sub-prime lending crisis (2)


Note: After finding his website ( to be totally user-unfriendly and being unable to communicate the following information with our Treasury Secretary, Rajjpuut left a link to his blogsite and printed this blog    . . . .

21 Facts You Presumably Know (#1-21 with #19 referring directly to the actions of Treasury Secretary Timothy Geithner)
7 Facts You May Not Be Aware of (A-G with letter G referring directly to the actions of Treasury Secretary Timothy Geithner)
The obvious conclusions . . . .
21 Facts You Presumably Know
  1. In 1975 the United States had by far the highest private home ownership in the world with 64%.  Besides newcomers to the workforce, college students, the young and the scarcely-educated, virtually every American with gumption could own** their own home after a few years of renting. 

  2.  In 1975 the “suspect” home loan rate stood at roughly 0.24% or only about one in every 404 loans. Before 1977, the usual and customary down payment had long been 20%. These suspect loans granted at 3% down payment or less were not only exceedingly rare, they were typically granted to veterans with jobs and great credit working their way through college under the GI Bill.

  1. In 1985 the suspect home loan rate had risen to roughly 0.51% or about one in every 196 home loans. Something small had changed . . . . What?
  1. In 1995 the suspect home loan rate was roughly 14% or about one in every seven home loans. Something big had changed . . . . What?
  1. By 2005, just two years before the financial meltdown, about the time of widespread PUBLIC realization that sub-prime home loans were causing huge problems: the suspect home loan rate was roughly 34% or more than one in every three home loans. Something enormous had changed . . . . What?
  1. Between item #2 and item #3 above, in 1977 two things had changed. The Community Reinvestment Act was passed in 1977 (CRA ’77) by the Carter administration and Democrat’s House and Senate. For the first time in history home loan lenders were forced to knowingly make bad loans to unqualified would-be home buyers. 
  1. Wade Rathke, a lieutenant of George Wiley, (more on this later) in 1977 with the passing of CRA ’77 created the Arkansas Community Organizations for Reform Now (ACORN) which was a “test organization” (more on this later) with two commandments from Wiley, Richard Cloward, and his wife Frances Piven (more on all of them later) in 1975, following up on this TRIO’s expressed desiderata for their followers to expand their endeavors (more on this later) into 1. Voter registration and 2. Home lending. Arkansas was chosen because of the existence in that small state of an up-and-coming young politician (the lieutenant governor elected in 1976, Bill Clinton) and his wife were very compatible with the TRIO’s politics.
  1. Between item #3 and item #4 above, in 1977 six major things had changed. ACORN had been approved of and expanded to all 50 states. The ACORN acronym had been switched to a new meaning: Association of Community Organizations for Reform Now. Voter registration activities which had elected their candidate in Arkansas were now expanded to the entire country; and their overload-the-CRA ’77-law campaign that had already doubled the suspect loan rate of the whole nation just by their efforts in Arkansas was likewise a nation-wide campaign.
  1. Bill Clinton, the ACORN candidate, had been elected governor of Arkansas for 12 of the next 14 years.
  1. Clinton had become the ACORN president in 1992.
  1. President George H. W. Bush who prevailed on 45 of his 46 vetoes did not veto a big bill he was largely in favor of. His veto was needed for a small part of that bill which added in an expansion of CRA ’77 to federal mortgage agencies Freddy Mac and Fanny Mae.
  1. President Clinton used his Presidential powers to expand CRA ’77 in 1993 by huge regulatory fiat.
  1. President Clinton out-maneuvered the Republican Congress and got CRA law expanded twice during 1995. By the way, President Barack Obama was an ACORN lawyer for two years before and after this time, browbeating home mortgage companies and banks into making knowingly unwise loans to undeserving unqualified home loan applicants. He was known for also getting ACORN contributions simultaneously.
  1. Between items #4 and #5 only one major change took place in CRA ’77 but it was huge! Bill Clinton was now popular again and he was able to get a steroid version^^ of CRA ’77 passed in 1998.
  1. The changes after the CRA steroid version was passed in 1998 were no longer just quantitative but hugely QUALITATIVE as well. To wit:
    1. It became easier for ACORN to push for $440,000 homes after 2000 then it had been to seek $110,000 homes in 1990.
    2. Not having a job; having only food stamps to declare as “income” and having horrific credit ratings were no longer a problem in buying very expensive homes.
    3. Across the Southwestern United States even illegal aliens were able to get CRA-guaranteed treatment from ACORN.
    4. Many of these CRA loans were now being made to EVEN LESS qualified loan applicants than before. A large percentage of these loans were now granted at 0% down payment.
    5. To repeat, by 2005, suspect home loans had risen to 34% of all home loans.
  1. In November, 2003 James Stack of began running a chart of the Housing Industry Bubble in stocks within the home-building and financial industry and discussing the danger to the economy from the sub-prime lending crisis. The Stack Housing Industry Bubble showed a 1400% increase. Housing prices had been booming for well over a decade.
  1. By early January, 2005 (less than 14 months later), the Bush administration had become seriously concerned about this problem. Their bill to repeal virtually all the most dangerous provisions of CRA legislation was defeated by Congressional Democrats.
  1. Bush would make a total of 19 speeches about the sub-prime lending process and seek to change CRA legislation for the next 30 months. Finally, in July, 2007 a full two years and a half after the Bush administration had begun trying to change CRA law, a very weak bi-partisan bill was passed by the Congress. 
  1. That new law would prove to be way too little, way too late . . . but it would definitely help avoid much of the worst potential consequences of the sub-prime lending crisis. While the Obama administration was passing on the lie about Bush, conservatives, and the free market causing the financial meltdown (“driving the car into the ditch”), one honest and thinking man within the administration, Treasury Secretary Timothy Geithner recognized the truth and spoke it. In mid-2010, Geithner praised Bush for his efforts and eventual success in passing the July, 2007, anti-CRA law. Geithner said that Bush’s actions prevented a decline into a much worse recession and especially for an all-out plummeting of home prices.
  1. As mentioned the new law helped but proved too little, too late to turn things totally around . . . and the financial meltdown hit us hard.
  1. On at least 206 occasions, President Obama has used the “car (economy) in the ditch” metaphor implying that he and the Democrats and especially the Progressives within both parties had nothing to do with the problem. This is a lie. For 34+ years the Progressive laws have violated the free markets and forced low-down payment and no-down payment loans which must be granted to totally Undeserving and Unqualified home loan applicants.
7 Facts You May Not Be Aware of
A.              Following the “War on Poverty” and “Great Society” initiatives of the Lyndon Johnson administration, in mid-1966, Richard Cloward and Frances Piven, two neo-Marxist sociology professors from New York’s Columbia University who admitted being inspired by the Watts Riots and the writings of Saul Alinsky, published an article in The Nation magazine entitled The Weight of the Poor: a Strategy for Ending Poverty. The article suggested that by “overloading” the nation’s newly expanded welfare system and using poor citizens as storm troopers . . . a financial crisis could be brought about forcing the then-dominant Democratic party to see that a GNI (Guaranteed National Income) law be passed and thus POOF! In one fell swoop ending poverty. This “overload the system and create orchestrated chaos” plan has been much discussed by the left-wing and become known as “Cloward-Piven Strategy” or “C-P Strategy.” The suggested Saul Alinsky tactics within this strategy included “street theater" demonstrations and “making them live up to their playbook.” 
B.                              In 1967 Cloward and Piven and a Black militant Marxist, George Wiley, created the NWRO (National Welfare Rights Organization) to put C-P Strategy to work. They were able to put four million new recipients onto the New York State welfare rolls and almost double that many onto the nation’s welfare rolls between 1968 and 1970. A huge number of these additional welfare people lived in New York City.
C.                              Between 1968 and 1975 the NWRO had placed over eight million new welfare recipients on the rolls in New York State and almost sixteen million new people onto the rolls. A virtual two year long recession from early 1973 to January 1975 hit the stock market with its biggest losses since the Great Depression. In 1975 NYC went bankrupt and was bailed out by the federal government. New York State teetered upon the edge of bankruptcy.
D.                              Even though a GNI was never seriously considered in Congress, Cloward and Piven and Wiley declared “victory” in numerous speaking engagements and in print. They advised their followers to move into voter registration and housing. Wiley’s lieutenant Wade Rathke (who’d been sent to Arkansas in 1970 by the NWRO) had been assigned the task of creating a C-P strategy for a future campaign. Between President Carter; the Democratic Congress in 1977 and Wade Rathke’s creation of ACORN in Arkansas that task was successfully completed. 
E.                              In 1993, shortly after being elected to his first term, President Bill Clinton oversaw the creation of the Motor Voter Bill (called by many “a superhighway to voter fraud). ACORN which had been pushing for loosened standards of proof for voters for 16 years was represented at the signing ceremony by Richard Cloward and Frances Piven standing directly behind his desk while he signed the new law.
F.                             Corruption was rampant, Democratic leaders like Barney Frank and especially Fanny Mae head Franklin Raines (who it's believed personally profited over $150 million from the scandal) maintained over and over throughout the period from 2004 to 2007 while speaking about Fanny Mae and Freddy Mac that these were solid investments for the public. Anyone who dared to point out the dangers was castigated and demagogued as a racist or non-patriotic person.  Today more than three million potential new foreclosures are about to be added to the housing market. Even one foreclosure in a neighborhood can devastate the local home values. Fanny’s and Freddy’s future is still very much in the air.G.                             Only one honest voice has come out discussing about 1% of this very serious and critical matter: Timothy Geithner.
The obvious conclusions . . . .
          The truth about these matters is not only of great financial import but also critical to the awareness of the American voters. It is clearly no exaggeration to say that the nation’s security is in play. The truth is needed, what trusted source will reveal it?   I pray, sir, that honest source will be you . . . .
Bob VanDeHey
Centennial, CO   80122
Ya'all live long, strong and ornery,
** Just exactly what is so wrong with renting homes and apartments^^ anyway?   What tiny percentage of today's college students,  other young people, high school dropouts and other scarcely-educated people, (the people who typically have bad credit, no credit or are inexperienced) and the people without jobs earning themselves at least $40,000 yearly or more can be counted upon to pay off ANY mortgage loans they'd be given? 

    If they can't put down even 10% down payment, what are the chances they'll ever actually own their own homes rather than the bank owning it?  The whole CRA thing was a huge Ponzi scheme based upon the idea that housing prices NEVER go down . . . which is patent nonsense.  Of course IF housing prices NEVER go down, then these people who are getting home loans which objectively they do NOT deserve will indeed make a profit . . . so this is a share-the-wealth project as well.  But, of course, no investment grows to heaven . . . home prices routinely drop, that is reality.  Renting is a time-honored tradition of the young, of students, of low educated people.  Many of them end up owning a home later . . . but once the government prohibited free market loan evaluations, everything becomes irreparably corrupted.
^^  Another way to look at this is that CRA legislation was class warfare against the upwardly mobile middle-class.  These are the people who invest in rental properties.  If no one rents what happens to these people?  What happens to upward mobility?  What happens to the American Dream?  This is the classic "Broken Windown Fallacy" where this category of taxpayers is made "invisible" so that they can be abused to the benefit of people who do not pay taxes.  This brief link says it all . . . .

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George Soros Calls for
“Managed Decline of the Dollar”
One of the richest men in the world, who has already profited mightily from the collapse of four separate currencies around the globe, now appears prepared to “encourage” the collapse of the “world’s #1 reserve currency”: the American Dollar. Of course the great Marxist “philanthropist” George Soros is not expected to make a penny from the financial ruin he’s engineering against American citizens and the great hordes of dollar-holders around the globe . . . no, never could happen with the “managed decline of the dollar” he's calling for.
Soros, who along with Hillary Clinton**, helped create the liberal propaganda and attack-foundations Center for American Progress and Media Matters (Media Matters showcases among the most vicious and outspoken left-wing critics and smear campaigns upon Conservatives like Glenn Beck^^, Rush Limbaugh and Sean Hannity)
has long been in the shadows hiding behind his Tides Foundation to
disguise the movement of his millions into leftwing American and European organizations designed to upset the American apple cart.
Over the years the single most effective of Soros’ shadow organizations benefitting from his money was our very own ACORN begun in GASP! Arkansas. ACORN (originally named the Arkansas Community Organizations for Reform Now), of course, was created in Arkansas by Wade Rathke@@ the same year that CRA ’77$$ Legislation was passed and besides all the problems they created (in building up to our recent very own financial collapse courtesy of the ACORN-induced sub-prime lending crisis) also played a major role in ensuring that William Jefferson Clinton would be the state’s governor for 12 of the next 14 years and, oh yes, become the 42nd President of the United States.
Soros, possibly in response to a Glenn Beck challenge the day before to appear on the Glenn Beck Show with him for one hour and reveal his intentions for America, yesterday came out of the shadows long enough to write a check directly to Media Matters for precisely $5 million to hire “investigative journalists.” Since Media Matters has 50,000 hits on the search subject “Glenn Beck” one wonders if George is trying to find something on Beck that’s eluded him so far.
Going back to Soros’ aiming to profit from devaluation of the American dollar . . . as a matter of “full disclosure,” your blogger Rajjpuut, recently suggested that patriotic right-wingers invest in silver and exit the stock market based upon the actions of Federal Reserve Chairman Ben Bernanke who within four months of the September, 2008, financial meltdown upped the amount of greenbacks circulating in the country to 15 times its previous level thus theoretically making the 2009 dollar worth 6.7 cents in 2008 money. Of course, Rajjpuut, has never been accused of deliberately collapsing anybody’s currency, but only of not wanting to hold onto money that’s not worth the paper it’s printed on . . . and suggesting that his relatives, friends, readers, and acquaintances avoid that problem also.
So . . . you’ve been warned TWICE.
Ya’all live long, strong and ornery,
$$ CRA ’77 was the Community Reinvestment Act of 1977, passed on Jimmy Carter’s watch . . . which opened the door for government to force lenders to make knowingly bad loans to people who did not qualify for a mortgage by any reasonable standards. Bill Clinton after coming into office in 1993 immediately set out to create law by presidential directive to give CRA ’77 the teeth it lacked. Then in 1995, he twice oversaw legislative expansions of CRA ’77. And finally Clinton’s 1998 expansion of CRA laws put the whole system on steroids. What effect did this have? In 1975, 0.24% of all home loans were granted at 3% down payment or less. In 1985, working primarily in Arkansas, ACORN had more than doubled that percentage to 0.51%. Thanks to Clinton’s efforts by 1995 14% of all home loans were granted at 3% down payment or less. After Clinton’s “steroid expansion of CRA in ’98, the 2005 figure showed 34% of all home loans were granted at 3% or less. By the way, ACORN lawyer Barack Obama was shaking down lenders in Chicago between 1994 and 1996. ACORN after Clinton left office found that they could get homeless people into $400,000 homes just as easily as they had put semi-poor folk into $150,000 homes five to ten years earlier. ACORN’s success in putting people without jobs; without decent credit; without rental histories; who gave food stamps as “income”; welfare recipients; and even illegal aliens into homes was the prime cause of the recent sub-prime lending crisis that instigated the financial meltdown we’re now enjoying.
@@ Rathke, who went to Arkansas seven years earlier in 1970, was a lieutenant of George Wiley and part of Wiley’s, Richard Cloward’s and Frances Pivens’ National Welfare Rights Organization (NWRO). NWRO was created to overwork the Welfare system in 1967 and by 1975 had bankrupted New York City (the federal government bailed them out) and came within a whisker of bankrupting New York State. The trio was seeking to put the infamous Cloward-Piven Strategy (based upon a C-P article in The Nation in 1966) into operation to force the United States into a GNI (guaranteed national income) and they presumed wipe out poverty forever. Rathke ran the Arkansas NWRO. After bragging about their great success Cloward, Piven and Wiley suggested the next areas for “Alinsky!! street theater” and Cloward-Piven Strategy should be voter registration and housing legislation . . . enter Rathke and ACORN two years later.
!! Saul Alinsky was the self-described neo-Marxist author of Reveille for Radicals (1946) and Rules for Radicals (1971) who literally dedicated his Rules for Radicals to Satan.

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