The Dirty Democratic Hands of Obama/Biden

The Dirty Democratic Hands of Obama/Biden
by Lee Hemen
September 18, 2008

In one of the greatest takeovers of the private sector by the Federal Government has just finally reached its culmination: The grotesque bailout of Fannie Mae and Freddie Mac. Taxpayers will pay and pay for this. Over $700 billion to start. Much more than any “illegal” war in Iraq. That does not even take into account the $85 billion for AIG or the $1.2 trillion to prop up the banking industry over the last year! “By our count,” Business Investors Daily writes, “that’s about $2 trillion, or 14%, of a $14 trillion economy!” If there are roughly 290 million Americans, you figure out what that would mean for each of us. What we should be demanding is who is to blame? And this my friends is where Democrats will try to run for cover and hide behind lies and more lies. And, worse, their sycophants in the liberal mainstream media will not hold them accountable.

They will not tell you that “President Bush tried to reform Fannie and Freddie in 2004 but was rebuffed. A Democrat-led Congress, with some help from weak GOP members, has made repeated mistakes in turning our world-class financial system into an over-regulated, politicized piggy bank for Democratic causes and candidates.” (Investor’s Business Daily.com) Which Democratic candidates? Why Christopher Dodd, who is the Chairman of the Senate Banking Committee, to the tune of $165,400. (OpenSecrets.org) Senator Dodd has profited the most because he has been around since the 1980s. But just guess who comes in a close second with under two years in the Senate? Why none other than Junior Senator Barack Hussein Obama with $126,349! (OpenSecrets.org) And what makes the stench worse is the fact that two of the ex-heads of Fannie Mae, Raines and Johnson, are now part and parcel of the Obama financial machine. Go figure. NOTE: According to NewsBusters.com:

“Most of the top Fannie executives were also Democrats each of whom worked closely with Democratic presidents and Barack Obama. Franklin Raines, Clinton White House budget director, ran Fannie Mae and pocketed $50 million. Jamie Gorelick was a Clinton Justice Department Official (famous for adding to our intelligence failures helping cause the attacks on 9/11) was paid $26 million. Jim Johnson, who most recently served on Obama’s VP search committee, was the CEO of Fannie Mae and has also made millions. These Clinton/Obama associates sat at the head of a failing financial agency all the while raking in millions and donating hundreds of thousands to top Democrats.

So what, you may ask? Well, there is a reason that these Fannie Mae officials donated to Democrats. It was because Democrats continued to stymie Republican efforts to fix these failing lending agencies. Democrats protected these rotten lending practices and the Fannie Mae executives knew who were the sugar daddies that needed greasing”

Will you hear the dramatic speech given by John McCain from the floor of the Senate in 2005 to introduce legislation to reform these entities? Yet both Bush and McCain will be demonized by Democrats and the liberal mainstream media. By the way, guess which 2008 Democratic Presidential candidate team voted against McCain’s legislation? Give yourself a prize if you guessed Obama/Biden!  Yep, I guess both Obama and Biden know how to “run” government for personal fun and profit. Yes sir they sure do have the experience to stick it to you the taxpayer.

However, again, according to Investor’s Business Daily “it was the Clinton administration, obsessed with multiculturalism, that dictated where mortgage lenders could lend, and originally helped create the market for the high-risk subprime loans now infecting like a retrovirus the balance sheets of many of Wall Street’s most revered institutions.” Fueled by greed and socialistic multi-cultural political correctness Clinton went whole hog revising the Community Development Act. In fact it was Clinton crony Franklin Delano Raines (the same Obama campaign financial adviser) that made himself a millionaire by looting Fannie Mae “for a total of almost $100 million in compensation by the time he left in early 2005 under an ethical cloud.” Also, according to the Wall Street Journal, James Johnson, who is a long-time figure in Democratic Party politics, was part of the team originally tapped to help Obama find the running mate Joe Biden headed Fannie Mae for a decade before the current financial crisis.

Finally, according to Investor’s Business Daily, “The Clinton-era corruption, combined with unprecedented catering to affordable-housing lobbyists, resulted in today’s nationalization of both Fannie and Freddie, a move that is expected to cost taxpayers tens of billions of dollars… And the worst is far from over. By the time it is, we’ll all be paying for Clinton’s social experiment, one that Obama hopes to trump with a whole new round of meddling in the housing and jobs markets. In fact, the social experiment Obama has planned could dwarf both the Great Society and New Deal in size and scope.” You, the taxpayer, will pay and pay for these political criminal’s making themselves rich at our expense. If you vote Democrat this year, you are not only stupid, you are ignorant of who is behind the financial problems America now faces and Obama/Biden have very dirty hands.

UPDATE: According to FoxNews.com President Bush is warning that the “American economy is facing unprecedented challenges,” joined Treasury Secretary Henry Paulson Friday in calling for a “significant” infusion of taxpayer dollars to lift up the flailing economy. Bush and Paulson warned that everything from retirement savings to home values are at risk if the administration and lawmakers do not act quickly.

We’re talking hundreds of billions (of dollars),” Paulson said when asked how high the price tag could run. “This needs to be big enough to make a real difference and get to the heart of the problem.” FoxNews also made a very truthful statement that “The roots of the current crisis can be traced to lax lending for home mortgages — especially subprime loans given to borrowers with tarnished credit — during the housing boom. Lenders and borrowers were counting on home prices to keep zooming upward. But when the housing market went bust, home prices plummeted. Foreclosures spiked as people were left owing more on their mortgage than their homes were worth. Rising mortgage rates also clobbered some homeowners.”

Which is correct, however, never forget where the basis of all this came from: Democrats! Democrats who forced Congress to accept wrongheaded business policies that have political correctness guiding them rather than the best interests of the American economy. It is Socialism at its very core, and now we have a huge takeover of the Federal Government of the private mortgage and loan sector. You the taxpayer will pay and pay for this foul up by Democrats and their pushing social experimentation on us all. Now future generations will pay trillions of dollars for their mishandling of it. Never forget that. Never.

UPDATE 10/23/08 – Robert Rubin, an Obama economic adviser, Citigroup’s Director, and the 70th Treasury Secretary under Clinton (Who called Clinton and “unskilled Larry King”), has said that McCain tried to work with Democrats to pass legislation. Robert Reich, Clinton’s own Labor Secretary, on his own web blog Robert Reich has written that this bailout is not a good idea because:

“(1) It’s not likely to do all that much good because no one knows how much bad debt there is out there. Even if the government bought a lot of it, investors and lenders still couldn’t be sure how much remained. After all, big banks have already written down hundreds of billions of bad debts, and that hasn’t restored confidence in the Street. As the economy slows, bad debts will grow. Again, the problem isn’t a liquidity or solvency crisis; it’s a crisis of trust.

(2) However much bad debt there may be, that amount is surely far greater than the $394 billion of real estate, mortgages, and other assets that the old RTC bought from hundreds of failed savings-and-loans — thereafter selling them off form whatever it could get for them. The Bailout of All Bailouts would therefore put taxpayers at far greater risk than they are even today, and require an unprecedented role for government in reselling assets. Another major step toward socialized capitalism.”

His solution is not much better. He advocates a kind of take over of Wall Street: “A better idea would be for the Fed and Treasury to organize a giant workout of Wall Street — essentially, a reorganization under bankruptcy, for whatever firms wanted to join in. Equity would be eliminated, along with most preferred stock, creditors would be paid off to the extent possible. And then the participants would start over with clean balance sheets that reflected new, agreed-upon rules for full disclosure, along with minimum capitalization. Everyone would know where they stood. Bad debts would be eliminated. Taxpayers wouldn’t get left holding the bag. And there would be no ‘moral hazard’ incentive for future financial wizards to take giant risks with other taxpayers’ money.”

Once an socialist, always a socialist.

This article is copyrighted © 2008 by Lee Hemen and if you desire to use it, print it, or copy it you must do so in its entirety.

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2 Comments

Filed under Politics

2 responses to “The Dirty Democratic Hands of Obama/Biden

  1. Democrats blocked Bush’s Fannie Mae and Freddie Mac Reforms in 2003!
    ”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.
    http://strategicthought-charles77.blogspot.com/2008/09/democrats-blocked-bushs-fannie-mae-and.html

  2. Then Investor’s Business Daily must have the date wrong. However, I have read from three sources Bush’s plan to reign in Freddie Mac was finally voted on in 2004. McCain’s was voted on in 2005 and Obama and biden both voted against it. Biden voted against Bush’s proposal as did most Democrats citing that it would hinder “working class people” (code for those who really could not afford them: high risk) from getting housing loans. Well, now we see what not restricting loans has done, don’t we? And this is what political correctness does for the economy.

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