“Figures don’t lie, but liars sure do figure . . .”
Princeton’s Woodrow Wilson School Lies with Panache
Accusing Racist Lenders of Causing Fiscal Meltdown
Adolf Hitler and Josef Goebbels both credited the progressives under President Woodrow Wilson with creating the science of propaganda which the two of them came to master and exploit so well in Nazi Germany years later. Hitler in Mein Kampf, written in 1924, described the audacious propaganda technique known as the “Big Lie” and emphasized just how powerful and useful it was. Let’s talk about a recent example: yesterday, in keeping with Woodrow Wilson’s proud legacy, two Princeton University Professors from that University’s Woodrow Wilson School of Public and International Affairs revealed their mastery of the Big Lie and the incredible lengths that progressive academicians will go to change history right under the noses of American citizens. By injecting RACISM into their latest altered and fudged version of history, they certainly caught the liberal media’s attention . . . if the twosome weren’t so treasonous and vile, one feels almost like congratulating them for sheer unadulterated chutzpah.
The important thing, of course, is their “headline” information about “racial predatory lending” . . . the article was actually devoid of any statistics or records of any sort except one** that had nothing to do with the story’s central point, but absolutely full of bogus conclusions which inspired Reuters and the Associated Press to publish the tripe. As in so many Reuters and Associated Press articles found online, the shock level of the report linked above is twenty-times greater than any factual value contained within these news agencies’ “tireless research.”
Not surprisingly, the article turned up the wake of what turned out to be a small time National Mall “One Nation” rally. The 32,000 individuals (they were trying to steal back some of the thunder from Glenn Beck’s “Restore Honor” rally on August 28 which attracted over 650,000) participating from some 320+ individual progressive organizations were led by labor unions who used union dues to fund the bussing-in of members of CPUSA, ISO and D-S of A . . . that is, the Communist Party USA; International Socialists Organization; and Democratic-Socialists of America and others to the rally. Believe it or not, the cry went up to “stop the nation’s shameless river of foreclosures . . .” Bingo, just like that our two progressive Princeton academicians the very next day give us a study without meaningful statistics coincidentally backing, that very same point, and suggesting (according to leftist blog spinoffs) that the racists TEA Party and its ilk was responsible for the sub-prime lending crisis and all those poor people who got loans for $450,000 homes at 0% down payment without jobs and only food stamps for “income” deserve our help to keep the foreclosure bogeymen away. The two profs specifically stated, “The U.S. Civil Rights Act should be amended to create mechanisms that would uncover discrimination and penalize those who discriminated against minority borrowers.” What? No help for us poor white trash borrowers?
Supposedly, according to the two astute professors, loans that carry unreasonable fees, interest rates and payment requirements granted to minorities in the inner-cities spurred the whole financial house of cards! These loans made it impossible for these home owners to meet their mortgage obligations, alas!! Those damned racists, ruining the country and only picking on inner-city minorities, not on inner-city Whites (well, actually, they provide no stats about that and who cares about those honkies anyway?). Enough of progressive lies . . . . How did the collapse actually happen?
Remembering that in 1975, 63% of Americans owned their own homes, the highest private ownership in the world . . . the system wasn’t broken, but it had to be fixed anyway. Progressives under Jimmy Carter passed the Community Reinvestment Act in 1977 (CRA ’77) forcing home lenders to make knowingly bad loans. Thankfully, the CRA ’77 law was poorly crafted and the change from 1975 to 1985 was big, but not decisive: the amount of high-risk loans (3% or less down payment) more than doubled from 0.24% to 0.51% . . . but it had no real effect. Overall, before Bill Clinton’s arrival in Washington, only about $100 Billion was loaned out due to CRA ’77 in roughly those fifteen years.
Bill Clinton’s three earliest interventions** in the mortgage-guarantee picture sent us on the road to ruin. By 1995 14.1% of all home loans were high-risk loans virtually all of them forced upon lenders by CRA ’77. Then his final legislative expansion in 1998 changed things in both the numbers of high-risk loans and in the size of the loans poor people were offered. By 2005, 34.4% of all loans were high-risk, many of them ultra-high-risk loans for very expensive housing properties. In other words, thanks to progressive actions, the percentage of inadvisable loans increased 13,800% between 1977 and 2005.
Think about that: a 13,800% increase in loans at 3% down payment or less (most commonly at 0% down payment) . . . and more importantly loans to lenders who would not have been allowed a bank lollipop in 1977, much less a huge loan . . . say, Brother, could that have caused a financial debacle? You think that might shake the very foundations of our economy? Oh, and you do remember that the system wasn’t broken to begin with, don’t you? This is the essence of progressivism (the belief that we need to “progress” beyond the outdated and flawed U.S. Constitution so we can create their Utopia) and that is the nature of the elite who are trying to shove it down our throats . . . .
Since the Communist Party was involved in Saturday’s rally on the National Mall where the hue and cry went up for “stopping foreclosures” and for punishing the “racist predatory lenders,” perhaps a truly shocking fact ought to be told as well. The fiscal debacle that the country felt first in mid-2007 was deliberately created, or let us say deliberately “orchestrated” to destroy capitalism. You read that right.
It began in 1966 with the publishing of an article The Weight of the Poor: a Strategy to End Poverty by Richard Cloward and Frances Piven in The Nation magazine. In their masterpiece, the Columbia University (NYC) Marxist twosome opined that Alinsky-tactics (Saul Alinsky was a self-described “neo-Marxist who authored Reveille for Radicals and Rules for Radicals) could overload the welfare system and force the government to create a GNI (guaranteed national income) and thus poverty would be abolished in one fell swoop. Today, this idea of orchestrated crisis is known as “Cloward-Piven Strategy” or C-P Strategy.
In 1967, Cloward, Piven, and community organizer George Wiley created the NWRO (the National Welfare Rights Organization) to test their theory out. In 8 years the NWRO bankrupted New York City and just missed bankrupting New York State by the addition of 8.2 million more welfare recipients. They did NOT get their GNI but they published and bragged about the great thing they’d done and suggested that voter registration and housing were the next two areas to test out the theory upon. Enter ACORN in 1977 the same year that CRA ’77 was created -- ACORN the architect of an ongoing voter registration scandal and the sub-prime housing fiasco. ACORN and progressives for over 40 years now have been seeking to bring down capitalism by abusing decidedly unwise “compassionate laws.” In the case of CRA ’77 they’ve been misusing that particular law for thirty-three years now. The C-P Strategy is known as “orchestrated crisis” and though it takes a while, we’ve seen two incredible instances now of just how devastating these Marxist plans can be . . . .
Meanwhile in 1975, the year NYC failed, the United States had the highest private home ownership in the world at 64%. The system was NOT broken, but in early 1977, these same progressive creators of the 1967 National Welfare Rights Organization (NWRO) which had willfully bankrupted NYC (requiring a federal bailout after deliberately overloading the welfare rolls by street tactics, shakedowns and browbeating social workers working in the Welfare Dept. between 1968 and 1975 and adding 8.2 million new recipients in NYC and New York State) . . . the very same Cloward, Piven and Wiley immediately shifted attention to housing and voter registration and Wiley lieutenant Wade Rathke who’d been working for NWRO in Arkansas created ACORN in response to the CRA ’77 law of Jimmy Carter. This and the later actions** of Bill Clinton, their first ACORN president, is what caused the financial meltdown and two lying progressive profs can’t change history to say differently.
Ya’all live long, strong and ornery,
** To wit, this is their amazing statistic: “From 1993 to 2000, the share of subprime mortgages going to households in minority neighborhoods rose from 2 to 18 percent.” So what? There’s certainly no connection to racism there. Here’s the truth: Bill Clinton, our first ACORN President ‘s (the “A” in ACORN originally meant “Arkansas” and ACORN helped Bill win 12 of 14 possible years as Arkansas governor as well as putting him into the Oval office) very first two significant acts upon becoming U.S. President were ACORN acts. 1) Passing the Motor Voter Act with Richard Cloward and Frances Piven standing behind him in the official signing picture and 2) Demanding a regulatory overhaul and expansion of CRA ’77 including quotas for banks.
After Clinton’s changes, so-called "community groups" like ACORN benefitted greatly by a process which was essentially legalized extortion by street action embarrassed Banks into bad loans based upon the Clinton quotas (the CRA is enforced by the Fed, the Comptroller of Currency, Office of Thrift Supervision and the FDIC so CRA protests by any of these well- organized groups resulted potentially in huge financial penalties and fines for the banks and blocked for long periods of time their plans for expansion). This leverage was used and the "community groups" got millions of dollars in “donations” from the banks as shameless demanded payoffs for marketing these loans and they also made the banks promise to make a certain number of future very risky loans in their communities, resulting in more money for the "community groups.” Purportedly Barack Obama was the king of shakedowns when he worked as an ACORN lawyer between ’94 and ’96 . . . think what Barack might have done if he’d had the Clinton ’98 CRA changes in place!
All of these factors enforced by strong government agencies created a situation in which suddenly millions of people were buying homes they simply could not afford. This caused an artificial feeling of financial prosperity for everyone and an incredible TRillions of dollars were going into bad investments. which forced lenders who knew better to grant sub-prime loans to lenders without jobs, illegal aliens, folks who listed “food stamps” as income, etc. . . . and then in 1995, Clinton expanded CRA ’77 twice legislatively; and in 1998 gave us the steroid legislative expansion of CRA ’77. Thanks to Clinton and ACORN after Clinton’s ’98 steroid CRA ’77 expansion, Barack Obama and other ACORN lawyers were not needed. Street-educated people with junior high educations were getting banks to loan poor people $450,000 home mortgages just as easily as eight or ten years earlier they’d been getting them $140-$150,000 loans. This is why the Big Lie about the conservatives and the free market driving the car (the economy) into the ditch (into recession) never fooled Rajjpuut. The truth is:
The statement by Treasury Secretary Timothy Geithner last month (linked above) was 100% accurate when he basically said that G.W. Bush saved the economy and prevented a free-fall of housing prices and (talking about cars and ditches), the real truth is:
Using the same Cloward-Piven** strategy that DELIBERATELY created the bankruptcy of New York City earlier between 1967 and 1975 by deliberately overloading the welfare rolls . . . beginning especially after 1992, ACORN, OBAMA, First ACORN- PRESIDENT Bill Clinton, and oodles of progressives (94% of them Democrats) DELIBERATELY were pushing the car toward a 500-foot cliff, when George W. Bush jumped in and grabbed the steering wheel and hit the brakes. Bush was able to create a controlled-skid and guide the car to rest in a friendly-looking ditch!