Neil Barofsky, a lifetime Democrat, was picked by then-President George W. Bush (on the advise of his Treasury Secretary Henry Paulson) to police how the banks spent the $700 billion in TARP economic stimulus funds that should have helped the United States avert the recession that all Americans now suffer under. Testifying before the Senate Finance Committee on April 20, 2010, Barofsky said: “To declare TARP a success is revisionist history. TARP was supposed to restore lending, and that didn’t happen.”
By Alan Caruba Sunday, June 17, 2012
It has taken three and a half years into Barack Obama’s presidency for most Americansto realize that he has been deliberately destroying America by driving up the nation’s debt and deficit, reducing privately held wealth, forcing millions onto the public dole, undermining its moral structure, and weakening the nation’s reputation internationally..
His latest lie is that “the private sector is doing just fine”, but the numbers tell the whole story and one can find them on an excellent blog, Economic Collapse, that offers seventy examples:
The American Enteprise Institute ^ | January 4, 2012 | James Pethokoukis
Posted on Wednesday, January 04, 2012 10:46:26 PM by AU72
This could be just the beginning. If President Barack Obama’s legally dodgy appointment of Richard Cordray to head the consumer finance agency should stick, it may open the door to more such actions. Here’s Jaret Seiberg of the Washington Research Group:
To us, the most important takeaway from a recess appointment of Cordray is that the President could use this same maneuver to put a housing advocate in charge of FHFA.
Today’s Presidential campaign sounds more like a horse race.
“The horses are entering the starting gate. Jockeys to watch are top-tier picks Romney, Gingrich and Perry, sporting 6-to-1, 5-to-1 and 4-to-1 odds respectively. But there’s a slight delay. Perry’s horse, a Texas stallion, is kicking and the stewards are having a difficult time getting him into the gate.
Unlike an individual or a well-run corporation, government is not motivated by how efficient it can be, but rather by how lucrative it can be for those associated with it, and how those who run the government can stay in power.
Someone who was philosophically opposed to government domination of the housing market wouldn’t perpetuate it by taking one red penny of taxpayer money from Fannie Mae and Freddie Mac, like the former Speaker did, whether he calls himself a historian or a lobbyist. Someone philosophically opposed to government domination of the health care market would never offer up government as the solution to the problem of the uninsured, like the former governor of Massachusetts did, since the problem of the uninsured was created by government’s involvement in the health care market in the first place.
The federal government does not need an efficient manager. That’s a pipe dream based on the noble but flawed premise that government can be made to operate as a business. It cannot. Business is subject to the forces of free choice, supply and demand, and competition. Can you imagine government subjecting itself to the forces of competition? Can you imagine government permitting us to ignore it?
The government’s biggest sacred cow is the Pentagon. The mere thought of reductions in the growth of defense spending has the Washington careerists screaming bloody murder. Yet military expert after military expert, not connected to the Pentagon and not employed in the defense industry, has told us that austerity will force the government to do what Congress lacks the political courage to do. Stated differently, we will keep spending on bases we don’t need, on planes that sit unused in hangars and on military hardware stored all over the world, and not for any national security interest, but simply because a congressman earmarked it – unless we get serious about our future.
A dollar of military spending is not a dollar of military strength, but it is a dollar into the coffers of those who contribute to congressional campaigns. Which is the greater threat to our national security, an impoverished gaggle of Third World revolutionaries 10,000 miles away, or our national debt? The answer is obvious…..
- The Government as Lawbreaker, Again – Judge Andrew Napolitano – Townhall Conservative (gds44.wordpress.com)
- (“Can Congress make legal something that is inherently wrong, and can Congress take a freedom that is a part of our humanity and make its exercise criminal?”) The Government as Lawbreaker, ~ Again Judge Andrew Napolitano (SEE READER COMMENTS) (gunnyg.wordpress.com)
- Judge Andrew Napolitano on the Government’s Unconstitutional Assault on Our Freedom to Travel (reason.com)
- Time To Take Out the Meat Axe (lewrockwell.com)
- The government as lawbreaker, again ~ Judge Andrew Napolitano (gunnyg.wordpress.com)
How Paulson Gave Hedge Funds Advance Warning … After a perfunctory discussion of the market turmoil, the fund manager says, the discussion turned to Fannie Mae and Freddie Mac. Paulson said he had erred by not punishing Bear Stearns shareholders more severely.
Busted: Proof Positive That Gingrich Supported Healthcare Mandates
Posted on Sunday, November 20, 2011 2:15:15 AM by Fred
As Newt Gingrich takes his turn as the GOP flavor of the week, all that baggage he carries is beginning to be opened, unpacked and examined like a tourist going through customs on a slow day at the airport.
The past few days have shined a light on Newt’s relationship with Freddie Mac and Fannie Mae, the quasi-governmental agencies that Gingrich has been hammering for their role in the nation’s mortgage meltdown. Yet, it turns out that Gingrich’s consulting firm accepted a sum well in excess of one million dollars from these same agencies to push their agenda with his Republican buddies on the Hill.
4 Members of NH State Legislature join for hearing today:
I guess using a forged birth certificate isn’t enough to keep a candidate off the ballot. Same old gutless corruption. No doubt shameless pimps like Hannity & O’Reilly will gloat over this one.
This is an urgent alert for Texans to stop the lies and unnecessary deaths.
The column below is critically important to every American:
Pearls of Wisdom
Rush Limbaugh.com ^ | November 18, 2011 | Rush Limbaugh.com
Posted on Friday, November 18, 2011 6:14:43 PM by Kaslin
“What is so arduous about traveling once a week? Major League Baseball teams are traveling constantly. NBA teams are traveling constantly. They are leaving after night games at two o’clock in the morning. They are arriving where they’re going at five in the morning and playing sometimes an afternoon game that day, certainly a night game that night.”
“Market capitalism is the answer. Robust liberty and freedom for the American people is the answer, and then a government willing, after unleashing that, to get out of its way is the answer.”
National Review ^ | 11/08/2011 | Jim DeMint
Posted on Tuesday, November 08, 2011 10:28:38 AM by SeekAndFind
Despite bipartisan promises to cut spending after the 2010 elections, Washington politicians are still voting to make the government even bigger and more expensive than ever.
Don’t believe me?
Even though the federal government is nearly $15 trillion in debt, it’s spending at record-high levels. Federal spending has gone up 5 percent in the first nine months of this year alone.
Just last week, Democrats and Republicans in the Senate passed three new spending bills to increase 2012 funding above 2011 funding levels. The bills will increase spending for the Department of Agriculture by $6.4 billion; for the Departments of Transportation and Housing and Urban Development by more than $2 billion; and for the Commerce, Justice, and State departments by more than $694 million.
By this time, everyone should be aware of the federal policies that precipitated the housing bubble and its collapse — the push by Congress and two administrations to push higher-risk lending in order to expand home ownership, as well as the effort by Congress to get Fannie Mae and Freddie Mac to spread that risk through mortgage-backed securities. While Wall Street made the situation worse by developing risky derivatives on those securities and failed to recognize the risk inherent in the securities themselves, the collapse wouldn’t have occurred at all had the federal government not intervened to distort lending for their own social-engineering goals.
Michael Bloomberg tried to explain that to Occupy Wall Street protesters this morning, and pointed out the contradiction between their protests and their demands:
“A CONSPIRATORIAL PLAN”
by Bob Russell, blogging at Patriot Action Network
In the last week he has gone on the campaign trail, at taxpayer expense of course, to tell We the People that if Congress is reticent in its willingness to implement the changes he wants that he will do it by executive order, in spite of what the Constitution says.
He first suggested he would bypass Congress to implement new home loan guarantees backed by Freddie Mac and Fannie Mae, at the expense of We the People of course, and now has floated the idea that he will minimize payment requirements or forgive student loans by executive order. Of course, when you get to the meat of the student loan idea it turns out to be a lie to deceive them. Obama wants to bypass Congress to get the support of these student loan people but not really help them when the rubber meets the road.
I find it alarming that Obama sees himself as the only arbiter of law in the United States, and that he believes he can totally bypass Congress and implement anything he wants to implement.
FOLLOWING “DELIBERATE ACT OF DECEPTION” BY CONGRESS
by Todd Kinsey, blogging at ToddKinsey.com
(Oct. 25, 2011) — For over a year I have been warning that the Obama regime plans to use Fannie Mae to nationalize a significant portion of America’s real estate market. Today the putative President announced plans to utilize executive orders to side-step Congress, usurp the Constitution, and allow the government-owned mortgage giant Fannie Mae to start gobbling up mortgages.
Obama’s plan will implement sweeping new rules that will allow the nationalized mortgage behemoth to refinance mortgages. Once Fannie Mae owns the mortgage, there’s nothing to stop the Obama regime from using the Making Home Affordable Plan to allow people to exit their mortgages, with $3,000 in hand, then have Fannie Mae or Freddie Mac purchase the home and rent it back to them for pennies on the dollar.
Together, Fannie and Freddie own more than half of America’s $12 trillion in outstanding mortgage balances, the majority of which are subprime loans. Beginning with the Clinton Administration and continuing with the Bush Administration, the Federal Government forced lending institutions to issue subprime loans to those that would not normally qualify for a mortgage…..
The Queen of Mean, Leona Helmsley, was right – the wealthy do not pay taxes, the little people do. Helmsley’s remark is more spot on than ever as Obama prepares to raise taxes on middle income Americans under the ruse of taxing the rich.
Obama Hides Tax Increases in New Government Fees business taxes
According to the establishment media, Obama’s tax burden will hit predominantly upper income taxpayers and reduce spending on “mandatory benefit programs,” including Medicare and Medicaid, by $580 billion.
Obama and the Democrats will raise billions more, not by direct taxation but through an across the board increase in government mandated fees.
Air travelers will be forced to pay more “federal security fees” – and endure what amounts to sexual molestation at the airport – and corporate air travel will get socked with a round of new fees.
Government workers are easy targets, so they will face an additional 1.2 percentage point deduction from their paychecks to contribute $21 billion more for their pensions.
Military retirees will pay a $200 fee when they turn 65 to have the government pay their out-of-pocket Medicare expenses and will also pay more for non-generic prescription drugs.
Obama has come up with a blizzard of new fees, including fees that “tilt toward the arcane,” according to the AP.
“There’s a plan to save $3 million a year by developing an electronic records system for hazardous waste shipments. Another would produce $7 million more a year by giving the federal government a 50 percent share of receipts from geothermal leases on federal lands instead of 25 percent, with the remainder going to the states.”
If you think the Republicans will save you from Obama taking more of your money to pay off a national debt you are not responsible for, think again.
A Biden-led group including Republicans think fleecing air travelers is a good idea and they are coming around to the idea that tax increases can be disguised as fee increases for “government services” that are in fact government monopolies.
The Association of Community Organizations for Reform Now (ACORN) was a key architect of a law passed in 1992 that set Fannie Mae and Freddie Mac on the road to ruin, according to a new book by Robert Stowe England to be released September 30 by Praeger.
The book, Black Box Casino, uncovers the myriad factors that led to the financial crisis of 2008, the worst financial implosion of modern times. This story is one of many threads woven into the book’s narrative.
ACORN was a key leader in clandestine negotiations among housing activists to shape new legislation that would set into place the regulatory regime that governed Fannie and Freddie.
According to an affordable housing advocate familiar with what transpired at the meetings, ACORN and other housing groups were “informally deputized” (Black Box Casino, page 42) in 1992 to write key parts of new legislation by former House Banking Committee Chairman Henry Gonzalez, a Texas Democrat.
Once ACORN and other housing advocacy groups reached an agreement amongst themselves in secret negotiations in 1992, Gonzalez championed their agreement as his own in Congress, where the provisions were enacted into law.
The radical regulatory template that emerged from the housing advocates secret meetings became the centerpiece of the Federal Housing and Enterprises Safety and Soundness Act of 1992, or as it also known, the GSE Act. Fannie and Freddie are government-sponsored enterprises.
(Excerpt) Read more at mindovermarket.blogspot.com …
Being a House banking member has always had its rewards. While still a junior member on the House Banking Committee in 1991 he secured a big-time job at Fannie Mae for his then-husband. Or was it his wife? OK, let’s not go there.
But Frank has definitely moved on to bigger things. His new husband is a surfer. Oops. I just went there.
He’s also now the author of a banking reform bill known as “Dodd-Frank,” which has the distinction of being some of the most costly legislation ever written.
How costly? We just don’t know yet. But besides the $3 billion that the legislation will cost to implement a story in the Atlantic, hardly a right-wing mouthpiece, estimates that the costs could approach $1 trillion.
Oh, and it also failed to address the “too-big-to-fail” syndrome that put the country’s real estate market in the mess it finds itself in… which was the point of Dodd-Frank to start with.
Gotta love the Democrats when they pass laws that don’t even attempt to solve the problems the laws were intended to address in the first place.
If they solved problems then they wouldn’t get to write the outrage letters.
Because Frank has written an outrage letter asking that the Federal Reserve hold up the merger of Capital One and ING.
Capitol One was the high bidder in the forced sale of ING’s banking division. The sale of the division was a condition of a European bailout of ING’s parent company.
A disappointed bidder in the deal was Obama favorite, GE Capital.
Capital One outbid rival GE to secure the coveted ING retail banking business that Capital One says will help reduce the amount of risk they have because it adds more direct banking and less credit risk. But still any suitor had to be willing to take on the additional mortgage risk in the ING portfolio, which apparently, Capital One was willing to do this while the other suitors, reportedly, were not.
Frank and his liberal friends have a powerful reason to be outraged by the deal: GE donated $3.2 million to Democrats during the 2008 and 2010 election cycles, far more than they donated to the GOP.
“In a letter sent on Wednesday to Ben Bernanke, the chairman of the Federal Reserve, Mr. Frank, Democrat of Massachusetts, called on the Fed to hold public hearings to examine the possible deal’s impact on consumers and the economy,” writes the NYT’s Deal Book. “Mr. Frank also asked that the Fed grant the public at least two additional months to weigh in on the acquisition. The comment period is otherwise scheduled to end on Thursday.”
“This proposed purchase would create the fifth-largest bank in the United States,” said Mr. Frank, according to the Times article. “For this reason alone, care should be taken to thoroughly examine the impact of this purchase with respect to the consolidation of banking assets, the provision of credit by the resulting bank and compliance with the Community Reinvestment Act.”
The Times also cites a consumer advocate who opposes the deal: “We already have four too-big-to-fail banks, why make a fifth?” said John Taylor, president of the National Community Reinvestment Coalition.
Why indeed? I thought at $3 billion to implement, Dodd-Frank was supposed to solve the too-big-to-fail problem.
At the same time Democrats are calling for the merger of Fannie Mae and Freddie Mac to marry the king and queen of too-big-to-fail into one uber-mortgage failure sponsored by the government and managed by Congress.
Democrats have powerful reasons for doing that deal, just as they have for holding up the merger of Capital One-ING. Fannie Mae gave Democrats over $1 million in contributions in the 2006-2008 election cycles.
And let’s face it: $4.2 million in contributions is way too big to fail.
WND ^ | August 09, 2011 | Jerome Corsi
Posted on Wednesday, August 10, 2011 5:25:53 PM by Kleon
“Following WND articles exposing the OBOT claim that James A. Johnson, former head of Fannie Mae, was their White House contact, organizer and funder, OBOT posters on Fogbow.com have changed their story and contend they lied in an effort to “punk” WND.”
(Excerpt) Read more at wnd.com …
A radical Obama supporter who organizes an “Obama-Robot” website has admitted in online posts that WND correctly identified former chairman of Fannie Mae chairman James A. Johnson as the group’s White House-associated ring-leader. William L. Bryan, who posts under the username “P.J. Foggy,” is the organizer of Fogbow.com, a self described “OBOT,” or “Obama-Robot” website. On his weekly “Reality Check Radio” broadcast July 21, Bryan began the show by acknowledging the veracity of the WND report.
“As far as I know [WND] got the boss,” he said. “There just isn’t much point to denial.”
As previously reported, Hale told WND he spoke with JimBot numerous times on the telephone and that JimBot insisted he was a Washington, D.C., Democratic Party insider who directed OBOT activity in the Foxbow community from his office across the street from the White House.
JimBot further told Hale that he paid as many as 100 OBOTs in a disinformation campaign aimed at people questioning Obama’s eligibility to be president.
(Excerpt) Read more at wnd.com …
While the plans may not advance beyond the concept phase, they are under serious consideration by senior administration officials because rents are rising even as home prices in many hard-hit markets continue to fall due to high foreclosure levels.
(Excerpt) Read more at online.wsj.com …
In an outstanding job of journalism, POLITICO says Issa wants to “investigate how regulation affects job creation, the roles of Fannie Mae and Freddie Mac in the foreclosure crisis, recalls at the FDA and the failure of the Financial Crisis Inquiry Commission to agree on the causes of the market meltdown.”
The man is looking to toss aside some dirty rugs, put some well paid Democrats on the witness stand, get to the bottom of why Mac and Mae’s abuses let millions of hardworking Americans see their life savings flushed down the toilets of Wall Street.“
Be devoted to one another in brotherly LOVE. Honor one another above yourselves. Romans 12:10What a time in histoir to be a TeaPublican.
These Patriots have no idea how much power they have acquired over the past year in their attachment w/America and hatred from the Libs.
They have withstood every arrow and limp wristed sling thrown their way and came out on the other side more powerful and focused than when they first began.
They have become a force like a hurricane moving across the Gulf picking up strength as it nears land the Pundiots try to predict if its next landfall will be a Tropical Depression or another Class 5 leveling the political landscape.
Never before has a movement hit w/such a force as this, like Katrina swamping the levies of the unions and flooding the DNC like Norleans. The Sinate may have been kept barely, but the house is where everything gets done and we have just the people to do it.
We also still have an army of patriots still ready to hold these congressmen’s feet to the heat.
If they don’t do what the people who got them elected want then there will be protests held in their offices just like were held in the Dems’. The difference is what the people who elected them want is less spending rather than more as well as a reduction of gubmint waste and control.The best part of the congress is the number of members it has to cover more territory and get things done.
There can finally be an audit and investigation of Fannie Mae to find out what happened and what was the chain of events to cause that entity to fall. There needs to be a complete investigation into how to either reform this corrupt institution or the closing of it.
There will be pain if it is closed and there have been agreements made w/foreign Gummits like the Chinese and Japanese but there needs to be market forces brought to bear for a lot of these wasteful bureaucracies and closing may be the only way to create the void to have private banking taking on some of its risk.
Donilon was also a senior adviser to the presidential campaign of Michael Dukakis. He broke his losing streak when he assisted Bill Clinton with debate preparation, then served as an adviser for Clinton’s 1992 transition team. He helped prepare President Obama for his debate with Senator John McCain.
Oh, yes. He was Executive Vice President at Fannie Mae. He lobbied against increased regulation of Fannie Mae… and made millions of dollars while doing it. And now the President has appointed him America’s National Security Advisor.
According to journalist Michael O’Brien, “Rep. Cliff Stearns R-Fla. pressured Donilon, the current deputy national security adviser, to decline the new job due to his work in the past as a lobbyist for mortgage giant Fannie Mae and his lack of previous military experience
article, The Hill, 15 Oct 10.HIGH-SPEED RAIL BOONDOGGLE UPDATE
Speaking of boondoggles…
The National Security Advisor of the President of the United States is a really important job – for NATO and the West, not just for America. Whoever holds it has to ensure among many other responsibilities that the efforts of the the Pentagon and the State Department are coordinated towards a strategic end. Of all the posts in government, this one is supposed to be apolitical. Until last week, General Jim Jones, a retired marine with an extensive strategic resume, held the post for Obama.
Now he has been replaced by a pure political hack: Thomas E Donilon. As my colleague Toby Harnden has pointed out, this is worrying news. A major, disastrous shift in US foreign policy could be on the way.Tom Donilon has spent his entire life as a hanger-on to Democratic Party campaigns, working as a strategist for Michael Dukakis and later for Barack Obama. A corporation lawyer by trade, he is associated with the hard liberal wing of the Democratic Party. His brief experience with national security issues was in the Clinton administration, where he was spokesman and chief of staff to the Secretary of State. He has no experience whatsoever in the armed forces.Yet Donilon has not been without a major impact on national policy.
After working for Clinton, he went into corporate law practice in Washington and lobbied for the government-chartered Fannie Mae mortgage company that was at the center of the 2008 financial crisis. Before the market collapse, Donilon successfully lobbied the Congress to prevent increased regulation that might have prevented, or at least limited, the financial catastrophe.However, demonstrated incompetence is no bar to rapid advancement in the Obama administration. Donilon is a highly partisan operative filling a position that ought to be above party politics.
If anyone still doubted that America‘s foreign policy is in crisis, the appointment Friday of Thomas Donilon to be our new national-security adviser should be final proof.Set aside the fact that Donilon served as in-house counsel at Fannie Mae, the epicenter of the subprime-mortgage mess and subsequent financial meltdown — something any other administration would see as evidence of less than stellar judgment.
Set aside the reports that Defense Secretary Robert Gates had said Donilon’s appointment would be a “disaster” or that Donilon fought hard against our military’s strategy for winning in Afghanistan — although that seems precisely why Obama now wants him in the White House.Even set aside the fact that Donilon’s mentor is our buffoon-in-chief, Vice President Joe Biden.The fact that such a lightweight now occupies the single most important job for shaping the future of American power, short of the presidency itself, shows that the administration sees national security as a relatively minor priority compared to, say, currying favor with the Muslim world or running down allies like Britain and Israel.Some background is in order.
It is time to look st the truth. The Democrates and their allies are destroying America. Only the truth can set us free. We must choose freedom or slavery. We were created One Nation under God. Time to remember God.
Bail-outs of Freddie and Fannie will buryus under unpayable debt
By Devvy Kidd
“To preserve [the] independence [of the people,] we must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude.
If we run into such debts as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our callings and our creeds, as the people of England are, our people, like them, must come to labor sixteen hours in the twenty-four, give the earnings of fifteen of these to the government for their debts and daily expenses, and the sixteenth being insufficient to afford us bread, we must live, as they now do, on oatmeal and potatoes, have no time to think, no means of calling the mismanagers to account, but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow-sufferers.” –Thomas Jefferson to Samuel Kercheval, 1816.
ME 15:39 The “Federal” National Mortgage Association Fannie Mae and the “Federal” Home Mortgage Corporation Freddie Mac are driving this country further into financial collapse. Since 1968, those two entities have operated as gigantic rip-offs called “government sponsored enterprises” or GSEs.
Translated it means those companies are privately owned and operated just like the privately owned and operated “Federal” Reserve Banking System. Freddie and Fannie have shareholders who are financially protected by your wallet. The sweat of your labor.
Excerpt ~ Continues…
Barack Obama is front and center, along with the Chicago Climate Exchange, the Joyce Foundation, George Soros, Maurice Strong, Edmund de Rothschild, the Federal Reserve, Goldman Sachs, George W. Bush’s Treasury Secretary Henry Paulson, even Fannie Mae, and many others.