mortage bankers that profited from the home subprime mortgage scam –the crime of the century. 

The American people want the politicians of either party that aided and abetted this crime to be exposed for what they are–corrupt criminals that should not be in Congress nor the Whitehouse but in prison.

The Democratic Party fought against more regulation and oversight for both Fannie Mae and Freddie Mac recommended and proposed by both President Bush and Senator McCain.

The Democratic Party insisted and required by law, the Community Reinvestment Act, that banks make loans to people that were clearly unqualified to receive them.

The Democratic Party made sure that the executives running both Fannie Mae and Freddie Mac supported their efforts to fund undocumented loans for home mortages.

The Democratic Party is responsible for starting this crisis by their meddling and government intervention in the mortage market.

The former executives who ran both Fannie Mae and Freddie Mac should be in prison and not advising Barack Obama.

Reform yes. Cover up no!

Prison yes. Bailout no! 

Only you can prevent socialism in America! 

 Ron Paul Blasts Secret Government Running Economy


 

 Background Articles and Videos

 

http://townhall.com/columnists/ThomasSowell/2008/10/03/do_facts_matter

Do Facts Matter?

by Thomas Sowell

 

“…The current financial bailout crisis has propelled Barack Obama back into a substantial lead over John McCain– which is astonishing in view of which man and which party has had the most to do with bringing on this crisis.

It raises the question: Do facts matter? Or is Obama’s rhetoric and the media’s spin enough to make facts irrelevant?

Fact Number One: It was liberal Democrats, led by Senator Christopher Dodd and Congressman Barney Frank, who for years– including the present year– denied that Fannie Mae and Freddie Mac were taking big risks that could lead to a financial crisis.

It was Senator Dodd, Congressman 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 Dodd and 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.

Alan Greenspan warned them four years ago. So did the Chairman of the Council of Economic Advisers to the President. So did Bush’s Secretary of the Treasury, five years ago.

Yet, today, what are we hearing? That it was the Bush administration “right-wing ideology” of “de-regulation” that set the stage for the financial crisis. Do facts matter?  …”

 

 

Bank Mess Started With Gov’t Intervention

By THOMAS SOWELL

“…Blaming the lenders is the party line of congressional Democrats as well. What we need is more government regulation of lenders, they say, to protect the innocent borrowers from “predatory” lending practices.

Before going further down that road, it may be useful to look back at what got us into this mess in the first place.

It was not that many years ago when there was moral outrage ringing throughout the media because lenders were reluctant to lend in certain neighborhoods and because banks did not approve mortgage loan applications from blacks as often as they approved mortgage loan applications from whites.

All this was an opening salvo in a campaign to get Congress to pass laws forcing lenders to lend to people they would not otherwise lend to and in places where they would not otherwise put their money.

Banks’ Dilemma

The practice of not lending in some neighborhoods was demonized as “redlining” and the fact that minority applicants were approved for mortgages only 72% of the time, while whites were approved 89%, was called “overwhelming” evidence of discrimination by the Washington Post. …”

“…Laws and regulations pressured lending institutions to lend to people that they were not lending to, given the economic realities.

Forced Lending

The Community Reinvestment Act forced them to lend in places where they didn’t want to send money, and where neither they nor politicians wanted to walk.

Now that this whole situation has blown up in everybody’s face, the government intervention that brought on this disaster in is supposed to save the day.

Politics is largely the process of taking credit and putting the blame on others — regardless of what the facts may be. Politicians get away with this to the extent that we gullibly accept their words and look to them as political messiahs.”

http://www.ibdeditorials.com/IBDArticles.aspx?id=301532605156669

 

Inside Obama’s Acorn
By their fruits ye shall know them.

By Stanley Kurtz

“What if Barack Obama’s most important radical connection has been hiding in plain sight all along? Obama has had an intimate and long-term association with the Association of Community Organizations for Reform Now (Acorn), the largest radical group in America. If I told you Obama had close ties with MoveOn.org or Code Pink, you’d know what I was talking about. Acorn is at least as radical as these better-known groups, arguably more so. Yet because Acorn works locally, in carefully selected urban areas, its national profile is lower. Acorn likes it that way. And so, I’d wager, does Barack Obama.

This is a story we’ve largely missed. While Obama’s Acorn connection has not gone entirely unreported, its depth, extent, and significance have been poorly understood. Typically, media background pieces note that, on behalf of Acorn, Obama and a team of Chicago attorneys won a 1995 suit forcing the state of Illinois to implement the federal “motor-voter” bill. In fact, Obama’s Acorn connection is far more extensive. In the few stories where Obama’s role as an Acorn “leadership trainer” is noted, or his seats on the boards of foundations that may have supported Acorn are discussed, there is little follow-up. Even these more extensive reports miss many aspects of Obama’s ties to Acorn. …”

http://article.nationalreview.com/?q=NDZiMjkwMDczZWI5ODdjOWYxZTIzZGIyNzEyMjE0ODI=&w=MA==

 

Association of Community Organizations for Reform Now 

ACORN, the Association of Community Organizations for Reform Now, a community organization of low- and moderate-income families that addresses housing, schools, neighborhood safety, health care, job conditions, and other social issues that affect its members. With a membership of over 350,000, ACORN is organized into more than 850 neighborhood chapters in over 100 cities across the United States, as well as in Argentina, Canada, Mexico, and Peru. The organization was born out of the American Civil Rights Movement. ACORN was founded in 1970 by Wade Rathke, George Wiley, and Gary Delgado.[1] Maude Hurd has been National President of ACORN since 1990.

ACORN groups work through direct action, negotiations, and with public officials.

http://en.wikipedia.org/wiki/Association_of_Community_Organizations_for_Reform_Now

 

ACORN

 

ACORN, the Association of Community Organizations for Reform Now, is the nation’s largest community organization of low- and moderate-income families, working together for social justice and stronger communities.

http://www.acorn.org/

OBAMA’S ACORN EXPOSED PART 1 OF 2

 

OBAMA’S ACORN EXPOSED PART 2 OF 2

 

Rep. Waters Speaks About Obama at ACORN

 

What is a Community Organizer?

 

Lou Dobbs – Electoral Fraud Threat to Democracy

 

Obama complicit in voter fraud? — Obama’s ACORN connection

 

Acorn / Voter Fraud / Obama and Community Organizers

 

More ACORN Allegations

 

ACORN Vote Fraud

 

Representative from ACORN

 

ACORN Convention Member Speak Out

 

ACORN National Convention 2008, Detroit

 

ACORN Grassroots Democracy Campaign

 

Advocacy Group Partners With Countrywide

 

Shocking!—Democrats Trying to Give Bailout Money to Obama’s Owner ACORN


 

Community Reinvestment Act   

“The Community Reinvestment Act (or CRA, Pub.L. 95-128, title VIII, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.) is a United States federal law that requires banks and thrifts to offer credit throughout their entire market area and prohibits them from targeting only wealthier neighborhoods with their services, a practice known as “redlining.” The purpose of the CRA is to provide credit, including home ownership opportunities to underserved populations and commercial loans to small businesses. It has been subjected to important regulatory revisions. …” 

“…Criticism 

“…Critics claim that government policy encouraged risky lending[7] and the development of the subprime debacle through legislation like the CRA. Economics professor Stan Liebowitz writes that banks were forced to loan to un-credit worthy consumers with “no verification of income or assets; little consideration of the applicant’s ability to make payments; no down payment.” The chief executive of Countrywide Financial, the nation’s largest mortgage lender, is said to have “bragged” that to approve minority applications “lenders have had to stretch the rules a bit.”[8] Robert Gordon of the Center for American Progress disagrees, and quotes statistics that he claims show “independent mortgage companies, which are not covered by CRA, made high-priced loans at more than twice the rate of the banks and thrifts.” He faults then-Federal Reserve chair Alan Greenspan for “cheering the subprime boom” in the banking industry.[9] Economics professor Thomas DiLorenzo counters Gordon, stating that independent mortgage companies are “middlemen” between banks, including those regulated by the CRA, and consumers and that in any case the CRA had caused tens of billions in defaults on mortgages by unqualified borrowers.[10] Economist Yaron Brook concluded succinctly, “The Government Did It:” through the stick of the CRA [and] the carrot of Fannie Mae and Freddie Mac, the fed created the mortgage market debacle. [11] …” 

 http://en.wikipedia.org/wiki/Community_Reinvestment_Act

 

Subprime Pols

 

Government has been the principal factor preventing the “affordable housing” that politicians talk about so much.

By Thomas Sowell 

“…In short, government has been the principal factor preventing the “affordable housing” that politicians talk about so much.Politicians have also been a key factor behind pushing lenders to lend to borrowers with lower prospects of being able to repay their loans.The Community Reinvestment Act lets politicians pressure lenders to lend to people they might not lend to otherwise — and the same politicians are quick to cry “exploitation” when the interest charged to high-risk borrowers reflects that risk.

 

The huge losses of sub-prime lenders, some of whom have gone bankrupt, demonstrate again the consequences of letting politicians try to micromanage the economy.

Yet with all the fingerpointing in the media and in government, seldom is a finger pointed at the politicians at local, state, and national levels who have played a key role in setting up the conditions that led to financial disasters for individual home buyers and for those who lent to them.

While financial markets are painfully adjusting and both lenders and borrowers are becoming less likely to take on so much risky “creative” financing in the future, politicians show no sign of changing.

Why should they, when they have largely escaped blame for the disasters that their policies fostered? …”

http://article.nationalreview.com/?q=YjgwYzI4Njg3OWMxOGUzYmY0ZDMwYzYwNzkzYjc1NDI=

 

The Right Stuff…

By INVESTOR’S BUSINESS DAILY | Posted Friday, September 19, 2008 4:20 PM PT

Subprime Crisis: President Bush’s financial team is now proving its mettle — and its expertise. Led by Treasury Secretary Henry Paulson, it crafted a reasonable, workable response to the subprime meltdown.

“…Like so many others, we believe that government should largely remove itself from functioning markets. But in a case such as this, where a market has been seriously damaged due to regulatory excess, an obligation exists to help undo the damage.

That’s the case now with the subprime crisis and housing collapse, both largely due to decades of congressional incompetence.

With world credit markets seized up and little to show for piecemeal U.S. efforts to deal with the growing financial panic, Paulson and others on the Bush financial team late last week shifted course, crafting a systematic answer to the markets’ meltdown.

This was leadership writ large. Paulson spent decades on Wall Street as a trader and top executive at one of its flagship firms, Goldman Sachs, and his experience and market wisdom showed.

His controversial decision to create a new financial entity, modeled broadly on the 1980s-era Resolution Trust Corp., may just spell an end to this financial crisis. Congress, which has mostly sat on the sidelines during this crisis, should approve it right away.

Unlike the RTC, which owned actual properties, the new agency that Paulson’s Treasury is creating will buy up the impaired mortgage-backed securities and hold them for resale when the market turns favorable again.

For ailing financial markets, this was welcome tonic. At this point they care less about details of the agency than limiting the contagion of the subprime crisis so it will no longer contaminate global banks and investors’ balance sheets. Mission accomplished. …”

http://www.ibdeditorials.com/IBDArticles.aspx?id=306716096379423

 

Dispelling The ‘Deregulation’ Myth

By INVESTOR’S BUSINESS DAILY | Posted Friday, September 19, 2008 4:20 PM PT

Politics: A dubious and dangerous idea seems to be gaining strength — that government caused the financial crisis by giving capitalism free rein. If anything, it hasn’t done enough of that.

“So why did banks and investment houses get into so much trouble? It will take a long and exhaustive post-mortem to answer that question fully, but one point is already clear: They made mistakes that had nothing to do with the 1999 law.

Commercial banks threw lending standards out the window in their rush to get new business. Like S&Ls of the 1980s, they would have gone wild without Gramm-Leach-Bliley. Washington, if anything, egged them on, but not because of free-market dogma. Banks and mortgage brokers were pumping up the homeownership numbers in America, and politicians were eager to take credit for that.

Wall Street, meanwhile, became a victim of its own innovation. It created new classes of derivative investments that spread — and, through leverage, amplified — the risk from the subprime mortgages produced by the banks. A new multitrillion-dollar market emerged almost overnight, lacking in transparency and reliable price signals. With their asset values in doubt, investment banks lurched toward insolvency.

If regulators failed here, it wasn’t because of policies adopted years before. It was more of the same story that has played itself out over and over in modern finance: Innovation races ahead of the rules. Crises tend to take almost everyone by surprise — including the major players as well as the regulators.

Careful study in the aftermath can lead to smart policies that cushion the blows of future shocks, but it doesn’t prevent them entirely. Nor should it. Capitalism needs some room for trial and error, bringing out new ideas and testing them in adversity.

In this respect, Gramm-Leach-Bliley has turned out to be smart policy indeed. By repealing the rule against banks owning investment firms, it has led to at least two crucial mergers — JPMorgan Chase absorbing Bear Stearns and Bank of America merging with Merrill Lynch. Morgan Stanley may be the next investment house to find shelter in a well-capitalized commercial bank.

You can spot the theme here: By taking down an outmoded firewall, the law is helping the financial industry cope with a once-in-a-lifetime crisis. Far from being the cause, this instance of deregulation, or whatever you call it, is part of the cure.”

http://www.ibdeditorials.com/IBDArticles.aspx?id=306716557967194

 

Congress Lies Low To Avoid Bailout Blame

INVESTOR’S BUSINESS DAILY

Posted 9/18/2008

“…Until now, Congress has been surprisingly passive. As Sen. Majority Leader Harry Reid put it, “no one knows what to do” right now.

Funny, since it was a Democrat-led Congress that helped cause the problems in the first place.

When House Speaker Nancy Pelosi recently barked “no” at reporters for daring to ask if Democrats deserved any blame for the meltdown, you saw denial in action.

Pelosi and her followers would have you believe this all happened because of President Bush and his loyal Senate lapdog, John McCain. Or that big, bad predatory Wall Street banks deserve all the blame.

“The American people are not protected from the risk-taking and the greed of these financial institutions,” Pelosi said recently, as she vowed congressional hearings.

Only one problem: It’s untrue.

Yes, banks did overleverage and take risks they shouldn’t have.

But the fact is, President Bush in 2003 tried desperately to stop Fannie Mae and Freddie Mac from metastasizing into the problem they have since become.

Here’s the lead of a New York Times story on Sept. 11, 2003: “The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.”

Bush tried to act. Who stopped him? Congress, especially Democrats with their deep financial and patronage ties to the two government-sponsored enterprises, Fannie and Freddie. …”

“…In the name of diversity, banks began making huge numbers of loans that they previously would not have. They opened branches in poor areas to lift their CRA ratings.

Meanwhile, Congress gave Fannie and Freddie the go-ahead to finance it all by buying loans from banks, then repackaging and securitizing them for resale on the open market.

That’s how the contagion began.

With those changes, the subprime market took off. From a mere $35 billion in loans in 1994, it soared to $1 trillion by 2008.

Wall Street eagerly sold the new mortgage-backed securities. Not only were they pooled investments, mixing good and bad, but they were backed with the implicit guarantee of government.

Fannie Mae and Freddie Mac grew to become monsters, accounting for nearly half of all U.S. mortgage loans. At the time of their bailouts this month, they held $5.4 trillion in loans on their books. About $1.4 trillion of those were subprime.

As they grew, Fannie and Freddie grew heavily involved in “community development,” giving money to local housing rights groups and “empowering” the groups, such as ACORN, for whom Barack Obama once worked in Chicago.

Warning signals were everywhere. Yet at every turn, Democrats in Congress halted attempts to stop the madness. It happened in 1992, again in 2000, in 2003 and in 2005. It may happen this year, too.

Since 1989, Fannie and Freddie have spent an estimated $140 million on lobbying Washington. They contributed millions to politicians, mostly Democrats, including Senator Chris Dodd (No. 1 recipient) and Barack Obama (No. 3 recipient, despite only three years in office).

The Clinton White House used Fannie and Freddie as a patronage job bank. Former executives and board members read like a who’s who of the Clinton-era Democratic Party, including Franklin Raines, Jamie Gorelick, Jim Johnson and current Rep. Rahm Emanuel.

Collectively, they and others made well more than $100 million from Fannie and Freddie, whose books were cooked Enron-style during the late 1990s and early 2000s to ensure executives got their massive bonuses.

They got the bonuses. You get the bill.”

http://www.investors.com/editorial/IBDArticles.asp?artsec=16&artnum=1&issue=20080918

 

Analysis: Washington’s Trillion Dollar Wall Street Bailout

James Pethokoukis

“…Is a bailout necessary?
Look, the financial system probably couldn’t take another week like the one we just went through. Stocks plunging, credit markets freezing. As economist Robert Brusca puts it, “The proposed US government rescue plan comes at the end of a week of almost unprecedented turmoil on world financial markets amid a crisis of confidence in banks.”

The government had to get ahead of the curve and quit reacting on a case-by-case basis. If you look at banking crises in Japan and Sweden, for instance, all roads eventually led to a government bailout with taxpayer money at risk. The rule in these cases seems to be the sooner, the better. If you want more evidence, markets around the world and here in the United States are soaring on this news. Strategist Richard Bernstein of Merrill Lynch, in a research note, says the bailout plan is “an opportunity for the government to solve the on-going problems through one system-wide solution.” …”

“…As long as we have markets and humans there will be bubbles, whether in stocks, homes, Beanie Babies, tulips, or whatever. But as far as the housing/credit bubbles go, I think it could have been avoided. Alan Greenspan cut rates too low and left them there for too long, creating an extreme financial situation that Wall Street tried to profit from. Uncle Sam also fed into that market distortion by making greater homeownership a national goal, using both tax policy and the regulation like the Community Reinvestment Act to, essentially, push capital into homes. And were regulators as tough as they could have been? Obviously not. …”

http://www.usnews.com/blogs/capital-commerce/2008/9/19/analysis-washingtons-trillion-dollar-wall-street-bailout.html

 

More on the diversity racket and the home loan debacle

By Michelle Malkin  

 

“…Referencing my column yesterday on illegal immigration and the mortgage mess, Hans Bader at Open Market shares his experience. I’ve been getting a lot of e-mails with similar stories. Tip of the iceberg:

When I and my wife, a legal alien, bought our house, the mortgage company told me that if my wife were an illegal alien, rather than legal, we would have qualified for certain loan programs with big banks. But because she was a legal alien waiting for her green-card (which she had recently applied for), we didn’t qualify.

Mark Krikorian, an activist against illegal immigration, argues that “we’re in this mess, ultimately, because our political elites thought it was good social policy to encourage banks to give mortgages to uncreditworthy people, resulting in what Sailer months ago called the “Diversity Recession” (if this doesn’t work, make that the Diversity Depression). In other words, if poor people in general, or blacks or Hispanics in particular, were less likely to be approved for a mortgage, the only possible reason was racism or classism or whatever. Thus ‘creditworthiness’ was an illegitimate, dead-white-male concept, like middleclassness. Because, after all, isn’t everyone entitled to credit?” …”

 

The Mother of All Bailouts = The Death of Fiscal Conservatism 

“…Bush Treasury Secretary Hank Paulson just wrapped up his press conference announcing the Mother of All Bailouts. He said a “bold” approach was needed to achieve “stability” in the market.

Let me translate that.

“Bold” = Massively massive, taxpayer-funded rescue.

“Stability” = Privatizing profits and socializing losses on a scale we have never seen before in our lifetimes.

I have had it with Pollyanna conservatives who continue to parrot the “fundamentals of the market are great!” line.

The fundamentals of the market suck. The fundamentals of capitalism have been sabotaged.

Yes, yes, crony Democrats are to blame for much of how we got here. You don’t need to recite all the talking points back to me. I’ve been writing about the Fannie/Freddie debacle for years.

But it is September 19, 2008. And this is a Republican White House presiding over the Mother of All Bailouts. Every step along the way since stimuluspalooza began last summer, we’ve heard that every bailout step was just a one-off. Each step was supposed to calm the markets. Each new government intervention and allocation of taxpayer dollars was supposed to achieve “stability.” Each new package of goodies rewarding irresponsible behavior and bad financial decisions was supposed to prevent new ones. …”

http://michellemalkin.com/2008/09/19/the-mother-of-all-bailouts-the-death-of-fiscal-conservatism/

Chain of Blame: How Wall Street Caused the Mortgage Crisis.

 

Deconstructing the Subprime Crisis

 

Joseph Gyourko on Fannie, Freddie, and the Housing Bust

 

Franklin Allen on Past Crises

 

Franklin Allen on Lessons from the Subprime Crisis

 

Jeremy Siegel on the Resilience of American Finance

 

Richard Herring on Mortgage-backed Securities

Susan Wachter on Securitizations and Deregulation

 

Wall Street’s Day of Reckoning: The Fannie & Freddie Bailout

 

Housing Bailout For Deadbeats Gamblers Liars Thieves

 

 

Part 1 – Exposing Fannie Mae and Freddie Mac: Origins

New York Investing meetup organizer Daryl Montgomery discusses the origins of Fannie Mae and Freddie Mac in the first episode of a multi-part series. The New York Investing meetup is an organization of 1800 independent traders and investors that provides unbiased stock market education and analysis. We also have a blog,”The Helicopter Economics Investing Guide” which can be found at:

http://nyinvestingmeetup.blogspot.com

 

Part 2 – Exposing Fannie Mae and Freddie Mac: Origins

 

Part 3 – Exposing Fannie Mae and Freddie Mac: Origins

 

Part 4 – Exposing Fannie Mae and Freddie Mac: Origins

 

Part 5 – Exposing Fannie Mae and Freddie Mac: Origins

 

The Big Lie – The U.S. GDP Figures

 

Patrick Byrne and Don Harrold – Part One

 

Patrick Byrne and Don Harrold – Part Two

 

Patrick Byrne on Naked Short Selling

 

Bud Burrell on FSN about short selling, hedgefunds …P1

 

Bud Burrell on FSN about short selling, hedgefunds …P2

 

Bud Burrell on FSN about short selling, hedgefunds …P3

 

Bud Burrell on FSN about short selling, hedgefunds …P4

 

Bud Burrell on FSN about short selling, hedgefunds …P5

 

Bud Burrell on FSN about short selling, hedgefunds …P6

 

Rush On Franklin Raines

 

Hey Barack, Who’s Franklin Raines

 

LOL

Solution to Our Economic Problems…

 

Fannie Mae, Freddie Mac and Bill Clinton… 

 

Barack Obama is a freaking Socialist…

 

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