Timeline shows Bush, McCain warning Dems of financial and housing crisis; meltdown

This  video clearly shows that George Bush tried to warn Congress starting in 2001, that this economic crisis was coming, if something was not done. But Congress refused to listen, along with the arrogant, Congressman Barney Frank. This video says it all.
 
The  liberal media reportedly did not want this video on You  Tube; it was removed. 
This link is of the same  video but is routed through Canada . Everyone in  America needs to see this before it is yanked off the airwaves again

http://www.youtube.com/watch?v=cMnSp4qEXNM&NR=1

Election ’08 Backgrounder

  

Financial Crisis | Iraq | Defense | Background & Character | Judges & Courts | Energy

 

FINANCIAL CRISIS

Quick Facts:

  • Democrats created the mortgage crisis by forcing banks to give loans to people who couldn’t afford them.
  • In 2006, McCain sponsored a bill to fix the problems with Fannie Mae and Freddie Mac.  Barney Frank and other Democrats successfully opposed it.
  • Obama was one of the highest recipients of Fannie Mae and Freddie Mac donations in Congress.

Related Editorials

 

IRAQ


Quick Facts:

  • When the U.S. was on the verge of losing in Iraq, McCain chose to stand and fight.  Obama chose retreat.
  • Even after the surge succeeded, Obama told ABC’s Terry Moran he would still oppose it if he had the chance to do it all over again.

Related Editorials

 

DEFENSE

Quick Facts:

  • Obama has promised to significantly cut defense spending, including saying “I will slow our development of future combat systems.”
  • John McCain has vowed: “We must continue to deploy a safe and reliable nuclear deterrent, robust missile defenses and superior conventional forces that are capable of defending the United States and our allies.”

Related Editorials

Obama Video: Watch Now

 

 

BACKGROUND & CHARACTER

Quick Facts:

  • Obama voted “present” 135 times as a state senator, and according to David Ignatius of the Washington Post, “gained a reputation for skipping tough votes.”
  • McCain has taken stances unpopular with his own party and/or the public on controversial issues, including immigration, campaign finance reform, judicial nominations, the Iraq War and more.

Related Editorials

 

 

JUDGES & COURTS


Quick Facts:

  • In a 2001 interview, Obama said he regretted that the Supreme Court “didn’t break free from the essential constraints that were placed by the Founding Fathers in the Constitution.”
  • In the same interview, Obama criticized the Supreme Court because it “never ventured into the issues of redistribution of wealth and sort of more basic issues of political and economic justice in this society.”
  • Obama has focused on empathy, rather than legal reasoning and restraint, as his basis for appointing judges, saying, “We need somebody who’s got the heart, the empathy…to understand what it’s like to be poor, or African-American, or gay, or disabled, or old.”
  • McCain opposes judicial activism, saying, “my nominees will understand that there are clear limits to the scope of judicial power.”

Related Editorials

Obama 2001 Interview: Listen Now

 

ENERGY


Quick Facts:

  • McCain has proposed building 45 new nuclear plants by 2030 and is in favor of drilling in sectors of the Outer Continental Shelf.
  • Obama has refused to take a stand, saying only “we should explore nuclear power as part of the energy mix” and he will “look at” drilling offshore.

Related Editorials

»
McCain: The Energy Candidate

» McCain On Nukes: Yes We Can
» Breaking The Back Of High Oil

 

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Responsibility for Fannie/Freddie

Responsibility for Fannie/Freddie

Richard Baehr
Everyone who is planning to vote Democrat in order to punish Republicans for the economic meltdown needs to watch this video clip. It shows the interim director of Fannie Mae (after Franklin Raines took off with his $90 million golden parachute) addressing black caucus, whom he calls the “conscience” of Fannie Mae. The guy’s name is Mudd– perfect.

Obama is given a special introduction.
Hat tip: a reader

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

Fannie, Freddie, and the Left

Fannie, Freddie, and the Left

By John Perazzo
FrontPageMagazine.com | 10/13/2008

As evidenced by Barack Obama’s rise in the polls immediately following the financial collapse of mortgage giants Fannie Mae and Freddie Mac, few Americans understand that for many years Fannie and Freddie have been, first and foremost, tools of Democratic politicians, funders of the Democratic Party, and, in the words of a former Fannie CEO, the intimate “friends” and “family” of the Democratic Party’s left wing.

Nor are most Americans aware that Fannie and Freddie, through their eponymous grant-making foundations, have funneled literally hundreds of millions of dollars in recent years to a host of leftist groups and causes that work to promote Democratic agendas, causes, and policies. To set the record straight, it is worthwhile to examine the connections between Fannie, Freddie, and the Democratic Party.

A full account of the recent financial collapse of Fannie Mae and Freddie Mac must consider the role of the Clinton administration. As early as 1993, Clinton’s first year in office, Housing and Urban Development Secretary Henry Cisneros and Attorney General Janet Reno expressed dismay over reports that the rejection rate of black mortgage applicants nationwide was considerably higher than that of their white counterparts. In response, Reno warned that thenceforth “no bank” would be “immune” to an aggressive Justice Department campaign to punish such “discrimination” in the lending market. For emphasis, then-Assistant Attorney General Deval Patrick pledged to work for the elimination of all racial disparities in mortgage lending rejection rates.

A careful look at the facts revealed, however, that those disparities were not actually due to discrimination of any kind. Instead, they reflected the realities of borrowers’ credit-worthiness, as determined by such objective factors as credit history, debt burden, income, net worth, age, and education.

But the political champions of “racial justice” in the Clinton White House were not interested in these facts. So instead of permitting this information to change their outlook on the issue of mortgage lending, they moved ahead with their crusade to inject new energy into the so-called Community Reinvestment Act of 1977, which, according to President Clinton, had failed to live up to its potential as a vehicle for increasing minority homeownership. Thus began the government policy of forcing lenders, under threat of severe sanctions, to make subprime loans to high-risk borrowers who failed to meet traditional loan criteria. It was a policy guaranteed to create a crisis. The only question was when.

Now that the crisis has arrived, Democratic finger-pointing has become the order of the day. Leading the charge, Barack Obama not only blames Republicans, but tacitly blames capitalism as a whole, referencing it by the pejorative code name of “trickle-down” economics. Yet, Obama makes no mention of the fact that the Bush administration exhorted Congress for years to set up an agency to regulate lending institutions like Fannie Mae and Freddie Mac. Nor does he mention that John McCain demanded similar oversight, only to be rebuffed by Democrats like House Financial Services Committee Chairman Barney Frank, who continued to favor the issuance of the subprime loans that have now caused the mortgage market to collapse.

Since the 1990s, indeed, Fannie Mae and Freddie Mac have been in the Democratic Party’s hip pocket. From 1991 to 1998, for example, Fannie Mae was headed by James Johnson, a longtime aide to former Democratic vice president Walter Mondale. While dutifully following the Clinton administration’s aforementioned mandate, and thereby helping to run the mortgage lender into the ground, Johnson himself earned tens of millions of dollars in his Fannie Mae post, including $21 million in 1998 alone. Johnson made headlines this past summer when Barack Obama tapped him to chair his vice presidential selection committee. Johnson had to resign in disgrace from that position when it was revealed that he had taken at least five below-market real estate loans totaling more than $7 million from Countrywide Financial Corporation.

Johnson’s successor as Fannie Mae’s head, Franklin Raines, had previously served as a budget director to President Bill Clinton. During his years at Fannie’s helm between 1999 and 2005, Raines, while continuing the ill-advised policies that ultimately would bankrupt the company, pocketed nearly $100 million in compensation before leaving under a cloud of scandal. It seems that Raines had manipulated profit-and-loss reports so as to enable himself and other senior executives to earn enormous bonuses on top of already-high salaries – in 2003 alone, Raines received $16.8 million in cash compensation – even as the financial empire he oversaw was imploding.

Another Fannie Mae luminary was Jamie Gorelick, who served as vice chair of the mortgage lender from 1998 to 2003. Prior to that, she had been Janet Reno’s Deputy Attorney General during precisely those years when the Clinton Justice Department was aggressively compelling banks to make subprime loans to unworthy borrowers. That experience gave Gorelick valuable training for her future post at Fannie Mae, where she ultimately would increase her personal net worth by $26 million.

While the foregoing Democrats collected obscene sums of cash as reward for their complicity in the subprime mortgage debacle, by no means were they the only beneficiaries of Fannie Mae and Freddie Mac money. Between 1989 and 2008, no fewer than 354 members of Congress received funds from Fannie and Freddie. Of those, 209 were Democrats who pulled in a combined $4.84 million. The leading recipient of Fannie/Freddie money was Connecticut Democrat Chris Dodd, the Banking Committee Chairman who collected more than $165,000. Dodd opposed oversight of Fannie and Freddie and pushed hard for the continuance of subprime mortgage loans. In second place was Barack Obama, who, in just three years in the U.S. Senate, raked in $126,000. Third was Massachusetts Democrat John Kerry, with $111,000.

Republicans, too, deserve a measure of criticism. Some 143 of them received Fanny and Freddie funds totaling just under $3.02 million. Utah Republican Robert Bennett, a Senate veteran, led the GOP with $107,999 in total contributions from the mortgage giants. Two independents also took in over $28 thousand.

As further evidence of the Democrats’ role in the credit crisis, consider Fannie Mae’s intimate relationship with the Congressional Black Caucus (CBC), which represents the far-left of the Democratic Party. At a 2005 ceremony, Fannie Mae’s interim CEO Daniel Mudd told the CBC (of which Barack Obama was a new member) how deeply he valued “the friendship and partnership between Fannie Mae and the Congressional Black Caucus.” Mudd referred to the CBC not only as “good friends to Fannie Mae and our mission,” but also as Fannie Mae’s “family” and “the conscience of Fannie Mae.” (For a video of Mudd’s remarks, click here.)

Such ties represent merely the tip of the iceberg. To gain a fuller appreciation for just how closely the mortgage companies were allied with the Democratic Party and its surrogates, one might look at the grant-making arms of Fannie and Freddie — specifically, the Fannie Mae Foundation and the Freddie Mac Foundation. The former was established in 1968, the latter in 1991. Together, they hold combined assets exceeding $285 million, and each year they give tens of millions of dollars (nearly $89 million in 2006 alone) in grants to predominantly leftwing organizations that promote a host of pro-Democrat agendas. Among the groups supported by Fannie and Freddie are the American Civil Liberties Union; the NAACP and the National Urban League; left-wing financier the Tides Foundation; pro-illegal immigration groups like the Mexican American Legal Defense & Education Fund, the National Immigration Forum, and the National Council of La Raza; pro-Democratic community activist groups like the Association of Community Organizations for Reform Now (ACORN), the Center on Budget and Policy Priorities, the Center for Community Change, and the Alliance for Justice; feminist organizations like National Organization for Women and the National Women’s Law Center; and former president Jimmy Carter’s Carter Center. A comprehensive list of liberal, leftist, and pro-Democratic Fannie and Freddie grantees would fill an entire book.

During last week’s presidential debate, John McCain made a point of observing that Senator Obama and his fellow Democrats had long “defended what Fannie and Freddie were doing” and had blocked all efforts at reforming the now-notorious institutions. Obama parried the charge by insisting that American voters were “not interested in hearing politicians pointing fingers.” Obama’s defensiveness is understandable. If Americans took the time to examine the issue, they would discover that much of the blame for the current crisis belongs to the Democratic Party.


John Perazzo is the Managing Editor of DiscoverTheNetworks and is the author of The Myths That Divide Us: How Lies Have Poisoned American Race Relations. For more information on his book, click here. E-mail him at wsbooks25@hotmail.com

McCain Letter Demanded 2006 Action on Fannie and Freddie

McCain Letter Demanded 2006 Action on Fannie and Freddie

 

 

Sen. John McCain’s 2006 demand for regulatory action on Fannie Mae and Freddie Mac could have prevented current financial crisis, as HUMAN EVENTS learned from the letter shown in full text below.

McCain’s letter — signed by nineteen other senators — said that it was “…vitally important that Congress take the necessary steps to ensure that [Fannie Mae and Freddie Mac]…operate in a safe and sound manner.[and]..More importantly, Congress must ensure that the American taxpayer is protected in the event that either…should fail.”

Sen. Obama did not sign the letter, nor did any other Democrat.

The full text of the letter appears below.

 

McCain Letter

Fannie Mae fatcat/friend of Obama buys $4.9 million penthouse

THREE FORMER FANNIE MAE EXECS

Please forward this to your friends that support Obama.  Maybe it will help to make a difference this fall in how they cast

        their vote(s). 

           Martha Stewart did her time for taking a tip. My question is what is being done with all these crooks. 

—–And those are YOUR tax dollars paying for their corruption and golden parachutes.

Be sure to read the ‘where they are now’!!


Here is a quick look into 3 former Fannie Mae executives who have brought down Wall Street.

Franklin Raines was a Chairman and Chief Executive Officer at Fannie Mae.  Raines was forced to retire from his position with Fannie Mae  when auditing discovered severe irregulaties in Fannie Mae’s accounting activities. At the time of his departure The Wall Street Journal noted, ‘ Raines, who long defended the company’s accounting despite mounting evidence that it wasn’t proper, issued a statement late Tuesday conceding that ‘mistakes w ere made’ and saying he would assume responsibility as he had earlier promised. News reports indicate the company was under growing pressure from regulators to shake up its management in the wake of findings that the company’s books ran afoul of generally accepted accounting principles for four years.’  Fannie Mae had to reduce its surplus by $9 billion.

Raines left with a ‘golden parachute valued at $240 Million in benefits.

The Government filed suit against Raines when the depth of the accounting scandal became clear. http://housingdoom.com/2006/12/18/fannie-charges/ . The Government noted, ‘The 101 charges reveal how the individuals improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public. The Notice explains how they submitted six years of misleading and inaccurate accounting statements and inaccurate capital reports that enabled them to grow Fannie Mae in an unsafe and unsound manner.’  These charges were made in 2006.  The Court ordered Raines to return $ 50 Million Dollars he received in bonuses based on the miss-stated Fannie Mae profits.


Tim Howard –  Was the Chief Financial Officer of Fannie Mae. Howard ‘was a strong internal proponent of using accounting strategies that would ensure a ‘stable pattern of earnings’ at Fannie. In everyday English – he was cooking the books.  The Government Investigation determined that, ‘Chief Financial Officer, Tim Howard, failed to provide adequate oversight to key control and reporting functions within Fannie Mae,’

On June 16, 2006, Rep. Richard Baker, R-La., asked the Justice Department to investigate his allegations that two former Fannie Mae executives lied to Congress in October 2004 when they denied manipulating the mortgage-finance giant’s income statement to achieve management pay bonuses. Investigations by federal regulators and the company’s board of directors since concluded that management did manipulate 1998 earnings to trigger bonuses. Raines and Howard resigned under pressure in late 2004.

Howard’s Golden Parachute was estimated at $20 Million!


Jim Johnson –   A former executive at Lehman Brothers and who was later forced from his position as Fannie Mae CEO.   A look at the Office of Federal Housing Enterprise Oversight’s May 2006 report on mismanagement and corruption inside Fannie Mae, and you’ll see some interesting things about Johnson. Investigators found that Fannie Mae had hidden a substantial amount of Johnson’s 1998 compensation from the public, reporting that it was between $6 million and $7 million when it fact it was $21 million.’   Johnson is currently under investigation for taking illegal loans from Countrywide while serving as CEO of Fannie Mae.

Johnson’s Golden Parachute was estimated at $28 Million.


WHERE ARE THEY NOW?

FRANKLIN RAINES?

Raines works for the Obama Campaign as Chief Economic Advisor

TIM HOWARD? 

Howard is also a Chief Economic Advisor to Obama

JIM JOHNSON? 

Johnson hired as a Senior Obama Finance Advisor and was selected to run Obama’s Vice Presidential Search Committee

.

 

 

Fannie/Freddie and the Stealth Welfare State

Fannie/Freddie and the Stealth Welfare State

By Christopher Chantrill

Back in the good old days the US used to spend big money on secret defense projects. And no wonder, for in 1960 defense and the military industrial complex ate up 10 percent of GDP.  It was easy to find money for the odd U-2 spy plane or the granddaddy of all “black” projects, the Mach 3 spy plane variously known as the A-12, YF-12, and SR-71 Blackbird.

The trouble with secret programs is that there is no public accountability.  You can spend billions of dollars on some brilliant idea and have nothing to show for it.  The Mach 3 spy plane worked, probably thanks to the brilliance of Kelly Johnson, head of the Lockheed “skunk works.”  But it cost a fortune to develop and a fortune to operate. 

 

Secret defense programs have their place, but surely it is wrong to create secret social programs.  The meltdown of Fannie Mae and Freddie Mac demonstrates why.  Everybody thought Fannie and Freddie were boring old government-sponsored enterprises dealing in nice safe mortgages for middle-class Americans.  Only they weren’t.

 

You can understand why President Clinton decided to crank up Fannie and Freddie to deliver sub-prime mortgages in the 1990s.  It seemed like a great idea to amend the Community Reinvestment Act to bully the banks into lending more money into inner-city areas.  And it was certainly a success in political terms.  By the end of his administration, Bill Clinton was wildly popular in the African American community.  Of course he would be, after sluicing billions of dollars in mortgage money to the house-hungry women of America’s red-lined neighborhoods.

 

But who really understood what was going on before the whole thing blew up and tossed the nation into a global credit crisis?  A few people did, and a few people tried to warn us.  A few politicians tried to reform Fannie and Freddie, but they were no match for the lobbyists and the Friends of Angelo. 

 

It is hard enough trying to reform headline programs like public education or Social Security.  At least everything is out in the open. 

 

But with stealth programs burrowed into the Community Reinvestment Act our liberal friends are learning to emulate the methods of the cold war Pentagon.  They have learned how to keep controversial programs under the radar, and they usually succeed.  It’s only when a program blows up that people realize what is going on.

 

We are going to see more of these meltdowns in the future.  Fannie/Freddie isn’t the only government program adapted to serve a hidden agenda.

 

But how did we get from open and accountable government to the new era of stealth social programs operating under the radar?

 

Back in the 1930s with the New Deal and in the 1960s with the Great Society liberals were proud to point to all the wonderful programs they were offering to the American people.    They even set up programs to measure the inevitable success of their programs, as Charles Murray noted in Losing Ground. Everyone knew that with a few more billions we could end poverty forever.

 

Then things started to go wrong.  Liberals knew by the early 1970s that their job-training programs weren’t working.  The work-force participation of minority youths was going down, not up.  What should they do?  They could manfully own up to their failures or they could disguise them and keep them going under the radar.

 

When the much-vaunted public-housing projects cratered liberals replaced their public housing projects with less visible Section 8 rent subsidies.  When Hillary Clinton’s universal health-care system went down to defeat Democrats expanded smaller-scale projects like S-CHIP.  When the American people rejected the idea of a negative income tax in the 1970s liberals responded in the 1990s with the innocuously named Earned Income Tax Credit.

 

Then there’s the federal disability program.  According to the National Bureau of Economic Research Social Security Disability Insurance (DI) has gone from “2.2 percent of adults age 25 to 64 in 1985 to 4.1 percent in 2005.”  Study authors David Autor and Mark Duggan expect disability rolls to increase eventually to “almost 7 percent of the non-elderly adult population.” 

 

Conservatives need to develop a political strategy to de-legitimize these stealth programs.  Let’s leave aside the argument from compassion that excessive income support programs rip the social fabric asunder and create a non-working underclass.  Let’s be practical.

 

Somehow, these meltdowns always seem to happen on the Republicans’ watch.  Then the American people, egged on by the helpful mainstream media, blame the Republicans for the mess.  And that ain’t fair.

 

Christopher Chantrill is a frequent contributor to American Thinker. See his roadtothemiddleclass.com and usgovernmentspending.comHis Road to the Middle Class is forthco