Under President Jimmy Carter, the Community Reinvestment Act (CRA) was passed. It required federal financial institutions to encourage banks to give home loans to persons with little credit and low income. Economist Russell Roberts said that the CRA played a major role in creating the sub-prime mortgage crisis in the U.S.
Under Bill Clinton, the CRA was expanded and Clinton set targets for low-income home ownership at the Department of Housing and Urban Development and at Fannie Mae and Freddie Mac. Banks were forced by the federal government to provide bad loans to unqualified people.
Rep. Barney Frank (D-MA) is Chairman of the Financial Services Committee in the House of Representatives. In 2003, he said of Fannie Mae and Freddie Mac: “These two entities – Fannie Mae and Freddie Mac – are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.” In the late 1980s and early 90s, Frank was engaged in a sexual relationship with Herb Moses, who was Fannie Mae’s assistant director of product initiatives! Bill O’Reilly exposed Frank’s involvement in the mortgage crisis: YouTube – O ‘Reilly – Barney Frank Had Affair with Fannie Mae Exec. Frank looked the other way, while our economy was being destroyed by federal policies created in Clinton and Carter Administrations. (Freddie Mac and Fannie Mae help fund the homosexual agenda.
In 2008, Freddie gave $20,000 to a Parents and Friends of Lesbians and Gays (PFLAG) event; Fannie Mae gave nearly $19,000 to the same event. Freddie has donated $125,000 and Fannie donated $80,000 to homosexual groups since 2005.)
Senator Christopher Dodd (D-CT) is head of the powerful banking committee in the Senate. He and Barney Frank consistently resisted attempts by the Bush Administration to closely regulate Fannie Mae and Freddie Mac. Dodd also got preferential treatment from Countrywide on two mortgages. Countrywide was one of the biggest subprime providers.
Barney Frank and Christopher Dodd received thousands of dollars in contributions from Fannie Mae and Freddie Mac over the years. Dodd has received $133,900 since 1989; Frank received $40,100. (While in the Senate, Barack Obama received $105,849).
As long ago as 2003, President Bush was trying to get the House and Senate to carefully monitor the actions of Fannie Mae and Freddie Mac. His efforts were rejected by Democrats.
Obama associates headed Fannie Mae and Freddie Mac during the years that the crisis was getting out of control. Obama friend Franklin Raines ran Fannie Mae and collected $50 million from it. Obama friend Jamie Gorelick worked for Fannie Mae and earned $26 million; Jim Johnson, formerly Obama’s vice president search committee chairman, hauled in millions from his work with Fannie Mae as CEO.
ACORN, the socialist group that routinely engages in voter fraud, was involved in pushing for risky loans to people with bad credit histories or little money for down payments. ACORN intimidated banks in Chicago and elsewhere to give risky loans! Obama actually trained ACORN workers when he was a community organizer in Chicago! ACORN used provisions of the Community Reinvestment Act to delay or halt efforts of banks to merge or expand until they had lowered their credit standards!
Well, they didn’t. Someone seems to forget that just like in the Great Depression, this current mess was created by a decade of Republican legislation. And now they are crying like cry babies that it’s Obama fault. Oh my! aren’t they delusional.
September 2nd, 2010 at 9:13 pm
liberals hate America
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September 2nd, 2010 at 9:31 pm
Every time a Bush has been president the entire capitalist banking system has collapsed.
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September 2nd, 2010 at 10:19 pm
They were trying to garner the black vote.
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September 2nd, 2010 at 10:51 pm
wake me up when this scratching of a chalk board is over
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September 2nd, 2010 at 11:18 pm
Nice fairy tale but you forgot the Once upon a time and happily ever after.
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September 2nd, 2010 at 11:42 pm
LOL.
"This Administration will constantly strive to promote an ownership society in America. We want more people owning their own home. It is in our national interest that more people own their own home. After all, if you own your own home, you have a vital stake in the future of our country."
- President George W. Bush, December 16, 2003
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September 3rd, 2010 at 12:14 am
Well, they didn’t. Someone seems to forget that just like in the Great Depression, this current mess was created by a decade of Republican legislation. And now they are crying like cry babies that it’s Obama fault. Oh my! aren’t they delusional.
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September 3rd, 2010 at 12:39 am
You will get nowhere with liberals and the true facts of the financial meltdown. They can’t understand it so they will revert to their dogma and blame Bush.
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September 3rd, 2010 at 1:17 am
Look up "America’s homeownership challenge’
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September 3rd, 2010 at 1:57 am
The misguided attempts to assist those in poverty by democrats was simply a means to profit in the billions at the expense of tax payers by the wealthy 1% . They profited by wrapping these bad loans and selling them as sound investments that allowed them to make short term profits in the billions leaving average Joe to pick up check once they walked away with their pockets lined in gold .
Its nice that gullible well intentioned democrats appear to be at fault here and that semi educated individuals can not look past the smoke screen and see the real truth .
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September 3rd, 2010 at 2:04 am
uhhuh.. Carter, Freddie Mac and ACORN… That’s the best you can do?
That is your appraisal of the global banking meltdown that nearly triggered the massive domino collapse of our banking institutions.?
Read a book fella. You have no sources and most statements in that rant are totally baseless. Or absolute lies. Even taking your lies into account this is a shallow recycled rambling of a buffoon.
Apparently this is the magic concoction of falsehoods that the Republican party has decided to run on – clearing them, their deregulation policies and their deceptive business practice from all responsibility.
I could write a detailed and informative response with sources.
But I’d rather just berate you for your gullibility.
I will leave you with this one nugget of reason i guess..
If Fanny and Freddy’s bad loans to first time homebuyers under 200k were the major liability to the world’s banking network (as you suggest) then why wasn’t it just Freddy that would have defaulted?
Additionally i must mention, the current economic climate was not the direct fault of any one group in Washington. It’s a global economy comprised of hundreds of trillions in cash, assets and holdings. Washington policy is merely a factor to consider.
But the bottom line, a scandal did occur. All those pensions and mutual funds evaporated mean that somebody else got rich. That’s how the stock market works.
Also – not sure if i mentioned this before, but you are a stone cold liar. Beware friend, you reap what you sow.
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September 3rd, 2010 at 2:23 am
to get votes. to get money. that’s why we need to clean out the congress and the bureaucracy running our country into the ground. the leaders who formed our government were dedicated to the people . they were not all lawyers and harvard graduates . they were common people and that’s what we need again . people with our interests at heart . people with common sense . not the liars and crooks that we get to rotate in and out every election. who in their right mind with common sense would put barney frank,Christopher dodd or pelosi in a position of leadership. what is happening is our fault and we have to change it now . this election change the kind of people we send to do our bidding to washington. vote out the franks and dodds and all the other embedded good old boys or get ready to watch the end of a great free country .
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