What’s the difference between Barack Obama’s $25 billion bank heist of February 9 and a regular street job?
Answer: The street robber has a mask of fabric and a gun of steel. Obama hides behind the mask of socialism and uses the government as his weapon.
‘The deal settles potential state charges about allegations of improper foreclosures based on robosigning, seizures made without proper paperwork.’
Oh, yes, “improper foreclosures” and “robo-signing” (automatically signing foreclosure documents) which both were the result of mountains of paperwork. And why did such practices come to the fore?
Because the banks were inundated with this paperwork after the Democrat party over the last 50 years has forced banks to make millions of bad loans in the first place. This led to a situation which any rational person could see would ultimately go belly up.
And the front man for Obama’s bank heist is his corrupt attorney general Eric Holder. These two are a joke. They couldn’t add up a grocery receipt.
Question: What set off this whole housing crisis in the first place? Can anyone remember the Two Magic Words that were everywhere in 2008?
The two words were “subprime crisis”. But the Media Left quickly dropped them because those words reminded Americans that the collapse was the fault of Democrat handout programs that forced banks to make loans to ‘poor people’ (the very risky “subprime loans”) who didn’t have a prayer of paying them back.
These were loans amounting to trillions of dollars that polluted the entire financial system when they were guaranteed by the government and securitized and sold into the general economy as investment packages.
So then when banks were faced with an avalanche of paperwork to resolve the ensuing foreclosures, Obama & Co. arrogantly charged that they hadn’t crossed every T and dotted every I in foreclosing. And fined them $25 billion.
When in fact the real culprits in this crisis were Fannie Mae, Freddie Mac, the Community Reinvestment Act, ACORN and the entire Democrat agenda to insure house ownership for poor people who couldn’t afford it in the first place and didn’t have the discipline for home ownership either.
What other event hit simultaneous with the “subprime crisis” to compound the calamity?
It was the collapse of a “housing bubble” that was based on too much borrowing based on too-low interest rates, i.e., easy credit.
And according to virtually anyone you ask, one man in the government, Federal Reserve chairman Alan Greenspan, set those interest rates too low.
Yet we capitalists always, always, always warn over and over that the government never, ever should set wages or prices.
And disaster was the result because Greenspan was setting the “price” of loan money.
So it was two-pronged socialism that upended the economy: Letting Greenspan set interest rates, and forcing banks to lend trillions to the poor.
But wait, there’s more! What is the third socialist leg of this stool, the 800 lb. gorilla in the room of this economic collapse?
It is this: The transformation of the banking system itself.
Historically banks have been managed and manned by people who knew a few basic things about finance, that Column A and Column B must add up to the same thing. It is not rocket science.
Working in a bank back, say, in the 1950s, you used common sense. You knew that people should be lent money only when they had a solid and provable credit history. When they were gainfully employed. When they had a 20% downpayment so that they had their own skin in the game.
But what did the Democrats say about these diligent bankers?
They called them evil, manipulative people like Mr. Potter in It’s A Wonderful Life. They said that banks didn’t want “the poor” to have houses. And this defamation and caricature and character assassination went on for decades. Obama says it every day.
So who has moved into many positions in the banking and financial system since the 1960s?
You guessed it… incompetent, college-educated, propagandized, left-wing zealots from our universities and business schools who brought with them the implanted idea that banks are institutions of social engineering, not businesses that lend money sensibly and make a profit.
Go into any bank or financial institution today and you are going to find a large proportion of employees who are do-gooders and bleeding hearts and leftists and Obama-lovers and feminists and all sorts of other people with an agenda in hand – urge the banks do “the right thing”.
Yeah, sure… While the guy with the common sense is mopping the floor.
The stories about the buildup of the ‘housing bubble’ are legend, about banks using the flimsiest basis for making loans, practices that would have been grounds for termination 50 years ago.
Indeed what these morons have done, in tandem with relentless government mandates and easy credit, is they destroyed the banking system.
Just like we conservatives said they would.
And when the government came along with something as preposterous as the NINJA loan, which forced banks to loan money to people with No Income, No Job or Assets, such a policy would have been laughed out of the boardroom in the Good Old Days.
But those days, and those bank directors, are gone. In today’s politically-correct banks, many probably thought the NINJA loan was a perfectly good idea. You know, to help “the poor”. While the sensible ones were deathly afraid to contravene the government’s demands.
Will the Democrats retreat on NINJA loans and all the other bad practices now?
No. They will double down, even after Obama himself said what we conservatives have been saying all along, that “the poor might be better off renting.”
Yeah, right, stupid.
It’s a little late for that…
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