Archive for the ‘financial crisis’ Category

Here are the political/governmental poor decisions that led to the crash

Here’s How The Community Reinvestment Act Led To The Housing Bubble’s Lax Lending

The secularization of these, required by CRA, poison pill mortgages (needed to mitigate the banks’ risk incurred by making them) coupled with the repeal (1999) of the Glass Steagall Act made the crash almost inevitable. Both of these truly horrible decisions were made by politicians for “the greater good” of their constituents, either donors or stupid voters.

The Repeal Of The Glass Steagall Act and Its Contribution To The 2008/2009 Economic Crisis

The idiotic “derivatives” that were invented to shift more of the risk to investors and the “credit default swaps” designed to insure the investors in these instruments were actively encouraged by the SEC, which is a government agency charged with protecting the public not the banks.

Testimony of Annette L. Nazareth, Director Division of Market Regulation February 10, 2000

Certain Politicians who claimed responsibility for the CRA kept insisting that everything was working perfectly well while the system was snowballing down the hill.

Barney Frank and Chuck Schumer’s Role the Fannie Mae Failure

Rep. Barney Frank Admits to Helping Ex-Lover Land Job at Freddy Mac

Others were siding with the biggest bundler trying to capture control of the sub-prime market.

Dodd and Countrywide – WSJ.com

After the bust, the perpetraitors (sic) used it to turn on the small banks in order to protect the larger banks that had gambled and lost at the politicians urgings and assurances by constructing a huge barrier to entrance for new banks and onerous, costly reporting requirements the cost of which will cause many small banks to close. That will lead to larger banks being free to charge higher fees resulting in larger campaign donations or favors.

Dodd-Frank: 26,353 paper-pushers

Dodd-Frank helps big banks at expense of small ones …

 Now, I told you, that to tell you this,

http://www.bloomberg.com/news/2012-08-15/freddie-fannie-push-bank-bad-debt-cost-to-84-billion-mortgages.html

The problem is that the politicians forced bad loan origination on the banks in a ponzi like quota system and paid some Clintoonite bureaucrats some fantastic bonuses to flood Fannie Mae with bad loans.

Jamie Gorelick served as vice chairman of the Federal National Mortgage Association (Fannie Mae) when the government-sponsored enterprise began bundling subprime loans into securitized financial instruments. Her compensation was a salary of a little over $500,000 and $26,000,000 in bonuses. But Gorelick is perhaps best known for her 1995 memo, written when she was deputy attorney general for Clinton, that later became known as “Gorelick’s Wall,” a policy prescription limiting the flow of information between intelligence gatherers and criminal investigators that some believe helped allow the September 11, 2001 attacks on the World Trade Center to go unchallenged. (And often alleged to keep the FBI from learning what the CIA knew about Clintoon’s missile technology dealings with the Chinese.)


Franklin Raines the former chairman and chief executive officer of Fannie Mae, who served as White House budget director under President Bill Clinton. His Compensation was $700k salary, $50 million bonuses. He was specifically named in the Securities Exchange Commission’s lawsuit against Fannie Mae and settled for by paying the SEC $24.7 million, so he wound up in about the same financial position as the other Clintoonite.

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With the economy sliding deeper into a recession, panelists discuss whether it’s time to stop throwing our money into a massive pit out in the desert.

It would actually help if they did burn it instead of burning through it.. Not to worry, though. The Fed can create much more with just a few keystrokes. And of course the Treasury’s printing presses are running overtime. With enough inflation our debt will disappear, just ask Zimbabwe. They replaced the Rhodesian Dollar (which had a 1:1 exchange rate with US dollars in the mid ’70s, I know, I was there) on a one to one basis in 1980. When they finally got out of the money printing business they were printing Z$100 Trillion bills. On 8 November 2008 one of those bills was “officially” worth $147.50. Note that our debt is all in US dollars, does that give you any ideas? Can we /should we inflate our way out of debt? By the way, now in Zimbabwe they use a “basket of currencies” (sound familiar?) that includes the US dollar, South African Rand, Botswana Pula and the Pound Sterling. I wonder what our “basket” will consist of?

Courtesy of Onion News Network

Second edition (v 2.0) of an ongoing project to visualize Galt’s Speech from Atlas Shrugged by Ayn Rand using images and video from current events. NOTE: These videos do not purport to be definitive or authoritative. If these videos interest you, please visit the Ayn Rand Institute (www.AynRand.com)for more.

Text by Ayn Rand
Read by Christopher Hurt
Edited for YouTube by XCowboy2
Music by John Williams

For the full novel read unabridged, visit BlackstoneAudio.com

Niall Ferguson, historian and author of Civilization, tells Robert Miller his projections for the next decade, including the future of Europe, the MIddle East and the US.

Democracy remains unlikely.

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MacIver News Service | February 19, 2011 12:05pm



[Madison, WI] As tens of thousands of public employees skipped work this week to attend protest rallies outside the Wisconsin State Capitol, many wondered if they would face any disciplinary action for unexcused absences.



On Saturday, a group of men and women in lab coats purporting to be doctors were handing out medical excuse notes, without examining the ‘patients.

2/11/11

Here is complete video of Herman Cain’s speech at CPAC today. Cain called on Americans to “stay involved, stay informed, and stay inspired” in working to see to it that there is a new President in the White House after the 2012 Election. Cain said liberals like Obama are seeking the destruction of the United States as we know it, wanting to turn America into the U.S. of Europe. Cain said that is not going to happen “on our watch.” He has already formed a Presidential Exploratory Committee, and will likely be a candidate for the 2012 GOP Presidential Nomination.

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In an unprecedented and controversial move, the White House has launched a new program at the Department of Labor which will refer workers who have complaints about their bosses to a toll free number at the American Bar Association, where they can get a lawyer to work on their case on a contingency fee basis.

Read more here

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