Obama "warned" on the suprime meltdown...

According to his campaign, Obama warned about the sub-prime meltdown two years ago in a letter that no one has ever seen. There was a vote on the floor of the Senate a couple years back, a bill that could have avoided this mess, but Obama voted as he has many times, present. How did that help the situation that he states he was aware of? The Democrats were opposed to this bill, and yet he could not muster everyone together for a vote on something he supposedly knew was in trouble. The Wall Street Journal has a great article about this here.

John McCain tried to stop the Fannie/Freddie meltdown...

But Obama's name was nowhere to be found. The letter was just signed by a group of Republican Senators. Human Events has published a great article and has posted a copy of the letter here. Obama states he wrote a letter, I think he should publish it, that is if he DID write a letter, which I highly doubt. It is probably another lie, his campaign is based on them.

The Rescue Package (Bailout)

Other than the blogs that I have published with who is to blame, and the videos on who is to blame, I have not really put my opinion out on this rescue package. I have heard countless so called "experts" say that it is needed, some say that it is not, I have heard some economists come out and say that it is needed, but we still might go into a recession, and others saying that we will be fine without it. So where could one stand on this, when in reality nobody has a clue if it will work or not? I have taken a few days to really think about this, and how we got here, and that is how I arrived at my decision.

I do not know of any large scale government program that has succeeded. It seems that the larger Washington is, and the more power they have, the more things get screwed up. Just look at Fannie and Freddie, Social Security, Welfare, Medicare and Medicaid, all of them pretty much bankrupt. The IRS was set up as a temporary organization, well it is still here. Why is the IRS still here? Because when the People simply give government the authority to have broader powers, even if only temporarily, they will never relinquish it. Roosevelt's New Deal, was a huge waste of money, and although some attribute us getting out of the Depression Era because of it, it was really World War II that got us out.

The market lost $777 yesterday, the biggest single day dollar amount loss, but it was the 17Th overall percentage loss (more importantly). Today the market has rebounded, and private citizens and enterprises are acquiring stock and companies at a bargain. The free market kind of corrects itself, without the real need for government intervention. The Treasury has already put so much money into the market, and banking institutions, is an additional trillion really necessary?

One thing that bugs me, if this was this big crisis that needed to be passed immediately, then how was Congress able to take 2 days off? It is all a matter of politics. Proof of it lies in the fact, as previously mentioned, that Pelosi told Democrats up for reelection that they did not have to vote in favor of the bill. She knows that the People do not want this. It is all political and the reason why Congress has a 9% approval rating.

Fannie, Freddie, Rick Davis and Franklin Raines

The New York Times published an article stating that a company owned in part by Rick Davis, the Campaign Manager for the McCain Campaign received $15,000 a month since late 2005 from Freddie Mac. What is interesting is that Rick Davis has not received any compensation from his company, or profit sharing or any other sort of compensation from that company since he took a leave of absence in 2006. He never had any part in the lobbying work that was done for Freddie Mac, and furthermore he has not done ANY lobbying work since 2005.

What bothers me is that the New York Times published this article, yet I do not see any article about the two Obama Economic Advisers, Franklin Raines and Jim Johnson. Now that the FBI is investigating Freddie, Fannie, Lehman and AIG, it will come out that Fannie and Freddie cooked their books, as was already found in a previous investigation. This was done when when Franklin Raines was Chairman and CEO of Fannie Mae. Franklin Raines received over $90 million in compensation for the six year period that he held these positions. Raines quickly walked away from Fannie, knowing that Fannie was on its way down. Obama no disputes the fact that Raines is a financial adviser, despite the fact that Raines and Obama were both quoted in the past as it being true. Jim Johnson is not only an advisor to Obama, but also was part of his Vice Presidential selection committee. Jim Johnson was a managing director at Lehman Brothers (Bankrupt), CEO of Fannie Mae (now in government control), was a board member of Goldman Sachs (Almost bankrupt), and received illegal loans from Countrywide (Bought out, but for pennies on the dollar due to it almost being bankrupt).

These are the people that are advising Obama, and his supporters actually believe that he has better economic policies than McCain. The media will not report these stories, but it is up to the public to ask the questions. I might sound ignorant, but I believe the people of the U.S. are smart enough to realize what is going on.

Fannie and Freddie

As I have spoken about in my previous posts, I do believe that the Democrats had a big hand in what occurred with Fannie Mae and Freddie Mac. I would be ignorant to say that the Republicans had no part in it, which I believe that they did, just not to the degree of the Democrats. If the Democrats would be so sure that they had no part in this, they would, as they always do, launch countless investigations and Congressional hearings. They have not done so simply because they do not want to air their dirty laundry. McCain has been blamed, even though he tried to pass a bill in 2006 to correct these issues, and all the while Obama has just sat back and collected money from Fannie and Freddie. What really gets to me, what really bothers me is that the liberals are doing what they have done for the last 8 years, blame Bush. Never mind the fact that Clinton signed the laws into action that created this mess, but to blame Bush, now that is ridiculous. President Bush has tried 17 times over the last eight years to correct this issue, but the Democrats in Congress refused to pass any of them. Why? Because they were to busy fattening their pockets.

Here is a list of the times that President Bush tried to prevent what happened with Freddie and Fannie:
2001
April: The Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity."

2002
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)

2003
January: Freddie Mac announces it has to restate financial results for the previous three years.
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that "although investors perceive an implicit Federal guarantee of [GSE] obligations," "the government has provided no explicit legal backing for them." As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. ("Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO," OFHEO Report, 2/4/03)
September: Fannie Mae discloses SEC investigation and acknowledges OFHEO's review found earnings manipulations.
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements.
October: Fannie Mae discloses $1.2 billion accounting error.
November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any "legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk." To reduce the potential for systemic instability, the regulator would have "broad authority to set both risk-based and minimum capital standards" and "receivership powers necessary to wind down the affairs of a troubled GSE." (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)

2004
February: The President's FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: "The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator." (2005 Budget Analytic Perspectives, pg. 83)
February: CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for granted." Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs are overseen by an effective regulator." (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And Freddie's House In Order," Financial Times, 2/24/04)
June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying "We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System." (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)

2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05)

2007
July: Two Bear Stearns hedge funds invested in mortgage securities collapse.
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, The White House, 8/9/07)
September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.
September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.
December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon." (President George W. Bush, Discusses Housing, The White House, 12/6/07)

2008
January: Bank of America announces it will buy Countrywide.
January: Citigroup announces mortgage portfolio lost $18.1 billion in value.
February: Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)
March: Bear Stearns announces it will sell itself to JPMorgan Chase.
March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)
April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)
May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.
"Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans." (President George W. Bush, Radio Address, 5/3/08)
"[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator." (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)
"Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans." (President George W. Bush, Radio Address, 5/31/08)
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)
July: Congress heeds the President's call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.

These are all aside from Bill S. 190 which John McCain co-sponsored. And no one is mentioning that these organizations were some of B.H. Obama's largest supporters. So who is really to blame here?

Email Hackers, Big Government and Other Things Occurring This Week...

This week has been hectic and filled with news.

Over the last two days the stock markets, on a global level, have tanked, and the U.S. Government has unfortunately grown. As if the Government of this great country was not already too large for a free democratic society with Capitalist free markets, the government stepped in to bail out AIG. Many people are saying that it was necessary, but it is tax payer dollars going to that, and the government taking over private assets is not really a part of the Conservative mind set. A few weeks back the government took over the horribly run Fannie Mae and Freddie Mac, organizations that were run into the ground by liberals.

Franklin Raines and Jim Johnson both ran Fannie and Freddie, and guess where they are? They are Economic Advisers for The Messiah, Barry Obama. These gentlemen, I say that loosely, were compensated heavily, and a lot of it was not disclosed. Yet the Democrats have tried to blame all of this on President Bush. President Bush has not been involved, and it was the Clinton Administration, in 1994, that relaxed the standards so that any individual would qualify for a house. Obviously, the people who took out these loans are just as responsible.

John McCain actually tried to stop this mess from occurring in 2006 when he cosponsored Bill S. 190 saying the following: "Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.
The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.
The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.
For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac–known as Government-sponsored entities or GSEs–and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.
I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. 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.
I urge my colleagues to support swift action on this GSE reform legislature."

Furthermore, according to http://www.opensecrets.org/ (http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html ), a web site that lists donor information it seems the Democrats are very popular with Fannie Mae and Freddie Mac employees and Political Action Committees. Open Secrets conducted a search, and for the period of 1989 through 2008, Democrats had received the largest amount of donations from those employed by the now government run entities, but which ones you might ask? Chris Dodd received the most amount of money, he has been in office for the entire 20 year period. The next one might surprise you, but really only if you are ignorant, Barack "The Oracle" Obama received the second most amount. If that is not shocking enough despite his claims of being against lobbyist and all the other lies that spew from his mouth, he was only in the U.S. Senate for two years of the 20 year period that was examined. In third place was another Democratic Presidential Candidate (Former), John Kerry, and Hillary came in 12th, although she has only been in office for 7 of the 20 years. Now I know you are interested in knowing where McCain was on the list. John McCain, although he has served during the entire 20 year period, came in 62nd place.

On another note, Governor Sarah Palin's email was hacked, and the Secret Service is now investigating the incident. The Liberals do whatever they want to, and feel like they should be able to get away with it. On the other hand, us Conservative are scrutinized for everything we do. The shocker here is that the investigation has been derailed a bit by the AP, who refused to cooperate with the Secret Service. How would have thought that the media would not want to cooperate on this, let alone report it.





Dr. Ron Paul, who I support and agree with very much, has this sign on his desk. I think it is too priceless to not post: