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Economic Stimulus?


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It's being reported that the White House is removing tax cuts that were added in the Senate in order to pass.

WHAT.THE.FUCK.

Add something to get an agreement, then remove it after they sign off on it?

Bait and switch, anyone?

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This is a repost but thought it was worth the reminder since we have a short memory.

How the housing market went into the shitter.

So when we hear about "Hope and Change" and Unicorns and Rainbows and Sprinkles of

Fairy Dust in our hair, Remember who is in charge "Now" :rolleyes:

SHOT IN THE FANNIE MAE

The History of a Financial Disaster

1997

Fannie Mae is a GSE (Govt. Sponsored

Entity) regulated by Congress.

Fannie Mae buys mortgages from other

companies.

It is backed by the taxpayers for all

losses, but keeps all profits.

President Clinton loosens Home Loan

Requirements.

1998

Banks begin making thousands of bad

loans,0 down, no documentation, for

120%! (1998 – 2008).

Executives at Fannie receive huge

bonuses if loan targets are met.

Franklin Raines and Jamie Garelick from

the Clinton Administration are appointed

to run Fannie Mae.

2003

President Bush proposes a new

oversight committee to clean up Fannie

Mae, but Democrats derail the effort.

Rep. Melvyn Watt, (D-NC) Committee on

Financial Institutions & Consumer Credit. stated, "I

don't see much other than weakening the

bargaining power poorer families to get affordable

housing."

1999 - 2004

Raines earns $100 million in bonuses.

Garelick earns $75 million in bonuses.

In 2004, Enron collapses, congress

investigates, Executives Skilling & Lay

go to jail, for fraudulent bookkeeping.

Congress responds with the Sorbanes-

Oxley Act, more heavy regulation of

corporations.

2004

An OMB investigation finds massive

fraudulent bookkeeping at Fannie Mae.

False numbers triggered executive

bonuses every year.

Congress holds no hearings, no one

goes to jail, or is punished.

WHY NOT?

1999 -2005

Fannie Mae gives millions to Democratic

causes, examples: Jesse Jackson &

ACORN.

Fannie Mae pays millions to 354

congressmen and senators, from both

parties.

Who got the most money?

Top 4 Recipients

#1 Sen. Christopher Dodd, (D-CT)

Chairman of the Banking, Housing,

& Urban Affairs Committee

#2 Sen. Barack Obama, (D-IL)

Federal Financial Management

Committee

#3 Sen. Chuck Schumer, (D-NY)

Chairman of the Finance

Committee

#4 Rep. Barney Frank, (D-MA)

Chairman of the House Financial

Services Committe

2005

Franklin Raines & top execs are forced

to resign from Fannie Mae.

They do not go to jail.

There is no media "perp. walk."

They keeps all of their bonuses

They finally pay $31.4 million in civil

fines.

2005

The Federal Housing Enterprise

Regulatory Reform Act is sponsored by:

#325 Sen. John McCain, (R-AZ)

Armed Services, & Commerce,

Science, & Transportation

"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."

2005

None of the top 4 recipients support the

legislation.

The reform act is blocked by Democrats,

never even making it out of committee.

None of the politicians return any of the

money, tainted by fraud.

2008

Fannie Mae & Freddie Mac go bankrupt

and the govt. takes them over

completely.

Lehman Brothers, goes bankrupt from

investing in bad mortgages.

AIG get $85 million in loan guarantees,

after insuring bad loans & projects.

Taxpayers will ultimately pay BILLIONS.

2008

Franklin Raines is now an advisor to the

Obama Campaign which wants the govt. to

take over more of the economy.

Did government involvement in the mortgage

market work out?

How will even MORE government involvement

make it better? Do you want to be Sweden?

McCain favors revising regulations & loan

standards, selling off Fannie & Freddie.

SOURCES

Congressional Record, 5/25/06

"Hannity & Colmes," Fox News, 9/16-

9/17/08

Herald Tribune, 4/18/08

New York Times, 9/13/03

www. govtrack.com, 9/17/08

Prof. Dennis Jantz, 2008

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ok, but I'm saying that gopvernment authored-subprime lending in one of the biggest reasons we're in this housing crisis. You said they don't force subprime lending. I disagree, the legislation in place makes it hard for banks to turn someone away based on plain risk.

I found this on Wikipedia.

http://en.wikipedia.org/wiki/Subprime_mortgage_crisis

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Hi all,hi wbd,

No, Kevin you're not listening. I'm not saying the customer was forced to take the loan, I'm saying that the government forced banks to give out sub-prime loans. Banks will not give out high-risk, low-reward lending as they have been doing, unless the government told them they do...which it did under Clinton.

What?

So what did the banks do?March down the street,knock on doors and say,what? :slapface:

So who signed on the bottom line?And who did not read/nor understand that? :rolleyes:

Fannie maybe and Fred?Those are not banks,boyo. One point to be made,if one forced them to do so,why did they?E-f***ing gad!

]Once again, the banks were forced to give out sub-prime loans. That's the problem I have. I'm not talking about the customers, I'm talking about the BANKS

The customers,who could not repay the loan is the main problem.Now who is paying for it?You are,.....

You ever get a letter for a credit card?Read the fine print.Can't afford it?Right in the trash.

Yes,I'll agree,those geniuses in DC,knew what they were doing,......fail.

KB

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How much pork can you find in the following?

Tax credits of $500 per worker and $1,000 per couple over the next two years

$20 billion tax cut for small business

$400 million for global warming research

$50 million for the National Endowment of Arts

$335 million for sexually transmitted disease prevention

$650 million for digital conversion coupons

$81 billion for Medicaid

$20 billion for food stamps

$30 billion for Cobra insurance extensions

$4.1 billion for neighborhood activist groups like ACORN

$83 billion for the earned income credit to give tax refunds to people who don’t pay income tax

$6 billion to subsidize university building projects

$7 billion to modernize federal buildings

$2 billion for child-care subsidies

$2.4 billion for carbon-capture demonstration projects

$600 million for new government cars

$150 million for the Smithsonian

$54 billion for Economic Development Office and Small Business Administration programs

$25 million for new ATV trails

$30 billion for infrastructure

$40 billion for broadband and electric grid development, airports, and clean water projects

$8 billion for renewable energy

$36 billion for expanded unemployment benefits

$1.1 billion for Amtrak

$8.4 billion for public transit

$5.5 billion for surface transportation

$87 million for a single icebreaker ship to be used in the Arctic

$150 million for honey bee insurance

$20 million for fish barriers

:unsure:

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It's reported that some are suggesting a good stimulus would be to to forgive all Stdent Loan Debt for those making under 150,000.

I, instead would prefer all credit card debt forgiven. That would be one great stimulus.....

And becuse we know the nature of human nature.... Many would soon have those cards charge right back up !

A Huge Win-Win for the Banks!!

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  • 1 year later...

I bought a townhouse in November and closed on the last day, in a panic. Then the annoucement was out and on CNN money that the tax credit would be extended. We finally got ours and have it put away for in case we need a furnace or roof. Both will be necessary at some point down the road. It is not easy in this day and age to find money to just go traveling with. My wife has a friend, who just got whacked on a purchase offer, outbid, but she manages to go all over the world on the dime of a rich relative. All the breaks for some.

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Put it away for college tuition next year.

Well, I have a degree and am never going back. My oldest graduated from Syracuse. My youngest is out and at a community college and her job pays part of it. There are still Pell and TAP awards. Not what they once were but enough to pay for a two year college. I only know the situation in NY

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Well, I have a degree and am never going back. My oldest graduated from Syracuse. My youngest is out and at a community college and her job pays part of it. There are still Pell and TAP awards. Not what they once were but enough to pay for a two year college. I only know the situation in NY

My oldest graduates from HS this year and is looking at in-state public schools. I have another in HS (9th) and a 4th grader. Getting ready to start on the FAFSA paperwork, I've been procrastinating as long as possible...

Eventually I would like to return for a Master's degree.

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