A Reminder from whence the financial of meltdown of 2008/2009 came

[Marshal Jim Duncan]

http://www.city-journal.org/html/10_1_the_trillion_dollar.html

Note the date it was written. This and the virtual repeal of Glass-Steagall that was pushed on Clinton by Robert Rubin and Eugene Ludwig helped create the perfect storm.

 

[PDT816]

The CRA is a gigantic crap sandwich for the banking industry, but it's not where the financial meltdown came from.

The cause of the financial meltdown is the secondary markets. The private sector markets that were encouraged/ strong-armed by the federal government, and secondary market programs the government created when the private sector judged them too risky. They weren't a sustainable model because the Government kept growing them without actual money backing the access to credit.

 

[Marshal Jim Duncan]

The CRA is a gigantic crap sandwich for the banking industry, but it's not where the financial meltdown came from.

The cause of the financial meltdown is the secondary markets. The private sector markets that were encouraged/ strong-armed by the federal government, and secondary market programs the government created when the private sector judged them too risky. They weren't a sustainable model because the Government kept growing them without actual money backing the access to credit.

The combination of the two, along with other LMI housing initiatives/pressures is what caused it. And what made it a lot worse and deeper than it otherwise would've been.

Throw in massive student loan debt on top as a major factor holding back the economy moving forward.

 

[imprimis]

The CRA is a gigantic crap sandwich for the banking industry, but it's not where the financial meltdown came from.

The cause of the financial meltdown is the secondary markets. The private sector markets that were encouraged/ strong-armed by the federal government, and secondary market programs the government created when the private sector judged them too risky. They weren't a sustainable model because the Government kept growing them without actual money backing the access to credit.

To sum it up...greed and politics?

 

[imprimis]

Former Fannie Mae CEO to face SEC charges over subprime mess.

http://www.housingwire.com/articles...o-to-face-sec-charges-over-subprime-mortgages

 

[Marshal Jim Duncan]

Former Fannie Mae CEO to face SEC charges over subprime mess.

http://www.housingwire.com/articles...o-to-face-sec-charges-over-subprime-mortgages

Whilst Democrat Illuminati Franklin Raines (former Chairman and CEO of Fannie Mae) remains unpunished by the criminal justice system despite paying over $20MM to make a civil lawsuit go away that had to do with his mismanagement of Fannie Mae and manipulation of the stock price among other misdeeds.

Both Raines, and another crooked former Fannie Mae CEO, James Johnson, were part of Obama's inner circle in 2008.

 

[PDT816]

Former Fannie Mae CEO to face SEC charges over subprime mess.

http://www.housingwire.com/articles...o-to-face-sec-charges-over-subprime-mortgages

What's funny is that article doesn't reveal the settlement was for $115 Million in bonuses the three execs paid themselves over the years while they were cooking the books

 

[imprimis]

Whilst Democrat Illuminati Franklin Raines (former Chairman and CEO of Fannie Mae) remains unpunished by the criminal justice system despite paying over $20MM to make a civil lawsuit go away that had to do with his mismanagement of Fannie Mae and manipulation of the stock price among other misdeeds.

Both Raines, and another crooked former Fannie Mae CEO, James Johnson, were part of Obama's inner circle in 2008.

Jamie Gorelick, the lawyer who wrote the "Wall" memo which prohibited intelligence agencies from communicating with each other prior to 9/11 also received over $26 million in bonuses from Fannie Mae.

http://www.breitbart.com/big-govern...ousing-collapse-is-on-short-list-to-lead-fbi/

 

[Medic007]

But, but, but what about that dishonest Oklahoma Republican supporter McClendon? Damn scandalous Republican supporters.

 

[imprimis]

The 9th Circuit Court of Appeals recently ruled that Fannie Mae and Freddie Mac are not government entities subject to federal law but rather private entities. They are subject to the state laws in the state they are incorporated in. Both are Delaware corporations.

The Treasury Department has been diverting all net income ($241 billion) from Fannie and Freddie to the Treasury using a process called Net Worth Sweeps. Investors in Fannie and Freddie are suing them in Delaware state court claiming the diverting of income is not allowed since they are not federal agencies. Delaware law does not allow for Net Worth Sweeps. Because the income is being moved to the Treasury the investors are left high and dry and they want their return on investment.

http://www.housingwire.com/articles...that-fannie-and-freddie-are-private-companies