Monday, November 24, 2008
Wake Up Call!
Our IDIOT elected officals at work.
We are on a ship called Economy that is heading through a path of ice bergs and mines.
Let’s crack this nut open and take a quick look at recent history to see where our government went wrong. After all, aren’t we supposed to learn from our mistakes? Shouldn’t we know who was involved so that if there was criminal activity that element is effectively removed? We are facing one of the hardest economic disasters of all time. The American people have the right to know what are leaders are doing in D.C. and how they reacted when government sponsored companies Fannie Mae and Freddie Mac began to display fiscal trouble.
In 1995, President Clinton mandated new regulations that pressured banks to make significantly more subprime loans to inner city residents previously viewed as unqualified buyers in high risk areas. The government created a rating system that forced banks to comply with federal regulators or they would face big fines. The government compounded the irresponsibility by allowing and promoting those sub prime loans to be purchased and repackaged into large blocks of investment that was sold on Wall Street as safe, AAA rated government bonds. The good bonds were now tainted with the poor sub prime loans. The banks could sell them to Fannie and Freddie and make more money to loan. It became a perpetual money machine that was based on a fragile unqualified home buyer. The investments packaged as AAA rated bonds on Wall Street were purchased by pension plans, mutual funds, institutional investors, foreign investors, and consumers under the guise as being a highly rated safe U.S government backed investment. It evolved into a big government pyramid scheme unknown to the public and investor. This is criminal by their own Securities and Exchange Commission, a government body responsible for securities and investment oversight, enforcement and law. Are you beginning to see how these different bodies are covering for each other?
These government sponsored entities, Fannie Mae and Freddie Mac (GSE's), made political contributions to Barney Frank, Chairman of the housing and financing committee which oversees the housing and banking industries. The GSE’s also contributed to Senator Chris Dodd who is the Chairman of the Senate Banking committee. These two Chairmans of their perspective bodies are to work collectively and balance each other with proper regulation and oversight, a check and balance system. This becomes a problem when one party gets too much power.
In April 2001, the Bush administration reported in a fiscal report stating concern over the size of GSE’s and if they ran into trouble it could be big problems for the economy. Ok, the cat is out of the bag here. The information is made known to the Senate and Congressional chairmen along with each party’s representatives.
In May 2002, The Office of Management and Budget wanted disclosure and governance principles in Bush’s 10 point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac, nothing happened.
February 2003, A federal housing oversight report warned that unexpected problems at Fannie Mae could immediately spread to the financial sectors.
September 2003, Treasury Secretary John Snow, in testimony to the House Financial Services Committee, recommended that Congress enact legislation to create a new agency to regulate and supervise housing related government entities to set prudent and appropriate minimum capital requirements. Rep. Frank the leading committees ranking member strongly disagreed, saying “Fannie Mae and Freddie Mac are not facing any kind of financial crisis.”
February 2004, the presidents new budget again highlighted risks of the explosive growth of the government enterprises and the low levels of required capital. It also called for a third party regulator for oversight. Chairman Greg Mankiw of Bush’s Council of Economic Advisors, called for reducing the risk of the housing GSE’s should be overseen by an effective regulator.
April 2004, Rep Frank ignored warnings, accusing the administration of creating an artificial issue. “People pay their mortgages he told a group of mortgage bankers. “I don’t think we are in any remote danger here.”
From 2004 – 2008, the administration made 12 more attempts to get Congress to pass legislation for an oversight regulator to have a safer, sounder supervision of Fannie Mae and Freddie Mac.
July 2005, Senate Majority Leader Harry Reid rejected legislation on reforming Fannie Mae and Freddie Mac.
August 2007, Sen. Dodd ignored the calls for Congress to pass Fannie Mae and Freddie Mac reform legislation.
Why are these people still representing us? What are they doing in power? They are in power for power’s sake. Not for the good of the American People. We need to rally and get these thieves out of office. Where is the investigation?
Burning Down the House - a summary of past events to clarify our irresponsible elected officials. Apparently there is some pressure on Utube to remove this, so click on the link view it on another site.
http://www.youtube.com/watch?v=1RZVw3no2A4&feature=iv&annotation_id=event_597487
Saturday, November 22, 2008
The Big Question
What do we do now America?
The very crooks that got us into this economic mess are going to straighten us out. At what cost to you and I? How about well over a trillion dollars so far and not even counting the massive job losses that are mounting and with more to come. That is just in our country. This has spread like the Asian contagion market crash of years ago. The rest of the world has lost much due to our greedy leaders and the elite. Our lack of leadership and responsibility is the cause of this economic turmoil which is like no other that man kind has seen.
One thing is for certain. We know why Fannie Mae collapsed. In one word Greed. The near collapse of Fannie Mae started the spark that hit our financial powder keg. That in turn led to bank failures and nearly started a stampede on the banks not seen since the depression. There's a lot of finger pointing going on in Washington. That is the smoke screen that is being created to get America’s eye off the ball. We need to start with one thief at a time. We know there was accounting fraud at Fannie Mae. It’s a known fact. Yet unlike the years of the Enron, Tyco and the Worldcom scandal this accounting fraud is being covered up. The government was so fast to bring corporate America to justice and rightfully so. Yet when the government is obviously involved there is not even the mention of a serious investigation. No parades of the CEO’s all over the screen like we saw seven years ago. Franklin Raines who was the CEO of Fannie Mae and the man responsible for a $6.3 billion scandal is walking around living a very plush life style. He has walked away with reports of $90 to $100 million in bonuses for his falsified accounting. The Washington Post wrote:
“In the four years since he stepped down as Fannie Mae’s chief executive under the shadow of a $6.3 billion accounting scandal, Franklin D. Raines has been quietly constructing a new life for himself. He has shaved eight points off his golf handicap, taken a corner office in Steve Case’s D.C. conglomeration of finance, entertainment and health-care companies and more recently, taken calls from Barack Obama’s presidential campaign seeking his advice on mortgage and housing policy matters.”
America, we need to take our country back from the elitist and thieves that are running our country into the ground. I say we start with one corrupt smuck at a time, starting with Franklin Raines. We should be shouting in the streets for justice. I say we adopt a plan like our military did in Iraq. We have a deck of cards with the top 52 criminals involved in this scandal and find a way to bring them to justice. If we don’t do it who will? My top 3 criminals I would like to see jailed immediately is Franklin Raines, Chris Dodd, and Barney Franks. Does anyone remember what playing card Sadam Hussein represented? Let’s get the deck out. What playing card would you use for these three thieves?
The very crooks that got us into this economic mess are going to straighten us out. At what cost to you and I? How about well over a trillion dollars so far and not even counting the massive job losses that are mounting and with more to come. That is just in our country. This has spread like the Asian contagion market crash of years ago. The rest of the world has lost much due to our greedy leaders and the elite. Our lack of leadership and responsibility is the cause of this economic turmoil which is like no other that man kind has seen.
One thing is for certain. We know why Fannie Mae collapsed. In one word Greed. The near collapse of Fannie Mae started the spark that hit our financial powder keg. That in turn led to bank failures and nearly started a stampede on the banks not seen since the depression. There's a lot of finger pointing going on in Washington. That is the smoke screen that is being created to get America’s eye off the ball. We need to start with one thief at a time. We know there was accounting fraud at Fannie Mae. It’s a known fact. Yet unlike the years of the Enron, Tyco and the Worldcom scandal this accounting fraud is being covered up. The government was so fast to bring corporate America to justice and rightfully so. Yet when the government is obviously involved there is not even the mention of a serious investigation. No parades of the CEO’s all over the screen like we saw seven years ago. Franklin Raines who was the CEO of Fannie Mae and the man responsible for a $6.3 billion scandal is walking around living a very plush life style. He has walked away with reports of $90 to $100 million in bonuses for his falsified accounting. The Washington Post wrote:
“In the four years since he stepped down as Fannie Mae’s chief executive under the shadow of a $6.3 billion accounting scandal, Franklin D. Raines has been quietly constructing a new life for himself. He has shaved eight points off his golf handicap, taken a corner office in Steve Case’s D.C. conglomeration of finance, entertainment and health-care companies and more recently, taken calls from Barack Obama’s presidential campaign seeking his advice on mortgage and housing policy matters.”
America, we need to take our country back from the elitist and thieves that are running our country into the ground. I say we start with one corrupt smuck at a time, starting with Franklin Raines. We should be shouting in the streets for justice. I say we adopt a plan like our military did in Iraq. We have a deck of cards with the top 52 criminals involved in this scandal and find a way to bring them to justice. If we don’t do it who will? My top 3 criminals I would like to see jailed immediately is Franklin Raines, Chris Dodd, and Barney Franks. Does anyone remember what playing card Sadam Hussein represented? Let’s get the deck out. What playing card would you use for these three thieves?
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