Plus you have a government in the red and littered with waste. Not exactly an example for prudence.
On Oct 18, 1:22 am, "\"Lone Wolf\"" <[EMAIL PROTECTED]> wrote: > "In a move that could help increase home ownership rates among > minorities and low-income consumers, the Fannie Mae Corporation is > easing credit requirements on loans that it will purchase . . . [to] > encourage . . . banks to extend home mortgages to individuals whose > credit is generally not good . . . . Fannie Mae is taking on > significantly more risk."-- New York Times, September 30, 1999 > > This is nothing but propaganda spin, and the idiot who wrote this post > is stupid enough to believe it. Capitalism and egalitarianism, you > really should be shot. > > They did it to make more sales........you know..........more profit, > more commisions, booty, mullah. Banks dont give a damn about low wage > earners. If they couldn't make their repayments the bank would chuck > 'em out and sell the property without a second thought. The problem > is, like good capitalist they got too bloody greedy and the workers > are paying for it. > > This is more like the real thing don't you think. > > In 2004, at the request of the major Wall Street investment houses, > including Goldman Sachs, then headed by Paulson, the U.S. Securities > and Exchange Commission agreed unanimously to release the major > investment houses from the net capital rule, the requirement that > their brokerages hold reserve capital that limited their leverage and > risk exposure. The complaint that was put forth by the investment > banks was of increasingly onerous regulatory requirements -- in this > case, not U.S. regulator oversight, but European Union regulation of > the foreign operations of US investment groups. In the immediate lead- > up to the decision, EU regulators also acceded to US pressure, and > agreed not to scrutinize foreign firms' reserve holdings if the SEC > agreed to do so instead. The 1999 Gramm-Leach-Bliley Act, however, put > the parent holding company of each of the big American brokerages > beyond SEC oversight. In order for the agreement to go ahead, the > investment banks lobbied for a decision that would allow "voluntary" > inspection of their parent and subsidiary holdings by the SEC. > > During this repeal of the net capital rule, SEC Chairman William H. > Donaldson agreed to the establishment of a risk management office that > would monitor signs of future problems. This office was eventually > dismantled by Chairman Christopher Cox, after discussions with > Paulson. According to the New York Times, "While other financial > regulatory agencies criticized a blueprint by Mr. Paulson, the [new] > Treasury secretary, that proposed to reduce their stature — and that > of the S.E.C. — Mr. Cox did not challenge the plan, leaving it to > three former Democratic and Republican commission chairmen to complain > that the blueprint would neuter the agency."[11] > In late September 2008, Chairman Cox and the other Commissioners > agreed to end the 2004 program of voluntary regulation. > > And now the fox is in charge of the henhouse. Capitalist corruption, > not Crackpot Egalitarianism > > On Oct 18, 4:05 pm, "M.A. Johnson" <[EMAIL PROTECTED]> wrote: > > > > > How Crackpot Egalitarianism Caused the Sub-Prime Mortgage Crisisby Thomas > > J. DiLorenzo"In a move that could help increase home ownership rates among > > minorities and low-income consumers, the Fannie Mae Corporation is easing > > credit requirements on loans that it will purchase . . . [to] encourage . . > > . banks to extend home mortgages to individuals whose credit is generally > > not good . . . . Fannie Mae is taking on significantly more risk."-- New > > York Times, September 30, 1999The main cause of the current economic crisis > > is the boom-and-bust cycle that was caused by the Greenspan Fed. Years of > > artificially-lowered interest rates caused trillions of dollars in > > mal-investment in real estate and other industries, and now we must endure > > the bust. But crackpot egalitarianism within the Fed and, indeed, in the > > entire Washington establishment, has made the crisis infinitely worse. > > In the early 1990s the Boston Fed did all that it could to fabricate > > "evidence" of widespread lending discrimination against racial minorities. > > But when Peter Brimelow and Leslie Spencer of Forbes magazine asked Boston > > Fed official Alicia Munnel what evidence of discrimination she really had, > > she was forced to admit that she had none. > > Fighting discrimination was not the Fed’s real goal. The real goal was to > > achieve a more "egalitarian distribution" of housing, period. So under the > > phony guise of "fighting discrimination" the Fed, the Congress, Fannie Mae, > > Freddie Mac, and myriad other federal government agencies forced, bribed, > > and extorted mortgage lenders of all kinds into making literally trillions > > of dollars in bad loans to unqualified borrowers. Countrywide Bank alone > > was praised by the Fed for making $600 billion in such loans (shortly > > before it went bankrupt). > > The Fed’s "smoking gun" in this entire charade is a Boston Fed publication > > entitled "Closing the Gap: A Guide to Equal Opportunity Lending." There is > > a gap, you see, between the value of real estate owned by middle- and > > upper-income Americans on the one hand, and lower-income Americans on the > > other. (There is also a luxury automobile gap, a two-week European vacation > > gap, a luxury boat gap, an expensive suit gap, and many others). The > > federal government has used all of its powers of threats, force, and > > intimidation over the past two decades to try to close the housing "gap." > > "The Federal Reserve Bank of Boston wants to be helpful to lenders as they > > work to close the mortgage gap," the publication states. > > In addition to closing the "mortgage gap," the Fed also pressured lenders > > to adopt a more vigorous racial hiring quota system, presumably under the > > theory that minority loan officers would be more likely to acquiesce in the > > Fed’s dictates to make more mortgage loans to its political mascots, > > sub-prime borrowers. > > The Boston Fed report claims that it is only offering lenders "guidelines," > > and "suggestions," but it is very clear that failure to obey the Fed’s > > "guidelines" can lead to serious financial problems for any mortgage > > lender. The report states in bold type that "Failure to comply with the > > Equal Credit Opportunity Act or Regulation B can subject a financial > > institution to civil liability for actual and punitive damages in > > individual or class actions. Liability for punitive damages can be as much > > as $10,000 in individual actions and the lesser of $500,000 or 1 percent of > > the creditor’s net worth in class actions." > > All lenders – banks, independent mortgage companies, etc. – were told that > > they needed to pay close attention to "such laws and regulations as the > > Equal Credit Opportunity Act (Regulation B), the Fair Housing Act, the Home > > Mortgage Disclosure Act (Regulation C), and the Community Reinvestment > > Act." A "conscientious [bank] Board will recognize the potential liability > > associated with noncompliance . . ." Ah, the subtle power of suggestion. > > The Fed instructed lenders to ignore traditional measures of > > creditworthiness when it came to "minority and low-income consumers." > > Traditional underwriting standards were said to contain "arbitrary or > > unreasonable measures of creditworthiness." "Special standards" that "are > > appropriate to the economic culture of urban, lower-income, and > > non-traditional consumers" were urged. For example, traditional > > underwriting standards take into consideration such things as age, > > location, and condition of a house, but these should be abandoned when it > > comes to sub-prime borrowers, said the Fed. > > Traditional ratios of mortgage payments to monthly income can also be > > ignored, said the Fed. And besides, "the secondary market [i.e., Fannie Mae > > and Freddie Mac] is willing to consider ratios above the standard" ones for > > other borrowers. "Lack of credit history" should not be a factor either. > > "Successful participation in credit counseling" was said to be an adequate > > substitute. > > Lenders were repeatedly urged to "work with special secondary mortgage > > market programs" such as those administered by Fannie and Freddie. Lenders > > were told to "be aware that Fannie Mae and Freddie Mac have issued > > statements to the effect that they understand urban areas require different > > appraisal methods." If a sub-prime borrower has a property appraisal > > problem, then the Fed or Fannie Mae could help to find "another experienced > > appraiser" who would presumably see to it that the property was "correctly" > > reappraised so that the sub-prime loan could be made. Yours truly was > > always under the impression that shopping around for "the right" appraiser > > who would give you the number you wanted (for a fee) was fraudulent and > > illegal. Silly me. > > In sum, the Fed’s policy of housing market socialism (endorsed and > > supplemented by numerous federal laws and regulations), combined with the > > boom-and-bust cycle that it created, has been an unmitigated economic > > catastrophe for the entire world. Naturally, the Fed’s response has been to > > grant itself even more powers, while the executive branch and Congress are > > busy nationalizing the capital markets, a move that will kill American > > capitalism. Abolishing the Fed would be a very modest first step in > > dismantling our rotten Leviathan state so that the next generation can at > > least have some hope of living in a reasonably free and prosperous > > society.http://www.lewrockwell.com/dilorenzo/dilorenzo154.html- Hide quoted > > text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. 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