[jfelbab]

To set the facts straight on this current financial crisis and its root causes:

This financial crisis began under Bill Clinton. It was his expansive home ownership program to make housing loans and available to those who could not afford them that was the seed that caused this crisis. His program: “The National Homeownership Strategy: Partners in the American Dream”. This program and the immense political pressure applied to make the program look successful was the ticking time bomb that finally exploded the whole financial system of our country. Part of his program stated:

For many potential homebuyers, the lack of cash available to accumulate the required downpayment and closing costs is the major impediment to purchasing a home. Other households do not have sufficient available income to to make the monthly payments on mortgages financed at market interest rates for standard loan terms. Financing strategies, fueled by the creativity and resources of the private and public sectors, should address both of these financial barriers to homeownership.

Source:Bill Clinton's drive to increase homeownership went way too far - BusinessWeek

This is where the term "NINJA" loan started from. (No Income, No Job or Assets)

A woman in my area who had a job earning $20,000 a year was approved for 8 interest only home loans and bought 8 properties. She, as you would expect, lost them all to foreclosure but how do you suppose she got approved for those 8 home loans with no assets, no down payment, and insufficient income to even pay for one? The loans were part of the “The National Homeownership Strategy: Partners in the American Dream” program and added 8 more foreclosures to the huge list that we are now all going to be paying for.

As far back as 2001, the many Republicans, including Alan Greenspan, the former chairman of the Federal Reserve Board, warned congress of this exact fate. All proposals brought to the table by fiscally responsible republicans were repeatedly blocked by the leading democrats in congress. Why? I believe it was because they were getting sweetheart loan deals and huge cash campaign contributions from F&F.

One only need to follow the money trail to find out who was on the take. F&F contributed to top democrats to buy their support.

The top five recipients of campaign money from F&F (1998-2008)
1. Dodd, Christopher J S D-CT (Chairman of the Senate Banking, Housing, and Urban Affairs Committee)
2. Kerry, John S D-MA
3. Obama, Barack S D-IL
4. Clinton, Hillary S D-NY
5. Kanjorski, Paul E H D-PA

Obama and his democrat buddies never let the truth get in the way of a good story. Never has this been more true than now in the face of a financial crisis in this country. A financial crisis Obama and his party created. What do Obama and Barney Frank have in common besides being Democrats. They both were listed in the top 25 recipients of campaign contributions from Fannie Mae and Freddie Mac and they both are hypocrites. Obama is number 3 on the the list and Barney Frank is 16. Obama, the candidate of change, was in bed with Fannie Mae and Freddie Mac yet he criticizes John McCain, who along with George Bush, tried to fix the problem.

From a Wall Street Journal Online article:

This is stunningly naive. Recent statements by Barney Frank (D., Mass.), the chairman of the House Financial Services Committee, and Chuck Schumer (D., N.Y.), a powerful member of the Senate Banking Committee, make clear that Congress will never let them be privatized, broken up, slimmed down, nationalized or any of the other options hopeful reformers are putting forth today. Fannie and Freddie in their current form are just what Congress wants: an inexhaustible source of campaign contributions and funds for favored groups.
How Paulson Would Save Fannie Mae - WSJ.com

Federal Housing Enterprise Regulatory Reform Act of 2005

Senate sponsors

Sen. Charles Hagel [R, NE]
Sen. Elizabeth Dole [R, NC]
Sen. John McCain [R, AZ]
Sen. John Sununu [R, NH]

House bill sponsors:

Rep. Richard Baker [R, LA-6]
Rep. Robert Aderholt [R, AL-4]
Rep. James Barrett [R, SC-3]
Rep. Roy Blunt [R, MO-7]
Rep. Geoff Davis [R, KY-4]
Rep. Tom Feeney [R, FL-24]
Michael Fitzpatrick [R, PA]
Rep. E. Scott Garrett [R, NJ-5]
Rep. Paul Gillmor [R, OH-5]
Rep. Jeb Hensarling [R, TX-5]
Rep. Walter Jones [R, NC-3]
Rep. Thaddeus McCotter [R, MI-11]
Rep. Patrick Mchenry [R, NC-10]
Rep. Ileana Ros-Lehtinen [R, FL-18]
Rep. Paul Ryan [R, WI-1]
Rep. Christopher Shays [R, CT-4]
Rep. Frank Wolf [R, VA-10]

Notice that there were no Democrat sponsors.

This bill, co-sponsored by non other than John McCain, would have stopped this madness, but it was again stopped by democrats.


Just about 60 days ago, speaking on the health of F&F, Sen. Christopher Dodd, D-Conn., said at a Capitol Hill press conference:

The economics are fine in these institutions and people need to know that. There's no reason "to talk about failure. This is not a time to be panicking about this. These are viable, strong institutions.

Sen. Dodd calls Fannie, Freddie 'fundamentally strong' - MarketWatch