Senator Gregg was part of a panel on CNBC covering the newly passed senate financial reform bill. What follows is 4 minutes and 17 seconds that you will want to hear. Sen. Gregg covers the problems with this bill including Freddie and Fannie not being addressed, the creation of the Freddie and Fannie debacle by Congress, and the Bureau of Consumer Protection.
…and the failure to take on Freddie and Fannie is almost malfeasance of a criminal level by the Congress, I mean the fact that we would leave on the table, well it’s like having a room, not having an elephant in it, but having the entire herd in it and saying the herd doesn’t exist.
…because this is not about lending for the purposes of having strong credit and good credit going out, it’s about lending to accomplish social justice purpose. That’s what the consumer agency is all about. This is a massive expansion on the agenda of the left in the area of domestic industrial policy.
I wandered over to Christmas Ghost (give them your patronage) and found these two posts and cartoons that sum up ACORN and the financial hurricane we find outselves in. It is a two-fer though, besides being right on the money, you will laugh your ass off.
For a second time (Hillary was the first), a politician stands up and comes up with an innovative plan to help America’s citizens that were defrauded by Fannie Mae and Freddie Mac and both the right and the left want to bitch about it and give John McCain grief about it? Stop complaining about another $300 Billion; it’s not! It is part of the $700Billion that Paulson wants to give to the banks.
Has it gone over everyone’s heads that this is not and never shall be the normal election cycle and that it has been 2 years of up and down rollercoaster ride for Americans in the polls and in the markets? Your (I use your because I have never had a 401K) 401’s have lost a total of $2 Trillion in retirement gains and people are acting like what is happening in the markets, the housing industry, the banking industry and the election is just run of the mill standard operating procedure in a down turn.
If anybody had been paying attention last year they would have been reading this press release from Hillary Clinton:
Hillary goes to the Nasdaq stock exchange today to call on Wall Street to help clean up the housing foreclosure crisis it helped create. Wall Street not only enabled reckless mortgage lending, it encouraged it – 1.8 million home foreclosure notices have been filed this year, a 74% increase from 2006. Now it’s time for lenders, homeowners and investors to come together to solve this crisis and stem the tide of foreclosures.
Hillary will challenge lenders and financial institutions to take three immediate steps today: 1) Voluntarily support a moratorium of at least 90 days on home foreclosures; 2) freeze the fluctuating rates on subprime loans for at least 5 years until they can be converted into fixed rate, affordable loans; 3) Require regular status reports on the progress they’re making in converting unworkable mortgages into loans families can afford so we have real accountability.
Hillary is proposing a comprehensive work out – not a bail out – that would end the foreclosure crisis. If Wall Street refuses to act, Hillary will propose legislation to tackle the problems in the housing market head on.
Unfortunately for the country, the MSM vilified Senator Clinton and these great ideas were lost in the rush of adoration for The Borg Prince (who actually is currently running on Hillary’s platform). So here we are right now watching the housing market crash around our ears.
Have you not realized by now that the Fannie, Freddie, Acorn and the Dems in congress have given us the proverbial, perfect, freakin’ storm of financial chaos that will bring this country to it’s knees by “encouraging” banks to make ninja loans to people that could not afford it? Anybody?
Has anybody been reading the economic mags or my posts about the market, the economy, and the housing hurricane? Anybody? Is it unfair to all the people that have been paying their mortgages, and unfair to all of us that are still renting because we are the working poor? Sure it is, but that does not matter right now. This is not a “normal” time. I would much rather take care of the housing crisis, get a floor under the markets, establish real home values, open up the credit markets, and avert global catastrophe, than watch my family starve in the impending depression. Do not believe me? You must not have been paying attention for the last 3 years. I have been. I have been waiting to be laid off from a job involved in the construction industry and new home starts since the beginning of 2006.
John McCain has the best plan right now for stabilizing the home markets, and it works from the bottom up with the American consumer staying in their homes, paying their mortgages and property taxes, and keeping their neighbors home values from going through the floor.
John McCain will direct his Treasury Secretary to implement an American Homeownership Resurgence Plan (McCain Resurgence Plan) to keep families in their homes, avoid foreclosures, save failing neighborhoods, stabilize the housing market and attack the roots of our financial crisis. America’s families are bearing a heavy burden from falling housing prices, mortgage delinquencies, foreclosures, and a weak economy. It is important that those families who have worked hard enough to finance homeownership not have that dream crushed under the weight of the wrong mortgage. The existing debts are too large compared to the value of housing. For those that cannot make payments, mortgages must be re-structured to put losses on the books and put homeowners in manageable mortgages.
The McCain Resurgence Plan would purchase mortgages directly from homeowners and mortgage servicers, and replace them with manageable, fixed-rate mortgages that will keep families in their homes. By purchasing the existing, failing mortgages the McCain resurgence plan will eliminate uncertainty over defaults, support the value of mortgage-backed derivatives and alleviate risks that are freezing financial markets.
The McCain resurgence plan would be available to mortgage holders that:
Live in the home (primary residence only)
Can prove their creditworthiness at the time of the original loan (no falsifications and provided a down payment).
The new mortgage would be an FHA-guaranteed fixed-rate mortgage at terms manageable for the homeowner. The direct cost of this plan would be roughly $300 billion because the purchase of mortgages would relieve homeowners of “negative equity” in some homes. Funds provided by Congress in recent financial market stabilization bill can be used for this purpose; indeed by stabilizing mortgages it will likely be possible to avoid some purposes previously assumed needed in that bill.
The plan could be implemented quickly as a result of the authorities provided in the stabilization bill, the recent housing bill, and the U.S. government’s conservatorship of Fannie Mae and Freddie Mac. It may be necessary for Congress to raise the overall borrowing limit.
For once the American public is going to go into debt for the American public. That’s bold and refreshing. Did you think we really had that $700 Billion just laying around? Nope, it will be a loan from some foreign country rolling in dough that we, our children and grandchildren will be paying back. If we are going to go into debt, shouldn’t it be for us and not the Wall Street Banks that thought they were going to get away with this fraud?
I have been railing AGAINST the Wall Street Bank Bailout bill(s) since Nancy and crew decided to go with Hank’s 3 page plan to become the most powerful person in the country, even over and above our President, with complete control of $700 Billion and no oversight. Nancy must think that the sleeping giant is still asleep.
Please take your heads out of the sand. Read your history books about the great depression and how our government actually made it last longer and was more detrimental to our citizens because of their intervention. When our Congress passed this bailout bill, they were doing the same thing the administration did in 1929 by tinkering with something that they should have left alone. Now it’s done, let’s use the $700Billion very, very wisely.
John McCain’s plan will stop a significant portion of the home foreclosures that are occurring right now and will help to put a floor underneath the housing crisis and stop the slide. It all started with the housing bubble and that is what needs to be addressed for this to turn around. I am also hoping that John McCain, when elected President will personally oversee the investigation into all the Democrats that fostered Fannie, Freddie and Acorn which created this mess. I am still following the FBI investigation of the Wall Street Banks, but there is quite the media blackout on this subject.
What follows is a video that explains the plan better than I can:
I picked this photo up off of Christmas Ghost. I am once again pointing out that conservatives are not fire breathing dragons, and do share some PUMA goals. I want to know why our Congress and White House are talking to the likes of Paulson, when in fact we should be talking to the most successful CFOs in the country about what to do. Stop taking advice from the folks that created and perpetrated this economic disaster.
This is exactly how I feel, and probably how numerous Americans feel about those Fannie and Freddie execs, the dems behind the meltdown, and the Wall Street bankers that bought all those bad loans thinking they were in the clear because Fannie and Freddie were guaranteed. I also think our cowardly Congress should join them on the plank for selling us, our children and grandchildren down the river to pay for something that may not even work. Thanks for that!