Dear Friends,

I am sounding an alarm! For the life of me, I cannot figure out why
this is not being discussed on the media or why conservatives are not
making their case: IT IS SO IMPORTANT!!!!! The following is a
condensation of a series from the Investor's Business Daily explaining
"What Caused the Loan Crisis":

1977: Pres. Jimmy Carter signs the Community Reinvestment Act into
Law. The law pressured financial institutions to extend home loans to
those who would otherwise not qualify. The Premise: Home ownership
would improve poor and crime-ridden communities and neighborhoods in
terms of crime, investment, jobs, etc.

Results: Statistics bear out that it did not help.

How did the government get so deeply involved in the housing market?
Answer: Bill Clinton wanted it that way.

1992: Republican representative Jim Leach (IO) warned of the danger
that Fannie and Freddie were changing from being agencies of the
public at large to money machines for the principals and the
stockholding few.

1993: Clinton extensively rewrote Fannie Mae and Freddie Mac's rules
turning the quasi-private mortgage-funding firms into
semi-nationalized monopolies dispensing cash and loans to large
Democratic voting blocks and handing favors, jobs and contributions to
political allies. This potent mix led inevitably to corruption and
now the collapse of Freddie and Fannie.

1994: Despite warnings, Clinton unveiled his National Home-Ownership
Strategy which broadened the CRA in ways congress never intended.

1995: Congress, about to change from a Democrat majority to
Republican, Clinton orders Robert Rubin's Treasury Dept to rewrite the
rules. Robt. Rubin's Treasury reworked rules, forcing banks to
satisfy quotas for sub-prime and minority loans to get a satisfactory
CRA rating. The rating was key to expansion or mergers for banks.
Loans began to be made on the basis of race and little else.

1997 - 1999: Clinton , bypassing Republicans, enlisted Andrew Cuomo,
then Secretary of Housing and Urban Developement, allowing Freddie and
Fannie to get into the sub-prime market in a BIG way. Led by Rep.
Barney Frank and Sen. Chris Dodd, congress doubled down on the risk by
easing capital limits and allowing them to hold just 2.5% of capital
to back their investments vs. 10% for banks. Since they could borrow
at lower rates than banks their enterprises boomed.

With incentives in place, banks poured billions in loans into poor
communities, often "no doc", "no income", requiring no money down and
no verification of income. Worse still was the cronyism: Fannie and
Freddie became home to out-of work-politicians, mostly Clinton
Democrats. 384 politicians got big campaign donations from Fannie and
Freddie. Over $200 million had been spent on lobbying and political
activities. During the 1990's Fannie and Freddie enjoyed a subsidy of
as mush as $182 Billion, most of it going to principals and
shareholders, not poor borrowers as claimed.

Did it work? Minorities made up 49% of the 12.5 million new
homeowners but many of those loans have gone bad and the minority home
ownership rates are shrinking fast.

1999: New Treasury Secretary, Lawrence Summers, became alarmed at
Fannie and Freddie's excesses. Congress held hearings the ensuing
year but nothing was done because Fannie and Freddie had donated
millions to key congressmen and radical groups, ensuring no meaningful
changes would take place. "We manage our political risk with the same
intensity that we manage our credit and interest rate risks," Fannie
CEO Franklin Raines, a former Clinton official and current Barack
Obama advisor, bragged to investors in 1999.

2000: Secretary Summers sent Undersecretary Gary Gensler to Congress
seeking an end to the "special status". Democrats raised a ruckus as
did Fannie and Freddie, headed by politically connected CEO's who knew
how to reward and punish. "We think that the statements evidence a
contempt for the nation's housing and mortgage markets" Freddie
spokesperson Sharon McHale said. It was the last chance during the
Clinton era for reform.

2001: Republicans try repeatedly to bring fiscal sanity to Fannie
and Freddie but Democrats blocked any attempt at reform; especially
Rep. Barney Frank and Sen.Chris Dodd who now run key banking
committees and were huge beneficiaries of campaign contributions from
the mortgage giants.

2003: Bush proposes what the NY Times called "the most significant
regulatory overhaul in the housing finance industry since the savings
and loan crisis a decade ago". Even after discovering a scheme by
Fannie and Freddie to overstate earnings by $10.6 billion to boost
their bonuses, the Democrats killed reform.

2005: Then Fed chairman Alan Greenspan warns Congress: "We are
placing the total financial system at substantial risk". Sen. McCain,
with two others, sponsored a Fannie/Freddie reform bill and said, "If
congress does not act, American taxpayers will continue to be exposed
to the enormous risk that Fannie Mae and Freddie Mac pose to the
housing market, the overall financial system and the economy as a
whole". Sen. Harry Reid accused the GOP ;of trying to "cripple the
ability of Fannie and Freddie to carry out their mission of expanding
home ownership" The bill went nowhere.

2007: By now Fannie and Freddie own or guarantee over HALF of the $12
trillion US mortgage market. The mortgage giants, whose executive
suites were top-heavy with former Democratic officials, had been
working with Wall St. to repackage the bad loans and sell them to
investors. As the housing market fell in '07, sub prime mortgage
portfolios suffered major losses. The crisis was on, though it was
15 years in the making.

2008: McCain has repeatedly called for reforming the behemoths, Bush
urged reform 17 times. Still the media have repeated Democrats'
talking points about this being a "Republican" disaster. A few
Republicans are complicit but Fannie and Freddie were created by
Democrats, regulated by Democrats, largely run by Democrats and
protected by Democrats. That's why taxpayers are now being asked for
$700 billion!!

If you doubt any of this, just click the links below and listen to
your lawmakers own words. They are condeming!

http://www.youtube.com/watch?v=68D9X...ature=related#

http://www.youtube.com/watch?v=pIgqfM5C8lY#

--

Scott in Florida

In article <b6eue4h7che3pt8s0vmg648daacu39dd1h@4ax.com>,
Scott in Florida <MoveOn@outa.here> wrote:

I passed it along to a bunch more. If they aren't stopped the crooks
will have total control, including the WH.



>
>
> Dear Friends,
>
> I am sounding an alarm! For the life of me, I cannot figure out why
> this is not being discussed on the media or why conservatives are not
> making their case: IT IS SO IMPORTANT!!!!! The following is a
> condensation of a series from the Investor's Business Daily explaining
> "What Caused the Loan Crisis":
>
> 1977: Pres. Jimmy Carter signs the Community Reinvestment Act into
> Law. The law pressured financial institutions to extend home loans to
> those who would otherwise not qualify. The Premise: Home ownership
> would improve poor and crime-ridden communities and neighborhoods in
> terms of crime, investment, jobs, etc.
>
> Results: Statistics bear out that it did not help.
>
> How did the government get so deeply involved in the housing market?
> Answer: Bill Clinton wanted it that way.
>
> 1992: Republican representative Jim Leach (IO) warned of the danger
> that Fannie and Freddie were changing from being agencies of the
> public at large to money machines for the principals and the
> stockholding few.
>
> 1993: Clinton extensively rewrote Fannie Mae and Freddie Mac's rules
> turning the quasi-private mortgage-funding firms into
> semi-nationalized monopolies dispensing cash and loans to large
> Democratic voting blocks and handing favors, jobs and contributions to
> political allies. This potent mix led inevitably to corruption and
> now the collapse of Freddie and Fannie.
>
> 1994: Despite warnings, Clinton unveiled his National Home-Ownership
> Strategy which broadened the CRA in ways congress never intended.
>
> 1995: Congress, about to change from a Democrat majority to
> Republican, Clinton orders Robert Rubin's Treasury Dept to rewrite the
> rules. Robt. Rubin's Treasury reworked rules, forcing banks to
> satisfy quotas for sub-prime and minority loans to get a satisfactory
> CRA rating. The rating was key to expansion or mergers for banks.
> Loans began to be made on the basis of race and little else.
>
> 1997 - 1999: Clinton , bypassing Republicans, enlisted Andrew Cuomo,
> then Secretary of Housing and Urban Developement, allowing Freddie and
> Fannie to get into the sub-prime market in a BIG way. Led by Rep.
> Barney Frank and Sen. Chris Dodd, congress doubled down on the risk by
> easing capital limits and allowing them to hold just 2.5% of capital
> to back their investments vs. 10% for banks. Since they could borrow
> at lower rates than banks their enterprises boomed.
>
> With incentives in place, banks poured billions in loans into poor
> communities, often "no doc", "no income", requiring no money down and
> no verification of income. Worse still was the cronyism: Fannie and
> Freddie became home to out-of work-politicians, mostly Clinton
> Democrats. 384 politicians got big campaign donations from Fannie and
> Freddie. Over $200 million had been spent on lobbying and political
> activities. During the 1990's Fannie and Freddie enjoyed a subsidy of
> as mush as $182 Billion, most of it going to principals and
> shareholders, not poor borrowers as claimed.
>
> Did it work? Minorities made up 49% of the 12.5 million new
> homeowners but many of those loans have gone bad and the minority home
> ownership rates are shrinking fast.
>
> 1999: New Treasury Secretary, Lawrence Summers, became alarmed at
> Fannie and Freddie's excesses. Congress held hearings the ensuing
> year but nothing was done because Fannie and Freddie had donated
> millions to key congressmen and radical groups, ensuring no meaningful
> changes would take place. "We manage our political risk with the same
> intensity that we manage our credit and interest rate risks," Fannie
> CEO Franklin Raines, a former Clinton official and current Barack
> Obama advisor, bragged to investors in 1999.
>
> 2000: Secretary Summers sent Undersecretary Gary Gensler to Congress
> seeking an end to the "special status". Democrats raised a ruckus as
> did Fannie and Freddie, headed by politically connected CEO's who knew
> how to reward and punish. "We think that the statements evidence a
> contempt for the nation's housing and mortgage markets" Freddie
> spokesperson Sharon McHale said. It was the last chance during the
> Clinton era for reform.
>
> 2001: Republicans try repeatedly to bring fiscal sanity to Fannie
> and Freddie but Democrats blocked any attempt at reform; especially
> Rep. Barney Frank and Sen.Chris Dodd who now run key banking
> committees and were huge beneficiaries of campaign contributions from
> the mortgage giants.
>
> 2003: Bush proposes what the NY Times called "the most significant
> regulatory overhaul in the housing finance industry since the savings
> and loan crisis a decade ago". Even after discovering a scheme by
> Fannie and Freddie to overstate earnings by $10.6 billion to boost
> their bonuses, the Democrats killed reform.
>
> 2005: Then Fed chairman Alan Greenspan warns Congress: "We are
> placing the total financial system at substantial risk". Sen. McCain,
> with two others, sponsored a Fannie/Freddie reform bill and said, "If
> congress does not act, American taxpayers will continue to be exposed
> to the enormous risk that Fannie Mae and Freddie Mac pose to the
> housing market, the overall financial system and the economy as a
> whole". Sen. Harry Reid accused the GOP ;of trying to "cripple the
> ability of Fannie and Freddie to carry out their mission of expanding
> home ownership" The bill went nowhere.
>
> 2007: By now Fannie and Freddie own or guarantee over HALF of the $12
> trillion US mortgage market. The mortgage giants, whose executive
> suites were top-heavy with former Democratic officials, had been
> working with Wall St. to repackage the bad loans and sell them to
> investors. As the housing market fell in '07, sub prime mortgage
> portfolios suffered major losses. The crisis was on, though it was
> 15 years in the making.
>
> 2008: McCain has repeatedly called for reforming the behemoths, Bush
> urged reform 17 times. Still the media have repeated Democrats'
> talking points about this being a "Republican" disaster. A few
> Republicans are complicit but Fannie and Freddie were created by
> Democrats, regulated by Democrats, largely run by Democrats and
> protected by Democrats. That's why taxpayers are now being asked for
> $700 billion!!
>
> If you doubt any of this, just click the links below and listen to
> your lawmakers own words. They are condeming!
>
> http://www.youtube.com/watch?v=68D9X...ature=related#
>
> http://www.youtube.com/watch?v=pIgqfM5C8lY#
--