He got a blow job .....we got screwed
Posted on 10/12/2011 3:25:30 AM PDT by woofie
The protesters have been sold a bill of goods. Reckless government policies, not private greed, brought about the housing bubble and resulting financial crisis.
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There is no mystery where the Occupy Wall Street movement came from: It is an offspring of the same false narrative about the causes of the financial crisis that exculpated the government and brought us the Dodd-Frank Act. According to this story, the financial crisis and ensuing deep recession was caused by a reckless private sector driven by greed and insufficiently regulated. It is no wonder that people who hear this tale repeated endlessly in the media turn on Wall Street to express their frustration with the current conditions in the economy.
Their anger should be directed at those who developed and supported the federal government's housing policies that were responsible for the financial crisis.
Beginning in 1992, the government required Fannie Mae and Freddie Mac to direct a substantial portion of their mortgage financing to borrowers who were at or below the median income in their communities. The original legislative quota was 30%. But the Department of Housing and Urban Development was given authority to adjust it, and through the Bill Clinton and George W. Bush administrations HUD raised the quota to 50% by 2000 and 55% by 2007.
It is certainly possible to find prime borrowers among people with incomes below the median. But when more than half of the mortgages Fannie and Freddie were required to buy were required to have that characteristic, these two government-sponsored enterprises had to significantly reduce their underwriting standards.
Fannie and Freddie were not the only government-backed or government-controlled organizations that were enlisted in this process. The Federal Housing Administration was competing with Fannie and Freddie for the same mortgages.
(Excerpt) Read more at online.wsj.com ...
I think this is excellent
He got a blow job .....we got screwed
Here’s the economic crisis in a (rather large) nutshell ,, from livinglies.wordpress.com .. http://livinglies.wordpress.com/2011/10/12/16-trillion-the-feds-dirty-big-secret/
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$16 TRILLION: The Fed’s Dirty Big Secret
Posted on October 12, 2011 by Neil Garfield
First my compliments to those who anticipated what I am writing about. They asked the same question of themselves that I did — where is all that money and what kind of transactions created that size of bailout? The answer, as I am sure many of you realize already is that the Federal Reserve accepted paper — funny money — from the banks in exchange for US dollars without strings or guarantees or even warranties.
Thus, the story goes, the Federal Reserve is the actual holder and owner of most of the mortgages in America. Maybe, maybe not. What the Federal Reserve really accepted was strictly derivative securities and exotic hedge products that were the equivalent of owning the derivatives (bogus mortgage bonds). SO the Federal Reserve has moved into the place of Banks who owned those securities, except that they didn’t own them for the most part. Once the Banks realized the Fed window was that far open they figured they could slip in almost anything, and they did.
The Mortgage Bonds were supposedly “backed” by obligations of millions of homeowners and a lien on their property. But we all know how that is turning out — the liens were unperfected and the obligations seem to have multiplied once the Fed became a buyer. So did the FED move into the position of investors? Apparently not, since the investors are screaming that they lost trillions. So the money for the bailout did not go to investors who had purchased those bonds and those investors apparently never signed anything selling the bonds to the Federal Reserve.
OK wait a minute. The FED was accepting mortgage bonds that were being printed as fast as possible while the window stayed open while the investors were left stiffed — hung out to dry. The Banks screwed the investors, then screwed the FED for even more money than the investors. Now they are screwing the homeowners claiming they are still owed money on a loss they never had, because they used investor money to fund the loans. The homeowners being taxpayers and citizens of this fine country are thus paying for the screwing.
I was down in the pits once upon a time on Wall Street and the language gets pretty salty. But this really puts a new meaning on the words “Go Screw Yourself!”
In summary, the Banks were at all times mere conduits but have pretended to be investors, pretended to be insurers, and pretended to be lenders. And now they are pretending to be landowners evicting hapless homeowners who have no conception how evil and convoluted the system became. They were none of those things and that fact is so hard to imagine as true that most people still can’t wrap their brains around it. That left the investors with no mortgage bonds that ever had any value — bonds that were sold by the investment banks without owning them (which the Federal reserve gladly accepted) and THAT leaves the Federal Reserve holding a hologram of an empty paper bag.
But wait there’s more! This is like an infomercial. Since you the public bought these crazy worthless bonds twice (once by letting your pension funds buy them and once by letting your Federal reserve buy them) you get to give us a whole new round of worthless paper which we stick back to you when the time comes for you to sell your homes. We’ll call them mortgages even though the lender was nowhere in sight and the real deal was the issuance of the bogus mortgage bonds in the first place. We’ll foreclose on property saying we are the holder of the note and that should get us rounding home plate unless a Judge is really wide awake. THEN after we have taken all the property we’ll sell it back to you and force you into financing that you can’t pay for and the property isn’t worth, just so we can start the whole process all over again. THERE! Don’t you feel better now?
That’s right. In the final analysis the money all went to the Banks. The Federal reserve has nothing but embarrassment. And the reason why the economy is starving for commerce is that the Banks are holding us all hostage claiming that if we do anything to them they will destroy everything. Here is the bulletin: Everything is already destroyed. Bring it on.
They are gullible because they are the newest generation of Red Diaper Doper Babies.
At least it makes a great acronym!!
Preach it from the mountain tops!!!!
Hallelujah!
Plagiarizing me from earlier:
These kids are having the time of their lives criticizing the establishment and especially Capitalism. It’s what young people do.
It’s laughably easy AND fun to criticize when you are responsible for NOTHING.
Adults (and Conservatives) know better...so SHOULD the MSM!!!
My first job as President would be implement the fairness doctrine.
I would make all media cite their reporting as either news, entertainment or political discourse. When political discourse is talked about, either “left” or “right” has to be prominently posted.
Any discourse that is misrepresented would face a 100 million dollar fine.
My second job as President would be to bring everyone from Bill Clinton to the present group of Marxists up on charges of sedition.
My third job as President would be to kill Obamacare, FrankenDodd ,and every EPA regulation that has gone into effect over the last 10 years.
Then after breakfast......
Bump
Great Cartoon!
bump
The protesters have been sold a bill of goods. Reckless government policies, not private greed, brought about the housing bubble and resulting financial crisis
If anyone was wondering where all of the losers who were protesting against Bush and the Iraq war, and who have disappeared while Ozero has been opening new fronts, were now we know. They’re back....stupid and brain-dead as ever.
Bump
So in the end, the bank gets a percentage, the fed gets a percentage and the home owner gets screwed because he FAILED to uphold his end of the deal.
Who really get screwed is the taxpayer, because the Government, who now owns the land, just printed the money and forced the taxpayer to pay rent on the money to the Fed.
So the tax payer, pays for the land, and pays for the loan to buy the land, but does not get squat.
The real criminal is not the Bank, it is the Government, who intentionally collapsed the system to get their man in office and cash in on the peons homes.
FNM and FRE bought “assets” of the failing banks at par ,,, STUPID MOVE ,, they were “known” to be worth 15% of par at the time ... we now know that the liens were never perfected , they are unsecured (at best) and that they are truly WORTHLESS.
The banks blew the bubble , created the false valuations and now you are upset that the valuation model is screwed?
Yes the taxpayers are getting the short straw ,, we have each and every year since 1913 .. THAT’S THE FEDS JOB ... To Make Sure the Banks that make up the Fed never feel any pain ..
I agree that the gov’t is trying to own all the homes ,,, but the banks set it all up ,, they just figured they could juggle it forever and keep printing that big fee based money..
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