Tuesday, September 18, 2012

Obama's Worst Nightmare





Touche!  Obama will inherit the mess caused by his own "gaming the system" and "changing the rules" resulting from his own and very first action that caused the Financial Crisis.  No one disputes that subprime mortgages caused the Financial Crisis.  So the question is, where did they come from and when.

FACTS:
1994- Obama is part of a Chicago legal team that files the first ever lawsuit against a bank, Citi, alleging racial discrimination.  The suit becomes a class action suit with many Hispanics and Blacks represented by the law firm.
1999- the suit settles for over a million dollars with $900k to the law firm and the myriad plaintiffs splitting the rest.

January 1994:  "No loan is exempt (from CRA requirements), no bank is immune. For those who thumb their nose at us, I promise vigorous enforcement."  Janet Reno, Bill Clinton's Attorney General

1999- President Clinton passes a bill in the middle of the night, Graham-Leach-Bliley.  It allows the banks for  the first time ever, to use "safe" assets (like checking, savings, CD's, etc.) to invest in more speculative things like... subprime mortgage loans.

1998 /1999 - ACORN, Al Sharpton, Jesse Jackson and other activists recognize they can use the race card to force banks to make subprime loans.  (Of course these were called "Affordable Housing" loans under Jimmy Carter's 1977 Community Reinvestment Act or CRA).

1999-2002 - banks across the U.S. make a tiny number of subprime loans in spite of the activism efforts aimed at them.  The banks' defense is that most of them were public companies and had shareholders and a Board to answer to.  Their computer models proved a large number of these would default.  President Clinton, a progressive Democrat, creates quotas for the banks, tells them their expansion plans would not be approved if they do not make more subprime loans.  Still, the banks do not "play ball."  Clinton has his AG, Janet Reno, threaten the banks with severe penalties if they do not comply!

Clinton figures out that the banks cannot make many of these subprime loans because Fannie Mae and Freddie Mac cannot buy subprime loans, only A-paper (prime) loans per their charters.

Clinton tells his Treasury Secretary, Robert Rubin, to re-write the charters, allowing Fannie and Freddie to buy subprime loans, thereby providing the final piece for an endless flow of subprime loans to people with bad credit, poor job history and a predictably high number of loan defaults.

January 2002 - a Harvard Professor asked for and was granted a specially called Senate Banking Committee.  Using 3,000+ mortgages from the late 1990's, he gave proof that 85% of home buyers were being abused badly with hidden fees and costs, by banks, mortgage banks and mortgage brokets.  These abusive loans were all in violation of RESPA (Real Estate Settlement Procedures Act) that governs mortgages in all 50 states and violated the usury laws in all 50 states as well.  So what did the Democratically controlled Senate Banking Committee do with this information?  They buried it.  Indeed they did.  Why?  At http://www.opensecrets.org/  you will find the answers.  That site has the list of all the PAC donations from the banks and other financial services companies to the members of Congress that were fighting for the Obama-Clinton subprime mortgage leviathan to go on and on.  Senator Obama was the 3rd largest recipient of PAC dollars in all this time.  Progressive politicians and banks did not want the music to stop. 


1999-2007- Trillions of dollars of subprime loans are piled onto the balance sheets of financial institutions in the U.S. and around the world who were told (By Standard & Poors and Moodys) that these Mortgage Backed Securities were AAA rated investments, knowing they were not. 

Look at this chart by Case-Shiller, who track all housing metrics back to the 1890's!


The lawsuit Obama was part of, the "Affordable Housing" (subprime loan) / CRA agenda, Clinton's gun-to-the-head social justice politics, the re-write of Fanne Mae and Freddie mac charters and finally, the passage of Graham-Leach-Bliley, all paved the way for what you see in this chart in 1998 &1999 through 2007 - the subprime mortgage boom = Housing Boom = the Housing Bust = the Financial Crisis = The Great Recession of 2007 to ????

This was all orchestrated and enforced by activists, Obama, Clinton and their respective progressive followers and hanger-oners.  The U.S. economy gorged on subprime mortgage loans that few could afford the minute that the economy slowed down.  Until that slow down, subprime borrowers refinanced 3-6 months, pulling cash from their equity, and using that to augment their payments and growing lifestyle.  Then the subprime mortgage induced housing bonanza stopped. The only music still playing was "Nero, fiddling as Rome burned."

No sane person can look at that chart above and not ask "What the hell happened in 1998-1999?  The subprime mortgage boom caused the current Great Recession and it is irrefutable!  

Is it any wonder that Bill Clinton and Barack Obama and all their acolytes are so very busy in projection now?  They are the ones who "changed the rules" and "gamed the system", not the "Fat Cat Bankers" and "Greedy Wall Streeters" they so want to offload the worst recession since the Great Depression on.

And by the way... the Hispanics and Blacks in the Chicago area who were anointed with those very first subprime loans from 1998-2007... over 50% of them have lost their homes or are in foreclosure.  Barack Obama destroyed, with help from Bill Clinton, the very people he purports to want to help by "spreading the wealth around."
Want proof?  Read the article at this link:   
Do you think more than about 1% of the population knows all of this?  If they did, there is no way Obama would get re-elected.

I'm just giving you the tip of the iceberg of what's in my new book: Skullduggery! True Causes of the Financial Crisis.  http://www.skullduggerybook.com/   I was a Wall Street insider and Mortgage Banking executive for 20+ years.  I served as President of my state's mortgage association and was on that Board from 2002-2005 so I was there... in quarterly meetings in Washington D.C.  I saw and heard things few people outside that world know.  I am the ultimate insider and whistle blower and I'm trying to blow that whistle as loudly as I can!

2012 - just 49 days before the most important election of our lifetimes
Shameless Promotion - this is an awareness campaign aimed at selling books but my BIGGER purpose is to make sure Barack Obama is outed as one of the chief architects of the Financial Crisis and is not re-elected. The U.S. as we know it cannot survive another 4 years of what Obama is doing to this country, much less what he HAS PLANNED to do, unfettered by having to worry about re-election from 2013 - 2016.

Love America the way it used to be, based on free markets and capitalism that made us the envy of the world?  Then buy and read my book and more importantly, spread the word.

No more BO.  The United States will do so much better without BO.  He is NOT one of us.

Ted Krager

The truth will set the U.S. free! 

PS - I have been asked if I am the subprime mortgage scam "Deep Throat" of the Nixon-Watergate era.  Maybe.  Time and history will tell.  I know one thing, I love this country and I know most of you do as well; we must all do everything we can to prove that Emperor Obama has no clothes.  In fact, he is becoming more naked by the day.  Just 49 days to the election as I write this blog post on September 18th, 2012.  The clock is ticking.    


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