Showing posts with label Economic Crisis. Show all posts
Showing posts with label Economic Crisis. Show all posts
Friday, May 1, 2009
100 Days Of Change.....
A fellow Christian blogger DJ Black Adam has asked me on several occasions if I think Jesus would have been more pleased with McCain than Obama. My first instinct is to give a resounding heck yeah, but that would be awfully sophomoric and provincial of me because who really knows what is in the heart of a man? The best you can do is make a decision based on their respective voting records and stump speeches. Based on that alone, I am having an awfully difficult time reconciling how a person of faith (in the Lord Jesus Christ that is) could have cast a vote for Barack Obama.
Monday, April 20, 2009
If Bush Killed This Economy Then Obama Is Burying It
Charles Krauthammer wrote this op ed piece entitled Obama buries economic truth under flimsy Foundation in the Boston Herald on yesterday but I like my title better seeing as how Obama supports love to blame Bush for our current economic problems. I grow weary watching the pundits who favor PSBO defend his planned economic policies. If I hear one more Obamamanical lame-brain proclaim that this spending is necessary to get us out of our current mess I think I shall surely cuss (under my breath of course...lol) Anyway, as usual Krauthammer does an excellent job deconstructing Obama-nese.
WASHINGTON - Franklin Roosevelt gave us the New Deal. John Kennedy gave us the New Frontier. In a major domestic policy address at Georgetown University this week, Barack Obama promised - eight times - a “New Foundation.
For those too thick to have noticed this proclamation of a new era in American history, the White House Web site helpfully titled its speech excerpts “A New Foundation.”
As it happens, Obama is not the first to try this slogan. President Carter peppered his 1979 State of the Union address with five “New Foundations” (and eight more just naked “foundations”). Like most of Carter’s endeavors, this one failed, perhaps because (as I recall it being said at the time) it sounded like the introduction of a new kind of undergarment.
Undaunted, Obama offered his New Foundation speech as the complete, contextual, canonical text for the domestic revolution he aims to enact. It had everything we have come to expect from Obama:
The Whopper: The boast that he had “identified $2 trillion in deficit reductions over the next decade.” It takes audacity to repeat this after it had been so widely exposed as transparently phony. Most of this $2 trillion is conjured up by refraining from spending $180 billion a year for 10 more years of surges in Iraq.
The Puzzler: He further boasted of his frugality by saying that his budget would reduce domestic discretionary spending as a share of GDP to the lowest level ever recorded. Amazing. Squeezing discretionary domestic spending at a time of hugely expanding budgets is merely the baleful residue of out-of-control entitlements and debt service, which will increase astronomically under Obama. To claim these as achievements in fiscal responsibility is testament not to Obama’s frugality but to his brazenness.
The Swindle: The Obama administration is spending money like none other in peacetime history. Obama is smart. He knows this is fiscally unsustainable. He has let it be known privately and publicly that he intends to cure the imbalance with entitlement reform.
An excellent strategy. If it takes throwing nearly $1 trillion of “porky” (to quote Sen. Charles Schumer) stimulus spending to soften up a Democratic Congress and make it amenable to real entitlement reform, then fine. Reforming Social Security, Medicare and Medicaid would save tens of trillions of dollars and make the current money-from-helicopters spending almost trivial by comparison.
In the New Foundation speech, Obama correctly (again) identifies the skyrocketing cost of Medicare and Medicaid as the key fiscal problem. But then he claims that Medicaid and Medicare reform is the same as his health-care reform, fatuously citing as his authority a one-day meeting of hand-picked interested parties at his “Fiscal Responsibility Summit.”
Here’s the problem. The heart of Obama’s health-care reform is universality. Covering more people costs more money. That is why Obama’s budget sets aside an extra $634 billion in health-care spending, a down payment on an estimated additional spending of $1 trillion. How does the administration curtail the Medicare and Medicaid entitlement by adding yet another (now universal) health-care entitlement that its own estimate acknowledges increases costs by about $1 trillion?
This is the sand on which the new foundation is constructed. Obama has the magic to make words mean almost anything. Numbers are more resistant to his charms.(Source) - emphasis added
WASHINGTON - Franklin Roosevelt gave us the New Deal. John Kennedy gave us the New Frontier. In a major domestic policy address at Georgetown University this week, Barack Obama promised - eight times - a “New Foundation.
For those too thick to have noticed this proclamation of a new era in American history, the White House Web site helpfully titled its speech excerpts “A New Foundation.”
As it happens, Obama is not the first to try this slogan. President Carter peppered his 1979 State of the Union address with five “New Foundations” (and eight more just naked “foundations”). Like most of Carter’s endeavors, this one failed, perhaps because (as I recall it being said at the time) it sounded like the introduction of a new kind of undergarment.
Undaunted, Obama offered his New Foundation speech as the complete, contextual, canonical text for the domestic revolution he aims to enact. It had everything we have come to expect from Obama:
The Whopper: The boast that he had “identified $2 trillion in deficit reductions over the next decade.” It takes audacity to repeat this after it had been so widely exposed as transparently phony. Most of this $2 trillion is conjured up by refraining from spending $180 billion a year for 10 more years of surges in Iraq.
The Puzzler: He further boasted of his frugality by saying that his budget would reduce domestic discretionary spending as a share of GDP to the lowest level ever recorded. Amazing. Squeezing discretionary domestic spending at a time of hugely expanding budgets is merely the baleful residue of out-of-control entitlements and debt service, which will increase astronomically under Obama. To claim these as achievements in fiscal responsibility is testament not to Obama’s frugality but to his brazenness.
The Swindle: The Obama administration is spending money like none other in peacetime history. Obama is smart. He knows this is fiscally unsustainable. He has let it be known privately and publicly that he intends to cure the imbalance with entitlement reform.
An excellent strategy. If it takes throwing nearly $1 trillion of “porky” (to quote Sen. Charles Schumer) stimulus spending to soften up a Democratic Congress and make it amenable to real entitlement reform, then fine. Reforming Social Security, Medicare and Medicaid would save tens of trillions of dollars and make the current money-from-helicopters spending almost trivial by comparison.
In the New Foundation speech, Obama correctly (again) identifies the skyrocketing cost of Medicare and Medicaid as the key fiscal problem. But then he claims that Medicaid and Medicare reform is the same as his health-care reform, fatuously citing as his authority a one-day meeting of hand-picked interested parties at his “Fiscal Responsibility Summit.”
Here’s the problem. The heart of Obama’s health-care reform is universality. Covering more people costs more money. That is why Obama’s budget sets aside an extra $634 billion in health-care spending, a down payment on an estimated additional spending of $1 trillion. How does the administration curtail the Medicare and Medicaid entitlement by adding yet another (now universal) health-care entitlement that its own estimate acknowledges increases costs by about $1 trillion?
This is the sand on which the new foundation is constructed. Obama has the magic to make words mean almost anything. Numbers are more resistant to his charms.(Source) - emphasis added
Thursday, March 26, 2009
Conservative Brother Asks Will The United States Follow in The Footsteps of Zimbabwe
Conservative Brother who blogs at Wake Up Black America posts the video below and writes:
"In the "error" of "Hope and Change, it looks like we are well on our way. It breaks my heart to watch this, but this is something people really need to learn from. Obama's reckless spending is already causing inflationary pressure at the wholesale level. People that have money invested for retirement better take note. You can't protect the valuation of your money from inflation. Inflation is almost like pouring acid on your money and watching it dissolve right in front of your eyes. Japan is called an industrialized power, yet look at the valuation of the Yen. Imagine a day when the dollar will be worth a quarter. Notice that oil prices are going back up, yet the demand has stayed low due to the worldwide recession. Oil prices act inversely to the fluctuation in the dollar. This is the bottom line as best as I can put it. The recovery of the economy is the least of the problems Americans have to worry about." (Source)
"In the "error" of "Hope and Change, it looks like we are well on our way. It breaks my heart to watch this, but this is something people really need to learn from. Obama's reckless spending is already causing inflationary pressure at the wholesale level. People that have money invested for retirement better take note. You can't protect the valuation of your money from inflation. Inflation is almost like pouring acid on your money and watching it dissolve right in front of your eyes. Japan is called an industrialized power, yet look at the valuation of the Yen. Imagine a day when the dollar will be worth a quarter. Notice that oil prices are going back up, yet the demand has stayed low due to the worldwide recession. Oil prices act inversely to the fluctuation in the dollar. This is the bottom line as best as I can put it. The recovery of the economy is the least of the problems Americans have to worry about." (Source)
Right Wing Echo Chamber, Loons, Fear Mongers....NOT!!!
According to Matthew Yglesias the hoopla stirring regarding China, Geithner, and global currency is all a vast right-wing echo chamber conspiracy and in the article Right-Wing Echo Chamber Fomenting Panic About Fake Sino-Russian Global Currency Plan he colors the right as fanatical loons just trying to make "The One" look bad. Likewise my friend DJ Black Adam writes the following on his blog:
"How about, instead of the right wasting time and energy on trying to prove that President Obama is a "Socialist" from the internationally acclaimed "Chicago Socialist School of Richard J. Daley," perhaps...I don't know...actually try providing alternatives to mitigate the movements of the extreme left (which, I'm sorry to inform you Barack is NOT a part of). "
First of all Mr. Yglesias if you read the statement by Zhou Xiachuan of the People's Bank of China here, you will find that the goal is to replace the dollar with a new reserve currency, because the Chinese are worried that Obama is destroying the viability of the dollar as a common currency for international transactions. Please refrain from lambasting the right wing for doing the job that the MSM in this country has abdicated (too bad we don't get paid for this).
DJ Black Adam it's really immaterial whether or not PSBO is a socialist in the purest sense or not. Define him however you'd like but the fact of the matter is that the US in on shaky financial ground. Yet we continue to go into debt with China and the success of our Treasury bond sales depends on the good will of China's Gao Xiqing, who controls over $700,000,000,000 of outstanding US treasury notes and who reportedly is a hard core Chinese Communist who regards America as China's enemy. Paul Shlicta maintains in his article the BC Bubble at the American Thinker that Barack Obama is continuing to push his irresponsible budget for one or all of the following reasons:
1. He is too naïve or ignorant to understand what he is risking.
2. He knows but doesn't care, being interested only in what looks good for the moment.
3. He wants to cause inflation, because inflation favors debtors and the biggest debtor in the United States is the United States. Moreover, inflation leads to devaluation of the dollar, which, as James Lewis recently pointed out, is one of the key objectives of puppet master George Soros. 4. He wants to provoke a crisis of capitalism, as James Simpson has already suggested. (Source)
Whatever the reason, the effects could be devastating. So you can call us looney if you'd like but I believe to use your words "ALL of Americans (right, left, white, black, pepsi, coke, McDonald's, Burger King)" will be effected by his decisions. I'm not trying to cause fear and panic---just awareness. Let's not crucify the truth because it's unpleasant.
"How about, instead of the right wasting time and energy on trying to prove that President Obama is a "Socialist" from the internationally acclaimed "Chicago Socialist School of Richard J. Daley," perhaps...I don't know...actually try providing alternatives to mitigate the movements of the extreme left (which, I'm sorry to inform you Barack is NOT a part of). "
First of all Mr. Yglesias if you read the statement by Zhou Xiachuan of the People's Bank of China here, you will find that the goal is to replace the dollar with a new reserve currency, because the Chinese are worried that Obama is destroying the viability of the dollar as a common currency for international transactions. Please refrain from lambasting the right wing for doing the job that the MSM in this country has abdicated (too bad we don't get paid for this).
DJ Black Adam it's really immaterial whether or not PSBO is a socialist in the purest sense or not. Define him however you'd like but the fact of the matter is that the US in on shaky financial ground. Yet we continue to go into debt with China and the success of our Treasury bond sales depends on the good will of China's Gao Xiqing, who controls over $700,000,000,000 of outstanding US treasury notes and who reportedly is a hard core Chinese Communist who regards America as China's enemy. Paul Shlicta maintains in his article the BC Bubble at the American Thinker that Barack Obama is continuing to push his irresponsible budget for one or all of the following reasons:
1. He is too naïve or ignorant to understand what he is risking.
2. He knows but doesn't care, being interested only in what looks good for the moment.
3. He wants to cause inflation, because inflation favors debtors and the biggest debtor in the United States is the United States. Moreover, inflation leads to devaluation of the dollar, which, as James Lewis recently pointed out, is one of the key objectives of puppet master George Soros. 4. He wants to provoke a crisis of capitalism, as James Simpson has already suggested. (Source)
Whatever the reason, the effects could be devastating. So you can call us looney if you'd like but I believe to use your words "ALL of Americans (right, left, white, black, pepsi, coke, McDonald's, Burger King)" will be effected by his decisions. I'm not trying to cause fear and panic---just awareness. Let's not crucify the truth because it's unpleasant.
Tuesday, February 24, 2009
John Hawkins: Fifteen Reasons I'm Already Tired of The Obama Era
Mr. Hawkins list is listed below(You will find my two cents in red):
15) The stimulus bill is the single largest spending bill in the history of humankind and yet, Obama is running around telling everyone how he's going to cut the deficit in a few years. Obama claiming to be a deficit hawk -- that's like getting a lecture on honesty from Bill Clinton. (He is pissing on America's leg and telling us it's raining -- what's worse is that many American's believe him!)
14) ACORN, which engaged in large scale voter fraud during the 2008 election that won't be seriously investigated because Obama is in the White House, is now unapologetically breaking into houses across the country and encouraging squatters. Apparently, if you're a liberal group, you are above the law as long as the Obama administration is in the White House.
13) Despite the fact that America just conclusively proved it's not a racist nation by electing the first black President, race hustling bottom feeders like Al Sharpton and Julian Bond are making ridiculous charges of racism over an obviously non-racial cartoon. I thought the implicit promise of the Left was that electing Obama would put the race hustlers out of business? (Why, would he think that? Black folks are indoctrinated in our schools, churches, and family reunions to "never forget" so and we won't--unfortunately. I don't mean to diminish the struggle of our ancestors but we need to move forward at some point.)
12) Despite all the doomsday talk that we're hearing about how only European style socialism can save us from another depression, this recession isn't even close to being as bad as the one we endured in the early eighties. The utter lack of perspective about this topic is disturbing. (PSBO knows this but he is counting on the willful ignorance of his acolytes who will promulgate this propaganda)
11) Barack Obama has already broken more campaign promises in a month than George Bush did in eight years. He's a living, breathing example of everything people hate about politics. He's habitually dishonest, will say anything if it benefits him politically, and he has already doled out more taxpayer money to his supporters via the stimulus bill than any politician in history.
10) Many of the same moderate Republicans who helped destroy the party over the last 4 years by pushing big spending, big government, pro-illegal immigration policies, and worst of all, John McCain, are once again declaring that the solution to our problems is to pursue many of the same policies that allowed the Democrats to take almost total control of D.C. "Thanks, but no thanks" for the "helpful" advice. (That's because they are not fiscally conservative -- they should not be re-elected)
9) It's grotesque to see the worshipful treatment Obama is getting. It seems like his face is on the cover of half the magazines in the country, the press treats him with kid gloves, and they're naming schools after him. Meanwhile, he's just another sleazy politician who has yet to show an aptitude for much of anything other than reading off of a teleprompter. (Lawd knows this is the beautiful truth!!!)
8) In what is sure to be the first of many betrayals, Arlen Specter, Olympia Snowe, and Susan Collins sold the Republican Party and the American people down the river on the stimulus package. The amazing thing was not that they caved, since it has come to be expected from those three, but that they prostituted themselves to the Democrats so cheaply. Had they simply held out for another week or two, they could have given the GOP much more leverage, shaved at least another hundred billion off the stimulus package, and could have acquired tens of millions more in goodies for their constituents.
7) The Treasury Secretary, Tim Geithner, is a tax cheat. Let me repeat that: Timothy Geithner, the guy who is the head honcho of the IRS, is a tax cheat. One more time, Tim Geithner, the guy who will be in charge when the Obama administration institutes what will probably be the single largest tax increase in American history, later in Obama's first term, is a tax cheat. (I'll repeat it too...THE HEAD OF THE IRS TIM GEITHNER, PSBO'S APPOINTEE IS A TAX CHEAT)
6) Despite the fact that the Big 3 automakers have been so thoroughly destroyed by the unions that work for them that they have to come begging for billions per month just to survive, the Democratic Party is getting ready to try to ram a card check bill through the Senate that would expand the presence of unions all across the country. That's like finding a turd in the punch bowl and just tossing it into the lemonade. (lol, that was pretty funny)
5) The single most successful program of the Clinton years, welfare reform, has already been essentially repealed with no debate via the stimulus package. It's part of Obama's attempt to radically transform the country before the American people fully realize what's happening. So far, judging by the lack of discussion over welfare reform, it seems to be working. (Norman Thomas, A US Socialist Party Presidential candidate in the 1940's said this:"The American people will never knowingly adopt socialism,....But under the name of ‘liberalism,’ they will adopt every fragment of the socialist program, until one day, America will be a socialist nation, without knowing how it happened.”)
4) The very same government that destroyed the banking industry by forcing it to make loans to people who couldn't pay them back is now using the very crisis it created to try to nationalize the banking industry. This is like making an arsonist the new fire chief after he burned down the fire station and 3-4 city blocks surrounding it.
3) Barack Obama is like Jimmy Carter on speed. In anticipation of the American people vomiting at the mere mention of his name in the future, he's trying to cram every single thing on the liberal wish list through so fast that our legislators don't even have time to read the bills that they're voting on. (Not sure I agree completely, I think the liberals who control the indoctrination of children in the public schools will make sure that PSBO looks good throughout the annals of history)
2) We're literally going to spend hundreds of billions of dollars rewarding people for failing to pay their mortgages. Granted, they're not going to admit to that, but when people who pay their mortgages on time get nothing while people who aren't paying their mortgages get a break, courtesy of their fellow citizens' tax dollars, what else can it be called other than a reward for irresponsibility? (Well, Saul Alinsky -- de facto PSBO would call it mission accomplished! Alinsky's modis operandi included going for the jugular of the middle class)
1) Prior to the stimulus bill being passed, the Congressional Budget Office estimated that the recession we're in would be over by the 2nd half of 2009. In other words, we're going to spend 1.2 trillion dollars on a stimulus bill and best case scenario, it could pull us out of a recession 3-6 months early. Of course, it seems more likely that all the government interference and massive increases in debt could extend, rather than shorten the length of the recession. If we're not out of it by 2010, we know who deserves the blame. (This DJBA is why the "pinheads" on Fox are calling it "Obama's Recession")
15) The stimulus bill is the single largest spending bill in the history of humankind and yet, Obama is running around telling everyone how he's going to cut the deficit in a few years. Obama claiming to be a deficit hawk -- that's like getting a lecture on honesty from Bill Clinton. (He is pissing on America's leg and telling us it's raining -- what's worse is that many American's believe him!)
14) ACORN, which engaged in large scale voter fraud during the 2008 election that won't be seriously investigated because Obama is in the White House, is now unapologetically breaking into houses across the country and encouraging squatters. Apparently, if you're a liberal group, you are above the law as long as the Obama administration is in the White House.
13) Despite the fact that America just conclusively proved it's not a racist nation by electing the first black President, race hustling bottom feeders like Al Sharpton and Julian Bond are making ridiculous charges of racism over an obviously non-racial cartoon. I thought the implicit promise of the Left was that electing Obama would put the race hustlers out of business? (Why, would he think that? Black folks are indoctrinated in our schools, churches, and family reunions to "never forget" so and we won't--unfortunately. I don't mean to diminish the struggle of our ancestors but we need to move forward at some point.)
12) Despite all the doomsday talk that we're hearing about how only European style socialism can save us from another depression, this recession isn't even close to being as bad as the one we endured in the early eighties. The utter lack of perspective about this topic is disturbing. (PSBO knows this but he is counting on the willful ignorance of his acolytes who will promulgate this propaganda)
11) Barack Obama has already broken more campaign promises in a month than George Bush did in eight years. He's a living, breathing example of everything people hate about politics. He's habitually dishonest, will say anything if it benefits him politically, and he has already doled out more taxpayer money to his supporters via the stimulus bill than any politician in history.
10) Many of the same moderate Republicans who helped destroy the party over the last 4 years by pushing big spending, big government, pro-illegal immigration policies, and worst of all, John McCain, are once again declaring that the solution to our problems is to pursue many of the same policies that allowed the Democrats to take almost total control of D.C. "Thanks, but no thanks" for the "helpful" advice. (That's because they are not fiscally conservative -- they should not be re-elected)
9) It's grotesque to see the worshipful treatment Obama is getting. It seems like his face is on the cover of half the magazines in the country, the press treats him with kid gloves, and they're naming schools after him. Meanwhile, he's just another sleazy politician who has yet to show an aptitude for much of anything other than reading off of a teleprompter. (Lawd knows this is the beautiful truth!!!)
8) In what is sure to be the first of many betrayals, Arlen Specter, Olympia Snowe, and Susan Collins sold the Republican Party and the American people down the river on the stimulus package. The amazing thing was not that they caved, since it has come to be expected from those three, but that they prostituted themselves to the Democrats so cheaply. Had they simply held out for another week or two, they could have given the GOP much more leverage, shaved at least another hundred billion off the stimulus package, and could have acquired tens of millions more in goodies for their constituents.
7) The Treasury Secretary, Tim Geithner, is a tax cheat. Let me repeat that: Timothy Geithner, the guy who is the head honcho of the IRS, is a tax cheat. One more time, Tim Geithner, the guy who will be in charge when the Obama administration institutes what will probably be the single largest tax increase in American history, later in Obama's first term, is a tax cheat. (I'll repeat it too...THE HEAD OF THE IRS TIM GEITHNER, PSBO'S APPOINTEE IS A TAX CHEAT)
6) Despite the fact that the Big 3 automakers have been so thoroughly destroyed by the unions that work for them that they have to come begging for billions per month just to survive, the Democratic Party is getting ready to try to ram a card check bill through the Senate that would expand the presence of unions all across the country. That's like finding a turd in the punch bowl and just tossing it into the lemonade. (lol, that was pretty funny)
5) The single most successful program of the Clinton years, welfare reform, has already been essentially repealed with no debate via the stimulus package. It's part of Obama's attempt to radically transform the country before the American people fully realize what's happening. So far, judging by the lack of discussion over welfare reform, it seems to be working. (Norman Thomas, A US Socialist Party Presidential candidate in the 1940's said this:"The American people will never knowingly adopt socialism,....But under the name of ‘liberalism,’ they will adopt every fragment of the socialist program, until one day, America will be a socialist nation, without knowing how it happened.”)
4) The very same government that destroyed the banking industry by forcing it to make loans to people who couldn't pay them back is now using the very crisis it created to try to nationalize the banking industry. This is like making an arsonist the new fire chief after he burned down the fire station and 3-4 city blocks surrounding it.
3) Barack Obama is like Jimmy Carter on speed. In anticipation of the American people vomiting at the mere mention of his name in the future, he's trying to cram every single thing on the liberal wish list through so fast that our legislators don't even have time to read the bills that they're voting on. (Not sure I agree completely, I think the liberals who control the indoctrination of children in the public schools will make sure that PSBO looks good throughout the annals of history)
2) We're literally going to spend hundreds of billions of dollars rewarding people for failing to pay their mortgages. Granted, they're not going to admit to that, but when people who pay their mortgages on time get nothing while people who aren't paying their mortgages get a break, courtesy of their fellow citizens' tax dollars, what else can it be called other than a reward for irresponsibility? (Well, Saul Alinsky -- de facto PSBO would call it mission accomplished! Alinsky's modis operandi included going for the jugular of the middle class)
1) Prior to the stimulus bill being passed, the Congressional Budget Office estimated that the recession we're in would be over by the 2nd half of 2009. In other words, we're going to spend 1.2 trillion dollars on a stimulus bill and best case scenario, it could pull us out of a recession 3-6 months early. Of course, it seems more likely that all the government interference and massive increases in debt could extend, rather than shorten the length of the recession. If we're not out of it by 2010, we know who deserves the blame. (This DJBA is why the "pinheads" on Fox are calling it "Obama's Recession")
Friday, October 24, 2008
No, You Can't Legislate Morality - Neither Can You Legislate Utopia
Check out this video entitled "The Winds Of Change: Our Fight For Economic Freedom" produced by "The MouthPeace":
This goes quickly steady your finger on the pause key...
Powerful isn't it?
This goes quickly steady your finger on the pause key...
Powerful isn't it?
Sunday, October 5, 2008
Wednesday, October 1, 2008
The Audacity of Hope-o-crisy...An Explanation of Our Economic Crisis
This video explains in detail our current economic crisis. However, for those of you who do not have 10 mins. and 51 seconds, suffer from ADD or just can't endure the accompanying music, I have summarized for you at the bottom of this post:
Here is the breakdown for you like a fraction:
1. The current economic crisis was caused by the housing bubble.
2. The housing bubble was caused by subprime mortgages to low income and bad credit borrowers.
3. Jimmy Carter and the democrats passed the Community Reinvestment Act (CRA) which gave incentives to banks to help low income borrowers get a home. (That was a good thing)
4. In 1995 the Clinton Administration added new provisions to the CRA which forced banks to offer $1 trillion (I don't even know how many zeros that is!!!) in new subprime loans and created subprime mortgage backed securities or face severe penalties thus forcing neighborhood banks into predatory lending (Why? Because they focused on low income bad credit types)
5. Fannie Mae & Freddie Mac (Government Sponsored Enterprise - GSE) added fuel to the fire by guaranteeing these loans (oh, boy!) bundling and selling on Wall St. (pretty darn profitable).
6. More mortgages meant more money for Fannie & Freddie so they wanted to increase the number of mortgages (greed) but how? They lowered the bar... moved down the income scale with "affordable mortgages" in the form of Variable rate, interest only, option arm, stated income, no money down loans.
7. Bustling activity in the housing market with the influx of new buyers (who would not have normally qualified) more demand than availability forcing prices to skyrocket (remember, Econ 101 law of supply & demand)
8. Then the variable rate loans reset and interest rate increased, gas prices shot up (because America is addicted to foreign oil), paychecks are squeezed and people stop paying, banks stop lending, subprime market collapses, foreclosures pile up, no buyers (remember subprime is dead) only seller, housing prices fall, more buyers stop paying (because they realize that their loan is upside down and it's cheaper to rent).
9. Fannie's guarantee is worthless, why -- because they overstated their assets!!! (These criminals to be discussed later)
10. Banks closed due to worthless gov't backed securities, jobs are lost and here we are.
11. Why is the expansion of the CRA to blame? Because prior to CRA expansion (Clinton Admin) home prices increased with inflation afterwards home prices became unhinged from inflation (see #7) causing housing prices to rise too fast and reckless speculation. A bubble waiting to burst.....
12. This could have been avoided in fact in 2003 Pres. Bush tried to stop it and the dems blocked him and in 2005 Sen. McCain co-sponsored a bill (The Housing Enterprise Regulatory Act of 2005) which would have stopped it but the dems blocked that too. Who? Barney Frank (D-MA) and Melvin Watt (D-NC) to name a few.
13. See, Fannie had friends in the Senate -- Chris Dodd (received sweet heart loan from Countrywide), and Barack Obama.
14. Jim Johnson who just happened to be the CEO of Fannie when CRA was expanded, improperly deferred $200 million in expenses and Fannie Mae under-reported his compensation originally reported at $6-7 million but was actually $21 million (avarice and corruption at it's best) oh, this is the guy that Barack Obama chose to pick his VP and he gave Obama the maximum donation of $4600. He now works for Goldman Sachs which gave Barack Obama $700,000 and raised another $500,000 through bundling (It pays to have corrupt friends doesn't it?)
15. Barack Obama has another friend Franklin Reines who he receives housing advise from who also happened to be the Vice Chairman of Fannie when CRA was expanded (Do you smell something rancid here?) Reines also received a sweet heart loan and resigned from Fannie due to accounting irregularities with a $25 million dollar golden parachute.
16. Barack Obama received more campaign money in just 3 years than John Kerry did in 20 years from Fannie & Freddie. He received 49 times more than John McCain. (Would you like to take a guess why? I guess calling for more regulation doesn't pay, huh)
17. Barack Obama also worked for Miner, Barnhill & Galland which sued banks (CitiBank being one of them) for not issuing enough subprime loans.
18.Neither poor people, the free-market, or deregulation caused this. A bad government regulation caused this, self-interested lawyers caused this, greed and stupidity on wall street caused this, and bad social engineering caused this creating an environment and the wrong incentive (CRA) which forced banks into predatory lending and set low income families up for failure. That's not hope and that's not change that's cruelty.
Barack Obama's friends caused this; the political philosophy to which he ascribes caused this. He has the audacity to lecture the country on failed economic policies! This is not change it is more of the same. It is hypocrisy -- It is hope-o-crisy!
Here is the breakdown for you like a fraction:
1. The current economic crisis was caused by the housing bubble.
2. The housing bubble was caused by subprime mortgages to low income and bad credit borrowers.
3. Jimmy Carter and the democrats passed the Community Reinvestment Act (CRA) which gave incentives to banks to help low income borrowers get a home. (That was a good thing)
4. In 1995 the Clinton Administration added new provisions to the CRA which forced banks to offer $1 trillion (I don't even know how many zeros that is!!!) in new subprime loans and created subprime mortgage backed securities or face severe penalties thus forcing neighborhood banks into predatory lending (Why? Because they focused on low income bad credit types)
5. Fannie Mae & Freddie Mac (Government Sponsored Enterprise - GSE) added fuel to the fire by guaranteeing these loans (oh, boy!) bundling and selling on Wall St. (pretty darn profitable).
6. More mortgages meant more money for Fannie & Freddie so they wanted to increase the number of mortgages (greed) but how? They lowered the bar... moved down the income scale with "affordable mortgages" in the form of Variable rate, interest only, option arm, stated income, no money down loans.
7. Bustling activity in the housing market with the influx of new buyers (who would not have normally qualified) more demand than availability forcing prices to skyrocket (remember, Econ 101 law of supply & demand)
8. Then the variable rate loans reset and interest rate increased, gas prices shot up (because America is addicted to foreign oil), paychecks are squeezed and people stop paying, banks stop lending, subprime market collapses, foreclosures pile up, no buyers (remember subprime is dead) only seller, housing prices fall, more buyers stop paying (because they realize that their loan is upside down and it's cheaper to rent).
9. Fannie's guarantee is worthless, why -- because they overstated their assets!!! (These criminals to be discussed later)
10. Banks closed due to worthless gov't backed securities, jobs are lost and here we are.
11. Why is the expansion of the CRA to blame? Because prior to CRA expansion (Clinton Admin) home prices increased with inflation afterwards home prices became unhinged from inflation (see #7) causing housing prices to rise too fast and reckless speculation. A bubble waiting to burst.....
12. This could have been avoided in fact in 2003 Pres. Bush tried to stop it and the dems blocked him and in 2005 Sen. McCain co-sponsored a bill (The Housing Enterprise Regulatory Act of 2005) which would have stopped it but the dems blocked that too. Who? Barney Frank (D-MA) and Melvin Watt (D-NC) to name a few.
But I know the naysayers don't believe me so I can't resist showing you the proof:
13. See, Fannie had friends in the Senate -- Chris Dodd (received sweet heart loan from Countrywide), and Barack Obama.
14. Jim Johnson who just happened to be the CEO of Fannie when CRA was expanded, improperly deferred $200 million in expenses and Fannie Mae under-reported his compensation originally reported at $6-7 million but was actually $21 million (avarice and corruption at it's best) oh, this is the guy that Barack Obama chose to pick his VP and he gave Obama the maximum donation of $4600. He now works for Goldman Sachs which gave Barack Obama $700,000 and raised another $500,000 through bundling (It pays to have corrupt friends doesn't it?)
15. Barack Obama has another friend Franklin Reines who he receives housing advise from who also happened to be the Vice Chairman of Fannie when CRA was expanded (Do you smell something rancid here?) Reines also received a sweet heart loan and resigned from Fannie due to accounting irregularities with a $25 million dollar golden parachute.
16. Barack Obama received more campaign money in just 3 years than John Kerry did in 20 years from Fannie & Freddie. He received 49 times more than John McCain. (Would you like to take a guess why? I guess calling for more regulation doesn't pay, huh)
17. Barack Obama also worked for Miner, Barnhill & Galland which sued banks (CitiBank being one of them) for not issuing enough subprime loans.
18.Neither poor people, the free-market, or deregulation caused this. A bad government regulation caused this, self-interested lawyers caused this, greed and stupidity on wall street caused this, and bad social engineering caused this creating an environment and the wrong incentive (CRA) which forced banks into predatory lending and set low income families up for failure. That's not hope and that's not change that's cruelty.
Barack Obama's friends caused this; the political philosophy to which he ascribes caused this. He has the audacity to lecture the country on failed economic policies! This is not change it is more of the same. It is hypocrisy -- It is hope-o-crisy!
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