The Most Insane Obama Appointment Yet

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PostFri Jan 10, 2014 5:39 am » by *WillEase*


January 9, 2014 • From theTrumpet.com
Fannie and Freddie have a new boss: Mel Watt, the man who helped bankrupt them.

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One of the most controversial Obama appointees yet was sworn in as director of the Federal Housing Financial Agency on January 6.
http://www.charlotteobserver.com/2014/0 ... s3VkrQr790

Democrat Representative Mel Watt now oversees Fannie Mae and Freddie Mac, the two giant government-owned mortgage companies. He is also perhaps the one man more responsible than Federal Reserve Chairmen Alan Greenspan and Ben Bernanke for the housing bubble that popped in 2007—and that is saying a lot.
http://www.zerohedge.com/contributed/20 ... -back-2008

Watt, who was chairman of the Congressional Black Caucus, is perhaps best known for pushing banks to give risky loans to blacks and other minorities that could not afford them. In the lead up to the housing bubble, he drafted legislation that would have pushed banks to even give mortgages to people on welfare, as long as they could come up with $1,000. To placate the banks, which did not want to lend money to people they knew could not pay it back, his plan called on the government to cover any losses incurred by the banks by guaranteeing the mortgages.

Watt’s confirmation to run Fannie and Freddie came after Senate Democrats changed the rules to overcome filibusters. The final vote was 57 to 41, with two Republicans joining the Democrats.

Astoundingly, much of the Republican criticism of Watt only focused on his qualifications. Republicans said that despite being a lawyer, Watt did not have the business experience to oversee the two giant mortgage companies.

There was almost no discussion about his role in the housing bubble.

In October 2002, Watt announced public-private partnership called “Pathways to Homeownership.” This plan was designed to coerce banks to give mortgages to people even if they couldn’t scrape together a down payment.

Watt did everything in his power to push policies to get people to buy homes—regardless of whether or not they could afford them. He worked to expand government mortgage insurance programs, government handouts and tax credits. As Watt’s Black Caucus described one initiative: “[L]oan products will be aimed at borrowers experiencing challenges in accumulating wealth and who have not developed traditional credit histories, or who have impaired credit.” One million African Americans will benefit by 2005, it bragged.
http://web.archive.org/web/200212091155 ... p?ID=about

Even in 2007, when the housing market was imploding from all these subprime loans, Watt pushed a bill to force Fannie and Freddie to make more loans to non-creditworthy minorities in inner cities.
http://dailycaller.com/2013/05/05/housi ... me-crisis/

Watt also fought tooth and nail against any effort to reduce subprime lending. He and Rep. Barney Frank, led the effort to successfully block the 2003 Fannie and Freddie reform effort.

Trumpet executive editor Stephen Flurry wrote about the housing meltdown in 2008:

While there’s plenty of blame to go around for America’s mortgage meltdown, one cause that few are talking about is the hazardous lending practices the federal government actually encouraged throughout the 1990s in order to placate activists who criticized mortgage lenders for discriminating against minorities. …

But instead of concentrating on individual instances of creditworthy minorities being discriminated against, it enforced sweeping policies designed to arm-twist banks into making loans available to practically anyone—even those with horrible credit ratings. …

Besides pumping trillions of dollars into low-income housing programs, the government aggressively went after banks it considered to be discriminatory.


Mr. Flurry then quoted the Economist as saying banks were so afraid of the Justice Department’s allegations of racism that they were putting themselves at huge financial risk by making loans to minority applicants with dodgy credit ratings.

Not surprisingly, the housing market enjoyed explosive growth under these conditions.

With practically everyone approved for a mortgage, the demand for homes skyrocketed. Real-estate prices shot sky high. And as long as home prices rose, everyone felt secure inside the bubble.

Lending institutions made money hand over fist by accumulating new loans and then reselling them to Fannie Mae and Freddie Mac. They, in turn, made huge profits by bundling their loans into securities and selling them on the bond market.

For banks, it was worth the foreclosure risk as long as the housing market surged—and they could dump their crummy loans on pension funds and unsuspecting institutional investors.

And for the giddy buyers, it made sense too. Even if they couldn’t make their payments, they could at least sell their homes for a profit—or perhaps take out a second mortgage on the home’s appreciation in value. Even those with good credit wanted a piece of the real-estate pie. In hopes of building equity in the overheated market, many hurriedly upgraded their living arrangement or purchased a second home before prices skyrocketed further. Those who stayed put could also get in on the action by seeking a line of credit or a second mortgage in order to remodel the house or buy a boat.

During the carnival-like joy ride, few politicians and economists sounded the alarm. We certainly did. But few listened.
https://www.thetrumpet.com/article/807. ... t-to-crash

Then look what happened. Continuing from Stephen Flurry’s article:

Now that the housing bubble has popped, commentators, economists, academics, activists and especially politicians have laid blame on just about anything and everyone—government deregulation, greed on Wall Street, “golden parachutes” for ceos to bail out of failing companies, President Bush’s bad economic policies, Democrats like Barney Frank who assured Americans a few years ago that Fannie Mae and Freddie Mac were not facing a financial crisis, Republicans who warned of a financial meltdown at that same time, but who failed to take any meaningful action at a time when they controlled Congress and the White House—and on and on it goes.

To be sure, there’s plenty of blame to go around. But if you want to talk about root causes of the financial crisis, a conversational centerpiece has to be political correctness run amok. Despite the seemingly noble idea of removing even the most basic mortgage underwriting standards in order to dramatically increase the chances of minority homeownership—not to mention loans for single moms, new immigrants, etc.—it resulted in the biggest housing bubble in history.


And now, President Obama has appointed a man who is arguably one of the chief architects of the subprime housing bubble to oversee the government-owned lenders that currently issue over 60 percent of all new mortgages in America!

Talk about hiring an inmate to run the insane asylum.

What do you think he will do? He has already told us. Reflate the housing bubble by helping people buy houses they cannot afford.

Even before he was confirmed, he said that he will stop the planned increases in government-backed mortgage fees that were designed to wean the mortgage market off government subsidies. He also put his name to a letter calling on Fannie and Freddie to forgive the debts of underwater homeowners who speculated on McMansions at the height of the bubble.


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Housing Bubble 2.0 here we come.

Mel Watt’s record is public knowledge. So why has there been so little discussion about it? Why didn’t Republicans challenge him on that, rather than criticizing his lack of business experience?

Here’s one reason: Everybody is afraid to be called a racist. No one wants to be associated with anything that can be twisted or perceived to be against minorities. The race card is a powerful motivator in today’s political climate.

Also, as Stephen Flurry brought out in his article, Republicans too were complicit in the housing bubble and pushing banks to issue risky loans to those who could not afford it. No one likes to have their own skeletons brought into daylight.

But there is another reason also.

Big banks and real estate groups are some of the biggest donors to both political parties. As the Center for Responsive Politics points out, financial industry players (commercial banks, investment banks and insurance companies) are three of the top five contributors to Watt’s election coffers.
http://www.opensecrets.org/politicians/ ... 8&newMem=N

Mel Watt is just the man for Wall Street. He said he wants to reflate housing prices, and he is for lowering the lending standards again.

The big banks couldn’t be happier. Issuing subprime loans to those who can’t afford them makes good economic sense—as long as the government is there to subsidize it and bail them out when things go wrong.

With the ridiculous appointment of Mel Watt as the mortgage market regulator, President Obama has signaled that government-backed loans are here to stay. That means Housing Bubble 2.0 may be on the way. :scary:

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PostFri Jan 10, 2014 6:13 am » by Middleman


What a totally bullshit perspective.

The whole banking system was over extended because of the out of balance money supply and extremely low interest rates. Upper class, middle class, people without a pot to piss in, everyone was borrowing more than they had the ability to pay back....but hey, lets blame the poor people and ignore the fact that everyone else in society was doing the same thing.

Banks were throwing money at anyone who asked for it, but they haven't paid any consequences.

It's all the fault of one or two blacks and lefty politicians. :roll:

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PostFri Jan 10, 2014 6:19 am » by *WillEase*


I think you missed the whole point of the article, but hey, to each his own. :roll:

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PostFri Jan 10, 2014 10:53 am » by Opalserpent


He sounds incoherent and sounds like he is reaching for explanations and excuses.
What a shady character.

arrrhhh, ummmm, arrrhhhh, ummmmm.

He supports sopa too, perhaps he was hired on purpose for his incompetence.
http://globalvue.files.wordpress.com/20 ... %26h%3D417



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Good thing you don't have Norway's government, everyone would be rich.

http://www.dailypaul.com/309716/all-nor ... g-landmark
Live by the Terror, Die by the Terror.

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PostFri Jan 10, 2014 3:12 pm » by mediasorcery


Middleman wrote:What a totally bullshit perspective.

The whole banking system was over extended because of the out of balance money supply and extremely low interest rates. Upper class, middle class, people without a pot to piss in, everyone was borrowing more than they had the ability to pay back....but hey, lets blame the poor people and ignore the fact that everyone else in society was doing the same thing.

Banks were throwing money at anyone who asked for it, but they haven't paid any consequences.

It's all the fault of one or two blacks and lefty politicians. :roll:



try reading it again, slowly,

and hey, why the f&^ck would you bring race into this post??? that indicates to me where your really at, it says a lot about you, and your "labels", what a real ahole thing to do, nobody gives a shit about what colour anyone is, or the shitty labels like "lefty" etc,

such a typical underming tactic. disgusting . :badair:


good one for turning this strictly political discussion into race hatred. :badair: :top:
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PostFri Jan 10, 2014 4:35 pm » by Pateriot


Kind of like putting Barney Frank and Chris Dodd in charge of the solution to the housing collapse, that they also were responsible for, after they lowered the credit requirements for low income (minority) applicants when purchasing a house. You just can't make this crap up!!!!

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PostFri Jan 10, 2014 6:34 pm » by Domeika


Middleman wrote:What a totally bullshit perspective.

The whole banking system was over extended because of the out of balance money supply and extremely low interest rates. Upper class, middle class, people without a pot to piss in, everyone was borrowing more than they had the ability to pay back....but hey, lets blame the poor people and ignore the fact that everyone else in society was doing the same thing.

Banks were throwing money at anyone who asked for it, but they haven't paid any consequences.

It's all the fault of one or two blacks and lefty politicians. :roll:


You just can't help yourself can you? Back again for yet another spanking, so shuck em boy...

Democrats are responsible for FORCING banks to make dodgy loans, and Fannie and Freddie was their concoction as a result. So it was people like YOU who screamed that it was RACISM that people didn't all own a house, when really it was about the billions they would siphon off to campaign coffers and gauranteed votes from their voting base.

So the banks were FORCED to make these loans available, and the thinking of the liberals not directly involved, i.e. useful idiots, i.e. YOU, was that of social justice and unicorns and how the big bad banks were going to have to just take it. Well they didn't just take it, they found a way to unload the shit loans they were forced to make by packaging them up and selling them.

That's what business does, it finds a way to make a profit or at least survive. I think doing that was bad, but if it wasn't for LIBERALS JUST LIKE YOU forcing the banks to make loans, this would never have happened in the first place. And, just because someone can get a loan doesn't mean they have to....no one, not one single person, signed a loan agreement under duress....not one. The rules were loosened, and if a bank did reject a loan, people of your ilk screamed racism blah blah blah. Don't remember that? I do. ANY minority that was rejected resulted in actual DoJ investigations.....look it up moron.

And, before the housing bubble burst, Freddie and Fannie had a loss of 6 BILLION dollars that could not be, and probably still hasn't been explained. When the Bush admin tried to look into it, they were BLOCKED by guess who? Democrats like Chris Dodd, Barney Frank, Maxine waters, and all the rest of them in lockstep that were still on the green side of the grass at the time......they ALL said NOTHING TO SEE HERE. And that was well before the crash.

AND THIS TOOL WAS PART OF IT.

It's one thing to differ in opinion, but you're posts here on DTV are part and parcel of how everyone else is a racist and how only a LIBERAL knows how to "care" or *gasp*....could possibly be intelligent. As if somehow your life experience....which is most likely classrooms and other cloistered denizens of liberal groupthink where reality often doth not tread. And based on your dearth of non-experience you think you can foist your flawed arguments on those that have lived, and continue to live, in the real world. True to form, a liberal with a little information.....even if it is wrong.....is like a monkey with a shiny hubcap on his head that thinks he's king, when he's really just a ridiculous little monkey. He just doesn't know it, but we do.

So I'll continue to call a criminal a criminal, a liar a liar, or a spade a spade...yes, obvious and deliberate racism against playing cards and shovels to be sure in your delusional fantasy world...and your feigned indignation is just that and on display for all with eyes to see it. At this point there is no question that as a liberal, the more feigned indigation and outrage you spew out, the better you make yourself "feel". That's why it categorized as a mental illness, and the financial AND SOCIAL mess we have today is due to letting the looneys run the asylum in the U.S.. What makes matters worse is that through financial instruments this liberal malignancy has manifested itself as a world wide crisis. But you and others of the same mindset had the best of intentions right? And now that it is festering, true to form, you want to pile on and attack the symptom of a disease you gleefully infected the world with. Typical liberal.....it's all about intentions, never mind the disastrous consequences, and you think that lobbing labels like "hater" or a "racist" or whatever other bumper-sticker drivel a cornered mandible-gnashing insect can come up with when confronted with the consequences of their delusional thinking will somehow defelct a non-mentally ill thinking person from seeing the truth. Puh-Lease.

But the underlying question...as if it even is a question rather than a fact.....Are liberal politicians responsible? DAMN RIGHT THEY ARE. That means democrats and rhino republicans....liberals, no matter what they call themselves, are to blame.

So go peddle your "white guilt" and Starbucks brand of "social justice" (i.e. the court of feelings) somewhere else. I suggest the daily kooks (KOS) or the dummy underground, if not already a member on those sites.....but I suspect you already are.

But to sate that nagging condition of white guilt that you have (affluenza).....I suggest you go on a conciliatory "I'm sorry for everthing I think someone else did" blowjob tour of all the black neighborhoods so you can feel better about yourself. Call it a pilgrimage.....and as a pilgrimage it should be somber, so try not to enjoy it too much, and for GOD's sake, stay away from the kids.

That, and I say it with all my heart, when I say to go fuck yourself with a framed copy of the US Constitution.

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PostFri Jan 10, 2014 6:46 pm » by The57ironman


Domeika wrote:Typical liberal.....it's all about intentions, never mind the disastrous consequences, and you think that lobbing labels like "hater" or a "racist" or whatever other bumper-sticker drivel a cornered mandible-gnashing insect can come up with when confronted with the consequences of their delusional thinking will somehow defelct a non-mentally ill thinking person from seeing the truth. Puh-Lease.

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..... If you can't be kind, at least have the decency to be vague.......
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PostFri Jan 10, 2014 6:48 pm » by Middleman


mediasorcery wrote:and hey, why the f&^ck would you bring race into this post???


Yeah, it's purely a coincidence that "The Most Insane Obama Appointment Yet", the right's scape goat du jour for a systemic failure, just happens to be black...and red.

Don't blame the Fed for creating the bubble with their endless printing.

Don't blame the banks for handing cash out indiscriminately, for creating an environment so corrupt that they employed thousands of Robo signers.

Don't blame the literally hundreds of Federal politicians who voted to facilitate the process multiple times, or the governors and state politicians who turned a blind eye to the banks flagrant disregard of their usury laws.

Find a handful of scape goats, the more "other" the better. Barney Frank? Pinko Homo Jew, better put him at the top of the list.

Someone has to be held accountable, after all.

Domeika wrote:That, and I say it with all my heart, when I say to go fuck yourself with a framed copy of the US Constitution.


I'll get right on that, if you'll just cry some more. Your tears make such excellent lube.

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PostFri Jan 10, 2014 6:53 pm » by The57ironman


Middleman wrote:
Someone has to be held accountable, after all.

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..... If you can't be kind, at least have the decency to be vague.......
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