Posted on November 12, 2008. Filed under: News And Politics... |

Taxpayers on the hook for mortgage executives’ legal defense costs.  When the U.S. government took over mortgage giants Fannie Mae and Freddie Mac, taxpayers inherited more than just bad debts. They’re also potentially on the hook for tens of millions of dollars in legal fees for the executives at the center of the housing market’s collapse…



There are a lot of people who will be up in arms over this.  If you’re a Democrat or a Democrat supporter, you have nobody to blame but yourselves.  As I said before, John McCain tried to warn us about the impending mortgage collapse, but nobody listened.  Franklin Roosevelt signed the Glass-Steagall Act (aka The Banking Act of 1933).  It prevented banks from going into the investment business.  In addition, the bill established the Federal Deposit Insurance Company, which protects our bank deposits.  The collapse started when Bill Clinton repealed the "Glass-Steagall Act" with the "Gramm-Leach-Bliley Act".  Few people anticipated the out-of-control growth of the hedge fund industry and the subprime mortgage market because of his actions.


Remember the association between Franklin Raines, Obama and the rest of the Democrats, among other associations Obama is trying to distance himself from?  If the Democrats didn’t pressure these mortgage companies to approve loans to people who couldn’t possibly afford to pay it back, we wouldn’t be in the economic mess we’re in now.  They did a great job of pushing the "another 4 years of Bush" mantra, and obviously a lot of people bought it.  Now they are the people who will see first-hand that they made a big mistake when they elected another Democrat into office.  Fannie Mae and Freddie Mac were in the pockets of many Democrats and now it’s payback time, at our expense.


Speaking of payback, maybe Franklin Raines should pay back to the government some of the $90+ Million he made under false pretenses when he was CEO at Fannie Mae.  He quickly took off when they were under investigation.  Yeah, that’s right, take the money and run.  Why these crooks are never held accountable is beyond my comprehension.  Raines began a pilot program in 1999 (when Bill Clinton signed the bill allowing him to do this) to issue bank loans to individuals with low to moderate income, and to ease credit requirements on loans that Fannie Mae purchased from banks.  Raines promoted the program saying that it would allow consumers who were "a notch below what our current underwriting has required" to get home loans.  The move was intended, in part, to increase the number of minority and low-income homeowners.  With Obama, we’ll get "more of the same"…








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