On the Economy

During the 1980s, 1990s, and the early 2000s, the American economy was brought to the brink of depression by the “Killer “B” s”

The killer “B” s were:

Barney (Frank)

Bubba (Bill Clinton)

Barack, and

Bush (George W. for not stopping it)

In a typical ultra-liberal voter enticement scheme, they created a red-lining predicate for their scheme to buy votes with freebies, which they thought that they could force the American Banking system to fud for them.

The Redlining predicate:
There were fewer loans secured by mortgages on properties in black neighborhoods, therefore the banks must be redlining.

The Ultra-liberal Government solution:
Force banks to make a higher percentage of loans in black communities

Despite new tighter Federal restrictions on such things as “loan to value ratios” put into effect as a result of the S & L crisis of the 1980s, this new anti-redlining requirement asked banks to ignore the following obvious problems:

The fact that the people in those neighborhoods did not have the credit rating to repay loans.

The fact that the mortgaged properties lacked value to support those loans.

These Anti-red-lining rules forced banks to make bad loans.

When banks initially balked, community organizers began to have noisy groups of black demonstrators break into bank board meetings and picket on the lawns in front of the homes of bank executives. One of the community organizes who led noisy and threatening black demonstrations on the lawns of bank executives of the largest Chicago bank was one other than Barack Obama, himself.

So the ultra-liberals began their freebie vote getting program.

Under the law and the regulations in effect then (as well as now), loans in a bank’s portfolio had to be “marked to market,” meaning that any loan held as an asset in a bank’s portfolio had to carried on the books of the bank at the value at which that asset could be sold to a reasonably informed “reasonable investor.”
The “mark to market” rule was intended to require banks to report in fair manner the actual financial condition of the bank in the bank’s annual report.

The meaning of the “mark to market” requirement was that total value of bank’s portfolio could not exceed the aggregate value of its assets.

The result of having banks make loans to persons of inferior credit, to be secured by mortgages on property that was not worth the amount of the loans which the banks were being forced to make by thee ultra-liberal “do-gooders,” was that the annual reports of the banks began to reflect the fact that the banks had such low value, that several giant American banks were at risk of being sold to foreign banks and/or foreign governments.

The Killer B’s and their friends began to panic.

The Federal National Mortgage Association FNMA (known colloquially as Fannie Mae) is a US government sponsored enterprise, the purpose of which was to expand the secondary mortgage market by allowing banks to securitize their mortgages, thereby allowing banks to invest the proceeds of that securitization into more loans.

The ultra-liberals in the Washington swamp (the “Swamp Ultra-Liberals” or (“Sullies”) began to use Fannie Mae to buy these garbage loans from the banks.

All of a sudden, Fannie Mae was running out of money and the Sullies knew that they had no chance of getting Congress to give more money to Fannie Mae to support their ultra- liberal giveaway.

So the Sullies put the arm on the Wall Street banking houses like Smith Barney, Morgan Stanley, Goldman Saks, and others to buy the garbage loans from Fannie Mae.

The Wall Street house succumbed to the pressure and wound up bailing out the Sullies in Congress.

Ultimately, the Wall Street houses could not continue to bail out the Sullies in fund Congress, so the Wall Street geniuses decided to sell this garbage to the public.

So marketing geniuses kame up with the name “sub- prime mortgage” because that sounded more marketable that “piece of [crap].” Hence the gimmick of putting all of the garbage into a pool and having some rating agency (like Moody’s or Standard and Poor’s give the pool a positive rating thereby allowing the Wall Street houses to get individuals and in some instances corporate investors, like insurance companies (e.g. AIG) or public pension funds to purchase “shares” in these “sub-prime mortgage” pools.

When the scam became understood, (i.e. when people began to realize that despite all of the glowing endorsements or reports created by these marketing geniuses (really con-artists), the Wall Street houses and the individual investors lost everything, and the US economy went to hell.

Thus proving again that liberal plans to buy votes with freebies never works, because nothing is ever really free.

The sub-prime mortgage scam resulted in:

Jail time for the instigators
Severely damaged the rating agencies
Made a fool of the lawyers who represented the Wall Street houses in the purchase of the [crap] loans from Fannie Mae. Those lawyers made sure that the face amount of the [crap] mortgage loan papers equaled the amount of real cash hat their client Wall Street houses were paying to Fannie Mae. Those genius lawyers never looked to see what the [crap] loan paper was really worth

The liberal argument that Obama helped bring the economy back is ridiculous. He was one of the uber-liberals who sank the US economy in the first place. And the economic recovery during his tenure in office was the weakest recovery since the great Depression of the 1930s.

There is truth to the campaign slogan of the Clintons, namely “It’s the economy stupid.” That slogan has meaning here, when one sees what stupid did to the American economy.

Now, based upon the effort of the Trump administration, with tax cuts and the repeal of strangling regulations, the economy is no humming.

Gross domestic product is now running at 4% for the first time this century.

Black unemployment is at the lowest rate in history, as is Latino unemployment, youth unemployment and the same is virtually true of women’s unemployment. There are more open jobs than there are unemployed Americans.

The Democrat argument that much of the tax cut went to corporations demonstrates that they are playing the politics of division and it demonstrates just how ignorant they actually are.

It is the lower corporate that brought so many corporations back from other countries and gave corporations the opportunity to hire more Americans.

The uber-liberal argument that it was Obama who brought our economy back from the worst recession since the great depression is nonsense, Obama did not bring the economy back from that recession. He and his uber-liberal friends caused that recession!