Green but not Forgotten.
New Definition of Affordable Housing?
Taxpayers paying for people’s houses who’s inhabitants cannot make their house payments because they could not afford payments in the first place.! Our tax dollars are bieng used to pay house payments for people who cannot make the payment or never could afford to make payments. But these people still got a loan.
End result, foreclosure and each American tax payer may get saddled with a $10,000.00 note to pay for the bailout. To top it all off, the same Democrats, Dodd , Frank, Pelosi, and Reid, who wrecked Fannie Mae and Freddie Mac, will still be in charge. Don’t say you haven’t been warned!
Today’s headlines: The Federal Government Nationalizing our Banks for a Period of Time, taxpayers stand to make trillions. Main street has to be bailed out. Is the time really growing short on the $700 billion bail using American taxpayer money?The federal government is saying the taxpayer is going to reap massive amounts of money if this so called bailout goes through. Trillions of dollars says the government. Whoa! Why all the pressure on a time table to pass this monster? The government is going to reap giant benefits from this bail out, but is it really a rescue? Why all the pressure to sign a bill no one knows about? We need to have more details and the big question is? What is it really going to cost the U.S. taxpayer and what kind of hidden benefits will the feds receive that is being kept a secret?The bailout does not take into cosideration all the foreclosures that still have to be bailed out. These foreclosures will still have to be written off the bank’s books.
1999 New York Times News Article tells it all.
Don’t buy the Democratic tale about the market will be fine. Look at the market today. Down 400-600 points. This is from The New York Times dated September 30, 1999. The headline is “Fannie Mae Eases Credit to Aid Mortgage Lending.” let’s share the first two paragraphs with you from this 1999 article that’s 1999!!
“In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets — including the New York metropolitan region — will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.”
Fannie Mae, as you may know, is not a purely private sector enterprise. Its’ called a GSE … a Government Sponsored Entity. Both Fannie Mae and Freddie Mac were doing all they could to back up the banks and lending institutions who were making these subprime, almost worthless loans. No lender is going to make a loan that they feel is a mistake unless there is someone out there to back them up. The entities backing them up were Fannie and Freddie – and they were doing so on instructions from their controllers on Capitol Hill.
Remember, too, that John McCain tried in 2005 to enact a bill that would bring some oversight to Fannie and Freddie. Again the response … was stopped cold by a Democrat solid party line vote. Again … do your own research. But we have Rahm Emanuel blaming the free market for our current problems — completely ignoring the government role in enabling the bad mortgages and blocking reform.
Picture Credit L Rob Bluey
Big Government Means Big Spending of taxpayer’s money.
Look at what John Stossell has to say about the U.S. financial mess:
‘The government-backed Fannie Mae and Freddie Mac were created precisely to interfere with the housing and mortgage markets. In effect, Freddie and Fannie diverted money to people who wouldn’t have qualified for mortgages in a real private market.
Had actual private companies performed these activities, they would have been subject to market checks. But they were not. The results were predictable. Now that it’s all tumbling down, the politicians and pundits blame the free market.
It’s not simply misunderstanding. It’s demagoguery by people who will never admit that their “progressive” social policies have spawned a taxpayer bill that boggles the mind.
This is a story not of private enterprise but of cynical political opportunism. Moral hazard — the poisonous mix of private profits and taxpayer-covered losses — is what you get when politicians indulge their hubris to redesign society. The bailout of those companies holding bad mortgages — big-business socialism — sets us up for the next crisis.
What if the government cut Freddie, Fannie, Bear, AIG and the others loose and let them do what other businesses do on hard times: renegotiate with creditors and revalue assets? Would there be another Great Depression? Not likely. What turned a recession into the Great Depression was the Federal Reserve’s contraction of the money supply. I doubt they’d make that mistake twice.
We do know that the taxpayer will buy — Probably for too much money, because the private sellers will fool the government managers — at least $700 billion in “illiquid” assets. Where will this money come from: taxation, borrowing or the printing press? What will that do to our economic well-being?
Crisis is the friend of the State. The politicians are desperate to be seen as “showing leadership,” so we’re surely in for a new round of government interventions. Watch for the equivalent of the Sarbanes-Oxley Act. There’ll be much posturing about how the new regulations “will keep this from ever happening again,” but that’s more nonsense because the root problem is not lack of regulation. It’s government social engineering of the housing market, which will be unchanged.
Read the rest of the story, this really sheds the light on what has and is happening with this so called bailout.Source: TownHall.com: LINK
Uh, looks like the bailout has started!
WASHINGTON – Warned that time was running short to bolster the distressed economy, congressional Republicans and Democrats reported agreement in principle Thursday on a $700 billion bailout of the financial industry, and said they would present it to the Bush administration in hopes of a vote within days. Source: Yahoo News. (This news turned out not to be true. Was big government trying to railroad us taxpayers again before even reading the bill before signing?)
What happened? Who caved on the issues and what is really in store for the U.S. taxpayer? Time will tell.
What the Feds didn’t tell you!
FDIC’s Secret List of Possible Bank Failures. The FDIC knows which banks are at risk; it has a watch list with 117 institutions. The agency won’t disclose their names because doing so could cause depositors to panic and pull out all of their funds. It won’t take many more failures before the FDIC itself runs out of money. The agency had $45.2 billion in its coffers as of June 30, far short of the $200 billion Whalen says it will need to pay claims by the end of next year. The U.S. Treasury will almost certainly come to the rescue. Source: Bloomberg.com. Read the Link.
China Banks told to stop loaning money to U.S.
BEIJING, Sept 25 (Reuters) – Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday. “The decree appears to be Beijing’s first attempt to erect defences against the deepening U.S. financial meltdown after the mainland’s major lenders reported billions of U.S. dollars in exposure to the credit crisis,” the SCMP said.
Federal government making loans to U.S. automobile manufacturers: The House of Representatives on Wednesday approved a $25bn package of low-cost loans to help hard-pressed carmakers and their suppliers finance plant modernisation at a time of restricted access to public capital markets.The automotive loans are separate from the proposed $700bn bail-out for the banking sector, which is still being debated in Congress. The House approved the measure 370-58, setting the stage for Senate approval within days. This money is about getting votes in Michigan and Ohio. Politics as usual and we want to loan the ultimate spenders on capital hill $700 billion dollars? Who is going to get the wrong end of this transaction?Source FT.com. Read the LINK.
U.S. will loose it’s Global Super Power Status Rating in World Financial Markets.
The US will lose its role as a global financial “superpower” in the wake of the financial crisis, Peer Steinbrück, German finance minister, forecast on Thursday in the most outspoken comments by a senior European government figure since Wall Street plunged into chaos two weeks ago. Mr Steinbrück, a Social Democrat and long-time champion of tougher financial market rules, said the US government was to blame for the severity of the crisis because it had resisted European calls for stricter regulation until it was too late. Source FT.com. Read the LINK.
Will taxes be raised on small business? The Small Business Person gets whacked every time one of these social resucue packagaes passes!! Wreck the little guy and see how far the economy will go!
Taxpayers get stabbed with earmarks again! It’s only our money and they can’t even decide on the bailout/rescue bill until Congress figures out how to fleece the taxpayers again.
(Washington, D.C.) – The Council for Citizens Against Government Waste (CCAGW) today (9/26/08) blasted House Appropriations Committee Chairman David Obey (D-Wisconsin) for presiding over a dysfunctional, chaotic federal budget circus. In a flurry of activity yesterday, Chairman Obey forced Congress to vote on a stop-gap continuing resolution worth $1 trillion in spending with less than 24 hours to review its contents. The rush was aimed at getting lawmakers out of Washington, D.C. as quickly as possible to campaign before the November election and to short-circuit any in-depth scrutiny of the billions of dollars in wasteful spending. The bill came to the House floor under a closed rule, which prohibited amendments and passed 370 to 58. Source: CCAGW
Bottom Line Message from the U.S. taxpayer to the Federal Government: No Bailout With Our Tax Dollars!
“We do need protection from reckless businessmen. But there is only one way to provide that: market discipline. That means: no privileges, and no bailouts.” Government is our problem even though you are going to hear so many lies and blame for a while on our financial crisis. Remember this. The same people in our government who caused these problems are the one clamoring for the $700 billion bail out and they may be the same ones running the show when all is said and done. How long will it be before the next crisis?