Who is to blame for the subprime mortgage crisis

Who is to blame for the subprime mortgage crisis?
This is something I found online...I think it sounds pretty conservative-biased...let me know what you think: 1997 Fannie Mae is a GSE (Govt. Sponsored Entity) regulated by Congress. Fannie Mae buys mortgages from other companies. It is backed by the taxpayers for all losses, but keeps all profits. President Clinton loosens Home Loan Requirements. 1998 Banks begin making thousands of bad loans,0 down, no documentation, for 120%!(1998 –2008). Executives at Fannie receive huge bonuses if loan targets are met. Franklin Rainesand Jamie Garelickfrom the Clinton Administration are appointed to run Fannie Mae. 2003 President Bush proposes a new oversight committee to clean up Fannie Mae, but Democrats derail the effort. Rep.Melvyn Watt,(D-NC) Committee on Financial Institutions & Consumer Credit.stated, “I don’t see much other than weakening the bargaining power poorer families to get affordable housing.” 1999 -2004 Raines earns $100 millionin bonuses. Garelick earns $75 millionin bonuses. In 2004, Enroncollapses, congress investigates, Executives Skilling & Lay go to jail, for fraudulent bookkeeping. Congress responds with the Sorbanes-Oxley Act, more heavy regulation of corporations. 2004 An OMB investigation finds massive fraudulent bookkeeping at Fannie Mae. False numbers triggered executive bonuses every year. Congress holds nohearings, noone goes to jail, or is punished. WHY NOT? 1999 -2005 Fannie Mae gives millions to Democratic causes, examples:Jesse Jackson & ACORN. Fannie Mae pays millionsto 354 congressmen and senators, from both parties. Who got the most money? Top 4 Recipients #1Sen. Christopher Dodd, (D-CT)Chairman of the Banking, Housing, & Urban Affairs Committee#2Sen. Barack Obama, (D-IL) Federal Financial Management Committee Top 4 Recipients#3Sen. Chuck Schumer,(D-NY)Chairman of the Finance Committee #4Rep. Barney Frank,(D-MA) Chairman of the House Financial Services Committe 2005 Franklin Raines & top execs are forced to resign from Fannie Mae. They do not go to jail. There is no media “perp. walk.” They keeps all of their bonuses They finally pay $31.4 million in civil fines. 2005 The Federal Housing Enterprise Regulatory Reform Act is sponsored by:#325Sen. John McCain,(R-AZ)Armed Services, & Commerce, Science, & Transportation “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.” 2005 Noneof the top 4 recipients support the legislation. The reform act is blocked by Democrats, never even making it out of committee. Noneof the politicians return any of the money, tainted by fraud. 2008 Fannie Mae & Freddie Mac go bankrupt and the govt. takes them over completely. Lehman Brothers, goes bankrupt from investing in bad mortgages. AIG get $85 million in loan guarantees, after insuring bad loans & projects. Taxpayers will ultimately pay BILLIONS. 2008 Franklin Raines is now an advisor to the Obama Campaignwhich wants the govt. to take over more of the economy. Did government involvement in the mortgage market work out? How will even MOREgovernment involvement make it better? Do you want to be Sweden? McCain favors revising regulations & loan standards, selling off Fannie & Freddie.
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1
That's all quite accurate, but they leave out one very important point. Throughout the past 5-6 years, the Democrats have been insisting that Fannie-Freddie policies were sound, and the whole structure was in great financial shape. This was clearly not true, so they were either very stupid or "on the take." However, the past few years Republicans have been warning the public again and again that this was a house of cards, ready to collapse. In May 2006 McCain, and almost every other Republican Senator signed a public letter warning that Fannie-Freddie were in real trouble and needed to be fixed. There is a link below that shows the letter, with signatures. Not one Democrat Senator signed the letter .... not one. Obama was the biggest beneficiary of Fannie-Freddie "donations" over the years, after (Democrat Sen.) Chris Dodd. Gosh, I wonder why they wouldn't sign the letter? It's quite clear whose fault this was, if one is simply willing to read the record.


2
The illuminati elite power control that directed all of these things that you mentioned. It is all part of the transfer of power through economics to the world elite. It was done to do just what it is doing. Crash markets, currencies and democracies throughout the world. Driving it to a point of the New World Order. It is here. WAKE UP and be ready. The battle for your soul is in full measure. Read my other responses to many of these same questions. Educate yourself with the REAL facts as opposed to what you hear through the censored media. Keep asking great questions like this and take all information received. Consider it and if plausible, investigate it. Know that not only is what I am saying is not only plausible....it is happening!! It is not only important to understand what they have done like you have researched, but also understand why and the agenda. May God Bless us and have mercy upon this earth.


3
1981 - Congress votes to supercede all state managed anti usury laws and replaces them with nothing at all. This allows lending institutions to not just offer any interest rate, no matter how high, but it also allows them to take on any level of risk. Without this act, there would not have been a sub prime loan industry. I think it was the same time or perhaps the next year that Congress also voted to remove many of the same regulations on the banking industry that would have prevented the sub prime disaster. These regulations were put into place during the depression as safeguards to prevent it from ever happening again. Unfortunately, here we are almost years later experiencing the very collapse that those regulations would have prevented. Also, nowhere in there is any reference to Moody and Savings and Poor. Their role is perhaps the most fraudulent of all. They are the companies that rate companies and securities according to their level of risk. So that a company or security with a AA rating is more risky than a company or security with a AAA rating. But in the case of the Mortgage Backed Securities - which were essentially packages of multiple mortgages inside - there were some mortgages considered prime, and some considered sub prime. But these two ratings companies always rated them all as AAA, the same risk as U.S. Government issued T bonds. Imagine that, Moodys was stamping sub prime loans as good as Federal Bonds. This allowed them to be marketed as ultra safe to other companies. It was this rating that allowed Lehman Brothers, and others to borrow up to $30 for every dollar of their actual value. After all, they were considered as good as gold. So when sub prime loans started defaulting, the value of these MBSs started declining and the rating was exposed for the fraud that it always was. Thus, for every dollar these MBSs declined in value, Lehman Bro.s would have to pay up $30 in margin calls. Others were leveraged similarly which meant that hundreds of billions of dollars had to be pulled out of the stock market to cover these margin calls. That is partially why the stock market has collapsed by almost half its value. The rest of it was just investors trying to salvage their portfolios by pulling out of the markets - further feeding the collapse. And yes, that list seems to be right out of the annals of the Republican Talking Points. Notice it carefully avoids saying anything negative about free markets or anything negative about Republicans? It seems to place the entire blame on Democrats and Democrats alone. Notice it does not want to go before 1997? They don't want to go too far into the Reagan Administrations involvement. They were the one's who pushed for anti usury laws and to deregulate the banking industry. But we're not supposed to think that. Too long ago, too good a reputation to sully with such facts. It must not have happened. But it does seem a bit silly to blame the Big Government Democrats for deregulation.


4
Perhaps, Bush government forced Chinese Dollars (RMB) to raise its value triggering the time bomb of the both Mac.