The U.S. government has dumped $370B into the financial markets this week alone. One report indicates investors have lost $700B in the last two weeks. The Russian stock market plunged and closed two days ago. Financial crisis has hit Asian markets as well.
Here is another amazing turn of events most people won’t learn about if they rely on the massive media for information.
Last night on Fox/Hannity and Colmes – – – Karl Rove dropped a bombshell – – – essentially blaming much of the chaos in the financial markets on the Democrats and linking some corporate raiders to the Obama campaign. Rove gave details which are easy to confirm or dispute, unlike Obama/Biden, who say only: ‘the economy is Bush’s fault, McCain is Bush, so the economy is McCain’s fault.’
Sure it is easy for the Dem/Left to dismiss Rove, President Bush’s former chief political advisor and campaign manager. They hate his guts for beating them in 2000, and 2004, you know the drone, “Karl Rove style politics,” as Obama is want to say, over and over: translation—Rove did a better job crafting debates, presenting his candidate, studying voting patterns, getting out the vote, and managing the campaigns. Legitimate success always annoys the Dem/Left.
Last night on Fox, Rove made the following points which you’ll not likely learn from the massive media. (It would be nice if they did their job and really dug in to find the truth as opposed to repeating lies about Palin and fluffing up Obama.)
>Freddie Mac and Fannie Mae were the “contagion” for the current crisis in financial markets and account for the lion’s share of the problem in the sub prime mortgage markets
>Freddie and Fannie were recently bailed out by the taxpayers to the tune of $200 billion
>Freddie Mac and Fannie Mae, Democrat government programs to begin with, were created to help lower income people get favorable terms to buy houses, both have been poorly run for years: mismanagement, poor accounting, scandal
>Freddie and Fannie began helping Countrywide with bad paper
>President Bush tried numerous times to work with Congress starting five years ago to reform Freddie and Fannie
>President Bush was thwarted in his efforts every time by Sen. Chris Dodd (D-Conn.) and Rep. Barney Frank, (D-Mass.), chair of the House Financial Services Committee. Dodd is the leader on housing issues in the Senate.
>Low and behold, Freddie and Fannie also have funds available to give to politicians! Obama has benefitted greatly from those political action committee resources, much more than his tenure in the Senate would warrant
>Obama advisors Robert Rubin and James A. Johnson are Washington insiders and key players who have contributed to some of our economic difficulties. Rove says Rubin as made tens of millions at Citigroup, while Johnson made $90m as Fannie Mae chief executive in a few years there. Rubin serves as Obama’s economic advisor. Johnson used to be Obama’s main advisor in the effort to select a running mate, but resigned given his controversial role as Fannie Mae chief executive.
The were Rove’s essential points. Additional information:
Rubin served as Director and Chairman of the Executive Committee of Citigroup, then served as Treasury Secretary throughout Clinton’s presidency, returning to Citigroup afterwards.
“In 1999, affirming his career-long interest in markets, Mr. Rubin joined Citigroup. Of note, the supermerger between Travelers Group and Citicorp was facilitated by the repeal of the Glass Steagall Act (Gramm-Leach-Bliley Act). This legislation was passed under the Clinton administration, days before Rubin’s resignation. Consolidation of investment, commercial banking, and insurance services as practiced by Citigroup under the direction of Rubin, has been implicated in the subprime mortage crisis. Despite criticism for his role in this debacle, Rubin serves as a Director and Chairman of the Executive Committee, and remains there to this day.”
Many have blamed the repeal of Glass Steagall for our current troubles, because those regulatory restraints, put in place in 1933 after the Great Depression, were designed to separate commercial banks from investment banks and reduce the impulse of greed to take dangerous risks in the markets, the current state of affairs.
According to the Washington Post, in June:
“James A. Johnson, a consummate Washington insider and former Fannie Mae chief executive, resigned yesterday from Sen. Barack Obama’s vice presidential search committee, just four days after he was caught up in controversy over low-interest home loans and lucrative business deals.”
Tidbit: Remember Dodd being investigated for getting favorable loan terms from Countrywide? Was he acting on behalf of Countrywide? Amanda Carpenter thinks so:
|Friday, June 13, 2008 DODD’S COUNTRYWIDE DISCOUNT|
|Posted by: Amanda Carpenter at 12:45 PM|
|“If it wasn’t okay for former VP vetter Jim Johnson to get sweetheart housing loans because of his cozy relationship with Countrywide, I think it’s safe to assume it’s not ethical for the Chairman of the Senate Banking Committee either, right?Sen. Chris Dodd (D.-Conn), who oversees housing issues in the Senate, got the same kind of “Countrywide Discount” Johnson did, according to this story.And the conflict of interest is much worse than it was for a VP vetter. As Chairman of the committee Dodd is now pushing a $300 billion bill to pump tax dollars into the housing industry and help those lenders, like Countrywide, who gave him healthy discounts on his mortgages because of his occupation.”|
Should be very interesting to learn more about Dodd, Frank, Rubin, Johnson and Obama/Biden when it comes to the intriguing financial connections and activities of these individuals and the impact on our economic troubles.
PS: Someone who knows something about the economy, once a Hillary supporter, has thrown his weight behind McCain. To the consternation of Larry King last night, Donald Trump formally endorsed McCain on King’s program last night on CNN.