More information on how the democrats created the Economic Collapse of 2008

More information on how the democrats created the Economic Collapse of 2008

Obama forced Citibank as a lawyer to make risky loans .

ACORN showed its colors again in 1991, by taking over the House Banking Committee room for two days to protest efforts to scale back the CRA. Obama represented ACORN in the Buycks-Roberson v. Citibank Fed. Sav. Bank, 1994 suit against redlining. Most significant of all, ACORN was the driving force behind a 1995 regulatory revision pushed through by the Clinton Administration that greatly expanded the CRA (Community Reinvestment Act) and laid the groundwork for the Fannie Mae, Freddie Mac borne financial crisis we now confront. Barack Obama was the attorney representing ACORN in this effort. With this new authority, ACORN used its subsidiary, ACORN Housing, to promote subprime loans more aggressively.

http://www.democracyforums.com/showthread.php?t=19599

Writer reveals truth behind boom, bust By WALTER WILLIAMS [by the way he's black!!!]

Wednesday, June 3, 2009

The root of the problem lies in Washington. The Community Reinvestment Act of 1977, later given teeth during the Bush and Clinton administrations, forced financial institutions to make risky mortgage loans they otherwise would not have made. President Bill Clinton's attorney general, Janet Reno, threatened legal action against lenders whose racial statistics raised her suspicions.
There were many other warnings of pending collapse, but Congress and the White House, in their push for politically popular "affordable housing," ignored them.
Congressman Barney Frank, who is now chairman of the House Committee on Financial Services, said critics "exaggerate a threat of safety" and "conjure up the possibility of serious financial losses to the Treasury, which I do not see."
Chairman Chris Dodd, of the Senate Banking Committee, called Fannie Mae and Freddie Mac
"one of the great success stories of all time" and urged "caution" in restricting their activities, out of fear of
"doing great damage to what has been one of the great engines of economic success in the last 30 or 40 years."


http://www.columbiatribune.com/news/2009/jun/03/writer-reveals-truth-behind-boom-bust/

b) mortgages created, packed, sold as Credit default swaps and again backed by "full faith and credit of US Govt!

Why wouldn't institutions buy them!
Yet two leading congressmen said nothing is wrong! The Feds are backing the CDSs. How could the buyers lose?

c) totally thwarted by Barney Franks, Chris Dodds, Franklin Raines CEO of $90 million bonuses fame,
encouraged more bogus loans because in the words of Frank/Dodds
1) "these two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis....
The more people exaggerate these problems, the more pressure there is on these companies,
the less we will see in terms of affordable housing." (New York Times, 9/11/03)
2) And then Dodd said this ...Senate Committee on Banking, Housing and Urban Affairs Chairman Christopher Dodd
also ignored the President's warnings and called on him to "immediately reconsider his ill-advised" position. .
Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis.... (New York Times, 9/11/03.