Thursday, October 02, 2008
The Mortgage Meltdown Trial of 2010
You may call the final witness.
Your Honor, I call the head of the Federal Reserve.
Sir, could you describe how defendant Dodd -- former Senator Christopher Dodd -- interacted with Fannie, Freddie and the financial services companies under his purview as head of the Senate Banking Committee?
During the past 20 years... PACs and employees of these firms contributed more than $13 million to Dodd... including nearly $6 million in the past two years.
That's $250,000 a month from people who expected protection. And he protected them alright. All the way until the catastrophic meltdown.
Sir, what about defendant Frank? Former Representative Barney Frank?
Well, by now all of us have heard Frank's incriminating tapes... he said, "I don't think we face a crisis; I don't think that we have an impending disaster. ...Fannie Mae and Freddie Mac do very good work, and they are not endangering the fiscal health of this country."
Not only was he wrong, but even in July of '08, he was pitching Fannie stock to investors on CNBC. Retirees, boomers, young people... anyone who listened to him thought Fannie was healthy. Right before everything evaporated.
And Frank had a major conflict-of-interest: his live-in partner, Herb Moses, was a Fannie Mae executive "at the forefront of the agency’s push to relax lending restrictions."
Which one is more culpable, though?
Neither. [Muffled surprise expressed by crowd]
Is the man behind this mess sitting in the courtroom?
Yes, sir, he is.
Could you please point him out to the jury?
Yes. He's right there.
No... that guy right there.
Yep. That's him.
But how? We know Obama took more money from Fannie and Freddie per year than anyone else, but how could that be the root cause?
Easy. Mr. Peabody, set the Wayback machine to 1985... *** Schwang!!! ***
This is Barack Obama in 1985 when he was a community activist.
Obama worked with one of the heads of Acorn, the radical leftists who have been heavily involved with voter intimidation and fraud -- even trading crack cocaine for votes.
In those days Acorn "proudly touted 'affirmative action' lending and pressured banks to make subprime loans." When "Acorn was beginning its campaign against these banks, Barack Obama trained the leadership of organizers in Chicago."
Even in February of this year, the mainstream media was decrying the activities of Acorn in setting the stage for the mortgage meltdown: "In the 1980s, groups such as the activists at ACORN began pushing charges of "redlining" - claims that banks discriminated against minorities in mortgage lending." In 1995, the Clinton administration loosened underwriting further, erasing "'outdated' criteria included the size of the mortgage payment relative to income, credit history, savings history and income verification."
"Banks that got poor reviews were punished; some saw their merger plans frustrated; others faced direct legal challenges by the Justice Department... Flexible lending programs expanded even though they had higher default rates than loans with traditional standards. On the Web, you can still find CRA loans available via ACORN with '100 percent financing . . . no credit scores . . . undocumented income . . . even if you don't report it on your tax returns.'
Ironically, an enthusiastic Fannie Mae Foundation report singled out one paragon of nondiscriminatory lending, which worked with community activists and followed "the most flexible underwriting criteria permitted." That lender's $1 billion commitment to low-income loans in 1992 had grown to $80 billion by 1999 and $600 billion by early 2003.
That was Countrywide, the same firm that gave sweetheart loan deals to prominent Democrats including... Senator Chris Dodd.
You see, it was Obama all along. His support for Acorn's intimidation of banks...
...and the millions he provided Acorn using his directorships of the Chicago Annenberg Challenge...
...and the Woods Fund (both with terrorist Bill Ayers)...
-- were primary drivers behind the mortgage meltdown.
Obama designed a slow-motion attack on the American economy, designed to promote "economic fairness" -- an Acorn code-phrase for socialism.
Consider: every one of Obama's mentors -- from communist Frank Marshall Davis to Jeremiah Wright -- were unapologetic Marxists who hate America.
Mr. Obama: what do you have to say for yourself?
Guilty as charged, your honor. I really thought I could get away with it -- what, with the mainstream media in the tank for me.
Bailiff: take all three ex-Senators into custody. Court is adjourned!