Thursday, October 2, 2008

THE FANNIE MAE AND FREDDIE MAC (Horror) STORY - and how "organizing 'communities'" and getting their denizens mortgages played the major role in it

Understanding Seeming Insanity - with a twist:

Loans to the underclass to an extent that must've warmed the cockles of Obama and all Obamaites hearts

a series of events leading up to the Disaster of the 21st Century
having its conception in the 20th


A Note about the Democratic Party
by Michael Eden

The Party of Kennedy is NOT the Party of Pelosi. The Democratic Party has radically degenerated into a socialistic and postmodern perversion of its former place in American political thought. In place of Judeo-Christian values they embrace secular humanism; in place of a strong national defense they embrace a reliance upon internationalism; in place of a strong family they embrace a radical abortion agenda that increasingly includes outright infanticide. I can't sit idly by and watch the culture war pass me by. It is time to choose sides. As Joshua 24:15 puts it, "choose this day whom you will serve." Polls have shown that the more committed one is to (any) religious belief, the more conservative one tends to be politically. One’s views toward religion profoundly affect one’s commitment to political, social, and moral issues. In my articles, I seek to argue in favor of a religion-friendly view of culture, morality, and politics.
Read more from this author


. . . if you vote for Democrats in November, you will be putting the very people who caused this disaster in power, and you will be entrusting the people who created a crisis in charge of averting the very crisis they caused. By putting these irresponsible demagogues in charge of our economy during one of the most vulnerable periods in our nations’ history, you will in effect be saying, "I want the Great Depression. I want my children to suffer."

Why is that?

It’s one of the hidden success stories of the Clinton era. In the great housing boom of the 1990s, black and Latino home-ownership has surged to the highest level ever recorded. The number of African Americans owning their own home is now increasing nearly three times as fast as the number of whites; the number of Latino homeowners is growing nearly five times as fast as that of whites….

Under Clinton, bank regulators have breathed the first real life into enforcement of the Community Reinvestment Act, a 20-year-old statute meant to combat "redlining" by requiring banks to serve their low-income communities. The administration also has sent a clear message by stiffening enforcement of the fair housing and fair lending laws. The bottom line: Between 1993 and 1997, home loans grew by 72% to blacks and by 45% to Latinos, far faster than the total growth rate.

Lenders also have opened the door wider to minorities because of new initiatives at Fannie Mae and Freddie Mac–the giant federally chartered corporations that play critical, if obscure, roles in the home finance system. Fannie Mae and Freddie Mac buy mortgages from lenders and bundle them into securities; that provides lenders the funds to lend more. . . . LA Times May 31, 1999

"Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits. . . .

"Fannie Mae has expanded home ownership for millions of families in the 1990’s by reducing down payment requirements," said Franklin D. Raines, Fannie Mae’s chairman and chief executive officer. "Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market." . . .

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s."

"From the perspective of many people, including me, this is another thrift industry growing up around us," said Peter Wallison a resident fellow at the American Enterprise Institute. "If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry." . . .
New York Times in September 30, 1999:

Fannie Mae, which was previously known as the Federal National Mortgage Association, and Freddie Mac, which was the Federal Home Loan Mortgage Corporation, have been criticized by rivals for exerting too much influence over their regulators.

"The regulator has not only been outmanned, it has been outlobbied," said Representative Richard H. Baker, the Louisiana Republican who has proposed legislation similar to the administration proposal and who leads a subcommittee that oversees the companies. "Being underfunded does not explain how a glowing report of Freddie’s operations was released only hours before the managerial upheaval that followed. This is not world-class regulatory work."
Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and

Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.

"These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."

Representative Melvin L. Watt, Democrat of North Carolina, agreed.

"I don’t see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing," Mr. Watt said.

Democrats such as Watt and Maxine Waters played the race card to label any effort to prevent poor and black families from buying homes they couldn’t afford as racist.

But when the fecal matter hit the rotary oscillator [the sh*t hit the fan] as a direct result of Democrats’ policies, Nancy Pelosi trots and says:
"The — what we have now is a manmade disaster, a disaster that sprang — comes from the Bush failed policies, the failure of the Bush administrations to steward our economy in a responsible way."

New York Times from September 11, 2003

Again . . . if you vote for Democrats in November, you will be putting the very people who caused this disaster in power, and you will be entrusting the people who created a crisis in charge of averting the very crisis they caused. By putting these irresponsible demagogues in charge of our economy during one of the most vulnerable periods in our nations’ history, you will in effect be saying, "I want the Great Depression. I want my children to suffer."

This whole post bowdlerized from Michael Eden's "How ‘Failed Policies’ Of Democrats Were Responsible For Financial Crisis." Read the original at

and more by this author at

Oh, and be sure not to miss his "Children Sing Praises To Dear Leader Obama," at
Shades of Hitler, Stalin, Saddam Hussein . . .

To see the entire disgraceful paean* to the "New Leader" (or better said "Our Fuehrer") on YouTube video, go to Dumb Ox Daily News: Obama's Gonna Set Us Free! Kids for der Fuhrer where Dumb Ox says,

"And just look at their "teacher" orgasming while conducting the indoctrination session... poor, poor helpless children. This video breaks my heart--and may finally have won over Mrs. Ox to be worried about Obama's dictatorial ambitions. And watch their parents cheering on their abuse... THAT's what liberals do. Steal childhood to advance their freakish and perverted ideology."

are we going to let this megalomaniac become our "New Leader?" (I mean, he's got his own coins, pseudo-Presidential insignia, and yearns to have his 3/4 profile on our paper dollar currency.)

And as to why I am so concerned about this Socialist/Marxist (Obama) becoming our next President, see
There is an alliance between the enemies of our country-- . . . read on at

[By the way--ALL color emphasis mine. lw]

And look here!
Dumb Ox Daily News: Econ Crisis 101 - How Corrupt Democrats Socialized America


Here you can further see what part Obama played in paving the way for the Economic crisis:

Failing to win at the polls on socialist agendas, the Democrat utopians pushed for this house of cards to grow and grow with charges of racism and greed against financial players who did not cave in and hop on the gravy train.

Note also that Obama advisor Raines took 50 million (maybe more) in FRAUDULENT BONUSES in just 6 years before he was forced to resign in disgrace,

See the McCain ad. [A YouTube video of the ad is at the Dumb Ox site.]

Note that the charges back are that the ad is false and that McCain is playing the race card--uh, how, by showing Obama's face and Raines' face??? And to say that the ad is false is just dancing around words, just words.

Here's the real deal on Raines' relationship to Obama and corruption, from Hot Air quoting from the Washington Post, no Republican fan. Read the Post article exposing Democrat ties to Fannie/Freddie and Obama's ties to Johnson and Raines, plus the real record of McCain on this all.

Let's hope that the FBI will net a ton of the fat cats responsible...and that the truth about the Democrats' role in all of this, and of Obama in particular, will be brought to the attention of the public in time for voters to wake up before the election!

Read how a large part of this crisis is the product of normal business cycles and wrong-headed Democrat and Republican attempts to forestall things...

Dumb Ox tells us
Econ Crisis 101 - How Corrupt Democrats Socialized America

" . . . the Democrats who were taking money from Fannie and Freddie (Obama 105 thousand in just three years) could assuage their consciences with regard to the disaster that everybody knew was inevitable knowing that these bailouts will likely result in the largest transfer of wealth in American history—a socialist dream.
How could the Democrats betray the country this way? For them capitalism is theft in the first place, they dream day and night about running the economy the way they think it should work. They are the smart ones who should get to decide who wins and who loses.
From Bloomberg news:

How the Democrats Created the Financial Crisis: Kevin Hassett

Sept. 22 (Bloomberg) -- The financial crisis of the past year has provided a number of surprising twists and turns, and from Stearns Cos. to American International Group Inc., ambiguity has been a big part of the story.

Why did Bear Stearns fail, and how does that relate to AIG? It all seems so complex.

But really, it isn't. Enough cards on this table have been turned over that the story is now clear. The economic history books will describe this episode in simple and understandable terms: Fannie Mae and Freddie Mac exploded, and many bystanders were injured in the blast, some fatally.

[close quote]
*paean - (ancient Greece) a hymn of praise, especially one sung in ancient Greece to invoke or thank a deity--especially a hymn of praise to Apollo from Paia, a title of Apollo. [We all will recall the Greek Temple at the Obama coronation, where the "anointed One" appeared as Apollo come to Earth amidst the non-Apollonian screams of adulation.] The whole Obama madness is rather Dionysian [bereft of reason that has been replaced with the irrational emotion], referring to the Greek godDionysios--Bacchus for the Romans--through whose worship the core of Hellenic
mystery teaching found its way into the Western Mystery Tradition.

Two streams of consciousness are discernable within the Classical
mysteries, which might be called Dionysian and Apollonian. The
Apollonian mysteries related to reason, to the heavens and to order; this is in contradistinction to the chaotic, ecstatic mysteries of Dionysios.

The ecstatic followers of the Greek god Dionysos, the Maenads in Greek Mythology also known as Bacchantes, Bacchae, or Thyiades . . . worshipped the Greek god Dionysos, and, along with the notorious satyrs, formed part of the god's entourage.

. . . we offer one more enticing detail about Euripides's depiction of these wild women: when possessed by Dionysos, the Maenads can become savage and brutal...

When reason is left behind and replaced by a state of being carried away by overwhelming emotion; "listening to sweet music in a perfect rapture"-[Charles Dickens], when form replaces substance such as in the hypnotic oratory of Obama which is composed of empty slogans, except for following Change, as outlined by the Communist Saul Alinsky, the arch "community organizer," who taught his disciples that Power rests with the Middle Class, a lesson learned so well by Obama that at every opportunity he presents himself as the champion of the Middle Class--which he is not, because as soon he achieves POWER, he will funnel this power into the "communities" which he used to organize, and that formed the core of his support base and catapulted him up into National Politics.

Despite his stentorian tone, Obama is a wriggling Politician, who will change himself into whatever creature suits the occassion. He fits the description "unstable as water, thou shalt not excel." Which means that no matter what prominence he might achieve, excellency is not in his past, present, nor future.

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