Before everyone goes to the polls on 11/4!!!

primussucks

Before everyone goes to the polls on 11/4, I beg everyone to study up on Fannie & Freddie, the reason our economy is the way it is. Here is a starter for everyone:

“The mortgage and financial markets have been heavily controlled by the federal government for decades, and that is why they failed.

“In the name of broad social welfare policy aimed at helping everyone own a home, the federal Community Reinvestment Act forced lenders to give loans to unqualified borrowers. Meanwhile, the corrupt quasi-governmental entities of Fannie Mae and Freddie Mac, the artificially low interest rates enforced by the Fed, and the semi-official policy of bailing out institutions thought "too big to fail," led to the situation where millions of Americans bought homes they couldn't afford and Wall Street funneled billions of dollars into bad investments.” [Quoted from boston.com]

—
“In 1977 under Jimmy Carter, Congress passed the Community Reinvestment Act. It compelled banks to make loans to poor borrowers who often couldn't repay them.

“Fannie Mae and Freddie Mac were created by the government and were able to borrow at rates far lower than fully private corporations because of the implied backing from taxpayers. In the 1990s, much-maligned Phil Gramm fought to limit the Community Reinvestment Act's sub-prime requirements, receiving much political jeering.

“In 2003 President Bush, due to his concerns about Freddie Mac and Fannie Mae, requested that the House establish oversight over these two organizations. However, Barney Frank, Democrat, shot the proposal down as he thought it would limit the number of lower-income folks from affordable housing with loans they could not repay. Frank also pressured financial institutions to be very open to lending money to any or all. Now, Pelosi and Frank want oversight on the bailout. Oh, where were you in 1990s and again in 2003?” [Quoted from montereyherald.com]



“As The New York Times reported in September 1999, Fannie Mae had "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." This was part of the Clinton administration's rewriting of the Carter-era Community Reinvestment Act. Banks were given strict new numerical quotas and measures that were based on their level of "diversity" in their loan portfolios. In order for these banks to expand or merge, they had to have a good CRA rating. As the Times ominously noted in 1999, "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 1980s." " [Quoted from tennessean.com]



“These warnings began in earnest near the end of the Clinton administration, especially by Secretary of the Treasury Lawrence Summers, and were carried forward by the Bush administration, which supported legislation that would provide stronger regulation for Fannie and Freddie.

“But these warnings were ignored in Congress. Although there were efforts by a number of Republicans in the House and Senate to adopt tougher regulatory legislation -- beginning in 1999 -- these efforts were resisted by Democrats, primarily Sen. Charles Schumer of New York and Sen. Chris Dodd of Connecticut, who is currently the chairman of the Senate committee with jurisdiction over the GSEs.” [Quoted from cnn.com]



“In 2005, the Senate Banking Committee, then under Republican control, adopted a strong reform bill, introduced by Republican Sens. Elizabeth Dole, John Sununu and Chuck Hagel, and supported by then chairman Richard Shelby. The bill prohibited the GSEs from holding portfolios, and gave their regulator prudential authority (such as setting capital requirements) roughly equivalent to a bank regulator. In light of the current financial crisis, this bill was probably the most important piece of financial regulation before Congress in 2005 and 2006. All the Republicans on the Committee supported the bill, and all the Democrats voted against it. Mr. McCain endorsed the legislation in a speech on the Senate floor. Mr. Obama, like all other Democrats, remained silent.”
—
“If the Democrats had let the 2005 legislation come to a vote, the huge growth in the subprime and Alt-A loan portfolios of Fannie and Freddie could not have occurred, and the scale of the financial meltdown would have been substantially less. The same politicians who today decry the lack of intervention to stop excess risk taking in 2005-2006 were the ones who blocked the only legislative effort that could have stopped it.” [Quoted from online.wsj.com]

Commy

the collusion between corporate institutions and government has no party lines.

Strangest Tribe

ok????

so now tell me why you hate primus so much...