| Sep 24 @ 12:09 PM |
Pinning the tail on the donkey
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capobeachguy
Posts: 3,658
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When I was a little boy we used to play a game where we wore a blindfold and tried to put a slip of paper on a drawing of a donkey we couldn’t see. I thought of that as I watched the chattering class, blindfolded and frantically trying to pin the blame for the Wall Street debacle on everything but the real donkey, the Democrats, whose symbol is… guess what?
Right, a donkey, and that’s where the blame lies, on Barack Obama’s Democratic Party.
To find the donkey you need to go back to the Clinton administration, which decided that everybody and his kid brother was entitled to a mortgage even when they didn’t begin to qualify for a home loan.
In saner days, banks designated certain areas as no-loan zones – depressed neighborhoods where lending money to potential home buyers was not just a risky investment, but a certain future foreclosure. Critics of the practice called it “redlining” and President Clinton and his chums on Capitol Hill decided that banks should no longer act like banks and lend money only to home buyers who could afford to handle the monthly payments. Now all bets would be off and people not the least bit creditworthy — and speculators — would be entitled by law to obtain mortgages even when it was obvious they couldn’t afford to handle them.
Enter those now infamous quasi-government banking instruments known as Fannie Mae and Freddie Mac, which poured fresh money into the banking system by buying mortgages from banks. Over the long haul they managed to load up their portfolios with billions upon billions of dollars of risky mortgage paper that banks had been forced to offer and then dumped on them.
The scandal of Fannie Mae and Freddie Mac dwarfs the Enron debacle. In Enron, people went to jail. With the Fannies, some just walked away with millions.
The collapse of Lehman Brothers can be blamed on Fannie Mae and Freddie Mac, the two big mortgage banks that the Feds recently bailed out with big bucks. As Fox News has pointed out, they used huge lobbying budgets and political contributions to keep regulators off their backs.
According to the Center for Responsive Politics, the top three U.S. Senators getting big Fannie and Freddie political bucks were Democrats, and No. 2 was Sen. Barack Obama, who as Fox noted had only been in the Senate four years but still managed to grab that No. 2 spot ahead of longtime colleagues John Kerry and Chris Dodd, the chairman of the Senate Banking Committee.
According to Fox, Fannie and Freddie were where big-time Washington Democrats went to work and pocketed millions. Franklin Raines, Clinton’s White House Budget Director, ran Fannie and collected $50 million.
Jamie Gorelick, an official in Clinton’s Justice Department — the woman who built the “wall” that prevented the FBI from targeting terrorists before 9/11 — worked for Fannie Mae and took home $26 million. Big-time Democrat Jim Johnson, who headed Obama’s VP search committee, also hauled in millions from running Fannie Mae.
Obama brazenly blames John McCain and the GOP for the current Wall Street mess when it’s clear none of it was due to Republican policies. The truth of the matter is that it was McCain and three GOP colleagues who sought to reform the government’s lending policies three long years ago after the Bush administration had failed two years earlier. On May 25, 2006, McCain spoke on behalf of the Federal Housing Enterprise Regulatory Reform Act of 2005, and warned against the debacle we are now facing if it failed to pass.
He told the Senate that a report by the Office of Federal Housing Enterprise Oversight charged that “Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives.”
McCain warned, “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.”
McCain predicted the entire collapse we now are suffering through. He stressed the falsification of financial records to benefit executives, including Obama advisers Franklin Raines and Jim Johnson.
Now Obama has the nerve to try to pin the blame on McCain and the GOP when the facts show that the blame must be pinned on the Democratic donkey. Link
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| Sep 24 @ 12:17 PM |
Pinning the tail on the donkey |
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KatiefromStafford
Posts: 2,266
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Yay, republicans, go republicans, rule the U.S. so you can rule the world with your bully tactics.
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| Sep 24 @ 12:25 PM |
Pinning the tail on the donkey
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nah12
Posts: 3,973
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good article Capo ....
similar info has been posted in other threads ... but some just don't want to read it and didn't listen before when it was going on in the news originally .....
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| Sep 24 @ 12:26 PM |
Pinning the tail on the donkey |
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KatiefromStafford
Posts: 2,266
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Just to get in the good graces of the powers that be in MD now:
Yay, republicans, go republicans, rule the U.S. so you can rule the world with your bully tactics.
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| Sep 24 @ 12:27 PM |
Pinning the tail on the donkey
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capobeachguy
Posts: 3,658
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Not all of us are Republicans. How many times do you need to read that?
Some of us are merely highly intelligent. 
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| Sep 24 @ 12:39 PM |
Pinning the tail on the donkey |
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cre8ive1970
Posts: 1,096
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capo, she's a narcissist. If you ignore her because what she posts is not worth commenting on, she'll post it again and agan until she gets a response and then she'll whine that she's being bullied. 
What can you do?
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| Sep 24 @ 1:07 PM |
Pinning the tail on the donkey
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vinnytmd
Posts: 6,004
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capo, the Democrats ties to Fannie Mae, Lehman and Goldman Sachs are endless.
How about Dodd, the freakin Chairman of the Banking Committee getting special treatment loans from Countrywide? Of course he did not claim any of it as income or a donation.
How about Biden being GIVEN a Mansion at half price by MBNA?
And the leader of the pack Barry Obama also had a "special" mortgage on his million dollar house.
The Democrats are the hypocrites of all time!
Change?
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| Sep 24 @ 1:11 PM |
Pinning the tail on the donkey |
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KatiefromStafford
Posts: 2,266
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Yes, of course, it is all the Democrats fault.
Hey go back far enough and if you believe in Creationism, then it was the Democrats fault that Man was kicked out of the Garden of Eden too.
Everything has always been the Democrats fault, even though everyone blaming the Democrats are not Democrats..
poop
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| Sep 24 @ 1:14 PM |
Pinning the tail on the donkey
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Gallows_Humor
Posts: 8,063
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...typical....blame it All on clinton..all the while rich people took advantage and got richer..
and then we have poor McCain who tried to plug the leaks to keep the dike from collapsing and breaking down..,,
In saner days, banks designated certain areas as no-loan zones – depressed neighborhoods where lending money to potential home buyers was not just a risky investment, but a certain future foreclosure
 ,,I remember the "ghetto days" do you??
how to fix the ghetto problem was the issue..
not how to get a "no doc loan" in order to by a million dollar home when you could only qualify for a $300, 000 dollar one... ..
have you heard the news.. the FBI is investigating countrywide... ...
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| Sep 24 @ 1:19 PM |
Pinning the tail on the donkey |
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cre8ive1970
Posts: 1,096
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courtesy of Gman
Now, who was it that blocked legislation that would have prevented this mess? 
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| Sep 24 @ 1:36 PM |
Pinning the tail on the donkey
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Gallows_Humor
Posts: 8,063
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funny.. but you glossed over the fact that the new "mortgage god" in the bill was going to be the treasury dept which would have taken over the oversight from congress.. and handing it to the adminstration... ( the real reason why that bill was killed..) and the poor senate was sooo thwarted by the big bad democrats that they just gave up and said that Fannie and Freddie had better not break any more exisiting laws that already were in place...
gee..man... don't you think that if fannie and freddie would have actually followed the exisiting laws ...as set forth by congress that there would have not been a housing bubble to burst??
why didn't the attorney generals office go after all the scoffl laws that were breaking those exisiting laws that were already in place ?? they already had the power ...even back then....
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| Sep 24 @ 1:43 PM |
Pinning the tail on the donkey |
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vinnytmd
Posts: 6,004
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gh, what laws were broken? Can you tell us?
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| Sep 24 @ 2:00 PM |
Pinning the tail on the donkey
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Gallows_Humor
Posts: 8,063
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"no doc loans" for purchase or refinace were an interpretation of the law that actually allowed the law to be broken by fraud....
how it was supposed to be was... we need to prove that you make enough money
to qualify for this loan based on documents that you provide us.. but if you, in exceptional situations or circumstances cannot document this fact in the normal way..... rather than being turned down.. we can make an exception to the rule...
(the exception from the rule became the rules of the game... and that is what caused the housing bubble... )
it went to ..we will take your word that you are making enough money to qualify for these loans based only on your say so... as there is no way that you can buy a million dollar house with your fully documented income and expenses...
.. and that is where a majority of these loans became fraud...
did the lenders care?? nope .. as they played dumb...just as long as they got the peice of paper from the applicant.. their hands were clean...
all the while they made the big bucks in fee's that were tacked on to these loans...
it became a fox in the hen house scenario..
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| Sep 24 @ 2:04 PM |
Pinning the tail on the donkey |
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vinnytmd
Posts: 6,004
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gh, why don't you cite the Law that prohibits no doc loans?
Please.
You are dreaming. If this is so why were Mortgage Companies running TV and Radio ads advertising NODOC loans 24/7?
While you may not think the practice is kosher, there is no law against it.
What do the kids say?
GO FISH!
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| Sep 24 @ 2:17 PM |
Pinning the tail on the donkey
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Gallows_Humor
Posts: 8,063
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and there you have it.... the real reason why fannie and freddie got into deep shit...
the republican interpretation of an exception to the rule...that became the rule for everyone...supposedly ... which did not break the law...
read and comprehend vinny .. it was the applicant that broke the law.. not the lender.. so they could advertise all they wanted...and say their hands were clean...
but.. there is always that bugger of..conspiracy to commit fraud that is going to be interesting to watch...
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| Sep 24 @ 2:24 PM |
Pinning the tail on the donkey |
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vinnytmd
Posts: 6,004
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Republican?
GH - where do you dream this stuff up?
So you are saying that all Mortgage Brokers are Republicans?
What you posted earlier is false - 100% BS.
The lenders were processing no doc loans by showing more than adequate equity. They were hoping that as values went up their lie would become true. The borrowers were smoking from the same pipe.
The corporations that buy bundles of these loans had no idea what the borrowers and lenders were doing. Now they are bearing the brunt of these actions.
Local Governments regulate local Mortgage Companies. Everyone ignored the obvious insanity of this as all were prospering, including local governments as property taxes were going up.
It is the perfect scheme. Everyone thinks they have the upper hand and are prospering more that the other guy.
GH- you have no idea what you are talking about. Once again. This problem is not political now. Any fool admits to this.
read and comprehend vinny .. it was the applicant that broke the law.. not the lender.. so they could advertise all they wanted...and say their hands were clean...
GH, just before you said that nodoc was against the law. How can it be the borrowers fault??
Did they stick a fookin gun in the lenders head and say they were refusing to fill out paperwork??
WTF are you babbling about now?
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| Sep 24 @ 2:35 PM |
Pinning the tail on the donkey
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Angel54214
Posts: 14,056
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Capo...My opinion is that Fannie Mae and Freddie Mac got into deep trouble when the bill was not passed. Also Henry Paulson and Ben Bernanke supported them to be Conservative. What you think?
Here is a wiki clip:
In 2003, the Bush Administration sought to create an agency to oversee Fannie Mae and Freddie Mac. The proposal was shot down in congress, and members like Barney Frank said that "these two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis," In 2005, the Federal Housing Enterprise Regulatory Reform Act of 2005 was introduced in the Senate. The bill would have increased government oversight of loans given by Fannie Mae and Freddie Mac.
The bill never passed either the House or Senate. A full and accurate record of the congressional attempts to regulate the housing GSEs is given in the Congressional record prepared in 2005. Many attempts were made with only minor results.
I wonder what happened to Ginne Mae?
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| Sep 24 @ 2:40 PM |
Pinning the tail on the donkey |
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Gallows_Humor
Posts: 8,063
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vinny...
most of your post is just you parroting what you heard from mortgage brokers..( ..who all in my neck of the woods are republicans...)
the basis of a no doc loan is the applicant stating what their income is
and that their word is true and not a lie.. based on the fact that it is a federal crime to lie about anything on a federally insured loan..
the excuse for lying was this...
... that as values went up their lie would become true. The borrowers were smoking from the same pipe.
and as for equity... there was/is none ..as it was all based on a bubble that was created from the lies...
and that is the reason for this new bail out... to keep the current market value some what in line with that lie.. as ..without a bail out.. everyone who purchased or refi'd to the maximum limits allowed ..in the past 4 years ...will be upside down...owing more than what the property is worth...when the value adjusts to the new level...
[Edited on 9/24/2008 2:45 PM]
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| Sep 24 @ 2:44 PM |
Pinning the tail on the donkey
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vinnytmd
Posts: 6,004
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most of your post is just you parroting what you heard from mortgage brokers..( who all in my neck of the woods are republicans...)
Funny, here they are all Democrats! 
Same guys that were into light bulbs and industrial chemical scams. Old burned out hippies.
No Doc loans were advertised as such. Many new home developments advertised and sold these as the prices were rising so fast from one section of a development to the next that one did not need docs for approval.
You have no idea what you are talking about.
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| Sep 24 @ 2:47 PM |
Pinning the tail on the donkey |
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Gallows_Humor
Posts: 8,063
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No Doc loans were advertised as such. Many new home developments advertised and sold these as the prices were rising so fast from one section of a development to the next that one did not need docs for approval.
 ...just .what was causing the rise in the properties value ??
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