Verifiable account of the crisis If you still think Republicans are the Evil Empire and Democrats are the White Hat Guys (The White Towel Guy in case of Barrack Hussein Obama). Should you want to discuss the topic further with Rob Monaco or Raul Diaz, please email them! They will engage in a spirited and insightful discussion with you about this subject! Rob --- robmonaco@yahoo.com Raul -- Horseppl@aol.com
From: robmonaco@yahoo.com
To: robmonaco@yahoo.com
Sent: 10/4/2008 10:56:18 P.M. Eastern Daylight Time
Subj: If you didn't watch the videos
> A little long, but worth the time.
>
> I have received so many emails and information regarding
> the so called 'bail out' but if anyone is truly
> interested in the truth of this matter, this email appears
> to have enough facts that you can easily trace back the>
> problems that got us into this mess in the first place.
> It's a long read, but will interest you if you care to
> know the facts. Should you care to not know the facts, or
> are just not interested, just delete:-). Either way, I felt
> it was important to at least pass on information that has
> truth in it and is not just a batch of lies being spread
> around to protect those who have literally stolen $$ from
> us!!
>
>
> I cannot figure out why this is not being discussed on the
> media or why conservatives are not making their case: IT IS
> SO IMPORTANT!!!!! The following is a condensation of a
> series from the Investor's Business Daily explaining
> "What Caused the Loan Crisis":
>
> 1977: Pres. Jimmy Carter signs the Community Reinvestment
> Act into Law. The law pressured financial institutions to
> extend home loans to those who would otherwise not qualify.
> The Premise: Home ownership would improve poor and
> crime-ridden communities and neighborhoods in terms of
> crime, investment, jobs, etc
> .
> Results: Statistics bear out that it did not help. How did
> the government get so deeply involved in the housing market?
>
> Answer: Bill Clinton wanted it that way. 1992: Republican
> representative Jim Leach (IO) warned of the danger that
> Fannie and Freddie were changing from being agencies
> of the public at large to money machines for the
> principals and the stockholding few. 1993: Clinton
> extensively rewrote Fannie Mae and Freddie Mac's rules
> turning the quasi-private mortgage-funding firms into
> semi-nationalized monopolies dispensing cash and loans to
> large Democratic voting blocks and handing favors, jobs and
> contributions to political allies. This potent mix led
> inevitably to corruption and now the collapse of Freddie and
> Fannie.
>
> 1994: Despite warnings, Clinton unveiled his National
> Home-Ownership Strategy which broadened the CRA in ways
> congress never intended.
>
> 1995: Congress, about to change from a Democrat majority
> to Republican, Clinton orders Robert Rubin's Treasury
> Dept to rewrite the rules. Robt. Rubin's Treasury
> reworked rules, forcing banks to satisfy quotas for
> sub-prime and minority loans to get a satisfactory CRA
> rating. The rating was key to expansion or mergers for
> banks. Loans began to be made on the basis of race and
> little else
>
> 1997 - 1999: Clinton, bypassing Republicans, enlisted
> Andrew Cuomo, then Secretary of Housing and Urban
> Development, allowing Freddie and Fannie to get into the
> sub-prime market in a BIG way. Led by Rep. Barney Frank and
> Sen. Chris Dodd, congress doubled down on the risk by
> easing capital limits and allowing them to hold just 2.5%
> of capital to back their investments 10% for banks. Since
> they could borrow at lower rates than banks their
> enterprises boomed. With incentives in place, banks poured
> billions in
> loans into poor communities, often "no doc",
> "no income", requiring no money down and no
> verification of income. Worse still was the cronyism: Fannie
> and Freddie became home to out-of work-politicians, mostly
> Clinton Democrats. 384 politicians got big campaign
> donations from Fannie and Freddie. Over $200 million had
> been spent on lobbying and political activities. During the
> 1990's Fannie and Freddie enjoyed a subsidy of as much
> as $182 Billion, most of it going to principals and
> shareholders, not poor borrowers as claimed. Did it work?
> Minorities made up 49% of the 12.5 million new homeowners
> but many of those loans have gone bad and the minority home
> ownership rates are shrinking fast.
>
> 1999: New Treasury Secretary, Lawrence Summers, became
> alarmed at Fannie and Freddie's excesses. Congress held
> hearings the ensuing year but nothing was done because
> Fannie and Freddie had donated millions to key congressmen
> and radical groups, ensuring no meaningful changes would
> take place. "We manage our political risk with the same
> intensity that we manage our credit and interest rate
> risks," Fannie CEO Franklin Raines, a former Clinton
> official and current Barack Obama advisor, bragged to
> investors in 1999. 2000: Secretary Summers sent
> Undersecretary Gary Gensler to Congress seeking an end to
> the "special status". Democrats raised a ruckus
> as did Fannie and Freddie, headed by politically connected
> CEO's who knew how to> reward and punish. "We
> think that the statements evidence a contempt for the
> nation's housing and mortgage markets" Freddie
> spokesperson Sharon McHale said. It was the last chance
> during the Clinton era for reform.
>
> 2001: Republicans try repeatedly to bring fiscal sanity to
> Fannie and Freddie but Democrats blocked any attempt at
> reform; especially Rep. Barney Frank and Sen.Chris Dodd who
> now run key banking committees and were huge beneficiaries
> of campaign contributions from the mortgage giants. 2003:
> Bush proposes what the NY Times called "the most
> significant regulatory overhaul in the housing finance
> industry since the savings and loan crisis a decade
> ago". Even after discovering a scheme by Fannie and
> Freddie to overstate earnings by $10.6 billion to boost
> their bonuses, the Democrats killed reform.
>
> 2005: Then Fed chairman Alan Greenspan warns Congress:
> "We are placing the total financial system at
> substantial risk". Sen. McCain, with two others,
> sponsored a Fannie/Freddie reform bill and 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". Sen. Harry Reid
> accused the GOP ;of trying to "cripple the ability of
> Fannie and Freddie to carry out their mission of expanding
> home ownership" The bill went nowhere. 2007: By now
> Fannie and Freddie own or guarantee over HALF of the $12
> trillion US mortgage market. The mortgage giants, whose
> executive suites were top-heavy with former Democratic
> officials, had been working with Wall St. to repackage the
> bad loans and sell them to
> investors. As the housing market fell in '07, sub
> prime mortgage portfolios suffered major losses. The crisis
> was on, though it was 15 years in the making. 2008: McCain
> has repeatedly called for reforming the behemoths, Bush
> urged reform 17 times. Still the media have repeated
> Democrats' talking points about this being a
> "Republican" disaster. A
> few Republicans are complicit but Fannie and Freddie were
> created by Democrats, regulated by Democrats, largely run by
> Democrats and protected by Democrats. That's why
> taxpayers are now being asked for $700 billion!! If you
> doubt any of this, just click the links below and listen to
> your lawmakers own words. They are condemning!
>
> http://www.youtube.com/watch?v=68D9XrqyrWo&feature=related#
>
>
> http://www.youtube.com/watch?v=pIgqfM5C8lY#
> > > >
> >
> http://www.youtube.com/watch?v=H9juJr8CSY4&feature=related#
>
> Postscript: ACORN is one of the principle beneficiaries
> of Fannie/ Freddie's slush funds. They are currently
> under indictment or investigation in many states. Barack
> Obama served as their legal counsel, defending their
> activities for several years.
>
> Please share this with everyone you know. Send it.
> >
> > Print it. Talk about it. America needs to know.
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