FINANCIAL CRISIS 101
SUMMARY IN VIDEOS: WHOSE FAULT IS IT?
video: Who Caused The Financial Crisis
video: Who Protected The Scammers?
video: Meet The Protectors & Regulators
video: Who Benefited?
video: Who Warned Of The Impending Mortgage Crisis
chart: Obama's 6% Degree of Separation to Financial Crisis (source: Babalulog)
CHECK THE RECORDS YOURSELF
Forget what politicians, partisans & the media are saying
-->Video: How Financial Crisis Was Created
-->Investigation: How Politicians Manufactured the Financial Crisis
In their own words:
Democrats opposed regulations & received $$$$ from Fannie Mae & Freddie Mac
(two of the seeds of today's financial meltdown):
-->2003: Hearing of the House Committee on Financial Services (H.R. 2575):
-->2004: Hearing on Accounting Failure at Fannie Mae (PDF)
Democrat Congresswoman Maxine Waters (D-CA):"We do not have a crisis at Freddie Mac"-
Democrat Congressman Gregory Meeks (D-NY):"I am PISSED OFF at OFHEO [the regulators]"
Democrat Congressman Barney Frank (D-MA):"I think it is clear that Fannie Mae and Freddie Mac are sufficiently secure so they are in no great danger… I don't think we face a crisis; I don't think that we have an impending disaster."
2005: JOHN MCCAIN WANTED TO AVOID CRISIS
John McCain was one of just 4 sponsors of
-->2005 Bill to Address the Regulation of Secondary Mortgage Market Enterprises (S.190)
John McCain 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.”
-->PDF of Congressional Record (middle column), or
--> go to Library of Congress , select Sen. McCain 5/25/2006, search & click ‘S.190’, select ‘Text of Legislation’, select ‘Congressional Record’, click ‘(Senate – May 25, 2006)
2002-2008: BUSH ADMINISTRATION TRIED TO STOP IT
2002-2007: Washington Post Tracks Efforts From Bush Administration to Avoid Financial Crisis
2008: Bush Called For Reform of Fannie Mae & Freddie Mac 17 Times in 2008 Alone...Dems Ignored Warnings
SUMMARY OF FINANCIAL CRISIS:
1. Fannie Mae & Freddie Mac (F&F), two quasi-government mortgage firms, went unpunished for their scams.
2. Democrats opposed regulations and defended Fannie Mae & Freddie Mac which were cooking their books and buying politicians.
3. The 1995 Community Reinvestment Act (CRA) and ACORN (agitator group) forced Banks to give loans to unqualified borrowers.
4. Financial firms bought huge packages of loans from F&F because they were backed by government.
5. When some borrowers stopped paying, foreclosures increased dramatically.6. This led to mortgage meltdown which led to the financial crisis.