Government Giveth and Government Taketh Away…

The President and His Economic Food ProgramA new study by the respected National Bureau of Economic Research found that Progressive policies in general, and Democrats specifically were to blame for the subprime mortgage crisis and subsequent economic collapse.

Investor’s Business Daily reported:

Democrats and the media insist the Community Reinvestment Act, the anti-redlining law beefed up by President Clinton, had nothing to do with the subprime mortgage crisis and recession.

But a new study by the respected National Bureau of Economic Research finds, “Yes, it did. We find that adherence to that act led to riskier lending by banks.”

Added NBER: “There is a clear pattern of increased defaults for loans made by these banks in quarters around the (CRA) exam. Moreover, the effects are larger for loans made within CRA tracts,” or predominantly low-income and minority areas.

To satisfy CRA examiners, “flexible” lending by large banks rose an average 5% and those loans defaulted about 15% more often, the 43-page study found.

The strongest link between CRA lending and defaults took place in the runup to the crisis — 2004 to 2006 — when banks rapidly sold CRA mortgages for securitization by Fannie Mae and Freddie Mac and Wall Street.

CRA regulations are at the core of Fannie’s and Freddie’s so-called affordable housing mission. In the early 1990s, a Democrat Congress gave HUD the authority to set and enforce (through fines) CRA-grade loan quotas at Fannie and Freddie.

It passed a law requiring the government-backed agencies to “assist insured depository institutions to meet their obligations under the (CRA).” The goal was to help banks meet lending quotas by buying their CRA loans.

But they had to loosen underwriting standards to do it. And that’s what they did.  (article)

While Secretary of HUD under Bill Clinton, Andrew Cuomo publicly admitted that he knew his policies would cause more mortgages to default. Ultimately, his policies led to a massive mortgage crises. Despite playing a major role in the global economic chaos that followed, he remained very popular among the radical left-wing.

He is now Governor of New York.

Today, as the holidays approach, Cuomo wants to collapse something else, your freedom.

He is calling for massive taxation of lawfully owned firearms and/or the forced confiscation of lawfully owned firearms.   Gov. Andrew M. Cuomo (D-N.Y.) said Thursday that all options, including confiscation and “mandatory sales to the state,” would be on the table next month when the New York State Legislature debates new gun control measures.

The comments were specifically aimed at what might happen should stricter rules be imposed on “assault” weapons and high-capacity magazines.  The governor said he plans on proposing a package of gun legislation in his State of the State address on Jan. 9.

This is the championship view of a real progressive.  Cuomo stated “confiscation could be an option”.  Mandatory forced sales to the state could be another option.

Or he may allow “Permitting” as an option.  In other words, Cuomo may use taxation as a control mechanism on gun ownership enacting a huge crippling tax on all lawfully owned firearms.

Illegal guns owned by the gangbangers and illegal aliens will not be effected.

By using tax levies those who can not afford the new tax will have their lawfully owned firearms confiscated by force.    Consider an annual “assault weapons tax of say $2,000″ per weapon, what do you think would happen?   Law abiding citizens will be disarmed and the heavily armed criminals of New York City will prosper.

Andrew Cuomo ordered affirmative action mortgages for blacks and Latinos.  He even called the mortgages “affirmative action.” In this press conference he explicitly stated that banks would be required to “aggressively” give mortgages to black applicants even if they don’t qualify for the mortgage they are applying for.

When asked if his policy would increase foreclosures, he said “I’m sure there will be a higher default rate.” Cuomo knew that a higher default rate would damage the housing industry, the economic, and the blacks families who would be given these affirmative action mortgages they didn’t qualify for.

It was not coincidental that New York State, now governed by Andrew Cuomo was the first state to demand “reciprocity” from other states for their Gay Marriage Laws.   A demand which has now pushed same-sex marriage on to the Supreme Court.

It was not coincidence that New York State’s Andrew Cuomo was Housing and Urban Development Director  when the mortgage crisis policies destroyed our economy.

And it is not coincidental today for New York State’s Andrew Cuomo to implement the Obama test policies that will undermine the basic rights afforded under the 2nd amendment.

Utopia

This entry was posted in 2nd Amendment, A New America, Clinton(s), Communist, media bias, Political correctness/cultural marxism, Socialist, Typical Prog Behavior, Uncategorized. Bookmark the permalink.

7 Responses to Government Giveth and Government Taketh Away…

  1. tara says:

    Refreshing my memory about the CRA … it seems absurd that anyone would have thought that lending money, especially large sums of money, to people who have little is “discriminatory”.

    And then someone please correct me if I’m wrong because I am by no means knowledgable about this topic, but didn’t the problem of predatory lending develop out of CRA? So not only were lenders giving money to people who were ill-capable of making payments, they were also taking advantage of the people’s ignorance about lending math?

    That reminds me of some public records I saw regarding someone related to Trademark, possibly Sybrina Fulton. Horrible balloon mortgage on a crap property turned into a foreclosure. I’ll try to find the records again.

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  2. akathesob says:

    Everything the government give’s to one was taken from another.

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  3. czarowniczy says:

    Democrats were beating the drums to force banks to banks to lend to The Usual Suspects even when The Usual Suspects couldn’t qualify for a loan to buy a pack of cigarettes. The POtuS while he was a Senator (all 15 minutes of it) is on record as being the recipient of the largest hunk of cash donations from Freddie and Fannie in their history, and he was node-deep in legislation that made it easier to buy a house you couldn’t afford than a gun you could. The balloon wasn’t a surprise, the folks in the know had been screaming about it for at least 18 ,months, every two-bit on-line stock tip site was screaming about it. The Congress, the money-puppets, the greedy Americans who played the 2nd mortgage and flip-this-house games, the companies who profited from building housing projects and then sending them down the rabbit hole with hollow mortgages – they all blew it. I got out of my REIT investments in early ’07 – too many people screaming ‘they sky is falling’ and the mortgage games were frightening. If I’d have understood the ‘selling the mortgage hot potato’ game better I’d have dumped the REITs sooner. The mortgage brokers, banks and Congress were and still are in bed and are looking for ways to play the soap bubble mortgage game again. We (the public) got hosed on this one really good – how much did YOUR Senator make on the Grand Game?

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  4. Knuckledraggingwino says:

    Read Architects of Ruin by Peter Schweitzer to get the full story on this.

    A young Poverty Pimp, excuse me, a young attorney, named Barack Hussien Obama was ne of the attorneys who brought a key case that established the legal theorynthat banks whonapplied sound lending standards to Blacks were Rayyyycissssst. This same Poverty Pimp, excuse me, “community organizer” spent much of his career teaching seminars to ACORN chapters are how to extort NINJA loans from the banks.

    BTW, Peter Schweitzer’s research was bankrolled by Gov Palin’s PAC.

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  5. LouDaJew says:

    Clinton used the argument that Jimmy Carter’s CRA would help strengthen it, but the Gramm Leach Bliley Act which was promoted by both parties is what gave commercail banks and investment banks the power to collude, which meant it would be profitable to give loans to people who couldn’t afford their mortgages. I blame both parties on this. the bailouts were pretty much supported by both sides also. they’re all pretty much corrupt, including Ron Paul who is snaky on other issues. they’re all crooks.

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    • Knuckledraggingwino says:

      Both Repubs and Dems helped create the mortgage mess. Dems saw it as an opportunity for wealth redistribution and a means to fund redevelopment of riot ravaged, South Central LA using private rather ran government money. Republicans saw it as an opportunity to transform the Black community from home renters to home owners who would think like Republicans and vote Republican.

      Sen John McCain and Pres G W Bush both saw the impending mortgage implosion and attempted to rein in the mortgage underwriting power of Fannie Mae and Freddy Mac. Both were castigated for being Rayyyycissst and homophobic because many of the political appointees who ran Freddie’s Fannie were Blacks and Homosexuals.

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