Why Congress Is Failing America

A man of great wisdom:
http://www.atlah.org/broadcast/manningreport.html

A Proposal to Resolve the Fannie Mae and Freddie Mac Financial Fiasco

In order to solve what has been termed the financial crisis, it is necessary to identify the cause of Fannie Mae???s and Freddie Mac???s catastrophic failure.

The cause of their downfall is the partisan democrat pressure put on those companies to grant sub prime mortgages to persons who would be unable to repay those loans.

The democrat senators and representatives, who mandated that financial background checks be considered unnecessary and unwarranted, facilitated that irresponsible granting of mortgages to those unable to repay. The motive of the democrat members of Congress was strictly and blatantly partisan - to buy votes, and to maintain years of party support.

In 2005, John McCain co-authored a bill to investigate and regulate the faulty business practices of Fannie Mae and Freddie Mac, but that was opposed and defeated by the democrats in Congress.

On many occasions, President George W. Bush introduced proposals to regulate the mortgage lending companies, but those calls for regulation were opposed, obstructed, and defeated by democrats who were obsessed with the continuance of faulty lending practices.

In order to reform the financial sector, it is necessary that the sleazy politicians and top administration of those 2 mortgage companies who perpetrated fraudulent activity be publicly identified, investigated, and severely punished for their undermining the national economy.

It is only reasonable to expose the corrupt financial practices and their facilitators, and to remove them from any further activity, before any effort can be made to resurrect the American economy.
Otherwise, any attempt to do so will be useless, because the problems and perpetrators would still be present to frustrate and obstruct any meaningful remedial action.

Continued - A Proposal to Resolve the Fannie Mae and Freddie Mac Financial Fiasco

The first step toward economic recovery would be to isolate all sub prime mortgages from the assets of Fanny Mae and Freddie Mac, and to group the remaining viable ones into several stock options to be offered for sale to the public, and also as a bailout measure.

That would result in an immediate infusion of cash into the banking sector, thereby ensuring that credit could be granted to qualifying loan applicants.

Individuals or organizations who choose to buy those stock options should benefit additionally from any profits later realized by their investments.

Also, any profits resulting from the bailout option should be refunded to the INCOME TAX PAYERS only, since they would be the ones who would have financed the bailout.

Likewise, but separately, the various questionable sub prime mortgages should be bundled together into other stock options which would be structured to contain a mixture of both somewhat and less redeemable loans.

Those sub prime mortgage packages should be offered first to democrats, especially wealthy ones, who might be attracted to them by their being valued at a price of 80 cents on the dollar, based on the face value of the mortgages.
.
That would afford them the option to support what democrats viewed to be a noble cause (home ownership for the unemployed), and besides, it might enable the stock option buyers to profit by 20 percent if all of the sub prime mortgages would be somehow repaid by the homeowners.

Thus democrats, especially the likes of George Soros, Barack Obama, Ted Kennedy, Chris Dodd, Nancy Pelosi, Harry Reid, and Charlie Schumer (who supported the granting of sub prime mortgages irrespective of demonstrated ability to repay) would be able to ???put their money where their mouths are???!

Lastly, there should be a guarantee that no further sub prime mortgages be granted.
Home ownership is a GOAL for many financially responsible Americans - it is not a government sponsored RIGHT for all persons living legally and illegally in the US!

The DEMOCRAT party has demonstrated its complete disregard and disgust for the prosperity of the American population and its economy.

It has put partisan politics above the welfare of the nation by its demonstrated sinister plan to decimate the financial industry.

By infiltrating the administration of Fanny Mae and Freddie Mac with its own DEMOCRAT operatives and sympathizers, it has encouraged and even forced those 2 companies to grant mortgages to party sympathizers who could not afford to repay those loans.

It managed to achieve that end by forcing those 2 entities to avoid conducting background financial checks and assessments into the status of applicants to repay those loans. As a result, mortgages were given to the unemployed, those on welfare, and even undocumented illegal immigrants.

In effect, a significant sector of the housing industry became a deceptively subsidized housing market.

Just as the radical group ACORN has schemed to flood the welfare system with applicants in order to undermine its ability to function, so also the DEMOCRAT party has schemed to undermine the ability of the financial markets to perform their vital roles.

But the American public DOES HAVE AN OPTION TO REGISTER ITS DISGUST WITH THE DEMOCRAT party that is hell-bent on stealing this election in order for it to decimate the capitalistic system which has facilitated American prosperity throughout its history.

Only 5 percent of the mortgages which have been granted by those 2 lending companies are uncollectible. They have become the financial sector???s Achilles heel because they have been repackaged several times as stock options, thereby multiplying their accumulative detrimental effect.

The remaining 95% of those mortgages are held by families which have bothered to assess their financial positions, optimistically apply for and obtain their mortgages, and continue to repay them.

But the responsible 95% are furious that whereas they have been financially responsible, they must now also subsidize the default mortgages of the irresponsible 5%.

The DEMOCRATS have forced them into an untenable corner, but they can show their disgust for the oppressive DEMOCRATS by voting them out of office in the House and Senate, and by electing a REPUBLICAN president and VP who will reform Washington so that another disgusting massive DEMOCRAT extortion scheme can never be perpetuated on American citizens.

Any business that is a failure should be allowed to fail. Nuff said.

I AM THE WaMu
(to I am the Walrus, the Beatles)
Adapted by WilliamBanzai7

I am he as you are he as you are me and we are all together.
See how they run like hedge fund bums from a gun, see how they fly.
I'm crying.

Sitting on a write down, waiting for the FDIC to come.
Corporation tee-shirt, stupid bloody Thursday.
Man, you been a naughty bank, you let your loans go wrong.
I am the eggman (woo), they are the eggmen (woo), I am the WaMu,
Coo coo, kachoo.

Mister FDIC man sitting
Pretty little FRB men in a row.
See how they fly like Bailouts in the Sky, see how they run.
I'm crying.
I'm cry, I'm crying, I'm cry, I'm crying.

Mortgage broker mustard, dripping from a dead dog's eye.
Crabalocker John Mack, pornographic Greenspan,
Boy, you been a naughty girl and you let your risk control knickers down.
I am the eggman (woo), they are the eggmen (woo), I am the WaMu,
Coo coo, kachoo.

Sitting in an Seattle garden waiting for Hank's bailout to come.
If the sun don't come, you get a tan from
Standing in the Seattle rain.
I am the eggman, they are the eggmen, I am the WaMu,
Coo coo kachoo ka coo coo kachoo.

Expert texpert CDS choking traders,
Don't you think the joker laughs at you? (ho ho ho, he he he, ha ha ha)
See how they smile like ABS bankers in a sty, see how they snide.
I'm crying.

Semolina mortgage Pilchard, climbing up the corporate Tower.
Ignoramus penguins singing Hare Krishna finance.
Man, you should have seen them kicking Paulson and Bernanke down.
I am the eggman, they are the eggmen, I am the WaMu,
Coo coo kachoo ka coo coo kachoo
(rhythmical speaking along with juba's).
Juba juba juba, juba, juba, juba, juba, juba, juba juba. Juba juba.....
(speaking)

This article assumes that the proposed $700 BILLION use of taxpayer money to bail out financial institutions is a good thing. It is not. To finance that, the government needs to print up $700 BILLION of new money and put it on the debt market, which will deflate the dollar (already spiraling down) and increase interest rates. The declining dollar will increase the cost of imports and lead to high inflation. 150 economists, including 3 Nobel prize winners, have come out AGAINST the bailout.

Ther

DUH.

maybe in another 100 years, humans will advance/understand economic science enough
to avoid these radioactive meltdowns.
in the meantime, try this paper for some insight..
"fractional reserve banking as economic parasitism"

http://econpapers.repec.org/paper/wpawuwpma/0203005.htm

endorsed by two phd economists. printed in nexus
magazine, 60k world circulation. #1 top downloaded
economics paper. used by economics
teacher in australia as standard classroom material.

recent supporting material:

Web of Debt-- How Banks and the Federal Reserve are Bankrupting the Planet, by Ellen Brown
http://www.webofdebt.com/

The Shock Doctrine: Naomi Klein on the Rise of Disaster Capitalism
http://www.democracynow.org/article.pl?sid=07/09/17/1411235

Confessions of an Economic Hit Man: How the U.S. Uses Globalization to Cheat Poor Countries Out of Trillions
http://www.democracynow.org/article.pl?sid=04/11/09/1526251

John Perkins on "The Secret History of the American Empire: Economic Hit Men, Jackals, and the Truth about Global Corruption"
http://www.democracynow.org/article.pl?sid=07/06/05/149254

Behind the falsification of US economic data
Peter Daniels
http://www.infowars.com/?p=2525

Money as Debt, video by Grignon
http://video.google.com/videoplay?docid=-9050474362583451279

In a few weeks we will make a choice that will decide our future.
I follow an economist named Bob Proctor. He has called the top and bottom of every market crash since the 70s correctly.
Also, he perfectly predicted the current real estate market meltdown and the picture he paints about what will happen in the next couple years
is terrifying.He thinks it will be worse then the great depression.
The banks in the U.S. are going under one after the other. Countrywide the largest morgage bank in the world,Bear Stearns, Lehman Brothers and Merrill Lynch which are 3 out of the top 5 wall street firms. Also, Fanny and Freddy Mae which hold 50 percent of the home loans in the United States.
The government took them over because they are essentially bankrupt.If they didn't the entire financially system would virtually shut down, the stock market would crash and we would suffer beyond what any of us have seen before.

McCain just like Bush " doesn't understand the economy".
That not just my opinion its his own words. Not only does he not understand how to fix it but he does not understand exactly what is broken.
It is no surprise that he doesn't. The people that make up these securities use complex mathematical models very few people understand.
Bush and McCain both can take the credit for this mess since they helped deregulate the laws that were protecting us.

Bush's economic advisor Phil Graham wrote the deregulation bill that allowed banks to take huge risks with all of our future.
Now, Phil Graham is the head of McCain's economic policy.He is also McCain's choice for the next secretary of the treasury.
No one in this country can afford for that to happen. The last time Bush met with his economic advisors was in March. He either didn't care or didn't realize that anything was wrong. Phil Graham had the guts to say that we are in a mental recession after he helped create the worst economy meltdown in our lifetime.
It will take the best and brightest minds in the world to get us out of this nightmare. As bad as Bush has done, McCain would be
even more destructive because things are in much worse shape. The next president will not inherit a surplus like Bush did but a tanking economy and a 11,600,000,000,000 (trillion) dollars deficit. Most of it Bush created and it will take decades to pay it back.
If you do what you have always done then you will get what you have always got.
When it comes to policy Bush and McCain are the same 90 percent of the time.
So why are the polls even close then ?


The chairman of McCains campaign recently said that people don't vote on issues they vote on a personality composite. Which means he is trying to sell you personality instead of results.

He believes people will vote against their own interests.

Let's teach him we are smarter than that .

Hold them accountable NOW! while it will still help.

Elect Obama Biden 2008

Why hasn't congress been monitoring the SEC, who failed to enforce regulations that could have prevented a lot of the sub-prime mess in the first place?? I blame congress as much as the administration for the need for a "$700b bailout". And now they want taxpayers to fund the bailout? Bush, Cheney and Cox should all go to jail for their criminal actions. And all of congress should be replaced, if not jailed too.

Dodd and Franks meddling is beginning to take shape. And not for the better.

Todays CSPAN and Senate and House action focuses on a little noticed addendum to the bailout,which stood until Sen.Lindsey Graham[R-SC] blew the whistle on Sen.Dodds already-infamous SECTION 5.
In it, housing and voting advocates including the corrupt ACORN and the racist LA RAZA,would cop a 20% kickback on bailout debt recuperation with ACORN handed another 100 million in taxpayer money [even while they are under investigation for voting fraud in at least eleven states]. Frank is covering the deal for Dodd over in the House. House Republicans are even more angry than they were this morning and are now moving to shut out Barney with a possible filibuster. Make no mistake. Franks airy declarations of a ''deal''will come to naught if the Democrats continue loading this thing with not simply pet projects,but projects that actually furthered the demise of FREDDIE and FANNIE to begin with. Look to members of the Congressional Black Caucus to demand passage of SECTION 5 and create a genuine firestorm.

www.c-span.org Sept.26,2008[and continuing].