Obama blames his economic advisors for financial crisis, unwittingly – records show BHO close associates collected $288M in golden parachute payments from Fannie Mae
BHO advisor Raines left Fannie Mae with a $240M golden parachute
BHO advisors and close associates Johnson and Howard got golden parachute payments of $28M and $20M respectively
Amazing. BHO just gave a speech in Wisconsin. Trying to sound like a Reagan fiscal conservative, BHO, the ‘unifier,’ demonized the following:
>The Iraqis, for having an oil surplus. (Remember ‘war for oil!’) (Great diplomacy: hammer your friends in public.)
>Everybody on Wall Street. (Greed and corruption!) Later BHO said: “There is no separation between Main Street and Wall Street.” (Is Main Street then greedy and corrupt as well?) See below a report on Obama’s senior advisors and their roles in creating this financial crisis.
>Business leaders (All business leaders are scum?)
>Bush Administration for spending $10B a month in Iraq: “totally unnecessary.” Code: immediate with drawl. Note: Iraqi PM Maliki said two days ago they still need us there for the time being to secure the country, despite the success of the Surge, a Surge Obama opposed. So much for supporting our ally in the Middle East. I guess BHO would hand the keys to the Iranians? That will make it easier for Ahmadinejad to annihilate Israel.
>Medical insurers (BHO says they overbill Medicare. News to doctors. News to insurance companies. Medicare is a prime example of government waste, fraud and poor quality, a foretaste of national health care promoted by BHO.)
>Agri-Business: “They don’t need those subsidies.” (Do they employ people? Are they subject to wild market swings, global economic dynamics, unpredictable weather severe problems financing equipment and supplies to remain productive?)
>George W. Bush (Who continues to get blame for everything, and credit for nothing.) Read the record. This financial crisis is not a result of Bush economic policies. It is the result of Democrats trying to engage social engineering with tax dollars funneled through Freddie Mac and Fannie Mae, then pre-empting Republican serial attempts at reform. BHO has a willing audience with uninformed, emotionally driven people when he plays the blame shift game.
>All Republicans (Calling for bipartisan engagement to solve financial crisis, in the same breath, BHO demonizes the opposition.)
>Lobbyists (Shall we ask about the lobbying BHO did on behalf of Freddie/Fannie, the lobbying BHO and his associates did on behalf of ACORN, the lobbying the Dems and Freddie and Fannie did for years to strut up a corrupt system of largess and payoffs, waste and fraud?
>The entire Washington D.C. culture
>Drug companies who don’t deserve profits
>Republicans for promoting increased domestic oil production
The ‘unifier’ working hard to bring us together.
Otherwise . . .
He promised a tax cut. Yet, he voted against extending the Bush tax cuts, in the main, middle class tax cuts. (The poor don’t pay income tax.) Note: 86% of income tax revenue comes from the upper 25% of income earners already.
Obama decries special interest lobbying and campaign contributions, but take a peek at his supporters—Note** below, NY Times story.
“Global warming is the great global mission of this generation!” BHO declares, thus saying unproven science is more important than anything else?
Promises every child a world class education all the way through college, plus insisting the federal government commandeer 1/7th of the U.S. economic by promoting universal health care. (Likelihood of economic success with the captains of Freddie and Fannie running the health care industry?)
In future days, “Will they say we turned on each other?”
BHO encourages class warfare, then decries internal divisiveness. He is his brother’s keeper?
It is amazing BHO has the temerity to blame Wall Street when his official economic advisors are Wall Street insiders who ran us into the ground by mismanaging Fannie Mae:
FRANKLIN RAINES works for the Obama Campaign as Chief Economic Advisor.
TIM HOWARD is also a Chief Economic Advisor to Obama.
JIM JOHNSON hired as a Senior Obama Finance Advisor and was selected to run Obama’s Vice Presidential Search Committee.
Chairman and Chief Executive Officer at Fannie Mae
Raines was forced to retire from Fannie Mae when auditing discovered severe irregularities. The Wall Street Journal noted, “Raines, who long defended the company’s accounting despite mounting evidence that it wasn’t proper, issued a statement late Tuesday conceding that ‘mistakes were made’ and he would assume responsibility. News reports indicate the company was under growing pressure from regulators to shake up its management in the wake of findings that the company’s books ran afoul of generally accepted accounting principles for four years.” Fannie Mae had to reduce its surplus by $9 billion. Raines left with a “golden parachute valued at $240 Million in benefits. The Government filed suit against Raines when the depth of the accounting scandal became clear. http://housingdoom.com/2006/12/18/fannie-charges/
The Government noted, “The 101 charges reveal how the individuals improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public. The Notice explains how they submitted six years of misleading and inaccurate accounting statements and inaccurate capital reports that enabled them to grow Fannie Mae in an unsafe and unsound manner.” These charges were made in 2006. The Court ordered Raines to return $50 Million Dollars he received in bonuses based on miss-stated Fannie Mae profits.
Chief Financial Officer of Fannie Mae
Howard “was a strong internal proponent of using accounting strategies that would ensure a stable pattern of earnings at Fannie.” In everyday English – he was cooking the books. The Government Investigation determined that, “Chief Financial Officer, Tim Howard, failed to provide adequate oversight to key control and reporting functions within Fannie Mae.” On June 16, 2006, Rep. Richard Baker, R-La., asked the Justice Department to investigate his allegations that two former Fannie Mae executives lied to Congress in October 2004 when they denied manipulating the mortgage-finance giant’s income statement to achieve management pay bonuses. Investigations by federal regulators and the company’s board of directors since concluded that management did manipulate 1998 earnings to trigger bonuses. Raines and Howard resigned under pressure in late 2004.
Howard’s Golden Parachute was estimated at $20 Million!
A former executive at Lehman Brothers and who was later forced from his position as Fannie Mae CEO. A look at the Office of Federal Housing Enterprise Oversight’s May 2006 report on mismanagement and corruption inside Fannie Mae, and you’ll see some interesting things about Johnson. Investigators found that Fannie Mae had hidden a substantial amount of Johnson ‘s 1998 compensation from the public, reporting that it was between $6 million and $7 million when it fact it was $21 million.“ Johnson is currently under investigation for taking illegal loans from Countrywide while serving as CEO of Fannie Mae. Johnson’s Golden Parachute was estimated at $28 Million.
**OBAMA CAMPAIGN CONTRIBUTIONS:
“An analysis of campaign finance records shows that about two-thirds of his bundlers are concentrated in four major industries: law, securities and investments, real estate and entertainment. Lawyers make up the largest group, numbering roughly 130, with many of them working for firms that also have lobbying arms. At least 100 Obama bundlers are top executives or brokers from investment businesses: nearly two dozen work for financial titans like Lehman Brothers, Goldman Sachs or Citigroup. About 40 others come from the real estate industry.”
THE CAUSE IN A NUTSHELL
by Don Colony 14 author
September 29th, 2008 at 8:09 pm
The cause, in a nutshell:
1. Congress (under Jimmy Carter) passes a bill making it illegal for
banks to “redline” (that is, they can’t ignore poor neighborhoods
because that would be discrimination).
2. In 1992, Clinton can’t get elected by saying “Vote for me and I’ll
give $250,000 in tax dollars to all poor people so they can buy a house”
so he instead says “I feel your pain” to get into office.
3. Clinton changes the rules so that banks are faced with $10,000 fines
(or 1% of assets, whichever is less) per-loan-application if they
discriminate against the poor. In other words, the government FORCES
banks to make bad loans.
4. To soften the load, Clinton reduces the Fannie Mae “reserve
requirement” to an astoundingly low 2.5%! (They need to keep only $2.50
in cash for every $100 loaned!) Banks, faced with $10,000 fines, respond
by making bad loans and immediately dumping them on Fannie Mae.
5. Clinton rule changes also require banks to count WELFARE CHECKS AND
FOOD STAMPS as “income” for loan applications!
6. Senate Democrats demand that Fannie Mae buy more bad loans to “help
the poor become homeowners.”
7. Radicals Islamists attack the U.S. on 9/11. To keep the economy from
tanking because of the terrorist attack, the Federal Reserve keeps
interest rates artifically low – to stimulate the economy. These low
interest rates make it even easier for people to get mortgages.
8. Because Fannie Mae is buying up bad loans like candy, banks keep
9. Conservatives see the handwriting on the wall and start complaining.
10. Fannie Mae CEOs James Johnson and Franklin Raines “cook the books”
to give themselves, and other former Clinton buddies at Fannie Mae,
11. Raines (like, Johnson, later an Obama advisor) is forced to resign
and pay back millions.
12. Because many poor people entered the housing market, there are MORE
buyers chasing the same number of houses available. That makes prices go
up – much faster than the inflation rate. (Duh! If more people want the
same house, the seller can charge more!)
13. More conservatives warn Congress of trouble ahead. Barney Frank
(D-MA) and other Dems say “Don’t worry, be happy.” Maxine Waters (D-CA)
says Republicans are racists for wanting to rein in Fannie Mae to
prevent poor blacks from buying houses. Waters praises the crook
14. John McCain submits a Fannie Mae reform bill in 2005. Senator Chris
Dodd (D-CN) gets his fellow Dems to promptly vote against it; it never
leaves his banking committee and thus never gets voted on by the full
Senate. Dodd gets a boatload of cash from Fannie Mae for his campaigns,
more than any other Senator (Obama is in second place).
15. Everything explodes in 2008.
16. Secretary Paulson (a Democrat) persuades a non-functioning President
Bush to go along with a bailout.
17. At a White House meeting, Dems feed their talking points to Obama so
he can look good. He screws up, and lambasts the Republicans – angering
them enough so that they have no desire to help.
18. Frank, Dodd, Reid, Pelosi blame the Republicans. The media piles on,
ignoring the real cause of the crisis, in an effort to elect their
socialist pal Obama. They all know the Dems caused the problems, but why
burden Americans with the truth?
TIME TO RUN THE RATS OUT OF WASHINGTON, AND THE CHIEF RAT IS BHO.