Thursday, April 14, 2011
Sunday, July 4, 2010
Tuesday, December 1, 2009
Wednesday, May 27, 2009
Geoff Metcalf -- When rule breakers become rule makers
Geoff Metcalf -- When rule breakers become rule makers: "Ayn Rand once clearly restated an intrinsic reality, “…it cannot be repeated too often that the Constitution is a limitation on the government, not on private individuals --that it does not prescribe the conduct of private individuals, only the conduct of the government --that it is not a charter for government power, but a charter of the citizen's protection against the government.'"
Sunday, May 17, 2009
Campaign For Liberty — Congress Must Audit the Federal Reserve | by Adam de Angeli
Campaign For Liberty — Congress Must Audit the Federal Reserve by Adam de Angeli
{If there's nothing to hide, why be afraid of an audit...sound's like the an upper level version of Enron}
{If there's nothing to hide, why be afraid of an audit...sound's like the an upper level version of Enron}
Thursday, May 14, 2009
Housing Bust of 2008 and the aftermath
*1977-Congress passes Community Reinvestment Act(CRA) to address alleged discrimination of poor people & minorities (redlining) in not making them loans.
*It said banks have "an affirmative obligation" to meet credit needs of communities in which they are chartered.
*1989-Congress amends Home Mortgage Disclosure Act requiring banks to collect racial data on mortgage applications. U.T. economics professor Stan Liebowitz written that the reason they were rejected more frequently not based on race by that minorities tend to have weaker finances. He condemns a 1992 study conducted by Boston Federal Reserve Bank that alleged systemic discrimination. The study became the standard on which govt. policy was based.
*1995-Clinton administration's Treasury Dept. issues regulations tracking loans by neighborhoods, income groups, and races to rate the performance of banks. They were used by regulators to determine whether the govt. would approve bank mergers, acquisitions and new branches. This encourage groups like ACORN(Assoc. of Community Organizations for Reform Now) & the Neighborhood Assistance Corp. of America. to file petitions with regulators, or threaten to, to slow or prevent banks from conducting their business by challenging the extent to which banks were issuing these loans. Subsequently, loans were made to low-income individuals who often had bad credit or insufficient income.."subprime loans"...also made available 100% financing and even made loans without documenting income.
1992-H.U.D. pressures Freddie Mac and Fannie Mae to purchase & securitize large bundles of these loans for purpose of diversifying the risk & making even more money available to bank to make further risky loans!!!
Congress also passes the Federal Housing Enterprises Financial Safety and Soundness Act eventually mandating that these companies buy 45% of all loans from people of low & moderate incomes, inotherwords, a secondary market was created.
1995-Treasury Dept. establishes Community Development Financial Instititutions Funds to provide banks with tax dollars to encourage even more risky loans.
*Barney Frank, Christopher Dodd and Charles Schumer, et al repeatedly ignore warning of pending disaster saying warnings were overstated. Books were cooked to aware executives of FDMC and FNMA millions of dollars in bonuses.
*A by-product of this intervention was a financial instrument called a "derivative" which turned the subprime market into a ticking time bomb that would MAGNIFY the housing bust dramatically. A derivative is a contract where one party sells the risk associated with the mortgage to another party in exchange for in exchange for payments to that company based on the value of the mortgage (a form of "insurance", so to speak). The risk was further spread and multiplied by commercial and investment banks, individual companies and private investors(withness AIG).
*Federal Reserve Board also made matters worse. The Fed slashed interest rates repeatedly starting in January '01 from 6.5% to a low in June '03 of 1.0 percent. Greenspan and later Bernanke began steady back to to 5.25% in June 06'.
*2008/09-Fed spent dollars at a frenzy to "rescue" financial markets from its own mismanagement. The Troubled Asseet Relief Program (TARP) could reach $1 trillion or 7% of the nation's GDP. TARP originally enacted so the govt. could buy risky or nonperforming loans from financial institutions. Mission changed within weeks--govt. began using funds to buy equity positions in financial institutions. An oversight panel concluded that $350 million of TARP funds can't be accounted for.
Fed also provided assistance of:
-$30 billion to Bear Stearns
-$150 billion to AIG
-$200 billion for FNMA & FDMC
-$20 billion to Citigroup
$245 for commercial paper market
-$540 billion for money markets
*Federal Bailout exceeds nine of the costliest events in American history adjusting for inflation:
-Marshall Plan
-Louisiana Purchase
-Race to the moon
-S&L crisis
-Korean War
-The New Deal
-Invastion of Iraq
-Vietnam War
-NASA
The federal spending share of GDP will climb to 27.5%. $1 of every $4 produced by the economy will be consumed or control by the federal government. Obama's Chief of Staff, Rahm Emanuel, openly admitted, "Rule one: Never allow a crisis to go to waste. They are big opportunities to do big things."
*It said banks have "an affirmative obligation" to meet credit needs of communities in which they are chartered.
*1989-Congress amends Home Mortgage Disclosure Act requiring banks to collect racial data on mortgage applications. U.T. economics professor Stan Liebowitz written that the reason they were rejected more frequently not based on race by that minorities tend to have weaker finances. He condemns a 1992 study conducted by Boston Federal Reserve Bank that alleged systemic discrimination. The study became the standard on which govt. policy was based.
*1995-Clinton administration's Treasury Dept. issues regulations tracking loans by neighborhoods, income groups, and races to rate the performance of banks. They were used by regulators to determine whether the govt. would approve bank mergers, acquisitions and new branches. This encourage groups like ACORN(Assoc. of Community Organizations for Reform Now) & the Neighborhood Assistance Corp. of America. to file petitions with regulators, or threaten to, to slow or prevent banks from conducting their business by challenging the extent to which banks were issuing these loans. Subsequently, loans were made to low-income individuals who often had bad credit or insufficient income.."subprime loans"...also made available 100% financing and even made loans without documenting income.
1992-H.U.D. pressures Freddie Mac and Fannie Mae to purchase & securitize large bundles of these loans for purpose of diversifying the risk & making even more money available to bank to make further risky loans!!!
Congress also passes the Federal Housing Enterprises Financial Safety and Soundness Act eventually mandating that these companies buy 45% of all loans from people of low & moderate incomes, inotherwords, a secondary market was created.
1995-Treasury Dept. establishes Community Development Financial Instititutions Funds to provide banks with tax dollars to encourage even more risky loans.
*Barney Frank, Christopher Dodd and Charles Schumer, et al repeatedly ignore warning of pending disaster saying warnings were overstated. Books were cooked to aware executives of FDMC and FNMA millions of dollars in bonuses.
*A by-product of this intervention was a financial instrument called a "derivative" which turned the subprime market into a ticking time bomb that would MAGNIFY the housing bust dramatically. A derivative is a contract where one party sells the risk associated with the mortgage to another party in exchange for in exchange for payments to that company based on the value of the mortgage (a form of "insurance", so to speak). The risk was further spread and multiplied by commercial and investment banks, individual companies and private investors(withness AIG).
*Federal Reserve Board also made matters worse. The Fed slashed interest rates repeatedly starting in January '01 from 6.5% to a low in June '03 of 1.0 percent. Greenspan and later Bernanke began steady back to to 5.25% in June 06'.
*2008/09-Fed spent dollars at a frenzy to "rescue" financial markets from its own mismanagement. The Troubled Asseet Relief Program (TARP) could reach $1 trillion or 7% of the nation's GDP. TARP originally enacted so the govt. could buy risky or nonperforming loans from financial institutions. Mission changed within weeks--govt. began using funds to buy equity positions in financial institutions. An oversight panel concluded that $350 million of TARP funds can't be accounted for.
Fed also provided assistance of:
-$30 billion to Bear Stearns
-$150 billion to AIG
-$200 billion for FNMA & FDMC
-$20 billion to Citigroup
$245 for commercial paper market
-$540 billion for money markets
*Federal Bailout exceeds nine of the costliest events in American history adjusting for inflation:
-Marshall Plan
-Louisiana Purchase
-Race to the moon
-S&L crisis
-Korean War
-The New Deal
-Invastion of Iraq
-Vietnam War
-NASA
The federal spending share of GDP will climb to 27.5%. $1 of every $4 produced by the economy will be consumed or control by the federal government. Obama's Chief of Staff, Rahm Emanuel, openly admitted, "Rule one: Never allow a crisis to go to waste. They are big opportunities to do big things."
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