the wingnuts keep saying it’s that evil Gobermt. that forced the titans of wall street to Over Leverage all their products. Oh, sure.

Honore de Balzac said it best (and he was a conservative). “Behind every great fortune their is a crime.”

The fact is that this recent bail out of Wall Street costs more than all the so-called subprime mortages that Fannie Mae supposedly guaranteed..(and Fannie Mae and it’s much smaller ‘competitor’ is only the ’secondary market’ not the seller of said mortages). So Fannie Mae was ‘bailed out’ earlier this year. So why is Wall Street still in a tizzy? And why do they want more and more of the nation’s money? So the problem is in fact much, much bigger than a relatively poor section of the financial markets (low income mortage holders_). The problem is Leverage and the HiJacking of future incomes off indebted Americans who aren’t given appropriate raises in order to pay for such Hedged Bets on the future. The problem is in fact corruption of a Republican encouraged culture of greed and corruption that has leveraged the nation’s future on a mountain of debt that has no relation to reality: 30 to one, 40 to one, even 60 to one Bets on a Unsustainable future earnings.

Let’s put this in perspective; the Wingnut faction is also obsessed about the the high cost of education in the USA which they say is an obsenity for costing 500 billion a year (for every teacher, school, janitor, the whole Shebang). And we just Gave George W. Bush and his Treasury Sec. nearly a Trillion bucks For What??? And now Republicans want to continue the Bush Regime for the Destruction of the USA with McSame?

Can we expect that you’ll be able to provide us with statistics on the default rate of loans issued as a result of “federal government strong arming”?

We’ll wait while you scamper off to gather your “facts.”

He’s not? Damn. I was so looking forward to doing some nutsack kicking.

Nice try, but if you actually read the stuff I posted before, you’d know that CRA loans were MORE likely to be repaid. Nice try.

Our economic prosperity has been put in peril as a consequence of another piece of liberal social engineering gone bad.

How many mortgages did Lehman issue?

How many mortgages did Morgan-Stanley issue?

(etc. for any of the failed financial houses)

Answer: NONE. Did the evil CRA and the shiftless darkies hold guns to the heads of the CEOs of these unassailable Wall Street giants and force them to invent these crazy “Collateralized Debt Obligations” and other incomprehensible financial products? Did the CRA make these parasites of Wall Street poison every sector of the economy with this bad debt? Did it force them to falsely value their holdings to keep the party going?

Then when they can’t answer, kick them in the nutsack.

I think it’ll be available on their website starting tomorrow.

Tie that with 60 minutes and folks will be more knowledgeable than 99.99% of the folks who comment on blogs.

http://online.wsj.com/article/SB122298982558700341.html

http://online.wsj.com/article/SB122290574391296381.html?mod=article-outset-box

The short version is the Federal government strong armed lenders into offering credit to people who were unlikely to be able to repay the loans. Efforts to rein in this foolishness were thwarted by key Democrat legislators. One of Fannie Mae’s most prominent defenders live in lover was an executive with Fannie Mae at the time that these reforms were thwarted. Howard Raines who is tied to the Obama campaign ran this baby into the ground. Obama himself has been given a lot of money by Fannie Mae. Only one other politician has received more money from the failed company than Obama.

Thus far, this one strikes me as probably the closest to reality, Bill O’Reilly’s attempt at bullying Barney Frank notwithstanding.

“Leading up to its collapse, Bear Stearns was participating along with other major investment banks in a “voluntary” oversight program begun in 2004 designed to consolidate supervision. The idea was that voluntary regulation of these banks was the only way to effectively govern their behavior because of the peculiar complexity and their international structures.
In Bear Stearns’ case, however, auditors found the company failed to comply with a number of the voluntary rules before its collapse, and that the SEC did little or nothing to pressure Bear Stearns into compliance.”

Mas: http://digbysblog.blogspot.com/2008/09/voluntary-corruption-by-digby-i-know.html