Posts Tagged ‘freddie mac’

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Not up to Whose Standards?

October 7, 2008

MM has reported on NBC’s reasoning for pulling a skit from its website.  NBC has reported that the skit will be edited and reposted as soon as the editing is complete.  In my eyes the only thing that deserves to hit the editor’s room floor is the line “People who deserve to be shot”.  I do believe the Sander’s have some ‘splainin to do, but they are real people.  The last thing we need is some psychopath finding these slime and shooting them.  If anything else is edited out, NBC has cemented themselves as a Corporation who has pledged their allegiance to the the Left Wing financiers, and will even censor themselves to retain their loyalty. 

MM reports

Peter Viles at L.A. Land reports that Saturday Night Live is rewriting its forbidden Soros/Sandler-bashing
bailout skit because it “didn’t meet their standards.”

Translation: It didn’t meet George Soros’s standards!

The scoop:

A “Saturday Night Live” skit that skewered President Bush, Democrats, homebuyers and subprime lenders for their roles in the mortgage meltdown was removed from the program’s website because it “didn’t meet out standards,” a spokesman for the show said Tuesday. An edited version of the skit will be re-posted online soon, the spokesman said.

The skit, a parody of a C-SPAN news conference, ridiculed subprime borrowers, housing speculators and Herbert and Marion Sandler, the real-life couple who built Golden West Financial into a subprime lending powerhouse and sold it to Wachovia before the subprime collapse. At one point in the skit, the Herb Sandler character says he made $24 billion off the subprime boom. Graphics then appear labeling the Sandlers as “People who should be shot.”

“Upon review, we caught certain elements in the sketch that didn’t meet our standards,” a spokesman for the program said in an E-mail message Tuesday. “We took it down and made some minor changes and it will be back online soon.”

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Jack Donaghy’s Alter Ego on the Financial Crisis

October 7, 2008

Linked from the National Review:

Alec Baldwin on Bill Maher

The, the thing we have to remember, a friend of mine who is very close to the financial community in New York pointed out that Democrats have a lot of the responsibility for this as well. I mean, it was Clinton who killed the Glass-Steagall, and it happened under a Democratic president. Barney Frank and his committee, they, they kept propping up Fannie Mae and Freddie Mac saying everything’s fine, everything’s fine, everything’s good. And it was his job to know everything wasn’t fine. And Barney Frank let you down and let us down as well. And so, but I want to say there’s blame to go both ways. But I will say, I want to, I maybe keep beating this to death, but I still think anyone in this Congress who voted to add $140 billion to that bill, they should be ashamed of themselves. That is a disgrace. It’s a disgrace. This Congress is a disgrace, Democrat and Republican.

As we all know, he is completely wrong on Glass-Steagall as subprime had already started. It is interesting to see Jack Donaghy (Alec Baldwin’s Republican character on 30 Rock) inform the usually super-liberal Alec Baldwin’s opinion

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The Sordid History of ACORN and the Ties to the Financial Meltdown

October 7, 2008

Stanley Kurtz has a great article detailing the history of ACORN and its ties to the financial meltdown. Here is the Cliffs Notes version of his work

  • ACORN intimidated banks into making high-risk loans to low-credit customers using provisions of the 1977  Community Reinvestment Act (CRA). Chicago ACORN was able to delay and halt the efforts of banks to merge or expand until they had agreed to lower their credit standards and to obtain “counseling” compensation.
  • Heidi Swarts, a strong supporter of ACORN and author of Organizing Urban America, notes that ACORN members think of themselves as “militants unafraid to confront the powers that be” and ACORN protesters break into private offices, show up at a banker’s home to intimidate his family, or pour protesters into bank lobbies to scare away customers, all in an effort to force a lowering of credit standards for poor and minority customers.
  • The 1977 Community Reinvestment Act forced banks to increase lending in poor and minority neighborhoods, but its exact requirements were vague and open to interpretation. Bank mergers or expansion plans were rarely held up under CRA until the late 1980s, when ACORN perfected its technique of filing CRA complaintsand intimidated representatives of banks.
  • A provision of the 1989 savings and loan bailout pushed by Democratic legislators, like Joseph P. Kennedy, required lenders to compile public records of mortgage applicants by race, gender, and income.  The statistics produced by these studies were presented in highly misleading ways and groups like ACORN were able to use them to embarrass banks into lowering credit standards.
  • IN 1991, House Democrat Henry Gonzales had announced that Fannie and Freddie had agreed to commit $3.5 billion to low-income housing in 1992 and 1993, in addition to a just-announced $10 billion “affordable housing loan program” by Fannie Mae.
  • A mere month later, ACORN Housing Corporation president, George Butts made news by complaining to a House Banking subcommittee that ACORN’s efforts to pressure banks using CRA were still being hamstrung by Fannie and Freddie. Butts also demanded still more data on the race, gender, and income of loan applicants. Many news reports over the ensuing months point to ACORN as the key source of pressure on congress for a further reduction of credit standards at Fannie Mae and Freddie Mac. As a result of this pressure, ACORN was eventually permitted to redraft many of Fannie Mae and Freddie Mac’s loan guideline.
  • In the Clinton administration, Clinton Housing Secretary Henry Cisnersos pledged to meet monthly with ACORN representatives.
  • At this point, both ACORN and the Clinton administration were working together to impose large numerical targets or “set asides” (really a sort of poor and minority loan quota system) on Fannie and Freddie. ACORN called for at least half of Fannie and Freddie loans to go to low-income customers. At first the Clinton administration offered a set-aside of 30 percent.
  • In early 1994, the Clinton administration floated plans for committing $1 trillion in loans to low- and moderate-income home-buyers, which would amount to about half of Fannie Mae’s business by the end of the decade.
  • In June of 1995, President Clinton, Vice President Gore, and Secretary Cisneros announced the administration’s comprehensive new strategy for raising home-ownership in America to an all-time high. Representatives from ACORN were guests of honor at the ceremony. In his remarks, Clinton emphasized that: “Out homeownership strategy will not cost the taxpayers one extra cent. It will not require legislation.” Clinton meant that informal partnerships between Fannie and Freddie and groups like ACORN would make mortgages available to customers “who have historically been excluded from homeownership.”
  • At both the local and national levels, then, ACORN served as the critical catalyst, levering pressure created by the Community Reinvestment Act and pull with Democratic politicians to force Fannie Mae and Freddie Mac into a pattern of high-risk loans.

In addition to Stanley Kurtz’s work, Michelle Malkin has more on this on her site.

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Gloves. Off

October 6, 2008

McCain about to get awesome:

Our current economic crisis is a good case in point. What was his actual record in the years before the great economic crisis of our lifetimes?

This crisis started in our housing market in the form of subprime loans that were pushed on people who could not afford them. Bad mortgages were being backed by Fannie Mae and Freddie Mac, and it was only a matter of time before a contagion of unsustainable debt began to spread. This corruption was encouraged by Democrats in Congress, and abetted by Senator Obama.

Senator Obama has accused me of opposing regulation to avert this crisis. I guess he believes if a lie is big enough and repeated often enough it will be believed. But the truth is I was the one who called at the time for tighter restrictions on Fannie Mae and Freddie Mac that could have helped prevent this crisis from happening in the first place.

Senator Obama was silent on the regulation of Fannie Mae and Freddie Mac, and his Democratic allies in Congress opposed every effort to rein them in. As recently as September of last year he said that subprime loans had been, quote, “a good idea.” Well, Senator Obama, that “good idea” has now plunged this country into the worst financial crisis since the Great Depression.

To hear him talk now, you’d think he’d always opposed the dangerous practices at these institutions. But there is absolutely nothing in his record to suggest he did. He was surely familiar with the people who were creating this problem. The executives of Fannie Mae and Freddie Mac have advised him, and he has taken their money for his campaign. He has received more money from Fannie Mae and Freddie Mac than any other senator in history, with the exception of the chairman of the committee overseeing them.

Did he ever talk to the executives at Fannie and Freddie about these reckless loans? Did he ever discuss with them the stronger oversight I proposed? If Senator Obama is such a champion of financial regulation, why didn’t he support these regulations that could have prevented this crisis in the first place? He won’t tell you, but you deserve an answer.

We’ll know this worked if, by the time 8:00 rolls around, flapping heads are picking this apart for supposed innacuracies.  Stand up and kick some tail!