Thursday, September 25, 2008

CNN reports Americnas 2-1 blame the GOP fo rthe housing crisis!?

Are people really this clueless?

New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By STEPHEN LABATON
Published: September 11, 2003


The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.

''There is a general recognition that the supervisory system for housing-related government-sponsored enterprises neither has the tools, nor the stature, to deal effectively with the current size, complexity and importance of these enterprises,'' Treasury Secretary John W. Snow told the House Financial Services Committee in an appearance with Housing Secretary Mel Martinez, who also backed the plan.

Mr. Snow said that Congress should eliminate the power of the president to appoint directors to the companies, a sign that the administration is less concerned about the perks of patronage than it is about the potential political problems associated with any new difficulties arising at the companies.

The administration's proposal, which was endorsed in large part today by Fannie Mae and Freddie Mac, would not repeal the significant government subsidies granted to the two companies. And it does not alter the implicit guarantee that Washington will bail the companies out if they run into financial difficulty; that perception enables them to issue debt at significantly lower rates than their competitors. Nor would it remove the companies' exemptions from taxes and antifraud provisions of federal securities laws.

The proposal is the opening act in one of the biggest and most significant lobbying battles of the Congressional session.

After the hearing, Representative Michael G. Oxley, chairman of the Financial Services Committee, and Senator Richard Shelby, chairman of the Senate Banking Committee, announced their intention to draft legislation based on the administration's proposal. Industry executives said Congress could complete action on legislation before leaving for recess in the fall.

''The current regulator does not have the tools, or the mandate, to adequately regulate these enterprises,'' Mr. Oxley said at the hearing. ''We have seen in recent months that mismanagement and questionable accounting practices went largely unnoticed by the Office of Federal Housing Enterprise Oversight,'' the independent agency that now regulates the companies.

''These irregularities, which have been going on for several years, should have been detected earlier by the regulator,'' he added.

The Office of Federal Housing Enterprise Oversight, which is part of the Department of Housing and Urban Development, was created by Congress in 1992 after the bailout of the savings and loan industry and concerns about regulation of Fannie Mae and Freddie Mac, which buy mortgages from lenders and repackage them as securities or hold them in their own portfolios.

At the time, the companies and their allies beat back efforts for tougher oversight by the Treasury Department, the Federal Deposit Insurance Corporation or the Federal Reserve. Supporters of the companies said efforts to regulate the lenders tightly under those agencies might diminish their ability to finance loans for lower-income families. This year, however, the chances of passing legislation to tighten the oversight are better than in the past.

Reflecting the changing political climate, both Fannie Mae and its leading rivals applauded the administration's package. The support from Fannie Mae came after a round of discussions between it and the administration and assurances from the Treasury that it would not seek to change the company's mission.
After those assurances, Franklin D. Raines, Fannie Mae's chief executive, endorsed the shift of regulatory oversight to the Treasury Department, as well as other elements of the plan.

''We welcome the administration's approach outlined today,'' Mr. Raines said. The company opposes some smaller elements of the package, like one that eliminates the authority of the president to appoint 5 of the company's 18 board members.
Company executives said that the company preferred having the president select some directors. The company is also likely to lobby against the efforts that give regulators too much authority to approve its products.

Freddie Mac, whose accounting is under investigation by the Securities and Exchange Commission and a United States attorney in Virginia, issued a statement calling the administration plan a ''responsible proposal.''

The stocks of Freddie Mac and Fannie Mae fell while the prices of their bonds generally rose. Shares of Freddie Mac fell $2.04, or 3.7 percent, to $53.40, while Fannie Mae was down $1.62, or 2.4 percent, to $66.74. The price of a Fannie Mae bond due in March 2013 rose to 97.337 from 96.525.Its yield fell to 4.726 percent from 4.835 percent on Tuesday.

Fannie Mae, which was previously known as the Federal National Mortgage Association, and Freddie Mac, which was the Federal Home Loan Mortgage Corporation, have been criticized by rivals for exerting too much influence over their regulators.
''The regulator has not only been outmanned, it has been outlobbied,'' said Representative Richard H. Baker, the Louisiana Republican who has proposed legislation similar to the administration proposal and who leads a subcommittee that oversees the companies. ''Being underfunded does not explain how a glowing report of Freddie's operations was released only hours before the managerial upheaval that followed. This is not world-class regulatory work.''

Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

Representative Melvin L. Watt, Democrat of North Carolina, agreed.
''I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' Mr. Watt said.






McCain Cosponsored Federal Housing Enterprise Regulatory Reform Act of 2005; Reform of Fannie and Freddie

In 2003, Senator John McCain co-sponsored the Federal Housing Enterprise Regulatory Reform Act of 2005. (Text of bill and related information.) The reform, due to Democratic resistance, never became law. Here was a statement John McCain made in support of the Federal Housing Enterprise Regulatory Reform Act of 2005:

Statement by John McCain Sen. John McCain [R-AZ]: Mr. President, this week Fannie Mae's regulator reported that the company's quarterly reports of profit growth over the past few years were "illusions deliberately and systematically created" by the company's senior management, which resulted in a $10.6 billion accounting scandal.

The Office of Federal Housing Enterprise Oversight's report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae's former chief executive officer, OFHEO's report shows that over half of Mr. Raines' compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.

The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator's examination of the company's accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.

For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac--known as Government-sponsored entities or GSEs--and the sheer magnitude of these companies and the role they play in the housing market. OFHEO's report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO's report solidifies my view that the GSEs need to be reformed without delay.

I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 1 90, to underscore my support for quick passage of GSE regulatory reform legislation. 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. I urge my colleagues to support swift action on this GSE reform legislation."

This legislation went nowhere, thanks to Barack Obama and other Democrats.

Red State Update - Bailout

These fine boys have some humorous, unguarded, opinions regarding the financial bailout. I have similar opinions, but present them in a much different way.

Obama & McCain Ice Fishing!

The Presidential election was too close to call. Neither the
Republican candidate nor the Democratic candidate had enough votes to win. There
was much talk about ballot recounting, court challenges, etc., but a week-long
ice fishing competition seemed the sportsmanlike way to settle things. The
candidate that caught the most fish at the end of the week would win the
election.

After much of back and forth discussion, it was decided
that the contest take place on a remote frozen lake in northern Minnesota


There were to be no observers present, and both men were to be
sent out separately on this isolated lake and return at 5 P.M. with their catch
for counting and verification by a team of neutral parties. At the end of the
first day, John McCain returned to the starting line and he had ten
fish.

Soon, Obama returned and had no fish. Well, everyone assumed
he was just having another 'bad hair' day or something and hopefully, he would
catch up the next day.

At the end of the 2nd day John McCain came
in with 20 fish and Obama came in again with none.

That evening,
Harry Reid got together secretly with Obama and said, "Obama, I think John
McCain is a low-life, cheatin' son-of-a-gun. I want you to go out tomorrow and
don't even bother with fishing. Just spy on him and see just how he is
cheating."

The next night (after John McCain returns with 50 fish),
Harry Reid said to Obama, 'Well, tell me, how is he
cheating?'

Obama replied, 'Harry, you're not going to believe this,
but he's cutting holes in the ice.

Wednesday, September 24, 2008

McCain Can Not Email!

Bush: Congress Must Act To Save Stupid People

Scrappleface seems to have inside info on the President's speech.

(2008-09-24) — The foundation of the U.S. economy could crumble, President George Bush said today, if Congress fails to approve a U.S. Treasury plan to take over foundering [sic] financial firms, a proposal which the president called “a much-needed 21st-century civil rights act for stupid people.”

“...To sustain this shining city on a hill,” Mr. Bush said, “we need to rescue the ignorant, irresponsible folks — from Wall Street to Capitol Hill to Main Street — who got us to where we are today. We must guarantee that no American suffers the soft bigotry of being forced to live with the consequences of his bad decisions... “It is a moral imperative that we guard the civil rights of these idiots,””


Read the full text at Scrappleface.

Bill Balsamico: The Wall Street Bailout

It is very sad that we are in this position at this time (that is to say how close to being a third world country which I talked about in my last address). It is my opinion that we do not give one dime to bail out the GREEDY and CROOKED companies. Where were our leaders while this was happening? Our President and both Presidential candidates keep telling America that the backbone of our country and economy is the everyday worker and small business owner. As a small business owner I am tired of them breaking my back. While the speculators drove up the price of oil we paid and are still paying the price at the pumps while those same speculators made BILLIONS with no risk involved. Ask any small business owner if Wall Street and/or the Government will bail them out if they make bad decisions in business. These people on Wall Street make VERY VERY good money (which they still have in the bank or in their possession unlike the stockholder that they wiped out). Wall Street, AIG, Fanny Mae, Freddie Mac etc employees are all still working, their fortunes and futures were not wiped out. If the President, Congress and both Presidential candidates pass this 700 BILLION bail out they are telling me Washington business as usual (PORK SPENDING JUST SUPER SIZED and under the term BAILOUT). I believe if no bailout is given the everyday worker and small business will not perish as they lead you to believe. After all we survive every other hurdle Government and big business throw our way. It is time they learn how to survive the way we do, by sucking it up and getting through with no guarantees like the rest of the real world survives. I would rather endure a few bumps in the road than have the Government sell the future of my children and grand children. If the big companies pay and suffer for their mistakes, we (as well as them) will evolve a better and stronger country for it.

Thank You,

Bill Balsamico
Casa D'ice
N. Versailles Pa. 15137
www:casadice.com

Monday, September 22, 2008

Who Lacks Health Insurance In America?

There is a lot of hype about those who lack health insurance in the US. Numbers go as high as 45.7 million people. There has been a push since the Clinton administration for universal health care. In a simplistic explanation, health care will be provided and controlled by the government. This Orwellian concept has gripped the liberals in a feeding frenzy of desire for a protective 'parent' that they may never have had - a nanny state daddy or mommy. Never mind that Canada and England have have had a try at it and it is a failure. Medical services are so regulated that people with medical issues that can be corrected in days in the US now take months. The US medical community is providing health care to Canadians (According to the Canadian Medical Association there are currently more than one million people in the country who are on waiting lists for medical treatment. In 2005, Statistics Canada estimated that 4.3 million Canadians had difficulty accessing 'first contact' services such as family doctors, and 1.2 million had difficulty getting specialized care over a 12-month period due to long waiting times. More than 30 percent said that their health deteriorated while waiting to see a specialist.) who do not have the time to wait for their government mandated place in line. HMO's have been labeled the villains yet the largest HMO in the world is the VA medical system. The VA has, and continues to have, major problems. What can be a good outcome if all of the US is under government regulated medical care? If you think medical care is expensive now, what will the price be if the government controls it? This Powerline permalink has some more info that is worth the read.

1:54 Seconds Of Obama's Hubris


"If ever time should come, when vain and aspiring men shall possess the highest seats in Government, our country will stand in need of its experienced Patriots to prevent its ruin." Samuel Adams

If Thomas Paine Wrote "Common Sense" Today

There is nothing that I can add to this video.

Sunday, September 21, 2008

Obama vs Fletch

Without a teleprompter, there wouldn't be much of a difference. If you alter the skin coloration and the ears, a Fletch is still a Fletch.



Compare this to the following.