Clinton pushed Affordable Housing to get the Stupid to vote Democrat
Pelosi managed Financial Crisis Report to Cloak the Ugly TruthI have provided here a table showing recent US Presidents.
Recent Presidents of the United States
|President||Political Party||Dates in Office|
|Franklin Delano Roosevelt||Democratic||1933–45|
|Harry S. Truman||Democratic||1945–53|
|Dwight David Eisenhower||Republican||1953–61|
|John Fitzgerald Kennedy||Democratic||1961–63|
|Lyndon Baines Johnson||Democratic||1963–69|
|Richard Milhous Nixon||Republican||1969–74|
|Gerald Rudolph Ford||Republican||1974–77|
|Ronald Wilson Reagan||Republican||1981–89|
|George Herbert Walker Bush (Bush 41) ||Republican||1989–93|
|George Walker Bush (Bush 43) ||Republican||2001–09|
|Barack Hussein Obama||Democratic||2009–|
ALL of the Democrat Presidents have worked for laws seeming to help predominantly poor sections of the population, such as by protecting them in obtaining jobs, housing, food, transportation, phones, education, and loans for mortgages and education and businesses. More modern Republican presidents have contributed to that effort as well.
But, as we stagger to sort out and understand the confusing burden of myriad laws and financial debacles, we should not focus on the poor as the source of the problem. The actual source lies in the circles of the filthy rich and political power brokers who OWN and manipulate elected officials, particularly the President and Congress, and including jurists.
And they have done their worst damage to the United States and its citizenry when a Democrat President AND Democrat majorities in both houses of Congress ruled the land.
"I'll have those niggers voting Democratic for the next 200 years." —Lyndon B. Johnson to two governors on Air Force One. (Ronald Kessler, 1995, Inside the White House). Read more.
Ford championed the Equal Credit Opportunity Act of 1974 to end discrimination against minorities and women; and the Home Mortgage Disclosure Act of 1975 (HMDA) to make certain that lenders inform borrowers about the details of their loan and rights of redress.
Carter pushed Housing and Community Development Act of 1977 (also known as the CRA or Community Reinvestment Act) to reduce discrimination against Negroes attempting to buy or rent housing, or work in a financial institution, or obtain education loans.
Bush 41 signed the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to reform the banking industry in the wake of the S&L scandals, and the Cranston-Gonzalez National Affordable Housing Act of 1990 so "that every American family be able to afford a decent home in a suitable environment," and the Resolution Trust Corporation Reform Act of 1991 to ensure every minority neighborhood with a failed bank could get another bank to serve them.
Clinton signed the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, which repealed restrictions on interstate banking, and the backlash against ensuing mergers and acquisitions, caused banks to spin off subsidiaries for lending in poor minority neighborhoods. Clinton's push against "redlining" a discriminatory but laudable practice that avoided subprime lending (lending to those unlikely to repay) violated the tried and true practice of banks to lend only to creditworthy borrowers, not to deadbeats. In 1995, the OCC, FED, FDIC, OTS even gave advice on how to minimize risk when making subprime loans, and these recommendations ultimately replaced the related federal regulations.
Clinton signed the Gramm-Leach-Blilley Financial Services Modernization Act of 1999 to repeal portions of the Glass-Steagall Banking Act of 1933 which had established the FDIC and separated the functions of commercial and investment banks and insurance companies, and prohibited commercial banks from trading in certain stocks. This action, the culmination of the error of appointing Andrew Cuomo to oversee HUD, set the stage for a financial crisis free-fall - the predatory lending disaster that collapsed jobs, real estate prices, and homeowner equities across the land, and caused millions of home mortgage foreclosures.
Wikipedia provides this enlightenment on the CRA
"In the fall of 1999, Senators Dodd and Schumer prevented another impasse by securing a compromise between Sen. Gramm and the Clinton Administration by agreeing to amend the Federal Deposit Insurance Act (12 U.S.C. ch 16) to allow banks to merge or expand into other types of financial institutions. The FDIC related provisions of the new Gramm-Leach-Bliley Act, along with the addition of sub-section 2903(c) directly to Title 12, insured any bank holding institution wishing to be re-designated as a financial holding institution by the Board of Governors of the Federal Reserve System would also have to follow Community Reinvestment Act compliance guidelines before any merger or expansion could take effect.
"At the same time the G-L-B Act's changes to the Federal Deposit Insurance Act would now allow for bank expansions into new lines of business, non-affiliated groups entering into agreements with these bank or financial institutions would also have to be reported as outlined under the newly added section to Title 12,§ 1831y (CRA Sunshine Requirements), to satisfy Gramm's concerns."
This directly precipitated the financial crisis of the past decade, and I believe we head for a new one as banks have begun making more subprime loans.
In 2010 the Financial Crisis Inquiry Commission studied the issues and presented a report (http://fcic-static.law.stanford.edu/cdn_media/fcic-reports/fcic_final_report_full.pdf). Before you put yourself to sleep reading it, read the article I have duplicated below which explains why it has obscured many truths for political expediency.
I shall summarize the real problem.
Financially irresponsible people become POOR. Even potentially financially responsible people may become BROKE because of an investment unforseeably gone bad as they learn how to make money the earnings of money they invest in an enterprise or scheme. But the poor usually suffer from the handicap of STUPIDITY. 80 million people, a quarter of the US population, are so stupid they cannot graduate from high school. These people are destined for poverty, and in a free society, that IS as it SHOULD BE. Even Jesus said "The poor will always be with us."
Stupid people are nearly always financially irresponsible and poor because they make stupid choices because they cannot evaluate relative importances or solve problem well. They can study, but they don't quite get it.
They do understand one thing. They flat-out LOVE ANY politician who promises them more rights, privileges, benefits, money, or FREE STUFF without demanding responsible behavior or honest work as a prerequisite, OR in return.
ALL of these Acts that all of these Presidents signed into law which protect poor people and help them get loans are INSANE and constitute INSTITUTIONALIZED CRIME.
Laws that increase the taxes of productive people or make a business unprofitable to help unproductive people constitute legalized PLUNDER. These laws make poor people happy as a clam if they get their share of the plunder.
But let us swivel our heads in the other direction for a moment at who really benefits from these corrupt laws: the OWNERS of banking and investment concerns. These men and women OWN and CONTROL lobbyists, legislators, and the President to the extent they must in order to make enormous profits and control resources.
THEY have engineered the financial system, the banking system, the money system. They have engineered the crises that lead to ever more control. They have encouraged endless no-win wars and they finance all the combatants as they see fit. They have engineered the system of open borders and unrestrained immigration and procreation of ever more stupid people so that the stupid offspring will vote for their giveaway programs such as subprime loans (a free house for a while), free food stamps, free housing, free education, free everything for the poor and corrupt, turning the entirety of the impoverished people of the land into a polyglot cauldron of criminals.
Affordable housing? If government wants affordable housing, it must create appraisal guidelines, not leave it up to appraisers, such that the most important factor is INCOME CAPITALIZATION, not manipulated market value. That is precisely what the banking and finance industry wants - they want to know how to get their money back. So should homebuyers. And the main way to do that is to answer this question with numbers that reveal a profitable deal:
- "At what price can I buy this house that will allow me to make the payments from the rental income or other business use?"
- "What will it cost me to replace this house if it burns down the day after I buy it?"
- "Is the present market value a manipulated value - such as by very low interest rates, snob appeal, etc, and does it compare favorably to similar houses similarly situated?"
Take note also, that federal legislation making it easier for deadbeats to buy houses has had the effect of rigging prices because subprime borrowers don't care how much the house costs so long as they can get it. That makes sellers raise prices.
Securitization? Securitization provides a real benefit to investment profiteers because it lets all classes of investors buy mortgage backed security certificates and receive interest on them which comes from interest borrowers pay on mortgages.
This practice has existed in the USA for hundreds of years, but it only became broadly popular during Clinton's reign. Once the financial minds worked out the formulae for the pooling and servicing agreements, they set up the trusts and started buying loans. Lenders would arrange to sell the loans to the trust mechanism as soon as the ink dried on the paper, so to speak. Lenders bought the money at the Fed discount window, then made the loan deal, earned their discount points, and their 2% to 5% profit on sale of the note, plus they earned the down payment if any. They felt no repercussion for making a predatory loan because they sold it immediately. So they did not have to worry about the borrower defaulting.
That meant they didn't care if mortgage brokers lied about the creditworthiness of the borrower, or if the appraiser lied about the value of the house, or if the title company screwed up the paperwork.
Think about this. In the old days, back in the early 1970's, borrower could only get a fixed interest 30-year loan with 20% down, or 10% on a VA loan. Now because of dereliction in Congress, borrowers can get a zero-down 40-year interest-only loan with a balloon a few years hence.
People SHOULD simply save their money and pay cash. Maybe Congress should outlaw mortgage loans for all but the most affluent.
All of this liberty. Minimal responsibility.
Dear President and Congress:
If you want poor stupid people to own a house, YOU BUY IT FOR THEM with your own money.
Bob Hurt, 727 669 5511
P.S. Dear Reader:
If you or a loved one or friend suffer the after effects of a predatory loan, visit and read http://MortgageAttack.com, then call me. There's only one reliable way to beat a crooked lender: find out how the lender injured you, then SUE.