How the Fed plunders you illegally

Martha Stewart went to jail for it, but the Fed practices insider trading with impunity

Enough!

by Don Hank

The article below on the global economic crisis explains why our financial system no longer operates on free market principles, and in short, this explains why we are failing. What’s worse, our system is illegal because it tolerates and encourages insider trading, which is defined as follows:

Insider trading occurs when a trade has been influenced by the privileged possession of corporate information that has not yet been made public.
http://www.investopedia.com/articles/03/100803.asp#ixzz1QnAQuzqA

To put this in its proper perspective, Martha Stewart was investigated for insider trading for selling stock when she learned from a friend that stock in his company would lose value because the FDA was going to reject the drug his company was trying to sell. Although the ultimate charge that put her in jail was lying to the FBI, insider trading was the original thrust and was considered illegal. Yet, the government is directly involved with just such insider trading on a vastly wider scale, involving inside info possessed by the Fed in its unsavory relationship with the US government, and is enriched daily by this info in an obvious and illegal conflict of interests.

If Martha Stewart deserved jail, then what does the Fed deserve?

Here is the article:

http://beforeitsnews.com/story/768/421/Financial_Meltdown_on_Wall_Street—Excerpt_from_Introduction_to_The_Global_Economic_Crisis._The_Great_Depression_of_the_XXI_Century.html

Quote:

The Federal Reserve Bank of New York and its powerful Wall Street stakeholders – which are Wall Street’s largest private banks – have inside information on the conduct of U.S. monetary policy. They are therefore in a position to predict outcomes and hedge their bets in highly leveraged operations on the futures and derivatives markets. They are in an obvious conflict of interest because their prior knowledge of particular decisions by the Federal Reserve Board enables them, as private banking institutions, to make multibillion dollar profits.

People have learned to ask politicians crucial questions about their politics. Yet politicians are almost never asked the key questions that decide our and our children’s economic future.

As our nation sinks further and further into the financial abyss, we must make some urgent changes to the demands we make on our public officials.

Will your candidate vote for congressional hearings of the Fed and of the major bankers who committed mortgage fraud, bundling and selling mortgages knowing they were worthless?

Will he or she demand a reduction in our sovereign debt?

It is time to demand accountability. No backbone, no vote.

 

How the Democrats crashed the banks

How the Democrats crashed the banks. Part I

 

By Ken Brinzer

 
Those who buy into the so politically-convenient disinformation that blames Wall Street greed for our economic woes are likely to overlook the real culprits in the economic plunge story that has taken place from Wall Street to Main Street, coast to coast, and far beyond.  That’s because the real culprits are in the United States Congress, not on Wall Street.  And to be sure, it may be a matter of greed, but it would be of political greed and or myopia.
For example, take a look at the devolution in the Freddie Fannie debacle.  It all began with a reasonable idea that was enacted into law under President Carter in 1977.  Known as the Community Reinvestment Act (CRA), it caused little harm and surely did some good, until it was morphed into something quite different, quite insidious and pernicious during the Clinton years.
In 1995 under the version of the act revised by the Clinton administration, lenders were told that proof of income, source of down payment and credit history of a loan applicant would no longer be required as qualifying criteria.  In addition to this revision of the CRA, the lending community was threatened by Clinton’s Attorney General Janet Reno, who promised to prosecute to the full extent of the law those who violated the 1995 lowered standards for lending.  The die had been cast under Clinton and the situation was such a mess that in 1999, then Clinton Treasury Secretary Lawrence Summers warned that reform of Freddie and Fannie was essential.  His warnings fell on the deaf ears of those at Fannie and Freddie and over in congress who should have pushed for reform following Secretary Summers’ call for it, but instead promulgated the expansion of their powers.
Then during the Bush years, there were 18 further calls for congress to reform Freddie and Fannie and all were ignored.   Most notable among those who issued calls for reform of Freddie and Fannie during the Bush years were Treasury Secretary Snow, then Fed Chairman Alan Greenspan, and even President Bush himself.  All calls for reform were ignored or blocked by those members of congress who had their own agenda and did not hesitate to belittle and demagogue against these legitimate calls for reform.  One such belittlement came from the mouth of Representative Barney Frank who characterized the calls for reform as “inane”; but they weren’t, they were really needed and that became obvious when information surfaced that 5 million home loans had been made to illegal aliens alone, many without income or asset verifications, and all without citizenship papers.
Clearly those in congress had a responsibility to reform the financial nonsense that became public policy under Clinton and went unreformed throughout the Bush years despite abundant calls for reform from both inside and outside of the executive branch.

(to be continued)

Ken Brinzer is 62 years old, and lives with his wife, a high school chemistry teacher, in Penn Hills, PA. The Brinzers have been married 34 years and have 3 adult children.  He is a financial services professional, licensed both as a life insurance agent and a registered representative series 6. He holds a BA degree in Spanish from Rutgers (1968).  He served in the USAF for 4 years 1968-1972 and attained the rank of captain.  He is a practicing Catholic, reads at church, and loves God, Family, and Country and the splendor of truth.

http://mises.org/story/2451

Making Kids Worthless: Social Security’s Contribution to the Fertility Crisis

Daily Article by Oskari Juurikkala | Posted on 1/24/2007

“Kinder haben die Leute immer – People will always have children,” assured Konrad Adenauer, the German Chancellor, in 1957. He was convinced that the future of the brave new pay-as-you-go social security system would not be undermined by demographic changes.

Adenauer was as wrong as ever. Social security schemes around the developed world are facing a major crisis due to greater longevity, declining retirement ages and – lo and behold – below-replacement fertility rates.

What the good statesman did not realize is how the new system would affect the incentives of individuals to work, to save, and to have children. Labor force participation rates among older workers have declined dramatically since the 1960s throughout the Western world. The rules of social security benefits in most countries mean that working just does not pay off. In this way, pay-as-you-go social security schemes contribute to their own bankruptcy.[1]  

Read more here.

Laigle’s Forum featured on Christian Newswire:

http://www.christiannewswire.com/news/405798484.html

The REAL giving myths

 

 The REAL giving myths

By Donald Hank

In an article Giving in Today’s Economic Crisis, Dr. Steve McSwain (author of the book The Giving Myths) advises Christians to keep on giving despite the economic climate. Commenting on the causes of the crisis, writes:

…It’s not just corporate big shots, however, who are to blame for the failure in our financial markets. Granted, many of them have watched their companies close while they’ve safely floated away in “multi-million dollar parachutes.” But, there are many ordinary folks who are to blame, too. The majority of people in our culture have, in the words of Will Rogers, “borrowed money they don’t have, to buy things they don’t need, to keep up with people they don’t even like.”

Dr. McSwain never once mentions government culpability in this article. While claiming to be a myth buster, he seems to be a victim of the most pernicious myth of our time, namely, that the recent bank meltdown is due almost exclusively to Wall Street executives on the one hand and to you on the other. His article shows absolutely no recognition of the root causes of the problem, namely, government forcing Government Sponsored Enterprises (GSE) like Fanny and Freddy to give (under the CRA) to their favorite charities, the interest groups, in order to score political points – by forcing them to treat high-risk borrowers like low-risk borrowers.

The press release then gives advice to parents:

Don’t fret over the money markets, especially in front of the kids.

So not only does the author deny the root causes of the crash (or is he ignorant of them?), but he actually advises parents to make sure the kids don’t catch wind of this meltdown at all. In other words, let’s make sure history gets repeated, through ignorance. Continue reading

Ronald Reagan is back and he is you

Ronald Reagan is back, and he is you

 

Friends, conservatives often complain that no one has ever risen to take the place of Ronald Reagan in our government.

But Ronald Reagan is back, and he is you! His spirit has never once left us.

His spirit was alive and well when you stood up last year and opposed the bipartisan amnesty bill that you knew the Gipper wouldn’t approve.

He was here again today in our Congress during the vote that failed to pass a bill that would have made slaves of every one of us and ended free market capitalism forever in the USA.

Fox News said legislators received 999 calls out of 1,000 opposing the bailout. Fox commentators didn’t look too happy about that and the results of today’s vote. I imagine many of them, like Neil Cavuto, are heavily invested in stocks. (Isn’t it interesting that, although almost 100% of us oppose the bailout, Fox News continues to drone on about how important it is for the taxpayer to foot the bills for the crooks in government. Looks like conservatives have broken with their task master).

I realize that the stock market does not like this, but look, I have stock too, and I know that if we show these lazy pandering politicians we won’t let them enslave us, our children will grow up in a better, safer world.

And it won’t happen again!

Donald Hank

 

Letter to Congressman Platts and Sen. Arlen Specter

 

As you know, the current financial crisis originated with the Democratic Party in 1977 when Carter’s Community Reinvestment Act passed. Then Clinton strengthened these provisions by making it mandatory for banks to lend at least $1 trillion in subprime loans. At that point, this ideologically driven effort to provide “affordable” loans began driving up housing prices drastically. But corrupt community organizing agencies like ACORN and La Raza didn’t seem to mind that their constituents now had to pay more for homes they couldn’t afford in the first place. The present administration more than doubled Clinton’s quota, and the HUD web site currently carries a paragraph on Bush’s “zero downpayment initiative.” Conservative sources are lamenting that Bush had repeatedly asked for more oversight during his 2 terms and called for tighter regulations. Yet it looks like the President, in complete agreement with his friends across the aisle, actually was OVER-regulating on the side of wealth sharing (is that the new Republican way?). It might be wise for you to keep away from this malodorous situation by voting against ANY bailout. I checked around Wrightsville and have yet to come across anyone who has an extra $10,000 to fork over to a government that mismanages our money or who believes it is government’s job to own and run businesses Soviet style.

(I followed this up with phone calls)

Thank you.

 

 

 

Letter to the National Association of Realtors

 

NAR email address (attn. Mary Trupo): mtrupo@realtors.org

 

Hello Mary,

I saw this at the NAR web site:

“The National Association of Realtors® supports the ongoing bipartisan efforts to address the current crisis in the financial and secondary markets. While we await further details and will continue to be active in helping to shape the legislation, NAR believes these efforts are imperative to restore market liquidity.”

Unfortunately, I infer from this that your organization is in favor of the current bipartisan efforts to make tax payers responsible for what you know the government caused in the most callous and cynical possible manner.

I say that because I saw an entry at the NAR web site some years back that asked the government for more fiscal responsibility in the management of subprime loans and in regulations requiring banks to issue them.

That tells me that you saw this financial crash coming.

Now that it is here, your response seems chillingly impersonal, almost surreal.

Where is the anger? You saw it coming. Now you are coolly requesting a bipartisan effort to bail out the mortgage banks as if the blame lay with irresponsible borrowers, when it was government-backed lenders and the very politicians you now ask to control the financial market who caused this debacle. There was genuine concern reflected in your letter to the administration, asking for a relaxation of the risky experimental government requirements under the Carter administration’s Community Reinvestment Act (CRA) and the Clinton and Bush administrations’ insistence on forcing banks to issue ever higher-risk loans. It was like a destructive test of a boiler.

You knew that the lending institutions eventually would fail under these policies and you took the initiative to ask them to stop. But now that the disaster is here, you are expecting them to pass the loss on to those of us who pay our bills on time. I understand your fear, but I don’t understand why we the taxpayers, most of whom pay our bills on time, can be held responsible.

I am asking your organization for a stronger condemnation of the failed bipartisan policies that foisted dangerous subprime lending practices on banks and Fanny Mae and Freddy Mac. Tell the media that you, as business people, knew this policy was doomed to failure, had warned the government about this, that the blame goes to both parties, and that you are leery about leaving the fox in charge of the hen house, particularly since the proposed plan threatens the free market like nothing ever has before in American history.

If you are silent now and fail to condemn these failed lending policies and put the blame where it belongs, on both sides of the aisle, then there is no way to avoid a repeat of this bitter experience for you, your clients and every American taxpayer.

Please issue a press release condemning the reckless policies that you watched destroy your industry! And please do not pass this one off on the taxpayer. It will surely come back to haunt you.

Best Regards,

Don Hank,

Editor in Chief

http://laiglesforum.com

Plenty of shame to go around

The Right grovels, the Left takes the spoils

 

We had previously shown how the Bush administration had so willingly run along with the Left’s agenda to provide affordable housing to minorities, demanding that 50% and more of Fanny Mae mortgages go to minorities, and even trying to foist a “no-downpayment” scheme on the public.

Today we look at how the other side of the aisle, including Barack Obama, shamefully benefitted from Fanny and Freddy’s donations.

It is clear from all reports that, while Bush and RINOs groveled to ingratiate themselves with the kingpins of Big Mortgage, these kingpins were pushing for more power to the Left.

The easiest explanation why the Republicans want to run along with this shameful process is that there seems no longer to be any meaningful difference in ideology between the two parties.

We now have a one-party system, and it is up to American ingenuity to destroy this evil empire before it destroys us.

Your fury is ignited and is growing. It may be sufficient to turn enough Americans against the elites who brought on this financial crash to elect a third party candidate.

Not much is known about our most viable alternative, Chuck Baldwin, but he does have some surprisingly powerful endorsements, such as Jerome Corsi.

They say he has no government experience.

Neither did George Washington.

Are you angry enough to ditch the Republicans who helped mightily to bring down the American economy and are now poised to socialize the American financial market?

Do you dare to dream?

Another alternative is to vote for McCain and then be prepared to fight him tooth and nail on issues like finance and illegal immigration for the next 4 years. We have not found the new Reagain, but have you ever considered that you, the American people, can be the Reagan you long for? Think about it.

At any rate, you can start by opposing the bailout like you opposed the amnesty bill. If you give it your best shot, that miscreant legislation will fail.

http://conservativehq.com/active-petitions/petition-to-stop-the-bailout/

Donald Hank

 

 

From the Heritage Foundation:

 

Morning Bell: A Vicious Cycle of Their Own Making

 

“But Fannie and Freddie pushed back hard, turning to friends on the left for protection. Former Walter Mondale and Barack Obama campaign adviser James Johnson led a fierce lobbying campaign to fight reform of Freddie and Fannie. Clinton administration OMB director Franklin Raines told investors when he was Fannie Mae CEO in 1999: “We manage our political risk with the same intensity that we manage our credit and interest rate risks.” Fannie and Freddie’s lobbying power over the left continues to be strong to this day. According to the Center for Responsive Politics, the top three recipients of campaign donations from Freddie and Fannie’s PACs and employees are all Democrats. From 1989 through today, Sen. Chris Dodd received $165,400, Barack Obama $126,349, and John Kerry $111,000. The Washington Post concludes: ‘Blessed with the advantages of a government agency and a private company at the same time, Fannie Mae and Freddie Mac used their windfall profits to co-opt the politicians who were supposed to control them.'”

 

http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html

Update: Fannie Mae and Freddie Mac Invest in Lawmakers

Published by Lindsay Renick Mayer on September 11, 2008 11:26 AM | Permalink | Comments (22)

When the federal government announced two months ago that it would prop up mortgage buyers Fannie Mae and Freddie Mac, CRP looked at how much money members of Congress had collected since 1989 from the companies. On Sunday the government completely took over the two government-sponsored enterprises, and we’ve returned to our data to bring you the updates, this time providing a list of all 354 lawmakers who have gotten money from Fannie Mae and Freddie Mac (in July we posted the top 25). These totals are based on data released electronically from the FEC on Sept. 2 and include contributions to lawmakers’ leadership PACs and candidate committees from the floundering companies’ PACs and employees. Current members of Congress have received a total of $4.8 million from Fannie Mae and Freddie Mac, with Democrats collecting 57 percent of that. This week we also wrote about how much money lawmakers had invested of their own money in the companies last year–a total of up to $1.7 million.

 ….