Bailout Smealout

As I'm writing this draft there still is no bailout plain for our financial system. The one thing that I don't understand is all these politicians are talking about looking out for the people on "Main Street". Who cares about them?What about the people on Emerson street and East Seventh Street, doesn't anyone care for them, I don't even know where Main Street is.
I see that lots of Americans have taken the "when all else fails blame bush" route with this crisis. While I'm no huge fan of Bush and he certainly piled on to the problem, he cannot be solely blamed for this crisis. This all actually started in 1977 when President Carter signed the Community Reinvestment Act, which required banks and thrifts to offer credit throughout their entire market area. It gave incentives to help low-income borrowers get a home.
The CRA actually helped a little until 1995 when the Clinton Administration gave new subprime authorization to lenders with massive additional provisions in the CRA. Home loans skyrocketed.
Part of the increase in home loans was due to lenders, like Countrywide, which did not mitigate loan risk…using the new subprime authorization the revisions allowed the securitization of CRA loans containing subprime mortgages which forced banks to issue $1 trillion in new subprime loans and created subprime mortgage securities.
Bear Stearns was the first to do it. Fannie Mae added fuel to the fire when on Oct. 30, 2000, it announced plans to purchase $2 billion of “My Community Mortgage” loans.
Soon subprime mortgages started to grow and home prices started to rise.
A little background on Fannie Mae…It is a government sponsored enterprise that guarantees mortgages, then sells them to banks and investors…the more mortgages…the more money Fannie Mae makes.
The way Fannie May increased the mortgages was to move down the income ladder, and as it tried to increase its business, it gave risks short shrift with “affordable mortgages.” The banks were required by the CRA to issue sub-prime mortgages or pay big penalties.
Now, how were these sub-prime mortgages kept “affordable”? NO money down, interest only, low variable rates, no income verification, no attention was paid to credit or bad credit risks.
In 2004, 92% of Fannie Mae’s subprime mortgages were of the variable rate variety; and in 2005, 91% were variable rate. Fannie told the banks..go ahead , make the loans..we will guarantee them. Home ownership kept rising, as did the prices of homes. All was well, as long as interest rates did not rise and home prices did not fall. But then a huge fucking problem developed.
Interest rates rose–banks raised the variable rate. Gas prices shot up, Paychecks got squeezed, especially low-income paychecks. Some borrowers stopped paying, so banks stopped lending. The subprime market was collapsing. Foreclosures started piling up. Buyers were in short supply, so sellers had to lowered home prices. More borrowers stopped paying.
So then the Fannie Mae “guarantees” became worthless because they kept overstating their assets. Banks collapsed due to worthless government sponsored securities issued by Fannie Mae. Jobs disappeared and here we are today in this financial crisis.
So why was the expansion of the Community Reinvestment Act (CRA) to blame?
Well, before the CRA expansion authorization under President Clinton, home prices increased with inflation, but after the CRA expansion authorization, home prices became unhinged from inflation.
The CRA caused home prices to rise too fast as economic fundamentals did not support the “wedge” or spread between the Consumer Price Index (CPI) and the price of homes. What supported the high home prices was regulation motivated credit. The housing bubble was bursting.
So, in 2003, the Bush Administration proposed a new agency to oversee and regulate Freddie Mac and Fannie Mae, (the government sponsored companies that are the two largest players in the mortgage lending industry) This would have been the most significant regulatory overhaul in the housing finance industry since the S and L crisis a decade ago.
But the Democrats stopped it…supporters of Freddie Mac and Fannie Mae said efforts to regulate the lenders tightly under the proposed agency might diminish their ability to finance loans for lower-income families. Here are some direct quotes:
Barney Frank (D-MA)
“The more people exaggerate these problems, the more pressure there is on these companies (Freddie and Fannie), the less we will see in terms of “affordable housing.”

Melvin Watt (D-NC)
“…and in the process weakening the bargaining power of poorer families and their ability to get “affordable housing.”
But now to my main point(you had to know were I was was going with this).
Someone else tried to stop the economic time-bomb before it went off…that's right none other than Sen. John McCain.
In 2005, McCain warned of the pending mortgage collapse. He co-sponsored a bill…The Housing Enterprise Regulatory Act of 2005.
The bill would have regulated Fannie May and Freddie Mac, but again the Democrats blocked it and it never became law.It came back in 2007…but again, no luck because Fannie Mae had friends in the Senate…
Chris Dodd (D-CT) Sweetheart loan recipient; Guess who else also covered Fannie’s ass? You guessed it…Barack Obama. And you know who Obama chose to select his VP?(With Michelle having veto power of course).......
It was James A. “Jim” Johnson who had also received a sweetheart loan from Countrywide Mortgage.
1985-1990, He was the managing director of the now bankrupt Lehman Brothers.
1991-1998, He was CEO of Fannie Mae when CRA was expanded.
Johnson is now a wealthy private banker and on the Board of Goldman Sachs which gave $700,000 to Barack Obama and raised another $500,000 through “Bundling.”
Barack Obama gets advice on housing issues from Franklin Raines, who lives in a 7.6 million house.
Background on Raines:
1977-1979 In the Carter Administration when CRA was first enacted.
1980-1996 Vice-Chairman Fannie Mae when CRA was expanded
1996-1998 Clinton Administration OMB Director
1999-2004 CEO Fannie Mae
Raines received a $25 million golden parachute from Fannie Mae
He also got sweetheart loans from Countrywide:
Amount Date Interest Rate Fixed Market Ave.
$982,253 4/29/2003 5.125% 10 yr 5.5%
$986,340 7/31/2003 4.125% 10 yr 5.1%
By the way, he resigned from Fannie Mae due to what were called “accounting irregularities.”
And from my last post we know who got more money from Fannie Mae than anyone. But just incase you forgot her it is again:
Christopher Dodd D-CT $165,400
Barack Obama D-IL $126,349
John Kerry D-MA $111,000
In just 3 years, Barack Obama collected more than John Kerry did in 20 years. In fact, Obama has received FOUR TIMES more money from Fannie Mae per year than any other Senator over the last 20 years.
Obama received FORTY NINE times more money from Fannie Mae than did John McCain.
Did you know that Barack Obama worked for a law firm Miner, Barnhill and Galland that sued banks for not issuing enough subprime mortgage loans?
Obama was on the legal team that represented Calvin Roberson in a 1994 lawsuit against Citibank, charging the bank systematically denied mortgages to African-American applicants and others from minority neighborhoods.
So now America wants Obuma to be it's next president, because he brings "hope" and "change". I just hope on November 4th the good people of Ohio, Virginia, Colorado and New Hampshire wake up and realize hope is not a Strategy or even a tactic. Our economic crisis started growing in 1995, but it can end after election day because there is change on the ballot and that change lies with John McCain.


BUT!! Sen. McCain, you need to get your old ass in gear. Your losing to a flawed maggot. Who not only has ties to Fanny Mae, but also to racist, Rev. Wright, scandal-stained businessman Tony Rezko and Domestic Terrorist William Ayers. Apparently Americans are too stupid to realize who the best candidate is so, you have to beat them over the head with this information, over and over again. If I can slam Obuma on these issues in this piece of shit blog, why can't you do it on the campaign. Mr. McCain. please no more Mr.Nice Guy, you need to expose Obuma for the fraud he is. Please.


Conversations with The Gootch: Myself and The Gootch can't understand why everyone hates the Jews. All they do is make people laugh and as they try not to get wiped off the Earth, jeez give them a break.


Having said that. Shame on you kikes! Polls show Obuma has a sizable lead with the Jewish vote. How could any self respecting gentile vote for a Muslim that wants to sit down with Iranian dictator Mahmoud Ahmadinejad, who tells anyone that's listening that he wants to whipe Israel of the map. Not to mention Obuma a man who walked with anti-semite Louis Farakhan and spent 20 years in the church of the Jew hating Rev. Wright. Come on Jews your better than this.

I thought it was extremely bush league for the Yankees not to include Joe Torre in there video tribute to all the Yankee greats after the last game at Yankee Stadium. The decided to show Jason Giambi but not Torre, fuck that.

Last post I said Lance Broadway was the best name in baseball. I might have spoke to soon now that the Yankees have called up pitcher Phil Coke.

Yet another ridiculous deadly stampede in India. At least 168 fucking people were killed after thousands of pilgrims panicked by false rumors of a bomb stampeded at a Hindu temple in western India who's neck and neck with Saudi Arabia when it comes to these senseless stampedes. If I'm at one of these over crowed temples in Either Saudi Arabia or India, I'd take my chances with a bomb, these stampedes are sure to get ya.

More Big music Ups to Seamus. This time it's for turning me on to Built to Spill, pretty dam good group. I've been listening to there latest cd "You in Reverse" the songs "Liar", "Conventional Wisdom" & "Going Against Your Mind" are all awesome and the cd is strong overall.






Birthdays:




Sept 22nd-Nana; & hot chick Fernanda Taveres
Sept 23rd-Presidential candidate Jimmy Skorner; Hot Chick Jamie Bergman & the actor that played the classic character George Costanza, Jason Alexander





Sept 24th-Muppets creator Jim Henson; comedy legend Phil Hartman, NFL Great "Mean" Joe Green; one of my all time favorites, the Spainsh TV Weather Girl Jackie Guerrido





Sept 25th-Cougar Pill Head Heather Locklear; NBA Great Scottie Pippen; hot chick Catherine Zeta Jones and Luke Skywalker, actor Mark Hamill





Sept 26th-Hot moron Jillian Barberie
Sept 27th-Hot Chick Avril Lavigne(yeah I think she's h0; old scholl hot chick Bridget Bardot; & MLB great Mike Schmidt





Sept 28th-Hot Chicks Naomi Watts, Dita Von Teese & Hilary Duff
Sept 29th-Deadwood star Ian McShane, who play's the best character on TV, Al Swearengen





Sept 30th-What a day for chicks. Fran Dresher; Monica Bellucci; Candice Michelle; Martina Hingis; Lacey Chabert; Michelle Marsh and Megan Ewing
Oct 1-The and probably the worst president of the 39th United States Jimmy Carter; A-Team leader George Peppard, worlds biggest criminal Vladimir Putin & Hot Chick Cindy Margolis
Oct 2nd-Hot Chicks, Kelly Ripa & Camilla Belle
Oct 3rd-Hot Chick Gwen Stefani & Ashlee Simpson(did you know about these tits)


Thanks for Reading


"I'm Tallent I approve of this message and letting America know what kind of bastard they want to be the next President."