The crisis with Obama’s footprints all over it

The manufactured crisis

 

By Donald Hank

Joan Battey, a good friend of Laigle’s Forum, writes:

James Simpson, a former White House economist, has just published “Barack Obama & the Strategy of Manufactured Crisis” – on AmericanThinker.com at http://www.americanthinker.com/ 2008/09/barack_obama_and_the_strategy.html

Listen to this Interview of James Simpson, by Sandy Rios, Tuesday 9/30 – WYLL 1160AM, Chicago, IL
From http://www.culturecampaign.com/culturecorner.aspx

Further documentation connecting the dots of all the neo-Marxists who have invested in the development of Barack Obama may be found on discoverthenetworks.org

Please take the necessary time to read each linked article and listen to the Sandy Rios program, plus this one: http://www.foxnews.com/story/0,2933,432501,00.html.

You need to know the facts and draw the conclusion. To put it plainly, numerous activists on the Left have been orchestrating this crisis and others yet to come in order to introduce full-blown socialism in the US. Once they perpetrate a crisis and impoverish us, for example, as they did with welfare, they immediately blame free-market capitalism. If enough Americans believe this lie, the American experiment is finished and it will have failed! It is as simple as that. If you are not sure whether we need the Obama Kool-Aid or not, please read all the links above and listen to the Sandy Rios program linked there. Take notes. There is nothing more important on your agenda today than this.

Meanwhile, I just received an email from Sen. Arlen Specter in response to an email of mine regarding his vote in favor of the bailout.

According to this email, one of the details of the bill was as follows:

A first-time homebuyer tax credit of up to $7,500 is included in the Act, which serves as the equivalent to an interest-free loan to be paid back over 15 years. 

For those wondering what a tax credit is, it is much more than a deduction. It is a give-away. It is free money – at taxpayer expense.

My email in response:

Hello Senator,

With all due respect, it is the kind of give-away scheme you describe that got us into the mess in the first place. How could you support such a scam? You write, in all seriousness:

A first-time homebuyer tax credit of up to $7,500 is included in the Act, which serves as the equivalent to an interest-free loan to be paid back over 15 years. 

First, most of the bailout package rewards Fanny Mae and other lenders for bad decisions and rewards the government for forcing lenders to give out loans at subprime rates, with no documentation required (no job needed!), no down payment, etc.

I understand that the entire bailout package will cost every American $10,000. So to save some people $7,500, we honest people who do NOT default on mortgages or buy things we can’t afford, must now give up $10,000? Even the person who gets the $7,500 will have to pay $10,000. AND home prices will rise accordingly, as they did during the last scam under the Community Reinvestment Act.

With all due respect for your office sir, have you ever stopped to think that this will only exacerbate the current crisis not only through the enormous tax burden but by artificially raising home prices? No one will benefit, except Washington.

Sincerely,

Don Hank

You can easily understand why a lender would want to know if the borrower has a job and can make enough money to repay a loan. But let me also briefly explain why banks have always, in every country in the world, throughout history, required down payments.

Lenders learned centuries ago that when they lent people money for housing without requiring a down payment, this is what often happened when economic conditions worsened:

1-The home prices in that area fell.

2-At the same time, the lender lost his job and couldn’t pay

3-When the lender foreclosed and tried to resell the house to recoup some of his cash, he lost money, often as much as 20%, because the house sold at a loss in the softer market.

That is the reason for the down payment. The reason lenders stopped requiring down payments in the last part of the 20th century was a series of Democrat-supported enactments, including the Community Reinvestment Act (under Carter), which was strengthened under Clinton and Bush, whose HUDs required Fanny Mae to drop or weaken all the safeguards enumerated above (down payment requirements, documentation of employment, etc). To pass this dangerous legislation, the Democrats claimed that minorities were being denied mortgages on the basis of race, when in fact, the minority communities statistically simply did not have enough people with good credit, good jobs and jobs to justify as many mortgages as the Democrats called for. It was – and is – politically incorrect to mention these inconvenient truths. People who now demand fairness in lending are called racists. Community organizers like ACORN, a group that worked hand-in-hand with Barack Obama, used strong-arm tactics to shake down banks and force them to give mortgages to people who could not afford them and then when the loans were, inevitably, foreclosed, the same people who caused the crisis blamed the banks. That way, they could blame the free market and make gullible people believe that America needs socialism, when in fact what we desperately need is less socialism.

Leftist activists are coming out of the shadows and openly gloating that America is now a socialist country. Many naïve people actually believe that socialism will lead to prosperity, even though this system destroyed the Soviet Union, China (under Mao), North Korea and many others and impoverished Europe, where families, even professionals, can hardly scrape by any more.

If you want to salvage even a remnant of the free market system that made America great, you need to widely forward the above links and talk to as many people as you can between now and the election and tell them what you have learned.

And pray that God will spare us from what appears to be an impending disaster manufactured by the Left.

Here is where this was supposed to end, but another dear friend of Laigle’s Forum sent me this urgent message. WATCH THIS VIDEO and read his message!

SUPER IMPORTANT!!!!!

WATCH THE VIDEOS AND PASS THEM ON AS WIDE AND LONG AS POSSIBLE . . . AND FAST

Watch the following videos in sequence so that you get the flavor of the entire HORRIBLE enchilada. Obama can kiss goodbye his presidential ambitions. (Hillary’s collection of Obama’s skeletons has started to leak!)

1- Barack Obama and his Kenyan cousin Raila Odinga – The mother of all October surprises!

http://uk.youtube.com/watch?v=S8QcpdUtxNQ&feature=related

. . . shocking, huh?

Now you will understand the true meaning of the next two . . .

2- Children Singing for The Dear Leader, Comrade OBAMA

http://www.youtube.com/watch?v=KrfrdptVJEg

3- Obama Youth – Junior Fraternity Regiment – Brown Shirts in the Making?

http://www.youtube.com/watch?v=rUEQz5dltmI

Barack Obama MUST be defeated on November 4: Such a threat to America and to the world cannot be elected President of the United States of America.

Do all you can do legally to defeat him!

 

Do you think the free market is worth saving?

For readers who will call their Representative in Washington

 

This post is for activists.

Do not delay in contacting your congress person by both phone and email today. The bailout vote is coming up in the Congress either today or tomorrow and it will determine whether America continues to be a free-market economy.

First let me tell you something important about the “need” for the bailout.

I just called my bank and asked the loan officer if they could give me a loan to refinance my home.

When I identified myself and said how much I needed and how much the home is worth, they said “sure.”

I said: “the news media are all telling us no banks are lending money.”

He said “we only lend to people we know can pay us back. We don’t give ‘no doc’ loans, so we have never had problems with lending money.”

He told me the rate would be 7.3%.

I said: In other words, we have been scammed by the politicians and news casters? In other words, the only banks that don’t lend are the ones that have no doc and no down-payment policies requiring them to lend to people who probably can’t pay? Continue reading

Bush: Free market is best — under government control, that is

  Bush: Free market is best – under government control, that is

 

By Donald Hank

 

President Bush’s speech of 9/05/08 gave various reasons for the recent financial crash involving, among others, Bear Stearns, Lehman Brothers, AIG, Fanny Mae and Freddy Mac. But he overlooked one reason — the underlying one.

He attributed the crash to a large influx of money to US banks and financial institutions, which in turn made it easy for people to get credit, leading them to borrow for cars, college tuition, homes and so on. He said “Easy credit combined with the faulty assumption that home values would continue to rise, led to excesses and bad decisions.”

Ok, let’s stop right there and analyze this. The last sentence indicates all this was your fault, you irresponsible borrower.

But was it?

American realtors had seen a crisis on the horizon as early as July 15, 2004, when the National Association of Realtors sent a letter to HUD expressing their concerns that a proposed rule to increase the percentage of mortgages to “underserved” populations (minorities) could create precisely the kind of market destabilization that led to the recent meltdown.

What was this rule? Under Clinton, Fanny Mae and Freddy Mac were obligated to serve at least 21% of the “underserved” communities with mortgages. Under Bush, the percentage more than doubled. In reality this translated into providing mortgages to a significant number of families who simply could not afford them, at sub-prime rates and often with no down payment required. For many, foreclosure was a foregone conclusion at the outset. It was affirmative action for borrowers and worked just as well as the affirmative action in colleges, where minorities were assured of admission under diluted requirements, and almost equally assured of failing after the first year. Like welfare, which harmed the inner cities by making out of wedlock births a lucrative business, leading inevitably to an astronomical incarceration rate for blacks, it ensured failure for minority home-owners, making ownership a revolving door. For many in the “underserved” community, it was: “welcome homeowner,” followed immediately by “get out, deadbeat”!

This is really the essence of “compassionate conservatism,” which is a euphemism for a planned economy. Thus the people blaming the crisis on lack of regulation had actually made and enforced regulations that brought down the financial markets. Regulation was in fact the disease pathogen, not the remedy.

Bush goes on: “I’m a strong believer in free enterprise, so my natural instinct is to oppose government intervention. I believe companies that make bad decisions should be allowed to go out of business.”

He then explains that this current crisis is an exception and describes the “distressing scenario” that must be avoided at all expense — your expense, that is:

More banks could fail, including some in your community. The stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet. Foreclosures would rise dramatically.

But the banks that would fail would be the ones most heavily invested in the “compassionate conservatism” that you promoted through your HUD rules, Mr. Bush. That would be a very good thing. They should fail. They embraced the false utopian ideal of “social justice” at the expense of self-regulation of markets.

“And if you own a business or a farm, you would find it harder and more expensive to get credit. More businesses would close their doors, and millions of Americans could lose their jobs.”

Farmers and small businesses running thriftily will be the ones to survive. That too would be good, if only because it would enable the market to punish the foolish investors and reward the wise ones. And that in turn would serve as a useful example to the next generation of business people. If people became unemployed, they would be reminded that politicians who push snake-oil schemes with names like “compassionate conservatism” (or for that matter, who excuse illegal immigrants by saying things like “they are good people looking for a better way of life”) ultimately result in lost jobs.

“Even if you have good credit history, it would be more difficult for you to get the loans you need to buy a car or send your children to college. And, ultimately, our country could experience a long and painful recession.”

Mr. Bush, it should be difficult to get loans. They aren’t for everyone. They are for people with good credit, regardless of race, color or creed. Period. But even so, how is the taxpayers experiencing an unwieldly debt any better than Americans experiencing a “long and painful recession”?

David Walker, the ex US Controller General, predicted that over the next 75 years the gap between what has been promised for entitlement programs like social security and Medicare and how much in dedicated revenue is likely to be received (e.g., through payroll taxes and premiums) is $38.8 trillion. Walker calls these “implicit exposures,” and says they represent the money we would need today, invested at Treasury rates, to pay for future entitlements. This gap represents over $128,000 for every man, woman, and child in the United States.

Peter Sims writes:

According to the GAO, the total fiscal burden over the next 75 years represents $400,000 for every full-time worker in the United States and $440,000 per household.

The bipartisan bailout plan is typical Bush double-talk. While paying lip service to the free market at the beginning of his speech, Bush sounds like a true leftwing revolutionary when his alter ego chimes in:

“Earlier this year, Secretary Paulson proposed a blueprint that would modernize our financial regulations. For example, the Federal Reserve would be authorized to take a closer look at the operations of companies across the financial spectrum and ensure that their practices do not threaten overall financial stability.”

In other words, the free market is fine, as long as it is under government control. That is why both parties can reach across the aisle so easily and into your pocketbook.

If McCain signs on to this plan and manages to somehow get elected, look for 4 more years of disastrous Bushonomics posing as free market principles.

If Obama gets elected, look for the same, but called by its real name: socialism.

If you agree that America deserves better than this devil’s bargain, contact your lawmaker at the site linked below and tell them to vote AGAINST the bailout:

http://www.alipac.us/ftopic-63874-0-days0-orderasc-.html

 PS: For those who think I am making this up, here is the Bush Administration’s HUD site and a quote from that site promoting the “zero downpayment” initiative:

 http://www.whitehouse.gov/news/releases/2004/09/20040902-5.html

  • “Zero-Downpayment Initiative. In his FY 2005 budget, the President proposed the Zero-Downpayment Initiative. Preliminary projections indicate this Initiative would help about 150,000 homebuyers in the first year alone. This proposal would eliminate the statutory requirement of a minimum three percent down payment for FHA-insured single-family mortgages for first-time homebuyers. “
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    PS: McCain on illegal immigration. He’s for it (no one knows where Palin stands):

    http://hotair.com/archives/2008/09/12/new-mccain-ad-no-it-is-i-who-will-deliver-the-nightmarish-amnesty-america-neither-wants-nor-needs/