Obama '08?

Let's make an analogy about your claim about Fannie.

Okie built a toilet with the express opinion that it would have **** in it. Because okie built that toilet in his house that means that all the **** in the world is in okies house.

Simply because Fannie and Freddie were created for a purpose doesn't mean they bought all the loans anymore than your having a toilet means you have all the **** in the world. (Although the way you sling ****, one could think you do have a lot of it.)

Posts Tagged ‘The Great Recession’
Financial Meltdown Was ‘Avoidable’ Says Inquiry
Wednesday, January 26th, 2011

Published by the New York Times:

It’s how ironic it took the Financial Crisis Inquiry Commission 3 years to determine what caused the Financial Meltdown and if it was preventable. I’ve been stressing that loose lending laws created by in small part by the Clinton administration of “The Home Affordable Act” which paved the way for the excessive Sub-prime market as well as the excessive lack of policies set by the Bush Administration and Greenspan. Was this preventable, absolutely. When Bernanke was asked in 2006 and 2007 if we’ll see a housing crash, he stated it was contained. Lets not also forget the underwriters and rating agencies had a hand in this. Well, we know the end result subsequent to that remark. Lehman Bro. faltered and almost followed through with The Great Depression II. We need our elected officials to take a proactive approach. Many were hurt during this crisis. Approximately 10 million people have lost their jobs. In the end I hope something of great fortune comes to world after this crisis.

That's right~! One of the reasons for the financial crisis under Greenspan was his policy on keeping interest very low. That only exacerbated the speculators to use that money to buy property that seemed to see no end in its appreciation.

I remember reading many of the so-called financial experts who saw Greenspan as a god.

We all know what happened.

If you have been reading my posts on Greenspan and Bernanke, you would know that I had nothing good to say about these two chairmen of the feds.

1977
President Carter signs into law CRA (i.e., Community Investment Act) Carter.
Mandates banks invest in poor urban areas.

1991
Home Mortgage Disclosure Act is expanded to compares rejection rates by race.

1995
Clinton changes CRA to require banks provide mortgages to their poorer communities.

1998
Janet Reno declares that since inception of 1992 fair lending initiative, Justice Department has filed 13 major fair lending lawsuits.

2001
*04/….—President Bush declares that the size of Fannie Mae and Freddie Mac is a potential large financial problem because financial trouble of a large "GSE (i.e., Government Sponsored Enterprise) could cause strong repercussions in financial markets."

2003
*01/22—Freddie Mac announces it must restate financial results for the previous 3 years due to earnings report errors.
*06/11—Freddie Mac is the subject of federal securities and criminal investigations.
*09/11—New York Times says, "President Bush recommends the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago."
*09/25--Barney Frank responds, "Fannie Mae and Freddie Mac do very good work, and they are not endangering the fiscal health of this country … I believe there has been more alarm raised about potential unsafety and unsoundness than, in fact, exists."
*10/29—Fannie Mae discloses $1.2 billion accounting error.

2004
*06/16—Samuel Bodman, Deputy Secretary of Treasury, repeats President Bush Administration call "for a new, first class, regulatory supervisor for three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System.
*10/06—Franklin Raines, Fannie Mae CEO, testifies before the House Financial Services Committee, "assets are so riskless that the capital for holding them should be under two percent. "

2006
*04/18—Freddie Mac pays a record $3.8 million Federal Election Commission fine.
*05/23—Fannie Mae’s regulator announces that Fannie Mae has for years overstated reported income and capital by $10.6 billion.
*05/25—Senator John McCain calls for GSE regulatory reform legislation, warning: "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.”
*11/07—Democrats win majorities in both houses of Congress. The U.S. economy is growing at about 3 percent, unemployment is at 4.5 percent, and inflation under 2 percent.

2007
*06/23—Two Bear Sterns hedge fund groups collapse due to their mortgage investments.
*08/09— President Bush requests Congress pass a reform package for Fannie Mae and Freddie Mac.
*12/06—President Bush warns Congress of need to pass legislation reforming GSEs.

2008
*03/14—J.P. Morgan and the Federal Reserve recognize extent of Bear’s toxic assets, including sub-prime mortgages, and credit default swaps, and interconnection with other banks.
*03/14—At Economic Club of New York, President Bush requests Congress take action and reform Fannie Mae and Freddie Mac.
*04/14—President Bush issues a plea to Congress to pass legislation reforming Fannie Mae and Freddie Mac.
*05/03—President Bush issues a plea to Congress to pass legislation reforming Fannie Mae and Freddie Mac.
*05/19—President Bush issues a plea to Congress to pass legislation reforming Fannie Mae and Freddie Mac.
*05/31—President Bush issues a plea to Congress to pass legislation reforming Fannie Mae and Freddie Mac.
*06/06—President Bush issues a plea to Congress to pass legislation reforming Fannie Mae and Freddie Mac.
*07/11—Senator Chris Dodd says: "There’s sort of a panic going on today, and that’s not what ought to be. The facts don’t warrant that reaction, in my opinion … Fannie Mae and Freddie Mac were never bottom feeders in the residential mortgage market. People ought to feel comfortable about that. "
*07/13—Treasury Secretary Paulson asks Congress to grant him authority to take over Fannie Mae and Freddie Mac.
*09/07—Paulson takes over Fannie Mae and Freddie Mac, and offers them $200 billion, despite the fact their government credit line had been limited to $25 billion.
*09/15—Lehman Brothers officially collapses, the government does not intervene, and panic occurs, triggering a big Dow decline.
*09/16—Nancy Pelosi is asked if the Democrats bear some responsibility for the current crisis on Wall Street. Pelosi answers, "No. "
*09/17—Harry Reid regarding the economic collapse: "No one knows what to do."
*09/18—About 11:00 AM, the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States within two hours, equal to about $550 bilion. Treasury puts $105 billion in the system, but quickly realizes it cannot correct the problem.
*09/18—Paulson and Federal Reserve Chairman Ben Bernanke ask Congress for the required funds—and unprecedented authority to bail out the entire financial system. They say failure to act means "we may not have an economy on Monday."
*09/23— Paulson and Federal Reserve Chairman Ben Bernanke in Senate Banking Committee testimony outline the $700 billion asset relief program (TARP).
*09/29—That TARP version doesn’t pass the Democrat-controlled House of Representatives.
*10/03—Three days later TARP is passed after about $112 billion is added.
*11/05—The day after Barack Obama’s election, stocks plunge 500 points.
*11/12—Paulson changes the TARP rules from purchasing "troubled assets" to buying bank stocks to spur lending.
*11/23—Paulson gives Citibank a $308 billion bailout.
*12/06—Both houses of Congress agree to bail out the U.S. auto companies.
*12/18—President-elect Obama hints at an $800 billion to $1 trillion stimulus plan within his first month of office, and the Dow drops another 2.5 percent.

2009
*02/10—Treasury Secretary Tim Geitner unveils the Administration’s $2 trillion TARP II plan, and the Dow drops 382 points, or 4.6 percent
*02/17—President Obama signs a $787 billion bailout bill.
*02/18— President Obama reveals his mortgage bailout plan.
*02/19—Rick Santelli says in an impromptu speech on the floor of the Chicago Mercantile Exchange: "The government is promoting bad behavior … How many of you people want to pay for your neighbor’s mortgage? President Obama are you listening?" Santelli calls for a "Chicago Tea Party."
*02/20—The market falls as Chris Dodd, chairman of the Senate Banking Committee floats the idea of nationalizing the nation’s banks. The White House issues a denial, and the Dow ends down 100 points. The Dow is down now more than 800 points—nearly 10 percent—from the day before President Obama’s inauguration.
*02/21—Soros says, "The financial crisis marks end of a free-market model."

You, of course should already "know the rest of the story."

Quote:

Congress including Senator Obama were repeatedly informed in advance about the pending decline of the USA's finance industry being caused by Fannie & Freddie, but repeatedly refused to do anything about fixing it. Also, after he was elected President, Barack Obama continued to refuse to do anything about fixing it.

Still waiting on the answers to the questions I posed for you, Okie.
Cycloptichorn

That is a stupid analogy!
Fannie and Freddie both bought and motivated a large majority of poorly financed home loans, so that means Fannie and Freddie were major contributors to the current USA depression.

Cycloptichorn wrote:

Still waiting on the answers to the questions I posed for you, Okie.
Cycloptichorn

Why should I answer your questions when you don't answer mine? To tell you the truth, I forgot what your questions were

and I would have a tough time even being interested to know what they were. You can try me if you want, by posting them again, and I might consider answering, provided you answer one or two of mine.

He did answer; he said it was caused by freddy and fannie.

Cyclo, If you're seeking "actual accounts," you're not going to get any. You should know that by now!