" Financial Crisis"
Blame J.Carter, W.Clinton, B.Obama, C.Dodd, B.Frank, T.Geitner and all you liberal wannabe european commies out there !
For months, the Obama administration and members of Congress have known that insurance giant AIG was getting ready to pay huge bonuses while living off government bailouts. It wasn't until the money was flowing and news was trickling out to the public that official Washington rose up in anger and vowed to yank the money back.
We now, well most don't but will, know that the Conference Committees backroom/after dark stimulus bill was loaded with the quid pro quo paybacks that no one was supposed to read, just sign, in the name of emergency crisis - had to be done right now - no time to read - yet it sat on Obamalamadingdongs desk for three nights......(!)
Noel Shepard - IBD
"In particular, 1977's Community Reinvestment Act which required banks and savings institutions to make loans to the lower-income areas in the communities they served.
The Carter-era Community Reinvestment Act forced banks to lend to uncreditworthy borrowers, mostly in minority areas.
Age-old standards of banking prudence got thrown out the window. In their place came harsh new regulations requiring banks not only to lend to uncreditworthy borrowers, but to do so on the basis of race.
These well-intended rules were supercharged in the early 1990s by President Clinton. Despite warnings from GOP members of Congress in 1992, Clinton pushed extensive changes to the rules requiring lenders to make questionable loans. [...]
Failure to comply meant your bank might not be allowed to expand lending, add new branches or merge with other companies. Banks were given a so-called "CRA rating" that graded how diverse their lending portfolio was. [...]
In the name of diversity, banks began making huge numbers of loans that they previously would not have. They opened branches in poor areas to lift their CRA ratings.
Meanwhile, Congress gave Fannie and Freddie the go-ahead to finance it all by buying loans from banks, then repackaging and securitizing them for resale on the open market.
That's how the contagion began.
With those changes, the subprime market took off. From a mere $35 billion in loans in 1994, it soared to $1 trillion by 2008.
Readers are strongly encouraged to review this entire fact-filled piece to not only better understand the roots of today's financial crisis, but also to get a sense as to just how absurd media accusations of this all being Bush and McCain's fault are.
That said, from 1989 through 1995, I managed branches for two savings and loans: Imperial Savings, which got taken over by the Resolution Trust Corporation during the S&L bailout, and; Great Western Bank which eventually was purchased by Washington Mutual.
The pressure to comply with CRA was astounding, especially at Great Western as it was expanding throughout the country. Its ability to acquire other institutions was directly related to its CRA rating.
With this in mind, IBD's views concerning this matter are spot on raising a very important question: if the role of news media is to inform the public, why does a LexisNexis search indicate that as this crisis came to a head last week, its connection to CRA, Jimmy Carter, and Bill Clinton was almost completely ignored?
Would such a revelation make it difficult for Obama-loving press outlets to point fingers at George W. Bush and, more importantly, John McCain?
Yes, that's a rhetorical question.
—Noel Sheppard is the Associate Editor of NewsBusters.
Glass-Steagall Act;
An Act passed by Congress in 1933, that prohibited commercial banks from collaborating with full-service brokerage firms or participating in investment banking activities.
The Glass-Steagall Act was enacted during the Great Depression. It protected bank depositors from the additional risks associated with security transactions.
The Act was dismantled in 1999 . Consequently, the distinction between commercial banks and brokerage firms has blurred; many banks own brokerage firms and provide investment services.
November of 1999 Congress repealed the GSA with the establishment of the Gramm-Leach-Bliley Act, which eliminated the GSA restrictions against affiliations between commercial and investment banks
Hence the beginning of gourmet/voodoo investment products.
Despite how integrally tied the current crisis is to this bill enacted by a Democrat-controlled Congress and signed into law by Jimmy Carter, no major media outlet other than Investor's Business Daily and National Review Online mentioned it during last week's market meltdown."
AIG contracts or any other legal contract is protected by the Constitution and the Congress could have stopped it earlier before being paid out.
If you let the liberal Stalinesque Government rule over, pick and choose which contracts please them - or not is another nail in Americas coffin. Sure, but just the AIG contract and then we'll stop - no, the next one just might be yours!
You know, I was going to go on with this but then realized there are only 12 or so people out there that are capable of grasping, caring or have their heads out of their asses and not in OctoMoms' long enough to understand that this mess is CONGRESS's FAULT and most should be removed and the rest thrown in Jail.
The Senate finace committe made it possible for, and I beleive in my gut that it was done as quid pro quo for contributions that went to Dodd, Obama and more repubs included !
Screw it - have a nice day!
For months, the Obama administration and members of Congress have known that insurance giant AIG was getting ready to pay huge bonuses while living off government bailouts. It wasn't until the money was flowing and news was trickling out to the public that official Washington rose up in anger and vowed to yank the money back.
We now, well most don't but will, know that the Conference Committees backroom/after dark stimulus bill was loaded with the quid pro quo paybacks that no one was supposed to read, just sign, in the name of emergency crisis - had to be done right now - no time to read - yet it sat on Obamalamadingdongs desk for three nights......(!)
Noel Shepard - IBD
"In particular, 1977's Community Reinvestment Act which required banks and savings institutions to make loans to the lower-income areas in the communities they served.
The Carter-era Community Reinvestment Act forced banks to lend to uncreditworthy borrowers, mostly in minority areas.
Age-old standards of banking prudence got thrown out the window. In their place came harsh new regulations requiring banks not only to lend to uncreditworthy borrowers, but to do so on the basis of race.
These well-intended rules were supercharged in the early 1990s by President Clinton. Despite warnings from GOP members of Congress in 1992, Clinton pushed extensive changes to the rules requiring lenders to make questionable loans. [...]
Failure to comply meant your bank might not be allowed to expand lending, add new branches or merge with other companies. Banks were given a so-called "CRA rating" that graded how diverse their lending portfolio was. [...]
In the name of diversity, banks began making huge numbers of loans that they previously would not have. They opened branches in poor areas to lift their CRA ratings.
Meanwhile, Congress gave Fannie and Freddie the go-ahead to finance it all by buying loans from banks, then repackaging and securitizing them for resale on the open market.
That's how the contagion began.
With those changes, the subprime market took off. From a mere $35 billion in loans in 1994, it soared to $1 trillion by 2008.
Readers are strongly encouraged to review this entire fact-filled piece to not only better understand the roots of today's financial crisis, but also to get a sense as to just how absurd media accusations of this all being Bush and McCain's fault are.
That said, from 1989 through 1995, I managed branches for two savings and loans: Imperial Savings, which got taken over by the Resolution Trust Corporation during the S&L bailout, and; Great Western Bank which eventually was purchased by Washington Mutual.
The pressure to comply with CRA was astounding, especially at Great Western as it was expanding throughout the country. Its ability to acquire other institutions was directly related to its CRA rating.
With this in mind, IBD's views concerning this matter are spot on raising a very important question: if the role of news media is to inform the public, why does a LexisNexis search indicate that as this crisis came to a head last week, its connection to CRA, Jimmy Carter, and Bill Clinton was almost completely ignored?
Would such a revelation make it difficult for Obama-loving press outlets to point fingers at George W. Bush and, more importantly, John McCain?
Yes, that's a rhetorical question.
—Noel Sheppard is the Associate Editor of NewsBusters.
Glass-Steagall Act;
An Act passed by Congress in 1933, that prohibited commercial banks from collaborating with full-service brokerage firms or participating in investment banking activities.
The Glass-Steagall Act was enacted during the Great Depression. It protected bank depositors from the additional risks associated with security transactions.
The Act was dismantled in 1999 . Consequently, the distinction between commercial banks and brokerage firms has blurred; many banks own brokerage firms and provide investment services.
November of 1999 Congress repealed the GSA with the establishment of the Gramm-Leach-Bliley Act, which eliminated the GSA restrictions against affiliations between commercial and investment banks
Hence the beginning of gourmet/voodoo investment products.
Despite how integrally tied the current crisis is to this bill enacted by a Democrat-controlled Congress and signed into law by Jimmy Carter, no major media outlet other than Investor's Business Daily and National Review Online mentioned it during last week's market meltdown."
AIG contracts or any other legal contract is protected by the Constitution and the Congress could have stopped it earlier before being paid out.
If you let the liberal Stalinesque Government rule over, pick and choose which contracts please them - or not is another nail in Americas coffin. Sure, but just the AIG contract and then we'll stop - no, the next one just might be yours!
You know, I was going to go on with this but then realized there are only 12 or so people out there that are capable of grasping, caring or have their heads out of their asses and not in OctoMoms' long enough to understand that this mess is CONGRESS's FAULT and most should be removed and the rest thrown in Jail.
The Senate finace committe made it possible for, and I beleive in my gut that it was done as quid pro quo for contributions that went to Dodd, Obama and more repubs included !
Screw it - have a nice day!
posted by Cu'cullen | 3:32 PM
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