I have been trading barbs with Occupy Wall Street supporters via social media and my own website for a few weeks now, some of it civil, but most of it not. One thing I have learned is that the Occupy Wall Street movement and the Tea Party have a couple of things in common; they are both upset about the state of the economy and both are fed up with politicians. Unfortunately, that is where the similarities end and the differences begin.
The OWS’ers want to blame Wall Street and banks for all their problems while the Tea Party and Conservative Republicans lay the blame where it belongs; at the feet of the Federal Government.
The financial crisis is no big mystery; the Federal Government caused the financial crisis not Wall Street. Beginning with the Clinton Administration and continuing with the Bush Administration, the Federal Government forced lending institutions into making subprime loans. A critical thinker would have to ask; why would they do this? But we’ll get back to that.
The Federal Government used Fannie Mae and Freddie Mac to engineer the financial meltdown and maybe worse; seizure of more than half the homes in America.
Together, Fannie and Freddie own more than half of America’s $12 trillion in outstanding mortgage balances; the majority of which is subprime mortgages. Again, a critical thinker would ask the question; why would the government invest in loans that are likely to falter?
Despite two warnings from President Bush and an attempt by Senator McCain to regulate the two faltering lending giants, they continued to engage in their predatory lending practices. Time and time again, both Rep. Barney Frank and Senator Chris Dodd, who are responsible for Congressional oversight of Fannie and Freddie, not only lied to Congress about the financial solvency of the two mortgage giants but to the American people.
This deliberate act of deception was engineered by two of the most prominent members of Congress and is what precipitated the mortgage crisis. Not only did Rep. Frank claim that Fannie and Freddie were “financially sound” but he doubled down when he asserted “that we should be doing more to get low income people into housing.” Furthermore, Frank stated that even if the two mortgage behemoths did fail “the government would bail them out.” Gee, I wonder how Barney knew that?
Then in 2008, the Democrat led House and Senate passed and George Bush signed the now infamous $300 billion Troubled Asset Relief Program, better known as TARP. President Bush did this in direct opposition to most conservative pundits, including myself. Care to make a wager on who received the lion’s share of TARP funding? If you guessed Fannie and Freddie give yourself a prize. That’s right, the two companies received a combined $169 billion from TARP which accounted for 56 percent of TARP expenditures.
If the Occupy Wall Street protesters really want to protest in front of someone’s house, they might want to start with Rep. Barney Frank, Senator Chris Dodd - Fannie Mae executives: Franklin Raines, Daniel Mudd, Herbert Allison, Jamie Gorelick, and Michael Wilson as well as Freddie Mac CEO’s Dick Syron and David Moffett. These are the real culprits of the financial meltdown not unbridled capitalism and companies making their own rules.
I don’t recall the left being up in arms over Franklin Raines raking in his $90 million in bonuses while he ran Fannie Mae into the ground. How about Jamie Gorelick and her $26 million? Why didn’t the SEIU thugs show up on her front lawn in protest like they did the Bank of America CEO?
And it gets worse from here. When President Obama took office, he instructed the two paper tigers to begin buying up foreclosed homes. Again, you have to ask yourself why? According to Stimulus Package Details, Fannie received another $200 billion influx of cash from the Stimulus Package and still no outcry from the Left. Then Fannie received an additional $8.5 billion in May of 2010 so they could continue snatching up foreclosures according to a report by Reuters. At the time, I predicted that President Obama’s end game was to turn all of the assets owned by Fannie & Freddie into Government Housing.
In August of this year, Hot Air.com ran an article that the faltering mortgage giant received another $5.1 billion cash infusion from the Obama administration. In total, Fannie Mae and Freddie Mac have received over $382 billion in taxpayer assistance and, to date, have not repaid any of its loans. Contrast this with Bank of America and Citigroup, the two banks who received the largest bailouts. Both of these companies have repaid their $45 billion loans yet they have been specifically targeted by the Occupy Wall Street protesters. Furthermore, not one politician, regardless of party has mentioned this. And, of course, the leftwing media hasn’t said a word either. Why is that?
Could it be that they are trying to keep the largest redistribution of wealth in our nation’s history quiet? In late August, the Associated Press reported that the Obama administration quietly announced that it was planning to turn the estimated 250,000 foreclosed homes that have been purchased by Fannie Mae and Freddie Mac into Government Rental Housing. Still no one in the media or the GOP sees the big picture. And, if they do, they’re playing deaf, blind, and dumb.
Couple the Obama Administration’s purchase of $182 billion in homes with the $6.1 trillion in toxic assets that it also holds and you have the potential for the Federal Government to become the owner of more than half the homes in America, making it the largest landlord in the world, and completing the largest redistribution of wealth in history.
There’s nothing to stop the Obama Administration from using the Making Home Affordable Plan to allow people to exit their mortgages, with $3,000 in hand, then have Fannie Mae or Freddie Mac purchase the home and rent it back to them for pennies on the dollar. Remember that we’re talking about more than $6 trillion in subprime mortgages which accounts for half of America’s outstanding mortgage debt.
Fox News recently published an article about the Administration’s recently announced plans to implement an $85 billion “instant stimulus” to nationalize Fannie and Freddie once and for all. Even the ultra-liberal website Mother Jones thinks the President’s plan is “foolish and weird”. Kevin Drum who penned the article thinks the president’s plan is bad because it will cause the taxpayers to loose even more money than they already have on the two failed mortgage giants.
Think about it, in one fell swoop, President Obama could effectively nationalize the housing industry. The potential repercussions are too many to name here, however, this would effectively lay waste to the fourth-amendment which protects your home from illegal search and seizure. If you don’t own your home, why would you be afforded this protection?
As I stated previously, the left’s angst is completely misplaced. Instead of protesting Wall Street they should be protesting in front of the White House, Congress, and the corporate headquarters of Fannie Mae. Of course that will never happen because it doesn’t fit the narrative. Despite the overwhelming evidence that the blame belongs with our Democratic leaders, the OWS’ers, the media, and the President will continue their onslaught against capitalism because it fits their agenda. That agenda is to turn America into a socialist country. They will deny this and call me names, but they won’t be able to controvert the overwhelming evidence that our government is the cause of the financial crisis.
Don’t think it can happen? Essentially it already has! To top it off, the Administration has already purchased two car companies, several banks, and nationalized even more of our healthcare system. Wake up America, your country is on the verge of being a full-blown socialist country.
My thanks to Freeper Karen who was invaluable in editing and making suggestions. You’re a patriot and a great friend.