Freddie, Fannie and Mac Daddy Obama

The liberals outright deny any responsibility for the Fannie Mae and Freddie Mac fallout. They squarely point the finger at Bush and McCain.

Well something the Fourth Column will not report well on is how this is the liberals fault.

Back in 2005 Daniel Mudd gave a speech to the Black Caucus, including Barack Obama. In his speech he indicated Fannie Mae was in trouble because it had lent more money to minorities and undeserved individuals than any other company in history.

Mudd’s “Family” represents a good number of the minorities that Fannie Mae and Freddie Mac gave mortgages to… Think about it people. This was his “Conscience” and his conscience remained silent in hopes of getting a little coin into their own pockets.

What has Obama done since then to bring this problem to light? Nothing. What has Obama done since then to prevent this fallout? Nothing. What has Obama gained from this? $126,349 

I am still looking for an article about a democrat bill passed in the late 90’s that opened up the mortgage industry to financial institutions that had previously been restricted… 

Is this the man you want running America? No.

 

A stunning example of the incredible disconnect between the mainstream media and the blogosphere is this video of the interim Fannie Mae CEO, Daniel Mudd, addressing the Congressional Black Caucus, including Barack Obama, at their swearing-in ceremony in 2005. Although this video is spreading quickly in the blogosphere, you have yet to see or hear anything about it in the MSM. As you can see in the video, Mudd talks about the problems of Fannie Mae yet that didn’t keep Obama and other Democrats from taking large contributions from that organization or doing anything to try to fix it. Here is a transcript of CEO Mudd addressing the Democrats (emphasis mine):

Good morning members of the Congressional Black Caucus. I am humbled to come here today to reaffirm the friendship and partnership between Fannie Mae and the Congressional Black Caucus. Fannie Mae is determined to keep tearing down the barriers to deliver on the American dream and that means we need to work together with the CBC. So many of you have been good friends to Fannie Mae and our mission. You’ve been friends through thick and thin. We have indeed come upon a difficult time for Fannie Mae. There is much to be done inside my company and I humbly ask you to help us and to help me. If there are areas where we are missing. If there are areas where we could do better, we’d like to hear it from our friends and I’d be so bold as to say our family first.

It is true that Fannie Mae has lent more money to more minorities and more underserved individuals than any single company in history. 

We will work hard inside our company to resolve the serious matters before us to put our house in order and to forge a new future. And all the while you will see Fannie Mae reaching out and listening to the caucus. Over a century of endeavor you have earned the reputation as the conscience of Congress. In many ways I want to tell you today you are also the conscience of Fannie Mae. Keeping us on course to serve those who need serving the most.

As of this writing, a check on Google News shows NO news outlet has so much as mentioned this video despite the fact of Obama being present and later receiving $126,349 from Fannie Mae. Ask yourself this, if the CEO of Fannie Mae had addressed a similar “family” speech to a group of congressional Republicans who had received big donations from that organization, do you not think the video would have already appeared on the nightly news of the major networks? 

H/T: Gateway Pundit

 

Now John McCain has finally gotten the balls up to say it like it is. Barack Obama had his hands in the Freddie Mac & Fannie Mae Cookie Jar... 

ObamaMac

Senator Obama talks a tough game on the financial markets but the facts tell a different story. He took more money from Fannie and Freddie than any Senator but the Democratic chairman of the committee that regulates them. He put Fannie Mae’s CEO who helped create this disaster in charge of finding his Vice President. Fannie’s former General Counsel is a senior adviser to his campaign. Whose side do you think he is on? When I pushed legislation to reform Fannie Mae and Freddie Mac, Senator Obama was silent. He didn’t lift a hand to avert this crisis. While the leaders of Fannie and Freddie were lining the pockets of his campaign, they were sowing the seeds of the financial crisis we see today and enriching themselves with millions of dollars in payments. That’s not change, that’s what’s broken in Washington.

At Iowa, McCain “gets in your face” mano a mano (that is, he doesn’t delegate his surrogates, but gives a speech to America, Obama included), and he focuses on the facts.  This is a very concrete speech, which appropriately boasts his virtues and clearly exposes Obama’s failings:

U.S. Senator John McCain will deliver the following remarks as prepared for delivery in Cedar Rapids, IA, today:

I’m happy to be introduced by Governor Palin, but I can’t wait until I introduce her to Washington. Let me offer an advance warning to the big spending, greedy, do nothing, me first, country second crowd in Washington and on Wall Street: change is coming.

We need reform in Washington and on Wall Street. The financial markets are in crisis. Times are tough. Enormous strain is being put on working families and individuals in America. I know that the events unfolding can be difficult to understand for many Americans. The dominoes that we have seen fall this week began with the corruption and manipulation of our home loan system. The reason this crisis started was the abuses that took place within our home loan agencies, Fannie Mae and Freddie Mac and within our home loan system.

Two years ago I warned this Administration and Congress that regulations for our home loan agencies, Fannie Mae and Freddie Mac, needed to be fixed.

But nothing was done.

Senator Obama talks a tough game on the financial markets but the facts tell a different story. He took more money from Fannie and Freddie than any Senator but the Democratic chairman of the committee that regulates them. He put Fannie Mae’s CEO who helped create this disaster in charge of finding his Vice President. Fannie’s former General Counsel is a senior adviser to his campaign. Whose side do you think he is on? When I pushed legislation to reform Fannie Mae and Freddie Mac, Senator Obama was silent. He didn’t lift a hand to avert this crisis. While the leaders of Fannie and Freddie were lining the pockets of his campaign, they were sowing the seeds of the financial crisis we see today and enriching themselves with millions of dollars in payments. That’s not change, that’s what’s broken in Washington.

There was no transparency into the books of Wall Street banks. Banks and brokers took on huge amounts of debt and they hid the riskiest investments. Mismanagement and greed became the operating standard while regulators were asleep at the switch.

The primary regulator of Wall Street, the Securities and Exchange Commission (SEC) kept in place trading rules that let speculators and hedge funds turn our markets into a casino. They allowed naked short selling — which simply means that you can sell stock without ever owning it. They eliminated last year the uptick rule that has protected investors for 70 years. Speculators pounded the shares of even good companies into the ground.

The Chairman of the SEC serves at the appointment of the President and has betrayed the public’s trust. If I were President today, I would fire him.

We cannot wait any longer for more failures in our financial system. Structures like the resolution trust corporation that dealt with the failed savings and loan industry were designed to clean up the system and worked. Today we need a plan that doesn’t wait until the system fails. I am calling for the creation of the mortgage and financial institutions trust — the MFI. The priorities of this trust will be to work with the private sector and regulators to identify institutions that are weak and take remedies to strengthen them before they become insolvent. For troubled institutions this will provide an orderly process through which to identify bad loans and eventually sell them.

This will get the treasury and other financial regulatory authorities in a proactive position instead of reacting in a crisis mode to one situation after the other. The MFI will enhance investor and market confidence, benefit sound financial institutions, assist troubled institutions and protect our financial system, while minimizing taxpayer exposure. Tomorrow I will be talking in greater detail about the crisis facing our markets and what I will do as President to fix this crisis and get our economy moving again.

Senator Obama has never made the kind tough reform we need today. His idea of reform is what his party leaders in Congress order him to do. We tried for bipartisan ethics reform and he walked away from it because his bosses didn’t want real change. I know how to make the change that Senator Obama and this Congress is afraid of. I’ve fought both parties to shake up up Washington and I’m going to do it as President.

Those same Congressional leaders who give Senator Obama his marching orders are now saying that this mess isn’t their fault and they aren’t going to take any action on this crisis until after the election. Senator Obama’s own advisers are saying that crisis will benefit him politically. My friends, that is the kind of me-first, country-second politics that are broken in Washington. My opponent sees an economic crisis as a political opportunity instead of a time to lead. Senator Obama isn’t change, he’s part of the problem with Washington.

When AIG was bailed out, I didn’t like it, but I understood it needed to be done to protect hard working Americans with insurance policies and annuities. Senator Obama didn’t take a position. On the biggest issue of the day, he didn’t know what to think. He may not realize it, but you don’t get to vote present as President of the United States.

While Senator Obama and Congressional leaders don’t know what to think about the current crisis, we know what their plans are for the economy. Today Senator Obama’s running mate said that raising taxes is patriotic. Raising taxes in a tough economy isn’t patriotic. It’s not a badge of honor. It’s just dumb policy. The billions in tax increases that Senator Obama is proposing would kill even more jobs during tough economic times. I’m not going to let that happen.

I have seen tough times before. I know how to shake-up Wall Street and Washington. I will get this economy moving. I will lead us through this crisis by fighting for you, and when I am President we will be stronger than ever before.

UPDATE: McCain’s there. Congress is not. For a good analysis of the Democrat Congress’ pusillanimous conduct with regard to the current economic situation, please go here. The only saving grace in their show of cowardice is that, given their political/economic views, it’s probably better for the economy if they run away.

Who will clean up this mess?… Not Obama and Biden.

Conservatives will be left cleaining this up…

C. Edmund Wright
Grown ups are always having to step in and clean up the messes left by the children. Such is the case all too often in our government.    

It was announced yesterday that the Treasury is going to take over the two huge quasi-public lending corporations Fannie Mae and Freddie Mac. In short, without doing this the housing markets would have continued to decline and more problems would have been manifest throughout the entire finanical industry. When you calculate the loss of wealth as home prices and stock prices continue to decline, the consequences would have been almost unthinkable. This is wealth counted on by a lot of middle class taxpyers who depend on their home value and their 401K’s for retirement.
(For this reason, do not get swayed by the taxpayer protection arguments against this move. As a taxpyer, and a home owner, this is a win on balance. It will help the value of homes and it may or may not cost the taxpayer. The Chrysler take over decades ago actually ended up benefitting the taxpayers.)
As Treasury Secretary Hank Paulson said this morning on CNBC’s Squawk Box,
“I’m not happy about it…but it had to be done. I have to fight the battle that is in front of me.” Paulson went on to say that the problem with Fannie and Freddie were ingrained in their respective charters, which is to say put together by Democrat controlled congresses decades ago. Paulson, in great new tone fashion, did not mention which party controlled congress when these charters were drawn up. But I will.
Stock picking guru Jim Cramer, who applauded the move by Paulson, admitted that Fannie and Freddie were in the back pockets of Democrats in Congress. Cramer is normally a big Democrat, though his opinions today indicate that he would be doing intellectual gymnastics to stay that way. These are the two lenders, by the way, that  donated millions to Jesse Jackson’s various racial organizations over the years. These are the two organizations that backstopped big liberal Anthony Mozillo as his Countrywide Mortgage Corporation sold “predatory” mortgages to undeserving (and apparently financially illiterate) borrowers over the years so he could hand out sweetheart deals to congressional Democrats like Chris Dodd and others.
Warren Buffet, the billionaire investor, also applauded the move by Paulson as “exactly the right thing” to do  and indicated that these problems are decades in the making. Buffet was mum on the fact that these institutions are the Democrat’s babies and did not elaborate on just what “decades in the making” meant.
Many of the so-called “creative mortgages” were designed in response to politically correct and racially motivate legislation demanding that lenders have more minorities in their customer portfolio. Again, this was not something that came from the right side of the aisle.
And all of this came crashing down as the oil markets soared and people in the sub prime market had to choose between groceries, gas or mortgage payments. More liberal policies at work when you look at our energy situation over the past 30 years of course. Choosing to pay the former, these defaulting mortgages jump-started the mortgage-housing meltdown. These problems were the worst, of course, in liberal-controlled states like Michigan and California where government has driven businesses away and taxes up. And the result has been a cascading down of home values, bank failures and more deterioration of millions of 401K plans. It’s no wonder that Dick Armey says that “economic illiteracy” is required to join the Democrat caucus in congress.
So today, the grown ups had to step in and do what they did. This may or may not be good for the taxpayer in all of us. It is certainly necessary for the stockholder and homeonwer in all of us. Even if you don’t own a home, this is good for you since having your landlord go broke will not help anyone.
The conservative philosopher in us is split, of course. This is kind of a quasi-socialist step that was needed to correct what were simply liberal fallacies. (makes you wonder if there was a grand plan afterall?) Free marketeers cannot like this part of it. The worst part could the precedent it might set for the auto industry, ailing of course thanks to the liberal energy policies on top of liberal union power.
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One Response

  1. Democrats created the Fannie Mae and Freddie Mac problems years ago, in a well intentioned but failed effort to allow low income groups to buy houses. They stopped ALL eforts at reform until it was too late. Now they are trying to blame Bush, McCain and Republicans, everyone but themselves. That’s the Gods truth and here is the proof:
    http://strategicthought-charles77.blogspot.com/2008/09/democrats-created-fannie-mae-and.html

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