A Fact Check of Democrats Big Lie!

Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” —Ronald Reagan

The Democrats are using the same lie that they have used for decades. Blaming the Republicans for any economic slow down!
Even the New Deal did not save Americans from the Great Depression. It was World War II that put thousands of people to work and built the still dominant military industrial complex.

Obama is trying to ride the housing crisis into the oval office by stating it is a time for change. What he does not tell you is that the mess we find ourselves in today, was caused by the Democrats. The following time line will show the truth about why and who caused our housing crisis and the continuing failure of too many banks!


1977: Pres. Jimmy Carter signs the Community Reinvestment Act into Law.
The law pressured financial institutions to extend home loans to those who would otherwise not qualify. The Premise: Home ownership would improve
poor and crime-ridden communities and neighborhoods in terms of crime,
investment, jobs, etc.


Results: Statistics bear out that it did not help.

How did the government get so deeply involved in the housing market?
Answer: Bill Clinton wanted it that way.

1992: Republican representative Jim Leach (IO) warned of the danger that
Fannie and Freddie were changing from being agencies of the public at
large to money machines for the principals and the stock holding few.

1993: Clinton extensively rewrote Fannie Mae and Freddie Mac's rules
turning the quasi-private mortgage-funding firms into semi-nationalized
monopolies dispensing cash and loans to large Democratic voting blocks &
handing favors, jobs and contributions to political allies. This potent mix led inevitably to corruption and now the collapse of Freddie and Fannie.

1994: Despite warnings, Clinton unveiled his National Home-Ownership Strategy which broadened the CRA in ways congress never intended.

1995: Congress, about to change from a Democrat majority to Republican, Clinton orders Robert Rubin's Treasury Dept to rewrite the rules. Robt. Rubin's Treasury reworked rules, forcing banks to satisfy quotas for sub-prime
and minority loans to get a satisfactory CRA rating. The rating was key to
expansion or mergers for banks. Loans began to be made on the basis of
race and little else.

1997 - 1999: Clinton, bypassing Republicans, enlisted Andrew Cuomo, then
Secretary of Housing and Urban Development, allowing Freddie and Fannie
to get into the sub-prime market in a BIG way. Led by Rep. Barney Frank & Sen. Chris Dodd, congress doubled down on the risk by easing capital limits and
allowing them to hold just 2.5% of capital to back their investments vs.
10% for banks. Since they could borrow at lower rates than banks their
enterprises boomed.

With incentives in place, banks poured billions in loans into poor communities, often "no doc", "no income", requiring no money down and no
verification of income.
Worse still was the cronyism: Fannie and Freddie became
home to out-of work-politicians, mostly Clinton Democrats. 384 politicians got
big campaign donations from Fannie and Freddie. Over $200 million had been
spent on lobbying and political activities. During the 1990's Fannie & Freddie
enjoyed a subsidy of as much as $182 Billion, most of it going to
principals and shareholders, not poor borrowers as claimed.

Did it work? Minorities made up 49% of the 12.5 million new homeowners
but many of those loans have gone bad and the minority home ownership rates are
shrinking fast.

1999: New Treasury Secretary, Lawrence Summers, became alarmed at Fannie
and Freddie's excesses. Congress held hearings the ensuing year but nothing
was done because Fannie and Freddie had donated millions to key congressmen
and radical groups, ensuring no meaningful changes would take place. "We
manage our political risk with the same intensity that we manage our credit and
interest rate risks," Fannie CEO Franklin Raines, a former Clinton
official and current Barrack Obama advisor, bragged to investors in 1999.

2000: Secretary Summers sent Undersecretary Gary Gensler to Congress seeking an end to the "special status". Democrats raised a ruckus as did
Fannie and Freddie, headed by politically connected CEO's who knew how to reward
and punish. "We think that the statements evidence a contempt for the
nation's housing and mortgage markets" Freddie spokesperson Sharon McHale said. It
was the last chance during the Clinton era for reform.

2001: Republicans try repeatedly to bring fiscal sanity to Fannie and Freddie but Democrats blocked any attempt at reform; especially Rep. Barney Frank and Sen. Chris Dodd who now run key banking committees and were huge
beneficiaries of campaign contributions from the mortgage giants.

2003: Bush proposes what the NY Times called "the most significant
regulatory overhaul in the housing finance industry since the savings and
loan crisis a decade ago". Even after discovering a scheme by Fannie and Freddie to
overstate earnings by $10.6 billion to boost their bonuses, the Democrats
killed reform.

2005: Then Fed chairman Alan Greenspan warns Congress: "We are placing the total financial system at substantial risk". Sen. McCain, with two others, sponsored a Fannie/Freddie reform bill and said, "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". Sen. Harry Reid accused the GOP ;of
trying to "cripple the ability of Fannie and Freddie to carry out their mission of
expanding home ownership" The bill went nowhere.

2007: By now Fannie and Freddie own or guarantee over HALF of the $12
trillion US mortgage market. The mortgage giants, whose executive suites
were top-heavy with former Democratic officials, had been working with Wall St.
to repackage the bad loans and sell them to investors. As the housing market
fell in '07, sub prime mortgage portfolios suffered major losses. The
crisis was on, though it was 15 years in the making.

2008: McCain has repeatedly called for reforming the behemoths, Bush urged reform 17 times. Still the media have repeated Democrats' talking points
about this being a "Republican" disaster. A few Republicans are complicit
but Fannie and Freddie were created by Democrats, regulated by Democrats,
largely run by Democrats and protected by Democrats. That's why taxpayers are now
being asked for $700 billion!! source:Investors Business Daily

If you doubt any of this, just click the links below and listen to your
lawmakers own words. They are condemning!

_http://www.youtube.com/watch?v=68D9XrqyrWo&feature=related_
(http://www.youtube.com/watch?v=68D9XrqyrWo&feature=related) #
(http://atlasshrugs2000.typepad.com/atlas_shrugs/financial_crisis_08_democrat_policy_comes_home_to_roost/)

The chronology and facts above are not only fair but entirely accurate. The only thing I would add is that the bad loans were also sold to foreign banks and it is these troubled foreign banks that pressured the feds to step in with the bail out, not just “Wall Street”. That’s the dirty little secret. This is an international banking and investment bail out. Bush was getting pressure from the Europeans to back Fanny and Freddy bad debt instruments.

But it won’t matter. The majority of journalists are Socialist idealists who still delude themselves with fantasies that “if only we were in charge, we could make everything fair”. They ignore the misery and slavery these utopian fantasies have created around the world, and believe they can do it better. They are in the tank for Obama, so you won’t hear the truth on your local broadcast station, CNN, The New York Time or Comedy Central.

Hang on; things are going to get a LOT worse… Bush, McCain and the rest of the Republicans are inept at communicating this message and most Americans these days either have their hands out to the government or are too stupid to turn off Comedy Central and MTV. We are going to FEEL another colossal socialist experiment failure before everyone wakes up. In fact we are already feeling it, because Fanny and Freddy are a socialist experiment. We just might not be able to come back from this one without another revolution, after the democrats stack the Supreme Court and the federal bureaucracies with socialists. source:Ann and WM. Namgew