The Affirmative Action Economic Meltdown
September 30, 2008
I thought I’d never live to see my bank go bust. Wamu? Boo Hoo! Barack Obama’s fortunes have been boosted by those who accept that it’s just more of the “Failed Policies of Bush”.
But you don’t have to search far to find a different story than the evening news. In 1999, Fannie Mae introduced rules for sub-prime loans to increase minority homeownership and boost profits. The corporation was founded as part of the New Deal in 1938 before it was spun off to shareholders, but it retained huge government advantages in the 1960s. It still has about half the market of reselling mortgages backed with guarantees of payment. As a mere footnote, some warned that relaxed lending rules might lead to a giant failure that would have to be bailed out by the government if the real estate market cooled like it did in the 1980s.
*****Related Articles:*****
Asian Americans Consider Bailout Plan
Asian Pacific Americans and the Crisis
***************************
As we all know, that just happened as Uncle Sam took Fannie Mae back. Talk about obscene executive pay, over $100 million was spent on the paychecks of just three Democrats. James Johnson, who was briefly on Obama’s V.P. committee, earned $21 million in just one year as Fannie Mae’s CEO. Obama’s housing policy advisor Franklin Raines earned $90 million in his five years as CEO, and Jamie Gorelick earned $26 million as vice chairman, even as Raines and other top executives were caught using accounting tricks to trigger massive bonuses and understate their pay.
In Obama’s brief senate career, he racked up the second highest amount of Fannie and Freddie contributions. John McCain stated, “Senator Obama may be taking their advice and he may be taking their money but I want to tell you in a McCain/Palin administration, there will be no seat for these people at the policy making table.”
It was left wing meddling inspired by affirmative action that led to politically correct credit decisions. As Ann Coulter put it, “They gave your mortgage to a less qualified minority.” The Clinton administration pushed investigations of Fannie Mae for discrimination and “redlining” of minority neighborhoods, even if factors such as credit histories, job stability, loan-to-value ratios and income levels were completely different between communities. It was urged that half of Fannie Mae and Freddie Mac’s portfolio be made up of low / moderate income borrowers by 2001.
Old criteria such as credit history and down payment ability would become less important, as welfare and unemployment payments would be counted, and “stated income” allowed borrowers to make up their own income, whether it was backed up by a cash business or nothing but thin air. People were rewarded for signing up loans, not for making sure they would be repaid.
When G.W. Bush entered office, his economist warned that loans to under-qualified borrowers created a risk for the entire financial system. In 2003, Treasury Secretary John Snow proposed oversight with strict controls over risk and capital reserves. When McCain joined the fight in proposing legislation to reform and stave off corruption, the effort was stopped by Democrats like Barney Frank, who stated there was no financial crisis at Fannie / Freddie, and affordable housing was the priority.
Affirmative action might have affected a few thousand overachieving Asian kids, but race-focused lending has put everybody’s financial system, homes and savings at risk. When Obama was asked what he might give up to pay for the cleanup, his response was raising “other people’s taxes” and spending whatever it takes to replace imported oil with something even more expensive, put everybody into a hybrid car, infinite medical coverage, college, early education, and high test scores for all. Only McCain immediately responded that we must control spending, which threatens the entire American economy.
Which of these strategies is the one that will keep America from imploding so badly that no one will be able to will bail out Uncle Sam?
Here’s one of the many videos of this scenario:
Burning Down The House: What Caused Our Economic Crisis?
http://www.youtube.com/watch?v=TxgSubmiGt8
Also see:
Democrats defend Fannie against bad Republicans:
http://www.youtube.com/watch?v=wg3zlcBKAao
1999 New York Times this piece was based on:
http://www.youtube.com/watch?v=lU9r5zxnnWA
Obama / Pelosi’s explanation of crisis:
http://www.youtube.com/watch?v=qpgqFw0fryQ
Fox News summary:
http://www.youtube.com/watch
Comments
9 Responses to “The Affirmative Action Economic Meltdown”
Got something to say?
Factual Sources??
There’s TONS of factual sources on this! Just do a little bit of googling, and you’ll find that out. It’s true, the liberal Democrats are wholly responsible for the current crisis in the United States, which is now rippling out into the rest of the world.
Check it out for yourself, and watch this video:
http://www.youtube.com/watch?v=3p1Wc2NFa3w
Sounds like another Republican ad. When you get into an auto accident, don’t blame your mechanics. If the car is not safe to drive, it is the responsibility of the driver to get it fixed. Stop passing the blame.
Dezr zwsrtjir % Joey:
Yup, the Dems and the “doses” are absolutely responsible for EVERYthing wrong in these here benighted states of amurrika.
Indeed, “affirmative action” is another culprit.
Like those billionaires on and off Wall Street.
Wanna buy a hooch in the middle of the crick?
Frank Eng
P.S.: Art, I hope you have a fractal to fall back on come Nov. 4. That or retreat to “Little Saigon”? Wherever that is.
Addendum . . .
ad infinitum . . .
Herewith, a triangulated postscript, to wit:
1: Adam Smith, that 18th-Century Scotsman of an “economist” AND a moralist.
He posited “the wealth of nations” along with the obligations thereof?
And at least one contemporary “prime” minister has avowed a passion for both man and moral.
2: A contemporary fellow, one Mike Whitney, among his peers, has spoken out, forthrightly and incitingly. about the nabobs who would reward high crimes and misdemeanors with additional billions in theft and connings.
Did he read and ponder Adam Smith as well?
3: MELAMINE.
Wikipedia avows that this “trimer,” as in tripartite “chemical”? is an “organic” entity, that, apparently, has also been synthesized, along with the other 79,999 others the state of California has just avowed to confront and, one hopes, constrain?
Well , from this corner, rotsa ruck, kidlets.
The “tainted” Cacbury chocolates, via Hong Kong?, and the “poisoned” dairy products AND pet foods before , are, how can one put this?, no more and no less than our conjoined idiocies/smartassedness, indeed, as this post itself.
The Monsantos and Dow Chemicals and peers have long mooted this point, as in the obvious fact that the earth AND the waters and the air itself have been “polluted” since the er, ah, “industrial revolution.”
That said, were today’s alchemists to find the formula to turn dross into gold, then they will have placed gold much in the same position as today’s “toxic” papers of irreducible valuelessness.
Ditto “diamonds,” minus the DeBeers monop0ly and Fifth Avenue protestants of the “value” of “Tanzanites.”
So, who can we blame?
OURSELVES.
For our stupidity and gullibility.
As the great apologist for post-orgasm cigarets once said in a rather diverting movie, “fasten your seatbeats, it’s going to be a bumpy ride,” or some such effusion of Gollyiwood scenarists.
Just remember, the line between starvation and subsistence is every bit as thin as the one between too little and too much.
Tennis, anyone?
Frank Eng
P.S.: No one or no entity or organization can save “us” and we must each, individually, “save” ourselves, best we can. So, damn the Wall Street parasite predators and let’s get on with it, our lives that is. The “economy” will have to fend for itself.
Here’s a new link to a copy of the viral video that got a million hits before Warner Brothers and Universal demanded that it be taken down:
http://www.youtube.com/watch?v=TxgSubmiGt8
It is very interesting that when you search youtube for obama and mortgate crisis, what you get is either a video of him saying Obama is “outraged”, and about a million videos linking him and his friends to democrats who let Freddie and Fannie go crazy without any oversight. The Democratic version of this story is “it’s proof of the failed policies of Bush” with no further explanation neccesary. Just look at who gave out warnings and tried to impose controls (Bush and McCain) and who said that the most important thing was to make as many loans as possible to low / moderate income families, and that there “was no crisis”
Also see:
Democrats defend Fannie against bad Republicans:
http://www.youtube.com/watch?v=wg3zlcBKAao
1999 New York Times this piece was based on:
http://www.youtube.com/watch?v=lU9r5zxnnWA
Obama / Pelosi’s explanation of crisis:
http://www.youtube.com/watch?v=qpgqFw0fryQ
Fox News summary:
http://www.youtube.com/watch?v=gzEIMco49AE
No. 1Viral video: Children sing for Dear Leader Obama.
Choir leader is APA woman.
http://www.youtube.com/watch?v=QTb5EFZmgbs
Scary stuff coming from Americans…..
Go and search for “sing for change Obama”. The original Sawada video has been effectively withdrawn as it has been made private, and there are 200 “tributes” based on Hitler Youth, Kim Il Jung kid songs, Caberet Nazi hymns, Castro and islamic Jihad versions, not to mention verbatim posts by conservatives who just think it’s creepy, which I in no way endorse no matter how hilarious I think they are.
There are evidently NO symphathetic tributes to the video. Same with the crisis, there are NO Youtube videos showing where the Democrats are the ones we should thank for raising the alarm over deregulation. The MSM media evidently doesn’t own YouTube, at least not completely, and YouTube may indeed spell doom for Obama.