Ediblog.com - Editorial Blogs On The Edge

This Got Facts? installment departs from the former installments due to the timeliness of the issue. The following is a timeline compiled from a series at Investor's Business Daily entitled, "What Caused the Loan Crisis." The candidates are currently opining on the issue and the information will give you a clear picture of the facts, so you will be able to assess the integrity of the candidate's answers.

1977: Pres. Jimmy Carter signs the Community Reinvestment Act (CRA) into law. The law pressured financial institutions to extend home loans to those who would otherwise not qualify. The premise? Home ownership would improve poor and crime-ridden communities and neighborhoods in terms of crime, investment, jobs, etc. Results: Statistics bear out that it did not help.

How did the government get so deeply involved in the housing market? Answer: Bill Clinton wanted it that way.

1992: Republican representative Jim Leach (IO) warned of the danger that Fannie and Freddie were changing from being agencies of the public at-large to money machines for the principals and the stockholding few.

1993: Clinton extensively rewrote Fannie Mae and Freddie Mac's rules, turning the quasi-private mortgage-funding firms into semi-nationalized monopolies dispensing cash and loans to large Democratic voting blocks and handing favors, jobs and contributions to political allies. This potent mix led inevitably to corruption and the current collapse of Freddie and Fannie.

1994: Despite warnings, Clinton unveiled his National Home-Ownership Strategy, which broadened the CRA in ways congress never intended.

1995: Congress was about to change from a Democrat majority to a Republican one. Clinton orders Robert Rubin's Treasury Dept to rewrite the rules. Rubin's Treasury reworked the rules, forcing banks to satisfy quotas for sub-prime and minority loans in order to get a satisfactory CRA rating from the government. The rating was key to expansion or mergers for banks. Loans began to be made on the basis of race and little else.

1997 - 1999: Clinton, bypassing Republicans, enlisted the help of Andrew Cuomo, then Secretary of Housing and Urban Development, allowing Freddie and Fannie to get into the sub-prime market in a BIG way. Led by Rep. Barney Frank and Sen. Chris Dodd, Congress doubled down on the risk by easing capital limits and allowing them to hold just 2.5% of capital to back their investments, vs. 10% for banks. Since they could borrow at lower rates than banks, their enterprises boomed.

With incentives in place, banks poured billions in loans into poor communities, often "no documentation," "no income" loans, requiring no money down and no verification of income. Worse still was the cronyism: Fannie and Freddie became home to out-of work-politicians, mostly Clinton Democrats. 384 politicians got big campaign donations from Fannie and Freddie. Over $200 million was spent on lobbying and political activities. During the 1990's Fannie and Freddie enjoyed a subsidy of as much as $182 billion, most of it going to principals and shareholders, not poor borrowers as claimed.

Did it work?
Minorities made up 49% of the 12.5 million new homeowners, but many of those loans have gone bad and minority homeownership rates are shrinking fast.

1999: New Treasury Secretary, Lawrence Summers, became alarmed at Fannie and Freddie's excesses. Congress held hearings the ensuing year but nothing was done because Fannie and Freddie had donated millions to key congressmen and radical groups, ensuring no meaningful changes would take place. "We manage our political risk with the same intensity that we manage our credit and interest rate risks," Fannie CEO Franklin Raines, a former Clinton official and current Barack Obama advisor, bragged to investors in 1999.

2000: Secretary Summers sent Undersecretary Gary Gensler to Congress seeking an end to the "special status." Democrats raised a ruckus as did Fannie and Freddie, headed by politically connected CEOs who knew how to reward and punish. "We think that the statements evidence a contempt for the nation's housing and mortgage markets," Freddie spokesperson Sharon McHale said. It was the last chance during the Clinton era for reform.

2001: Republicans try repeatedly to bring fiscal sanity to Fannie and Freddie but Democrats blocked any attempt at reform; especially Rep. Barney Frank and Sen. Chris Dodd who now run key banking committees and were huge beneficiaries of campaign contributions from the mortgage giants.

2003: Bush proposes what The NY Times called "the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago." Even after discovering a scheme by Fannie and Freddie to overstate earnings by $10.6 billion to boost their bonuses, the Democrats killed reform.

2005: Then-Fed Chairman Alan Greenspan warns Congress: "We are placing the total financial system at substantial risk." Sen. McCain, with two others, sponsored a Fannie/Freddie reform bill and said, "If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system and the economy as a whole." Sen. Harry Reid accused the GOP of trying to "cripple the ability of Fannie and Freddie to carry out their mission of expanding homeownership." The bill went nowhere.

2007: By now Fannie and Freddie own or guarantee over HALF of the $12 trillion US mortgage market. The mortgage giants, whose executive suites were top-heavy with former Democratic officials, had been working with Wall Street to repackage the bad loans and sell them to investors (i.e., the sub-prime mortgage market). As the housing market fell in '07, subprime mortgage portfolios suffered major losses. The crisis was on, though it was 15 years in the making.

2008: McCain has repeatedly called for reforming the behemoths. Bush urged reform 17 times. Still the media have repeated the Democrats' talking points about this being a "Republican" disaster. A few Republicans are complicit, but Fannie and Freddie were created by Democrats, regulated by Democrats, largely run by Democrats and protected by Democrats. That's why taxpayers are now being asked for $700 billion!!

And now you know.

Comments: audreyblog@ediblog.com

Teflon Don

October 9, 2008

Funny thing how Barack Hussein Obama (aided by his most staunch ally, the mainstream media) has

been able to pin our nation's financial crisis on the Republicans even though the record clearly demonstrates that it was Dems Christopher Dodd, Barney Frank, Chuck Schumer and Obama himself that stridently refused the Bush administrations attempt to regulate Fannie and Freddie.

The senator (once again) comes out unscathed.

Obama brings new meaning to the term Teflon Don.

Comments: blog@ediblog.com

10 Count

October 8, 2008

Last night's Town Hall debate was less than stellar. Once again, John McCain failed to land a knockout blow against Barack Hussein Obama.

Even though, on the issue of foreign policy, McCain once again took Obama to the wood shed, it still was not enough to inflict any lasting damage.

McCain must, in the last scheduled debate, knock Obama down to the canvas...for a 10 count.

If he fails to do so, Obama will be our next president (G-d forbid).

Comments: blog@ediblog.com

Taking Off The Gloves

October 7, 2008

According to the McCain campaign, look for the senator to take the gloves off at tonight's (Tuesday) Debate.

(In fact, the gloves off tactic started on Barack Hussein Obama last Saturday when Sarah Palin accused the senator of "palling around with terrorists.")

Well, it's about time.

Throughout the campaign--in an attempt to be Mr. Civility-- McCain has refused to attack Obama over his dubious (treasonous) relationships and unpatriotic musings.

Hillary used Obama's subversive associations to inflict damage on him during the Democrat primaries. Now (by scrapping the choirboy demeanor) McCain can do the same by bludgeoning the man-child senator to death with the names Wright, Ayers, Rezko and Pfleger.

Yeah--it's about time.

Comments: blog@ediblog.com

(The Editor is off today - This is Audrey's Blog)

Peace: They Can Handle It Without Us

October 6, 2008

Believe it or not...they're still at it. The Bush administration has instructed Sec. Rice to arrange a peace summit, hosted by Egypt's Mubarak. Now there's a placid lot (Egypt)...they've been busy shooting unarmed Sudanese who have made desperate attempts to make it across their (Egypt) border into Israel.

You know...this last-minute scramble by our government to get a peace agreement, between Israel and its blood-thirsty enemies, is reckless.

With all due respect, knock it off already...

We apparently are unaware of what's happened to the land Israel was pressured to relinquish to the 'Palestinians' so far? Let's check a look at some of the activities these 'neighbors' have participated in:

Hizbollah's (you remember them, the ones that murdered 241 Marines in Beirut in 1983), current system is to hire members from all the 'Palestinian' terrorist groups (members of Fatah, Hamas and Islamic Jihad) in the West Bank and the Gaza Strip for impromptu operations for which they are compensated.
Summer camps in the Gaza Strip run by Hamas, and other terrorist groups, indoctrinate kids with radical Islamic ideology and the culture of death. Some camps offer military training to prepare future ranks of operatives for terrorist organizations.
Thousands of rocket attacks upon innocent Israelis have been fired out of Gaza.
The Egyptian interior ministry recently revealed that two terrorist-operatives, members of the Al-Tawhid wal-Jihad (the Unity of Allah and Holy War), were arrested for being suspected of involvement in the April 2006 terrorist attacks at Dahab and of having been trained in the use of weapons and explosives by 'Palestinians' in the Gaza Strip .
Video was uncovered that showed Egyptian security forces assisting Hamas terrorists cross illegally into Gaza. And their security forces do not act independently of the Egyptian government.

And the list goes on...

Middle East peace is desired by Israel, but it will never occur until Israel's Muslim neighbors begin the process by accepting Israel's right to exist. But that would fly in Mohammed's face.

Here's a solution...a far better legacy for this administration would be to allow the Jewish State to defend itself and deal with its threats as they see fit (just as we do).

And then stand by and support our only steadfast friends in the region: Israel. They really can handle this without our interference.

Shalom.

Comments: audreyblog@ediblog.com

(This is the Editor's and Audrey's Blog)

Naysayers: Wrong

October 3, 2008

The naysayers were wrong (liberal pundits and media)...the McCain candidacy did not crash and burn at the debate last night.

Gov. Sarah Palin was not only feisty and articulate, but demonstrated that she is a highly skilled and adept politician. And in the Reagan mold, was able to bypass the media and talk directly to the American people...of which she is one.

There are no coronations in our representative republic, so Obama, and his disciples, are just gonna have to wait 32 more days.

And I wouldn't pull out the party hats all too fast!

Comments: blog@ediblog.com

Comments: audreyblog@ediblog.com

MSM: Rotting Corpse

October 2, 2008

If the Mainstream Media (MSM) had properly vetted Barack Hussein Obama: He would be a mere footnote.

Imagine if the MSM had widely reported that Obama launched his political career (back in 1995) from the home of unabashed, Weatherman terrorist Bill Ayers?

And that Obama partnered with the terrorist--at the Chicago Annenberg Challenge--with the sole

purpose of imbuing the Chicago Public School System with anti-American propaganda?

I think Americans of every political persuasion would have been aghast, not to mention repulsed by the senator's seditious relationship.

The MSM, as of this election: IS A ROTTING CORPSE!

Comments: blog@ediblog.com

(The Editor is off today - This is Audrey's Blog)

Got Facts? The Educated Voter Series: Free Trade

October 1, 2008

Note: This series is to help keep American voters 'in the know' on where the candidates stand on vital issues.

Facts:

Free trade is a system in which the trade of goods and services between or within countries flows unimpeded by government-imposed restrictions. Free trade policies have created a level of competition in today's open market that produces continual innovation and leads to better products, better-paying jobs, new markets, and increased savings and investment. Free trade enables more goods and services to reach American consumers at lower prices, thus substantially increasing their standard of living.

Some of the benefits of Free Trade include:

It helps to spread the value of freedom.
It reinforces the rule of law.
It fosters economic development in poor countries

Concerning the North American Free Trade Agreement (NAFTA), where some have argued that it exported jobs overseas, the truth is that NAFTA has created American jobs in wholesale and retail industries.

Obama, in his own words:

"There's no doubt that NAFTA needs to be amended. I've already said I would contact the president of Mexico and the prime minister of Canada to make sure that labor agreements are enforceable. We have to stand for human rights, and that should be part of the trade equation."

"Look, people don't want a cheaper T-shirt if they're losing a job in the process. They would rather have the job and pay a little bit more for a T-shirt. And I think that's something that all Americans could agree to."

McCain, in his own words:

"The global economy is here to stay. We cannot build walls to foreign competition, and why should we want to. When have Americans ever been afraid of competition? America is the biggest exporter, importer, producer, saver, investor, manufacturer, and innovator in the world. Americans don't run from the challenge of a global economy. We are the world's leaders, and leaders don't fear change, hide from challenges, pine for the past and dread the future."

"That's why I reject the false virtues of economic isolationism. Any confident, competent government should embrace competition--it makes us stronger--not hide from our competitors and cheat our consumers and workers. We can compete and win, as we always have, or we can be left behind. Lowering barriers to trade creates more and better jobs, and higher wages. It keeps inflation under control and interest rates low. It makes goods more affordable for low and middle income consumers. Protectionism threatens all those benefits."

"While the effects of the NAFTA are being closely monitored by supporters and critics of that pact alike, it has become clear that NAFTA represents an important component of our international economic policy, contributing to the creation of millions of new American jobs since its passage."

And now you know.

Comments: audreyblog@ediblog.com

The Un-American Factor

September 30, 2008

In yet another drivel loaded diatribe (this time over the bailout)--Bill O'Reilly spewed the following about conservative talk radio hosts: “These idiots. I mean, they’re misleading you. They’re lying to you. They’re rich, these guys. Big cigars. All of that. ‘Yeah, oh yeah, my private jet!’ And they’re saying, ‘Oh, no! No bail out!’ Uh, uh, no way!

What a heaping serving of bull@#**!

If anyone is "lying" (and an idiot)--it's O'Reilly.

For the past year O'Reilly has been playing one of the most polarizing, treacherous and damaging games in America: Class warfare.

By constantly squawking that oil companies (and their wealthy executives) are rapaciously engaging in price gouging against the "folks" --Blowhole Bill has dangerously turned one group of Americans against another.

And he has been able to accomplish this dirty deed without proffering a single shred of evidence to support his accusation.

There's only one way to describe such treachery: The Un-American Factor.

Comments: blog@ediblog.com

(The Editor is off today - This is Audrey's Blog)

Israel: Respected By A Former Fab Four

September 29, 2008

I was never a fan of the Beatles...but one of the former Fab Four did something recently that deserves praise...

These days...with the rise of anti-Semitism here and abroad...it is more than refreshing to see courage in the face of hate. Former Beatle Paul McCartney was asked to participate in one of Israel's 60th anniversary celebrations. His concert was scheduled for Thursday, Sept. 25, 2008.

But some Muslim encroachers weren't thrilled at all...Omar Bakri, an Islamic preacher, stated that McCartney's decision to perform as part of Israel's 60th anniversary celebrations made him the enemy of Muslims everywhere.

Bakri was quoted as saying, "If he values his life, Mr. McCartney must not come to Israel...He will not be safe there. The sacrifice operatives will be waiting for him."

Sir Paul answered the encroachers with a royal kick in the *arse.

Lighting up Tel Aviv's Yarkon Park, Paul McCartney sang his heart out to 50,000 fans. What a great way to say to the terrorists, 'your threats mean bupkiss'.

McCartney deserves praise for refusing to cower in fear to these Islamic murderers. His actions reveal a venerable strength of character.

Sir Paul, you've done a **mitzvah...the blessing of Genesis come to you:

"And I will bless them that bless thee..."

Genesis 12:3

Shalom.

*arse - British slang for buttocks.

**mitzvah - a good deed done with the intention of honoring G-d.

Comments: audreyblog@ediblog.com

"The Neutered"

September 26, 2008

Will Iran go nuclear? Yes.

Why? Because Western Civilization (particularly America and Israel) has been castrated by liberal

intellects and ideologues that preach the War on Terror is nothing more than a machination to exterminate Muslims.

This castration has created a profound paralysis (soft diplomacy over military action) that has allowed the Islamic Republic to grow ever closer to becoming a nuclear power.

And the end result will be catastrophic: A modern day Hitler (Ahmadinejad) with a nuclear bomb.

Decades from now (after the mushroom cloud settles) history will most certainly refer to this time period as "The Neutered."

Comments: blog@ediblog.com

(The Editor is off today - This is Audrey's Blog)

Got Facts? The Educated Voter Series: Homeland Security

September 25, 2008

Note: This series is to help keep American voters 'in the know' on where the candidates stand on vital issues.

Facts:

Since the terrorist attacks of Sept. 11, 2001, our government has acknowledge that securing the homeland cannot simply rely on defensive approaches, well-planned responses and recovery measures. Our efforts must also involve offensive measures at home and abroad.

Homeland Security must include:

Preventing and disrupting terrorist attacks.
Responding to and recovering from incidents that do occur.
Continuing to strengthen the foundation to ensure our long-term success, including:

Applying a comprehensive approach to risk management.
Building a Culture of Preparedness.
Developing a comprehensive Homeland Security Management System, including:
Relevant departments and agencies of the Federal government must take the lead in implementing this system, and State, local, and Tribal governments are highly encouraged to ultimately adopt fully compatible and complementary processes and practices as part of a full-scale national effort.
In order to ensure the success of this system, our Nation must further develop a community of homeland security professionals by establishing multidisciplinary education opportunities.

Improving incident management.
Better utilization of science and technology.
Utilizing all instruments of national power and influence.

Military action (i.e. war in Iraq) globally must also be on the table to deal with an enemy that considers diplomacy weakness to be conquered.