Why is Washington Ignoring its Biggest Corruption Scandal?

Why is Washington Ignoring its Biggest Corruption Scandal? (external - login to view)

Tuesday, 17 August 2010 09:13

'Too few in Washington have been digging into the scandals behind the collapse of the “government-sponsored entities” (GSE's) Fannie Mae and Freddie Mac and their role in helping trigger the global financial crisis.
Their collapse has cost taxpayers $146 billion thus far. Freddie Mac sought an additional $1.8 billion in taxpayer support just last week. There is no end in sight, as the Obama administration, through executive fiat, has placed no upper limit on the taxpayer liability for these two monstrosities.'
Read more: Why is Washington Ignoring its Biggest Corruption Scandal? (external - login to view)
In the US kind of like here, everyone is supposed to own a house. The public wants this, Congress wants this, Wall Street wants this. And like govt agencies with Wall Street just made it happen.

Someone can't afford a house. You get a loan.
Your poor and black? You get a loan. etc etc. No mystery here about the Excited States of America.
The Old Medic
The home loan problem was directly caused by laws that Congress passed, and were signed into law by William Jefferson Clinton. They mandated that federally insured home loans had to be given to minorities, and other groups that traditionally could not obtain a mortgage because of low income, a poor credit history, etc.

The news media is so leftist, that they will not even consider doing an investigation of this. Only Fox news even mentions this subject.

Fanny Mae and Freddie Mac are 100% controlled by, and owned by, the United States Government. Their policies are dictated by the laws of the USA. They can't do anything, ANYTHING, without direction by Congress.

When Congress mandated that poor people had to be allowed to get home mortgages, those two agencies facilitated those mortgages.

I sold my 1750 square foot home on 1/8th of an acre of land in October, 2006. That home was a typical Southern California tract house, with a few nicer upgrades that we had done over the 20 years that we lived there.

The minority couple that purchased the home put no money down at all, and they (their bank really) paid us $525,000 for that home. He was a restaurant manager, his wife did not work but stayed at home taking care of their severely disabled son. He earned approximately $40,000 a year, before taxes, etc.

I asked the company that was handling the closing of the sale, "How can anyone approve a mortgage for over half a million dollars, for a man who only earns $40,000 a year?" I was told that this was a government program., and not to question it.

My wife and I purchased a new 3,250 square foot home, on 5 acres of land, just outside of Bowling Green Kentucky for $209,000.00. We paid cash for that property, and put the rest into conservative investments for our retirement

In June 2007, my old home was repossessed. The couple that had purchased it could not make the payments. The bank resold it in May 2009 for $300,000.00., plus they had to pay out almost $50,000 to repair vandalism that had occurred while the house sat vacant.

It was exactly that kind of a situation that caused the financial meltdown in the US. There is no possible way that people that simply do not have the income can pay for a home. But, some "social engineer" types decided that EVERYONE is entitled to own their home, and they passed laws mandating that the government had to require that Banks and Thrifts had to advance mortgages to such people. Freddie Mac and Fannie Mae bought those lousy mortgages from banks, bundled them into packages and guaranteed a portion of the loan amount, and resold those bundles to banks and other major investors.

When those loans went bad, the banks got a portion of their money back from the government guarantee, but not enough to make up for the losses.

That is what directly caused the financial collapse in the USA. Congress (and the ultra leftist press) want to blame the Bush administration, but the laws that caused it were passed by a Democrat controlled Congress and signed into law by a Democrat President.

I worked hard, and did not own my own home until I was in my mid 30's. I put down 20% of the purchase price, and I had to show that I had more than adequate income to make the monthly payments. The ONLY time I was NOT required to do this was when we purchased our current home. BUT, I did have to demonstrate that those funds were from a legitimate source.
In 1968 I bought a new house for $20,500.00. I even borrowed the down payment. I sold that house for something over forty thousand three years later when we were transferred to Winnipeg. We didn't buy in Winnipeg and when we came back about three years later the house we had sold for forty thousand dollars was now on the market for over a hundred thousand. It took us a year or two to get our wits together but we finally bought in Citadel heights for around a hundred thousand. We sold that house in a couple years for about $225,000.00. We then bought the house in Maple Ridge for $165,000.00 we had no mortgage. We were getting close to our first retirement date. We stayed in Maple Ridge for two or three years and sold the place for for close to $300,000.00 and moved to Gabriola Island were we bought a nice little rancher for around $120,000.00. We stayed on Gabriola for over six years and
finally sold the place for $225,000.00. We bought a nicely finished split level in Nanaimo for $135,000.00. We are now retired but we are looking for a nice rancher on the right property. Meanwhile the house we live in is quite comfortable
very typical of Republicans to blame Democrats but the facts show otherwise as we discussed and documented on this forum previously

Greenspan -- Flawed Ideology, Deregulation Cause of Collapse, Fannie Mae and Freddie Mac Only a Factor, Page 3 of 4 - Associated Content - associatedcontent.com (external - login to view)
In a bid to stem taxpayer losses for bad loans guaranteed by federal housing agencies Fanny Mae and Freddy Mac, Senator Bob Corker (R-Tenn) proposed that borrowers be required to make a 5% down payment in order to qualify. Hisproposal was rejected 57-42 on a party-line votebecause, as SenatorChris Dodd (D-Conn) explained,
"passage of such a requirement would restrict
home ownership to only those who can
afford it."

Washington today is just ripping us off.

This is unbelievable. Where was she found???

There Are No Words To Describe The Following PartII - Home - The Daily Bail (external - login to view)

Similar Threads

Canada's Biggest Scandal?
by Stretch | Mar 10th, 2010
Brazil vote marked by corruption scandal
by CBC News | Oct 1st, 2006
no new posts