Freddie & Fannie Unconstitutional Bail Out Using What?

Arthur Henning of the Chicago Tribune said back in 1935, "The New Deal will bring the Communist Party within striking distance of overthrow of the American form of government…" Mark Sullivan of the Buffalo Evening News also expressed alarm in 1935: "The New Deal is to America what the early phase of Nazism was to Germany…"

The nation is awash in fear because they are coming to realize that while they’ve been buying all the hype from the cabal of gangsters in Washington for decades, reality is now setting in as poverty is slamming millions who used to belong to the middle class. From dangerous lending practices to the derivatives time bomb waiting to go off and inflation getting ready to launch into hyper inflation, the situation is more grim by the week. A financial catastrophe so many have been warning about for decades, it’s all coming home to roost. The "perfect storm" as it’s being called. The beast is now devouring itself and we the people are caught in their cross fire.

Unfortunately, most Americans haven’t been listening. They’re either addicted to sports, shopping, porn, drugs or yaking on their cell phones while the world has been heading for financial Armageddon. Oh, they perk up when they hear things like how many new jobs Bill Clinton created! Clinton used to love to brag that he had created 14 million new jobs during his tenure. He did? Sure, and Mr. Jones can thank Clinton for all three of his minimum wage jobs while Clinton supported the destruction of our true and meaningful job bases: ag, industrial and manufacturing. George W. Bush has steadfastly supported the same destructive redistribution of America’s wealth into the hands of foreign countries while our people go without - backed up by both Democrats and Republicans.

http://www.freerepublic.com/focus/f-news/2085108/posts

The CRA was signed into law by Carter in 1977. It was a social-engineering move to eliminate “redlining”, and was lightly-enforced until Clinton’s Treasury Dept. expanded it into the trillion-dollar giveaway that helped to bring down the industry. It essentially forces major lenders to assign mortgages to high-risk applicants in minority neighborhoods (lenders which ordinarily would NEVER have qualifed for those loans). There are a wealth of links on the subject; I included one of the links from my About Page, which covers the history and some of the banking aspects.

The point is that these things were set in motion before Bush ever took office. I should mention that I am no Bushbot; his policies on illegal aliens and his position on the NAU, LOST and new world orderisms absolutely disqualify him as a conservative, in my opinion. He has done great things in the WOT, but has lost focus on reshaping the military and many other things that would benefit Americans. Thanks for the well-researched links.

Thanks for the link. It is an informative article.

I don't doubt that the CRA was the means to the end for groups like ACORN and their ilk.

But, as one of the articles I linked to showed, they, like the banks, had to adapt to the changing marketplace. Mexican (and other latin american) illegal aliens began to displace what had been their core customer base.

As the FDIC page shows, banks were looking to cash in on this market, but were blocked by federal banking regulations which prevented them from doing business with illegal aliens. The fact that Bush met with Vicente Fox to discuss the terms of the P4P a mere three (3) weeks after his inauguration shows Bush was only too eager to get the ball rolling.

So, he put into motion the final straw that broke the camel's back, i.e.: the P4P agreement and NATF.

The P4P agreement, signed a mere 7 months later (September 6, 2001), and NATF (formed in May 2003) removed this obstacle and with the conduit already in place vis-a-vis Clinton's aggressive enforcement of the Carter's CRA, the banks set about shoveling mortgages to illegals as fast as they could.

...Manuel Lopez came to the U.S. on a tourist visa in 1999 after his bus-driving business in Ecuador failed due to runaway inflation. He stayed here illegally and eventually brought over his wife and son and had another daughter here. He makes about 40-thousand dollars a year working for a downtown Chicago parking garage. Two years ago, he started looking to buy a house but the interest rates his broker quoted him were 8 to 9 percent. Then he heard about a program with much better terms run by Citibank and the non-profit group Acorn Housing...

...This savings and loan got its start serving Eastern Europeans but had to adapt – or die – once the neighborhood changed. Mark Doyle is president and CEO of Second Federal. His bank became one of the first to pioneer the practice of making mortgages to undocumented immigrants several years ago...

According to IRS records, since its inception in 1996 they've issued over 11 million ITINs. Wells Fargo reported in 2004 that between 2001 and 2004 they opened over 400,000 new accounts for Mexicans using a Matricula Consular card when, at the time of the report, were opening an average of 22,000 new accounts a month. This figure was just for Wells Fargo and was reported in 2004, when we had not yet reached the height of the sub-prime lending boom. This does not count Bank of America, CitiBank, WaMu, etc., etc., etc.

Since an ITIN and Matricula Consular card are the two primary tools used for the sub-prime loan programs banks used for illegal aliens, we could be looking at as many as 11 million sub-prime loans held by Mexican illegal aliens.

This figure is a fuzzy one since the IRS and Social Security Administration are not sharing information with ICE. If they were, it would be a simple matter to compare IRS ITIN tax records with ICE immigration records to quickly determine who is in the country illegally. If they filed a tax return using an ITIN but they don't have a valid visa, then they're probably here illegally and should be deported. Ditto for false matches on SSNs.

But, it's not in the bankers' best interests to have all their hard-earned customers thrown out of the country, especially at the height of the sub-prime lending boom they helped create. Once again, Bush stepped in to lend a helping hand and ordered ICE to stand-down on interior enforcement.

Worksite arrests of illegal aliens fell some 97 percent, from 2,859 in 1999 to 159 in 2004. Investigations targeting employers of illegal immigrants fell more than 70 percent, from 7,637 in 1997 to 2,194 in 2003. Arrests on job sites fell—precipitously, from 17,554 in 1997 to 445 in 2003. Fines levied for immigration-law violations fell from 778 in 1997 to 124 in 2003. Notices of intent to fine employers fell from 865 in 1997 to just 3 in 2004.

There can be no mistaking Bush's actions here.

He took clear steps to make sure the banks had ready access to the Mexican illegal alien 'market' with no interference from law enforcement.

IMO, it was his first priority as President. And it was these actions which led directly to the sub-prime meltdown.

As the sub-prime adjustable loans reset, the Mexican illegal aliens, who have no allegiance to the US, simply up and left leaving the house to fall into foreclosure and the banks holding the bag.

Except that, now, Bush's Treasury Secy. Paulson is leading the way for the taxpayer bailout of the very same bankers Bush sought to help on February 16, 2001 when he met with Vicente Fox.

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