Letitia, another DEI hire, campaigned to get Trump

The latest non-crime and ridiculous "award" of nearly half a million (paid out to whom since there was no victim and no crime?) for "civil fraud" against Trump brings back to memory how our federal government created a housing/mortgage free fall in 2007-2008 and sent our entire nation into a recession by over valuing homes and getting inadequately funded suckers to fall for the trap. The government backed mortgage agencies have been over evaluating the real estate market for decades. We were helping our son buy a home at that time, and the ridiculous financing of that era was unbelievable--so we went the standard route with a solid down payment. Just call me Fannie Mae/Freddie Mac. The only crime was that of AG Letitia, another DEI hire, vowing in her campaign to get Trump. She used Trump to get elected. She called him "illegitimate" meaning she publicly campaigned on not believing in the results of the 2016 election. Isn't that illegal? Republicans are call Nazis for believing the 2020 election was a fraud. No one else would have ever been charged with what the government has done for decades.

See what New York AG said while running for office about charging Trump | CNN Politics

In 2008 I wrote a poem about the fed chair and the Secretary of the Treasury.

"I’ve got the low down, trillion dollar, Ben and Henry Blues"
by Norma Bruce ©

Woke up this morning ‘bout five fifteen,
Read my big ol Bible and a new magazine,
Jumped in the van, turning on the key
Let me tell you mama, there’s no stopping me.

Driving on to Main Street, stopping at the light
Heading for the coffee shop the other side of night,
Singing with the radio, changing stations now
Got the dog and pony show, candidates take a bow.

(refrain) Mitigating factors, oozing out the wazoo,
Sell ‘em or hold ‘em, it’s all a rescue.
I’ve got the low down, trillion dollar
Ben and Henry blues.

Warm bakery bread and yeasty brown rolls
Congress still propping up the C-E-Os
Espresso coffee chai and tea
The government ya know--that’s just you and me.

NINJA loans for aliens, flipping for the rich,
From coastal homes, to buildings in the sticks,
McBama to Fannie to Goldman Sachs
They’re pointing fingers and covering tracks.

(refrain) Mitigating factors, oozing out the wazoo,
Sell ‘em or hold ‘em, it’s all a rescue.
I’ve got the low down, trillion dollar
Ben and Henry blues.

Gingrich and Fannie and Fred

"Mr. Gingrich made between $1.6 million and $1.8 million in two separate contracts with Freddie between 1999 and 2008. The former Speaker stuck to his line that "I was approached to offer strategic advice" and had warned the government-sponsored enterprises (GSEs) to stop lending to bad credit risks." WSJ Review & Outlook, Dec. 17, 2011.

I would have given them the same advice for free.

The Fed, Fannie and Fred

"[Tim Geithner, Ben Bernanke and Barney Frank] are calling to raise the debt ceiling. This will assist them with perpetuating the biggest legal government scam in history [financial institution bailouts of over $12 trillion]. Meanwhile, responsible middle class Americans are barely making it, as their investments are devalued and government expands, finding more ways to collect money from them to support its Ponzi scheme.

This is not capitalism gone amuck, as Barney Frank claims. The government bailing out private banks is not capitalism but quasi-socialism. There is a simple solution to fix this: the banks must be held accountable. There should be a way to sue the banks that originate the irresponsible investments and loans, even if they transfer their risky ventures to other banks. Nor should they be bailed out when they fail. For every bank that fails, another one that is more financially responsible is ready to step up and take its place. Fannie Mae and Freddie Mac are quasi-governmental lending agencies, so suing them would only hurt the taxpayers. They were responsible for the highest rates of foreclosures. They have grossly failed, and represent government at its worst, so the only solution is to eliminate them." Rachel Alexander

The Biggest Legalized Theft of Middle Class American Wealth - Page 1 - Rachel Alexander - Townhall Conservative

Fannie-Freddie Fix at $160 Billion With $1 Trillion Worst Case

When will Congress call Fannie and Fred in for the hot seat tongue lashing?. Never. Both parties are to blame. Better to go after "big oil" or bankers or evil capitalists. Their mistakes were no accident, they are 100% the fault of the Congress which created the Federal National Mortgage Association, known as Fannie Mae, in 1938 to expand home ownership by buying mortgages from banks and other lenders and bundling them into bonds for investors. It set up the Federal Home Loan Mortgage Corp., Freddie Mac, in 1970 to compete with Fannie.

Fannie Mae and Fred Mac will cost the American taxpayer more than the BP spill and clean up. Estimated at $160 billion and rising, possibly to $1 trillion.

Fannie-Freddie Fix at $160 Billion With $1 Trillion Worst Case « Finance Blog

Obama Moves to worsen the housing mess

Haven't we been this route before? Didn't it lead to the bubble bursting in 2008? Did you know you can still get 100% financing, no money down, home mortgages (check out USDA--the food people--they also throw money at new mortgages). Now today we get the news that "The Obama administration on Friday announced broad new initiatives to help troubled homeowners, potentially refinancing millions of them into fresh government-backed mortgages with lower payments." Duh! 11,000,000 homeowners with property worth less than they owe, and the government continues to provide no-money down, 100% mortgage financing which is a 100% guarantee that the cycle will continue. Administration Moves to Assist Struggling Homeowners - NYTimes.com

Maybe we need a refresher on how our friendly government loan officer and enforcer got us here.

Looking back at the origins of FHA

The right margin of this interesting article from Woman’s Day about an early FHA backed mortgage is missing because my grandmother who clipped it was interested in the quilt pattern on the other side (Star and Ring). From the clothing and hair styles, I’d place it about 1948 because the husband isn’t in uniform and those drapes look familiar.

FHA has had an interesting history. On the one hand, it allowed generations of Americans to own their own homes, but the unintended consequences are it contributed mightily to our current recession brought on by the collapse of the housing market.

It was created in 1934 during the Great Depression because housing loan periods used to be much shorter with a final balloon payment, and when the economy failed, many people lost their homes. But there were also some fairly stiff standards on the quality of the home, a modest down payment and the ability of the buyers to pay. After 25 years or so, politicians decided this was unfair to African Americans who were being left behind in the decaying inner cities as whites moved out to newer housing stock (like in the picture of the Knudsen family home near Washington D.C.).

So that’s how we got all this “creative financing” with the seller, instead of the buyer, providing the down payment, but not really, because it actually came from a non-profit organization like a church or community group (think ACORN) which got the money from the government. In 2000, these types of mortgages made up less than 2% of FHA insured mortgages. By 2007, that percentage jumped to 35%. And I guess you know the rest of the story.

“The FHA’s standard insurance program today is notoriously lax. It backs low downpayment loans, to buyers who often have below-average to poor credit ratings, and with almost no oversight to protect against fraud. Sound familiar? This is called subprime lending—the same financial roulette that busted Fannie, Freddie and large mortgage houses like Countrywide Financial.” WSJ, Aug. 11, 2009

To be fair, conventional loans during the same time period were also requiring nothing down, so there’s plenty of blame to go around when mortgage lenders, non-profits dependent on government grants, home flippers with venture capital and politicians collude.

But this is just a reminder that more government interference in the housing market is not necessarily a good thing. The current housing credit of $8,000 for “first time buyers” (and there’s tremendous fraud in this) is costing us taxpayers something like $48,000 for each one.

Incidentally, Dorothy Ducas, the author of the Woman's Day article had a very interesting career and would make an interesting topic for a thesis if it hasn't been done.

Norma's plan for wealth and security--at your expense

This may look a little ragged---I sketched it out in about 10 minutes at the coffee shop this morning and I only have a little time before I leave for exercise class, but here's a reasonable draft. If you follow this, you'll be set for life with a very comfortable income with lots of perks, plus you'll feel so good about doing good.

1) Bring together a group of like minded friends--in your home would be best--for coffee and dessert.

2) Present a "problem" or "need"--could be anything you've noticed and tsk tsk'd about.

Maybe water use on the OSU golf course

wild life in the creek that runs through the neighborhood

non-native species, birds or plants, taking habitat and changing the ecology

roaming homeless people who show up in the community riding the bus from down town

no afterschool social programs or latch key for autistic children

be creative!

3) Everyone shares their "rolodex"--who we know, our neighbors, friends, members of city council, members of the state legislature or regulatory boards, boards of directors of non-profits, boards of trustees at the university and colleges we attended, department chairs at OSU, members of local Chamber, Rotary, Lions, etc.

4) Plan a fund raiser--maybe a silent auction, a "run for awareness," or a tent at a larger community festival, art show, or school event. This not only raises money but broadens your base of support--you need more people to feel invested emotionally and mentally in your plan.

5) Write your mission and vision statement/plan; open a bank account; rent a P.O. box for an address; appoint officers. I, of course, will be at the top. Find recognizable names and appoint a board that won't have to do anything except have their names displayed. Make sure one of your volunteers is a lawyer. You'll need a charter and organizing document. Apply for 501 C 3 non-profit status for your organization (charity, scientific, save animals, etc.). After you get this, it's doubtful anyone will check on you in the future, unless you do something screwy, like appear on the Glenn Beck show or dance nude in front of the city building.

6) Apply for grants from local foundations. Grant writing is an art--so you'll want to find a member in your group that has some experience in this. I used to do this, but it was years ago, so you won't ask me.

7) Using that small amount of grant money you can do a marketing campaign, pay for a professionally designed web "presence" and offer one or two educational events (again, this isn't for information, but for broadening your base of support). Get your little group on facebook and Twitter. Blog it to death. So far, you've not saved a single bird, or drop of water, or plant, but it takes a lot of money and time to gear up for the big reveal.

8) Reevaluate your mission, members and message. Redesign to become "green,", "sustainable," or "eco-something." No matter what your original concern was, this step is absolutely critical for further funding.

If you chose wildlife, you can expand to deer killed on the interstate, and you know what that means--big bad SUVs and semi's slurping up petroleum products shipped here from the middle east making us oil dependent so we need more wind mills to save the deer and stop the war in the middle east. See how easy it is to grow?

If you chose afterschool programs for autistic children, you can branch into investigations of products, healthy foods, anti-vaccine campaigns, or any of the larger health care concerns. There are lots of people on this band wagon, so it's a little dicey--not as safe as energy needs.

9) Apply for major funding and gifts--national foundations (there are thousands of these set up by rich entreprenuers to protect their wealth and run 2 generations later by feel-good, guilt-ridden descendants), state grants (which come from and are laundered from the federal) and federal grants when you're ready. There are thousands--most with very little oversight until the next administration comes in, so now's a good time.

10) Put me (or you) and your BBF BFF (a BBF was a local hamburger) on salary--nothing flashy--maybe $75-80,000 a year with full benefits. This is all covered in the 501 C 3 instructions. You don't want to raise any red flags. But make it comfortable. It's the perks that come from the travel to conferences and meetings in exotic locales, the schmoozing with other movers and shakers, and all those great connections for home loans, investment opportunities and good deals at wholesale that really make this job pay.

I don't want you to think I was smart enough to think this up on my own. No, I just read an interesting history of a non-profit in their latest annual report, and this is how the Ohio Housing Trust Fund went from a rag tag group of volunteers with no budget 20 years ago to a constitutionally backed budget of $56 million in the 2008-2009 Ohio Biennium Budget. Or you can follow and back track any group linked to Fannie Mae, whose front man is Barnie Frank. Just now I googled, "affordable house" + Fannie Mae + grants and found an amazing group of attractive annual reports. Go to it--I have to run to class.

The housing mess has a long history

We've all seen the pressure to lower standards and make homeowners of people who can't save the downpayment, can't pay the mortgage, can't meet the minimum standards, but I was unaware how far back government interference in the housing market went--back to the early 1920s with Herbert Hoover when he was Secretary of Commerce. Or even 1913, if you figure the home mortgage deduction. And I knew about rent controls creating an artificial "housing shortage" after WWII. I knew what had been required of us even with our first home purchased in 1962, but we never used FHA or VA, and sort of assumed that's the way it was until the 70s or 80s. Guess not. There's a lot I didn't know about how housing became a political football for both parties and invited crime and corruption to flourish. Catch up on the history beginning with Hoover, and follow it all the way up to now. See Obsessive Housing Disorder.

"The next stop on the road to 2008 was a fateful campaign to lower lending criteria, which, the housing advocates argued, were racist and had to change. The campaign began in 1986, when the Association of Community Organizations for Reform Now (Acorn) threatened to oppose an acquisition by a southern bank, Louisiana Bancshares, until it agreed to new “flexible credit and underwriting standards” for minority borrowers—for example, counting public assistance and food stamps as income. The next year, Acorn led a coalition of advocacy groups calling for industry-wide changes in lending standards. Among the demanded reforms were the easing of minimum down-payment requirements and of the requirement that borrowers have enough cash at a closing to cover two to three months of mortgage payments (research had shown that lack of money in hand was a big reason some mortgages failed quickly).

The advocates also attacked Fannie Mae, the giant quasi-government agency that bought loans from banks in order to allow them to make new loans. Its underwriters were “strictly by-the-book interpreters” of lending standards and turned down purchases of unconventional loans, charged Acorn. The pressure eventually paid off. In 1992, Congress passed legislation requiring Fannie Mae and the similar Freddie Mac to devote 30 percent of their loan purchases to mortgages for low- and moderate-income borrowers."

So we're doing more of the same, trying to refinance these failed homeowners, offering rock bottom rates, wondering why it isn't working?

"As Harvard economist and City Journal contributing editor Edward Glaeser has observed, mortgage lenders have finally “recovered their sanity”—only to have government dangling subsidized low interest rates and tax credits in front of them and their potential customers all over again. Behind these efforts is a fundamental misconception among politicians that housing drives the American economy and therefore demands subsidy at virtually any cost."

The author points out the damage the home mortgage deduction has done, as well as other government subsidies, regulations and programs. Good article. And Obama owes ACORN big time, so we're in for more of the same on the road to "recovery." Go read it.

Millions in bonuses for Fannie Mae Execs

"Say it ain’t so. But looks like it is. Here we are, clutching our devastated 401Ks, howling for scalps at AIG, dizzy with the zeroes of the $3.55 trillion budget and the $797 billion “stimulus” and the $700 billion TARP, and the election of a President whose answer to all ills is to frag bomb the capitalist system, spend us into hock unto the umpteenth generation, blow out our currency in the process, and usher us into an era in which ACORN helps with the census and government doles out the ensuing rations.

And, over at the outfit that primed the sub-prime fuse for this chain reaction, Fannie Mae, the top executives are now going to rake in six or seven-figure bonuses over the next year — in some cases double what they got last year. Here’s the AP reporting on Fannie Mae plans bonuses of $1M for execs." Rosett Report.

Is it time to kill off Fannie and Fred?

Here’s a list, in reverse order, of WSJ articles on the poorly run Fannie Mae--back to February 2002, early in the Bush administration, the earliest one in Feb. 2002 comparing the risk to Enron. Was anyone listening?

"As for interest-rate risk, Fan and Fred hedge with a giant and complex program using all manner of derivatives. At the end of 2000, their combined derivative position was valued at $780 billion. Even scarier, these hedges are only as good as the counterparties' ability to pay up. But Fan and Fred don't disclose the identity of their parties, so investors have no idea how much risk comes from possible counterparty failure. (By the way, last year Fan's derivative strategy went, um, somewhat amiss and she had to write down shareholder equity by $7.4 billion.)

Fan and Fred also pool mortgages and then sell those securities -- that is, they retain the credit risk since they guarantee the soundness of the mortgages and buyers assume the interest-rate risk. But Fan and Fred have recently been buying back their own securities; each now holds 30% of all mortgage-backed securities outstanding. Simply put, they are re-assuming interest-rate risk. Not necessarily a terminal practice when interest rates are stable, but dangerous if rates turn volatile."

We know Fan and Fred and their federal co-conspirators in Congress (called committee "oversite", or fox guarding the hen house) are in part to blame for the current meltdown and housing crisis. The like to blame a corporate "greed", but it's bad loans chasing even worse risks. Then there is today’s alarming editorial in WSJ that points out that in addition to our $6.6 trillion debt held by the public (up from $5.3 trillion a year ago), you and I are guaranteeing $5.3 trillion in Fannie and Fred liabilities!

So I ask you, what if there had never been a Fannie Mae or Freddie Mac?

“In 1938, the Federal government established Fannie Mae to expand the flow of mortgage money by creating a secondary market. Fannie Mae was authorized to buy Federal Housing Administration-insured mortgages, thereby replenishing the supply of money to lend to future homeowners.

Freddie Mac is a stockholder-owned corporation chartered by Congress in 1970 to keep money flowing to mortgage lenders to ensure that there was funding available for future homeowners. Freddie Mac purchases single-family and multifamily residential mortgages. They help homeowners and renter get lower housing costs and better access to home financing.” from Singing Blog

So Fannie is a holdover from the Depression era and Fred from the 70s. Maybe they should have been killed off when WWII and not FDR's socialist programs restored the economy? In theory, the interest rate is supposed to be 1/4 percent lower, but considering how mortgage loans have fluctuated from 4.5% (about 5 years ago) to 10.5% (about 22 years ago) during my own mortgage commitment years (we've owned 5 homes since 1961), how really has that 1/4 percent made a difference to home owners, who seem to find the means no matter what the rate, other than to encourage bad behavior and poor credit? Plus, it's one more playground of regulation for the likes of the Barney Franks of Congress. In truth, I can't blame all this on the old Barn--he hasn't been in charge long enough to have created all the mess, but I'd like to see every chair of that committee still alive and not in a nursing home testify before the American people about why we the people need Fannie and Fred and to hear a few mea culpas.

More of what got us to our financial meltdown in housing

Have you noticed that the GSEs Fannie and Freddie are front and center of the stimulus?

"Before Wall Street screamed bloody murder at the opening of 2008, President Bush was resisting pressure to lift the financial limit on the mortgages Fannie Mae and Freddie Mac purchase and securitize. The Office of Federal Housing Enterprise Oversight (OFHEO), the GSEs’ wimpy watchdog, also objected to lifting the limit and continues to do so post stimulus agreement. The present GSE limit is $417,000. The stimulus would snap the cap to $625,500, and to $729,750 in extra pricey housing markets. Allowing Fannie and Freddie to purchase and securitize jumbo mortgages, the oversize loans MBS investors now shun as too risky. Link

How we got here--a quick review



HT Taxmanblog

Change we can count on

I don't know about the rest of you, but I'm feeling much better about Obama's change these days. All those Clinton retreads. It's like a family reunion, although they never really left the beltway, just opened "think tanks." Not that the Bush people will be any different. It's what keeps that place going. Also nice to see that they'll probably opt for private school for their daughters. God forbid a wealthy politician who owes the NEA big time should ever support private education for the poor or middle class with vouchers. Nope. The only change I see is the value of my 403-b and my stock portfolio. Just a dab of change left. And he's promising to take even what little's there by taxing more businesses to give me itsy-bitsy perksies. Thank you Democrats for all you've done for us to make our investments worthless while you sat on your fannies.

Setting the Record Straight on GSE's role in the economy

Since we're in for another round of FDR type "fixer-uppers" to weigh down the economy, the response to who's at fault is up at the White House Web page. Even if you're an avid Bush basher, you really ought to take a look, because your 401-k or 403-b has been just as damaged as mine, but for some reason, you just might think that by raising taxes, you'll get some back. Don't think it works that way--at least it didn't in the 1930s.

The chronology starts in April 2001 with the FY 2002 budget, "the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity." (2002 Budget Analytic Perspectives, pg. 142)" Democrats forget Bush inherited a recession and was probably trying to figure out how to fix it. Having poor people borrow both the mortgage and the down payment from the government was not a healthy way to go. Foreclosures were already showing that.

Read all the way through to August 2007 (chronology ends in September 2008), the last time I think this steam roller could have been halted and around the time I started blogging about it: "August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, the White House, 8/9/07)" I even wrote a poem about it in September 2007--not only were Barney and Chris not listening to the President, they weren't listening to Norma! Once the Democrats controlled Congress, there was no turning this thing around. Now they get the whole sticky wad.

Obama's team was much faster at taking advantage of this problem (by lying) than was the disorganized, flabby McCain team, so most of you bought into the, "it's the President/Republicans fault" meme and that action was needed immediately. I've spent more time deciding what to have for Thanksgiving Dinner than these Porkers did figuring this one out. We'll stay in this mess until someone smart about not raising taxes figures it out. I'm already retired, so please hurry up!

Affordable housing in Ohio--and your state, too

Because the current value of your 401-k, your 403-b, or your private investments and the value of your house are tied directly to the government's interference in the housing market in the past 15 years, it's time for you to take a look around, become familiar with the real estate, as it were. Today I'm looking at the Ohio Department of Development and how many fingers and thumbs are trying to pull out a plum.

Here's some history from the Ohio Housing Trust Fund Annual Report 2008 :

To address Ohio’s housing needs, Ohio’s housing advocates, led by the Coalition on Homelessness and Housing in Ohio (COHHIO), began a grass roots campaign to improve Ohio’s housing conditions. The campaign’s first success came in November 1990 when Ohio’s voters approved Issue 1, a constitutional amendment making housing a public purpose. During the following year, the Ohio Legislature passed implementing legislation (House Bill 339) to establish the Ohio Housing Trust Fund (OHTF) and an Advisory Committee to work with the ODOD, the administering agency, to develop the fund’s housing programs and policies.

OK, start small with volunteers, get some funding, get established, hire more staff to find more funding.

In the 1992-1993 Ohio Biennium Budget, $5 million of state general revenue was allocated to the fund. Immediately, Ohio’s housing advocates began lobbying for an OHTF permanent, stable funding source.

So that's the beginning. Identify a need, get a small grant to keep you going until you can get more money. No low income person's rent is ever paid, but the goal is set with meetings and workshops--rent, coffee and snacks eat up a lot of budget. Keep the need out front--"affordable housing," but keep expanding what that means. From homeless to poor to low income.

For the next 12 years, the fund’s allocation level struggles with a sluggish economy and the high demand for other state-funded services, including education. During that period, the allocation level fluctuated from $5 million for a biennium to $20 million for one year.

OK, funding is too iffy to pay all the salaries, so let's rethink this. We need to bring in more people at every level of the housing industry for a larger stake.

In 2002, established the Affordable Housing Taskforce, (when the word Trust Fund loses its glow, try Taskforce) recommend an increase in fees to have a permanent, dedicated funding source for the OHTF. Continue to raise fees, while warning about the housing crisis and lauding a public/private partnership to increase affordable housing for low- and moderate-income families.

What started as "homeless" in 1990, is now "moderate-income" housing. Continue to lobby the governor's office and state legislature and broaden your base in the building industry so they can get a piece of the pie. By the early 2000s, you've got so many endorsements, businesses, non-profits (which have also been expanding using the same methods) and financial institutions (which are being threatened for "red lining") plus religious organizations (faith based initiatives), you can go for yet another increase in fees for 2004-2005 for the funding of OHTF. And finally, the pot and the end of the rainbow.

In the 2008-2009 Ohio Biennium Budget, the Ohio Legislature appropriated $53 million each year to the OHTF. Subsequently, the State Controlling Board approved an increase in the OHTF appropriation authority for SFY 2008 to $56 million.

From grass roots, rag-tag volunteers for the homeless to $56 million dollars in just 18 years. Not bad. Of course, we still have homeless; we still have decaying housing stock in the older neighborhoods like Hilltop and near East side and over there south of Children's Hospital. But we have an unending stream of funding, the non-profits and religious organizations have places to put staff who might not otherwise have jobs, the volunteers have a place to go to feel good, and it certainly is reducing the gap between the rich and the poor--by helping indirectly to destroy the wealth of the middle class.

The bigger the housing trust funds became, the bigger the crisis grew--the more funding was needed. Take a look at this explanation by Fannie Mae, that sweet thing who was stealing from you all along while her front man Barney said everything was just fine.

And we've just elected a guy who claims we aren't doing enough!

How Democrats brought down the economy through ignorance, sloth and bribes

When Republicans tried to rein in the GSEs (Fannie Mae and Freddie Mac) our Democrat economic brain trust said: Maxine Waters, "Wasn't broke." Gregory Meeks, "I'm pissed off [that you're investigating this]." Barney Frank, "I don't see anything that's an issue." Lacy Clay, "Political lynching."



And now they want us to elect another Democrat to fix it. I've always thought of Obama as a marxist, Hillary as a socialist and McCain as a Democrat, so maybe they've got this one right. Vote McCain-Palin. It couldn't get worse than what these financial wizes whized. And if I may continue in that vein about Democrats, "they haven't got a pot to pee in" when it comes to the poverty of their ideas.

McCain got it; Obama didn't

Remember that Chicken Little thought the sky was falling and that Foxy Woxy could save her and the other animals she had frightened. Well, meet Foxy Woxy, the one Democrats want us to elect to guard the hen house.

Corporate executives and directors of Fannie Mae

Look how much they earned to screw up your retirement accounts. Click on each name. Some are on more than one board. You can check on their donations--Linda K. Knight, one I just chose at random--has made two $500 donations to Obama and one $500 donation to Chris Dodd.

Global Economic Challenge

C-SPAN covered an interesting conference yesterday called Global Economic Challenge. The first guy said that when he accepted the invitation to speak a year ago, he had no idea we'd be in the middle of this mess. I thought that was quite telling because I wrote a poem about the mess at Fannie and Fred in September 2007. If I noticed it, I wonder why the economists on the panel didn't. Or maybe they did and Congress stonewalled them as they did Bush.

Paul Krugman was on the panel. He and Thomas Sowell are about the only economists I've read. His comments were interesting to say the least, in that he really had no answers. He was extremely hesitant--almost as many "ahs" and "uhs" as Barack Obama as he thought his way through his responses. There were lots of "could be" and "it's not compelling" type phrases. However, in discussing how our problem has spread world wide he reminded me of something I'd completely forgotten; the Asian economic contagion of 1997-1999. The only reason I remember it at all is that it started in tiny Thailand and spread through out Asia. A Thai PhD student came to me looking for a job. Not only had her government scholarship money dried up, but her very wealthy family had been wiped out. She had even sold her jewelry. Usually I didn't hire this type of student because they often don't do well in repetitive library routines, but I felt sorry for her and for the few months she worked for me, she was able to perform some complex jobs. Her IQ probably qualified her for Mensa. As soon as the college offered her an assistantship, she quit.

Krugman did make some memorable points, however. It isn't just the trade linkages--where we're buying less from other countries and hurting their economies. Diversity, which is recommended for the private investor, actually hurts us in the global economy. Many of our assets are foreign owned, so that affects the world economy. Krugman didn't like the Paulson Plan--he joked that it should be called "Bailey Mae" or "Hanky Panky." Capital has been destroyed he said, and Paulson has "grabbed the wrong end of the stick." (Note the complex economic jargon.) He should have injected capital, but time was wasted as well as political capital.

In conclusion, with one tiny jab at the Bush Administration (the lack of blame here I think indicates that the Bush admin is not to blame) he said, "This is amazing stuff," which I'm sure the audience found helpful, and that "We need clear thinking."

Guess I'll keep checking the blogs for links to CRA and ACORN. Good intentions run amuck, or Fox watching the hen house sounds about as useful an explanation as "stuff out of whack" and "burst housing bubble."


Freddie and Fannie
Sept. 29, 2007
by Norma Bruce

Freddie and Fannie
went up to Capitol Hill
to fawn for a bigger profit
Sticking you and me with the bill.

With help from our taxes
They'll package and resell,
a windfall for the banks and rich,
for the rest of us, economic hell.

Years ago the original aim
was to help the struggling poor.
Now they seek those jumbo loans--
Congress and Bush! Show them the door!

Barney's ex-lover was director of Fannie Mae

Barney Frank seems to have a wide stance problem with his ex's. One was running a male prostitute ring, one had access to inside information and influence that he shouldn't have. I don't know who the current squeeze is, but some sharp reporter ought to be checking him out for the next big story. Not that it would matter to Democrats. I don't expect this to change anyone's ideas of responsibility for the bailout. Whether it's about Bill Ayers and Barack Obama or Barney Frank and Herb Moses, it's always old, unimportant news to liberals.

Now that Fannie Mae is at the epicenter of a financial meltdown that threatens the U.S. economy, some are raising new questions about Frank's relationship with Herb Moses, who was Fannie’s assistant director for product initiatives. Moses worked at the government-sponsored enterprise from 1991 to 1998, while Frank was on the House Banking Committee, which had jurisdiction over Fannie.

Both Frank and Moses assured the Wall Street Journal in 1992 that they took pains to avoid any conflicts of interest. Critics, however, remain skeptical.

"It’s absolutely a conflict," said Dan Gainor, vice president of the Business & Media Institute. "He was voting on Fannie Mae at a time when he was involved with a Fannie Mae executive. How is that not germane?

"If this had been his ex-wife and he was Republican, I would bet every penny I have - or at least what’s not in the stock market - that this would be considered germane," added Gainor, a T. Boone Pickens Fellow. "But everybody wants to avoid it because he’s gay. It’s the quintessential double standard." Link

We own Fannie and Fred, let's investigate

"Now that Fannie Mae and Freddie Mac’s failures have forced the federal government to put both into conservatorship — costing taxpayers some $200 billion — Americans, who now own the two entities, are entitled to know what role the government-sponsored enterprises (GSEs) played in creating this mess." Here.

Will Nancy, Frank and Chris ever allow this? Barney Frank claims he didn't know his partner 20 years ago was running a gay sex ring out of Frank's home, and 2 years ago he stonewalled an investigation of Fannie. He's not going to get smarter, folks. Throw him out.

"So why didn’t Congress do anything about these taxpayer-financed “bastions of privilege” sooner? Lest anyone ask questions about what they were up to, Fannie and Freddie also showered elected officials on Capitol Hill with campaign cash to keep their mouths shut and vociferously defend their accounting practices."