Nine years ago this month, the New York Times proved to be rather prophetic:
Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.
”From the perspective of many people, including me, this is another thrift industry growing up around us,” said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.”
[...]
Home ownership has, in fact, exploded among minorities during the economic boom of the 1990’s. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University’s Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent . In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent .
This whole mess was inspired by rabble-rousing left-wing groups who felt (not thought) that blacks were not getting enough mortgages.
Note, however, that when whites (31%) or Asians (46%) are on the losing end of this equation, it is apparently NOT evidence of any racism. Right, ACORN?
Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites , in part because blacks and Hispanics in particular tend to have on average worse credit ratings.
– Steven A. Holmes, “Fannie Mae Eases Credit To Aid Mortgage Lending” , New York Times , 30 September, 1999.
UPDATE 1:
We’re all Homeowners Now
Cover Up of Fannie Mae/Freddie Mac in 2004 Exposed
UPDATE 2:
Burning Down The House: What Caused Our Economic Crisis?
This video is an informative look at the factors that are causing our current financial and economic crisis. It discusses policy changes 13 years ago that unleashed the sub-prime mortgage-backed securities market, which accelerated prices erratically, inviting speculation and loose lending practices which were both condoned and encouraged by existing regulation and carried out by risk-blind executives and Fannie Mae and Freddie Mac.
UPDATE 3:
Heartland Democratic Presidential Forum 12/07
Here’s a video from a forum exclusively for thousands of community organizers including Gamaliel and ACORN people. Obama said that ACORN and friends (responsible for voting fraud and the subprime crisis) are going to be shaping policy for an Obama presidency.
Bookmark this :
September 26th, 2008 at 10:51 am
Yes, credit ratings are an issue.
But it’s also in part because those mortgages
weren’t
being
paid.
Call me crazy…
September 30th, 2008 at 2:44 pm
Fannie Mae and Freddie Mac Invest(ed) in Lawmakers
When the federal government announced two months ago that it would prop up mortgage buyers Fannie Mae and Freddie Mac, CRP looked at how much money members of Congress had collected since 1989 from the companies. On Sunday the government completely took over the two government-sponsored enterprises, and we’ve returned to our data to bring you the updates, this time providing a list of all 354 law More..makers who have gotten money from Fannie Mae and Freddie Mac (in July we posted the top 25). These totals are based on data released electronically from the FEC on Sept. 2 and include contributions to lawmakers’ leadership PACs and candidate committees from the floundering companies’ PACs and employees. Current members of Congress have received a total of $4.8 million from Fannie Mae and Freddie Mac, with Democrats collecting 57 percent of that. This week we also wrote about how much money lawmakers had invested of their own money in the companies last year–a total of up to $1.7 million.
All Recipients of Fannie Mae and Freddie Mac Campaign Contributions, 1989-2008
Dodd, Christopher J S CT D $165,400 $48,500 $116,900
Obama, Barack S IL D $126,349 $6,000 $120,349
Kerry, John S MA D $111,000 $2,000 $109,000
Bennett, Robert F S UT R $107,999 $71,499 $36,500
Bachus, Spencer H AL R $103,300 $70,500 $32,800
Blunt, Roy H MO R $96,950 $78,500 $18,450
Kanjorski, Paul E H PA D $96,000 $57,500 $38,500
Bond, Christopher S ‘Kit’ S MO R $95,400 $64,000 $31,400
Shelby, Richard C S AL R $80,000 $23,000 $57,000
Reed, Jack S RI D $78,250 $43,500 $34,750
Reid, Harry S NV D $77,000 $60,500 $16,500
Clinton, Hillary S NY D $76,050 $8,000 $68,050
Davis, Tom H VA R $75,499 $13,999 $61,500
Boehner, John H OH R $67,750 $60,500 $7,250
Conrad, Kent S ND D $64,491 $22,000 $42,491
Reynolds, Tom H NY R $62,200 $53,000 $9,200
Johnson, Tim S SD D $61,000 $20,000 $41,000
Pelosi, Nancy H CA D $56,250 $47,000 $9,250
Carper, Tom S DE D $55,889 $31,350 $24,539
Hoyer, Steny H H MD D $55,500 $51,500 $4,000
Pryce, Deborah H OH R $55,500 $45,000 $10,500
Emanuel, Rahm H IL D $51,750 $16,000 $35,750
Isakson, Johnny S GA R $49,200 $35,500 $13,700
Cantor, Eric H VA R $48,500 $46,500 $2,000
Crapo, Mike S ID R $47,250 $40,500 $6,750
Frank, Barney H MA D $42,350 $30,500 $11,850
Bean, Melissa H IL D $41,249 $34,999 $6,250
Bayh, Evan S IN D $41,100 $16,500 $24,600
McConnell, Mitch S KY R $41,000 $40,000 $1,000
Maloney, Carolyn B H NY D $39,750 $16,500 $23,250
Dorgan, Byron L S ND D $38,750 $30,500 $8,250
Miller, Gary H CA R $38,000 $31,500 $6,500
Rangel, Charles B H NY D $38,000 $14,750 $23,250
Tiberi, Patrick J H OH R $35,700 $32,600 $3,100
Bunning, Jim S KY R $33,802 $29,650 $4,152
Stabenow, Debbie S MI D $33,450 $32,000 $1,450
Chambliss, Saxby S GA R $33,250 $22,500 $10,750
Menendez, Robert S NJ D $31,250 $30,500 $750
Enzi, Mike S WY R $31,000 $27,500 $3,500
Van Hollen, Chris H MD D $30,700 $11,000 $19,700
Landrieu, Mary L S LA D $30,600 $20,000 $10,600
Murray, Patty S WA D $30,000 $23,000 $7,000
Clyburn, James E H SC D $29,750 $26,000 $3,750
Crowley, Joseph H NY D $29,700 $25,500 $4,200
Sessions, Pete H TX R $29,472 $24,000 $5,472
McCrery, Jim H LA R $29,000 $26,000 $3,000
Hooley, Darlene H OR D $28,750 $19,500 $9,250
Royce, Ed H CA R $28,600 $4,000 $24,600
Renzi, Rick H AZ R $28,250 $28,000 $250
Lieberman, Joe S CT I $28,250 $11,500 $16,750
Baucus, Max S MT D $27,500 $21,000 $6,500
Moore, Dennis H KS D $26,550 $25,500 $1,050
Coleman, Norm S MN R $24,690 $12,000 $12,690
Matheson, Jim H UT D $24,500 $24,000 $500
Schumer, Charles E S NY D $24,250 $1,500 $22,750
Durbin, Dick S IL D $23,750 $14,000 $9,750
Rogers, Mike H MI R $22,750 $21,000 $1,750
Lynch, Stephen F H MA D $22,500 $13,500 $9,000
Rockefeller, Jay S WV D $22,250 $5,000 $17,250
Smith, Gordon H S OR R $22,000 $20,000 $2,000
Mikulski, Barbara A S MD D $21,750 $16,500 $5,250
McCain, John S AZ R $21,550 $0 $21,550
Spratt, John M Jr H SC D $21,500 $17,000 $4,500
Brown-Waite, Ginny H FL R $21,000 $21,000 $0
Davis, Geoff H KY R $21,000 $19,500 $1,500
Velazquez, Nydia M H NY D $20,750 $16,750 $4,000
Baca, Joe H CA D $20,500 $20,200 $300
Alexander, Lamar S TN R $20,500 $20,000 $500
Allard, Wayne S CO R $20,250 $0 $20,250
Neugebauer, Randy H TX R $20,000 $20,000 $0
Nelson, Ben S NE D $20,000 $19,000 $1,000
Salazar, Ken S CO D $19,900 $17,000 $2,900
Jefferson, William J H LA D $19,250 $8,500 $10,750
Byrd, Robert C S WV D $18,500 $8,000 $10,500
Hatch, Orrin G S UT R $18,250 $12,500 $5,750
Miller, Brad H NC D $18,000 $16,500 $1,500
Sherman, Brad H CA D $18,000 $12,500 $5,500
Craig, Larry S ID R $18,000 $15,000 $3,000
Roberts, Pat S KS R $18,000 $18,000 $0
Waters, Maxine H CA D $17,800 $15,000 $2,800
Biggert, Judy H IL R $17,750 $15,500 $2,250
Gerlach, Jim H PA R $17,750 $16,500 $1,250
Reyes, Silvestre H TX D $17,550 $2,000 $15,550
LaTourette, Steven C H OH R $17,500 $17,500 $0
Brownback, Sam S KS R $17,300 $14,250 $3,050
Barrett, Gresham H SC R $17,250 $13,000 $4,250
Watt, Melvin L H NC D $17,250 $13,000 $4,250
Scott, David H GA D $17,000 $13,500 $3,500
King, Pete H NY R $16,750 $1,000 $15,750
Cummings, Elijah E H MD D $16,700 $10,000 $6,700
Grassley, Chuck S IA R $16,500 $14,500 $2,000
Cantwell, Maria S WA D $16,250 $0 $16,250
Domenici, Pete V S NM R $16,226 $7,000 $9,226
Herseth Sandlin, Stephanie H SD D $16,200 $4,500 $11,700
Putnam, Adam H H FL R $15,500 $15,500 $0
Feinstein, Dianne S CA D $15,250 $2,000 $13,250
Brown, Sherrod S OH D $15,000 $15,000 $0
Feeney, Tom H FL R $14,750 $13,500 $1,250
Sununu, John E S NH R $14,750 $0 $14,750
Hinojosa, Ruben H TX D $14,500 $13,000 $1,500
Capito, Shelley Moore H WV R $14,250 $8,000 $6,250
Burr, Richard S NC R $14,250 $13,500 $750
Jackson, Jesse Jr H IL D $14,000 $8,000 $6,000
Meeks, Gregory W H NY D $14,000 $13,500 $500
Cornyn, John S TX R $14,000 $12,000 $2,000
Collins, Susan M S ME R $13,000 $12,000 $1,000
Boxer, Barbara S CA D $12,750 $5,000 $7,750
McHenry, Patrick H NC R $12,500 $12,500 $0
Israel, Steve H NY D $12,050 $10,000 $2,050
Nunes, Devin Gerald H CA R $12,000 $12,000 $0
Davis, Artur H AL D $11,750 $11,500 $250
Martinez, Mel S FL R $11,750 $8,500 $3,250
Roskam, Peter H IL R $11,650 $8,500 $3,150
Pryor, Mark S AR D $11,650 $9,500 $2,150
Webb, James S VA D $11,550 $1,000 $10,550
Doolittle, John T H CA R $11,500 $11,500 $0
Harkin, Tom S IA D $11,450 $6,900 $4,550
Lee, Barbara H CA D $11,250 $11,000 $250
Thune, John S SD R $11,057 $1,000 $10,057
Klein, Ron H FL D $11,000 $11,000 $0
Mahoney, Tim H FL D $11,000 $11,000 $0
Fossella, Vito H NY R $10,750 $7,500 $3,250
Schultz, Debbie Wasserman H FL D $10,750 $9,750 $1,000
Thompson, Mike H CA D $10,600 $1,000 $9,600
Moran, Jim H VA D $10,500 $1,250 $9,250
Kennedy, Edward M S MA D $10,500 $3,000 $7,500
Clay, William L Jr H MO D $10,250 $8,500 $1,750
Payne, Donald M H NJ D $10,100 $5,500 $4,600
Dingell, John D H MI D $10,000 $7,000 $3,000
Lincoln, Blanche S AR D $10,000 $5,500 $4,500
Levin, Sander H MI D $9,800 $0 $9,800
Roybal-Allard, Lucille H CA D $9,800 $5,000 $4,800
Barrasso, John A S WY R $9,500 $9,500 $0
Nelson, Bill S FL D $9,500 $9,000 $500
Napolitano, Grace H CA D $9,300 $8,500 $800
Castle, Michael N H DE R $9,200 $7,000 $2,200
Drake, Thelma H VA R $9,000 $9,000 $0
Dreier, David H CA R $9,000 $7,000 $2,000
Bachmann, Michele Marie H MN R $8,850 $6,500 $2,350
Gonzalez, Charlie A H TX D $8,500 $5,000 $3,500
Lewis, John H GA D $8,500 $4,000 $4,500
Knollenberg, Joe H MI R $8,250 $5,000 $3,250
Moore, Gwen H WI D $8,250 $8,000 $250
Pastor, Ed H AZ D $8,100 $4,500 $3,600
Norton, Eleanor Holmes D DC D $8,000 $3,000 $5,000
Becerra, Xavier H CA D $8,000 $7,000 $1,000
Jackson Lee, Sheila H TX D $8,000 $0 $8,000
Larson, John B H CT D $8,000 $8,000 $0
Lewis, Jerry H CA R $8,000 $7,000 $1,000
Melancon, Charles J H LA D $8,000 $8,000 $0
Walsh, James T H NY R $7,750 $0 $7,750
Corker, Bob S TN R $7,750 $2,000 $5,750
Cramer, Bud H AL D $7,500 $7,000 $500
Cubin, Barbara H WY R $7,500 $5,000 $2,500
Ensign, John S NV R $7,300 $6,000 $1,300
Meek, Kendrick B H FL D $7,250 $6,500 $750
Wilson, Charlie H OH D $7,250 $7,000 $250
Leahy, Patrick S VT D $7,250 $2,500 $4,750
Cleaver, Emanuel H MO D $7,000 $7,000 $0
Marchant, Kenny Ewell H TX R $7,000 $7,000 $0
Thompson, Bennie G H MS D $7,000 $6,000 $1,000
Casey, Bob S PA D $7,000 $6,000 $1,000
Solis, Hilda L H CA D $6,800 $6,500 $300
Gordon, Bart H TN D $6,750 $4,000 $2,750
Pomeroy, Earl H ND D $6,750 $5,000 $1,750
Tiahrt, Todd H KS R $6,500 $6,500 $0
Boyd, Allen H FL D $6,000 $5,500 $500
Capuano, Michael E H MA D $6,000 $5,000 $1,000
Heller, Dean H NV R $6,000 $6,000 $0
Marshall, Jim H GA0 D $6,000 $6,000 $0
Whitfield, Ed H KY R $6,000 $6,000 $0
Klobuchar, Amy S MN D $5,650 $1,500 $4,150
Ross, Mike H AR D $5,550 $3,000 $2,550
McCarthy, Carolyn H NY D $5,500 $5,500 $0
Slaughter, Louise M H NY D $5,500 $5,500 $0
Hodes, Paul W H NH D $5,450 $5,000 $450
Cardin, Ben S MD D $5,300 $500 $4,800
Boren, Dan H OK D $5,250 $5,000 $250
Ackerman, Gary H NY D $5,000 $4,000 $1,000
Andrews, Robert E H NJ D $5,000 $0 $5,000
Camp, Dave H MI R $5,000 $5,000 $0
Cole, Tom H OK R $5,000 $5,000 $0
Davis, Lincoln H TN D $5,000 $5,000 $0
Hill, Baron H IN D $5,000 $5,000 $0
Pearce, Steve H NM R $5,000 $5,000 $0
Perlmutter, Edwin G H CO D $5,000 $5,000 $0
Weller, Jerry H IL R $5,000 $0 $5,000
Snowe, Olympia J S ME R $5,000 $4,000 $1,000
Wicker, Roger S MS R $5,000 $5,000 $0
Davis, Danny K H IL D $4,950 $2,000 $2,950
Chabot, Steve H OH R $4,750 $3,000 $1,750
Honda, Mike H CA D $4,750 $4,000 $750
Price, David H NC D $4,550 $2,050 $2,500
Hagel, Chuck S NE R $4,500 $0 $4,500
Lugar, Richard G S IN R $4,500 $1,000 $3,500
Kaptur, Marcy H OH D $4,350 $1,000 $3,350
McCollum, Betty H MN D $4,350 $0 $4,350
Carson, Andre H IN D $4,250 $4,000 $250
Obey, David R H WI D $4,250 $2,000 $2,250
Salazar, John H CO D $4,250 $4,000 $250
Sanchez, Loretta H CA D $4,250 $3,000 $1,250
Tanner, John H TN D $4,250 $3,500 $750
Cardoza, Dennis H CA D $4,000 $4,000 $0
English, Phil H PA R $4,000 $4,000 $0
Green, Al H TX D $4,000 $4,000 $0
Kilpatrick, Carolyn Cheeks H MI D $4,000 $3,250 $750
Murphy, Chris H CT D $4,000 $4,000 $0
Tester, Jon S MT D $4,000 $3,500 $500
Rodriguez, Ciro D H TX D $3,750 $3,000 $750
Donnelly, Joe H IN D $3,500 $3,500 $0
Matsui, Doris O H CA D $3,500 $2,500 $1,000
Paul, Ron H TX R $3,500 $0 $3,500
Price, Tom H GA R $3,500 $3,500 $0
Schmidt, Jean H OH R $3,500 $2,500 $1,000
Wexler, Robert H FL D $3,500 $3,500 $0
Wyden, Ron S OR D $3,500 $0 $3,500
Biden, Joseph R Jr S DE D $3,300 $0 $3,300
Gutierrez, Luis V H IL D $3,250 $2,500 $750
Harman, Jane H CA D $3,250 $0 $3,250
Hensarling, Jeb H TX R $3,250 $1,500 $1,750
Kennedy, Patrick J H RI D $3,250 $0 $3,250
Ryan, Paul H WI R $3,250 $2,500 $750
Myrick, Sue H NC R $3,200 $1,500 $1,700
Schwartz, Allyson H PA D $3,200 $2,000 $1,200
Diaz-Balart, Lincoln H FL R $3,000 $3,000 $0
Lucas, Frank D H OK R $3,000 $1,500 $1,500
McCarthy, Kevin H CA R $3,000 $3,000 $0
Souder, Mark E H IN R $3,000 $3,000 $0
Udall, Mark H CO D $3,000 $2,500 $500
Bingaman, Jeff S NM D $3,000 $3,000 $0
Levin, Carl S MI D $3,000 $3,000 $0
Stevens, Ted S AK R $3,000 $3,000 $0
Hobson, Dave H OH R $2,850 $0 $2,850
Johnson, Eddie Bernice H TX D $2,825 $1,000 $1,825
Berkley, Shelley H NV D $2,750 $2,000 $750
Jones, Walter B Jr H NC R $2,750 $0 $2,750
Ferguson, Mike H NJ R $2,700 $0 $2,700
Cannon, Chris H UT R $2,500 $2,000 $500
Childers, Travis W H MS D $2,500 $2,500 $0
DeGette, Diana H CO D $2,500 $2,000 $500
Ellison, Keith H MN D $2,500 $2,500 $0
Keller, Ric H FL R $2,500 $2,000 $500
Oberstar, James L H MN D $2,500 $0 $2,500
Serrano, Jose E H NY D $2,500 $1,500 $1,000
Shays, Christopher H CT R $2,500 $2,000 $500
McCaskill, Claire S MO D $2,500 $2,500 $0
Cuellar, Henry H TX D $2,450 $2,000 $450
Markey, Edward J H MA D $2,250 $0 $2,250
Smith, Adam H WA D $2,250 $2,000 $250
Butterfield, G K H NC D $2,000 $2,000 $0
Costa, Jim H CA D $2,000 $2,000 $0
Foster, Bill H IL D $2,000 $2,000 $0
Grijalva, Raul M H AZ D $2,000 $2,000 $0
Hastings, Doc H WA R $2,000 $2,000 $0
Moran, Jerry H KS R $2,000 $0 $2,000
Murphy, Patrick J H PA D $2,000 $2,000 $0
Olver, John W H MA D $2,000 $2,000 $0
Porter, Jon H NV R $2,000 $2,000 $0
Regula, Ralph H OH R $2,000 $0 $2,000
Reichert, Dave H WA R $2,000 $2,000 $0
Sanchez, Linda H CA D $2,000 $2,000 $0
Sires, Albio H NJ D $2,000 $2,000 $0
Tauscher, Ellen H CA D $2,000 $2,000 $0
Akaka, Daniel K S HI D $2,000 $2,000 $0
Cochran, Thad S MS R $2,000 $2,000 $0
Whitehouse, Sheldon S RI D $2,000 $1,000 $1,000
Allen, Tom H ME D $1,950 $0 $1,950
Stearns, Cliff H FL R $1,850 $1,850 $0
DeLauro, Rosa L H CT D $1,750 $1,000 $750
Towns, Edolphus H NY D $1,750 $0 $1,750
Hulshof, Kenny H MO R $1,700 $1,250 $450
Fattah, Chaka H PA D $1,500 $1,000 $500
Neal, Richard E H MA D $1,500 $1,500 $0
Diaz-Balart, Mario H FL R $1,450 $1,000 $450
Kucinich, Dennis J H OH D $1,349 $0 $1,349
Alexander, Rodney H LA R $1,250 $1,250 $0
Carnahan, Russ H MO D $1,250 $1,000 $250
Wilson, Heather A H NM R $1,250 $0 $1,250
Coburn, Tom S OK R $1,250 $0 $1,250
Feingold, Russ S WI D $1,250 $0 $1,250
Kyl, Jon S AZ R $1,250 $0 $1,250
Linder, John H GA R $1,150 $500 $650
Sestak, Joe H PA D $1,150 $0 $1,150
Specter, Arlen S PA R $1,100 $350 $750
Berry, Marion H AR D $1,000 $1,000 $0
Blackburn, Marsha H TN R $1,000 $1,000 $0
Boswell, Leonard L H IA D $1,000 $1,000 $0
Boucher, Rick H VA D $1,000 $1,000 $0
Boustany, Charles W Jr H LA R $1,000 $1,000 $0
Calvert, Ken H CA R $1,000 $1,000 $0
Campbell, John H CA R $1,000 $1,000 $0
Cazayoux, Donald J H LA D $1,000 $1,000 $0
Conaway, Mike H TX R $1,000 $1,000 $0
Cooper, Jim H TN D $1,000 $500 $500
Ellsworth, Brad H IN D $1,000 $1,000 $0
Filner, Bob H CA D $1,000 $0 $1,000
Graves, Sam H MO R $1,000 $1,000 $0
Hayes, Robin H NC R $1,000 $0 $1,000
Higgins, Brian M H NY D $1,000 $1,000 $0
Johnson, Hank H GA D $1,000 $0 $1,000
Latham, Tom H IA R $1,000 $1,000 $0
Lofgren, Zoe H CA D $1,000 $0 $1,000
McNerney, Jerry H CA D $1,000 $1,000 $0
Michaud, Mike H ME D $1,000 $1,000 $0
Mitchell, Harry E H AZ D $1,000 $1,000 $0
Musgrave, Marilyn H CO R $1,000 $0 $1,000
Ortiz, Solomon P H TX D $1,000 $1,000 $0
Rush, Bobby L H IL D $1,000 $0 $1,000
Schiff, Adam H CA D $1,000 $1,000 $0
Scott, Robert C H VA D $1,000 $0 $1,000
Smith, Chris H NJ R $1,000 $0 $1,000
Space, Zachary T H OH D $1,000 $1,000 $0
Terry, Lee H NE R $1,000 $0 $1,000
Walberg, Tim H MI R $1,000 $0 $1,000
Welch, Peter H VT D $1,000 $1,000 $0
Wolf, Frank R H VA R $1,000 $1,000 $0
Dole, Elizabeth S NC R $1,000 $0 $1,000
Lautenberg, Frank R S NJ D $1,000 $0 $1,000
Christian-Green, Donna D VI D $750 $0 $750
Inslee, Jay R H WA D $750 $0 $750
Duncan, John J Jr H TN R $600 $600 $0
Bilbray, Brian P H CA R $500 $0 $500
Bishop, Sanford D Jr H GA D $500 $500 $0
Castor, Kathy H FL D $500 $0 $500
Edwards, Donna H MD D $500 $0 $500
Hinchey, Maurice H NY D $500 $0 $500
LaHood, Ray H IL R $500 $0 $500
Mack, Connie H FL R $500 $0 $500
Pascrell, Bill Jr H NJ D $500 $500 $0
Pickering, Charles “Chip” Jr H MS R $500 $500 $0
Rehberg, Denny H MT R $500 $0 $500
Sarbanes, John H MD D $500 $0 $500
Shadegg, John H AZ R $500 $0 $500
Skelton, Ike H MO D $500 $500 $0
Smith, Lamar H TX R $500 $500 $0
Stark, Pete H CA D $500 $500 $0
Weldon, Dave H FL R $500 $0 $500
Wu, David H OR D $500 $0 $500
Graham, Lindsey S SC R $500 $0 $500
Brown, Corrine H FL D $450 $0 $450
Turner, Michael R H OH R $375 $0 $375
Hastings, Alcee L H FL D $300 $0 $300
Warner, John W S VA R $300 $0 $300
Aderholt, Robert B H AL R $250 $0 $250
Arcuri, Michael H NY D $250 $0 $250
Carney, Chris H PA D $250 $0 $250
Dicks, Norm H WA D $250 $0 $250
Lampson, Nick H TX D $250 $0 $250
Manzullo, Don H IL R $250 $0 $250
Platts, Todd H PA R $250 $0 $250
Watson, Diane E H CA D $250 $0 $250
Weiner, Anthony D H NY D $250 $0 $250
DeMint, James W S SC R $250 $0 $250
Sanders, Bernie S VT I $250 $250 $0
Total $4,844,572 $3,017,797 $1,826,775
Includes contributions from PACs and individuals. 2008 cycle totals based on data released electronically by the Federal Election Commission on Sept. 2, 2008.
http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html
June 5th, 2009 at 2:28 pm
Straight Forward Explanation
An Easily Understandable Explanation of Derivative Markets
Heidi is the proprietor of a bar in Detroit . She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar.
To solve this problem, she comes up with a new marketing plan that allows her customers to drink now, but pay later.
She keeps track of the drinks consumed on a ledger (thereby granting the customers loans). Word gets around about Heidi’s “drink now, pay later” marketing strategy and, as a esult, increasing numbers of customers flood into Heidi’s bar. Soon she has the largest sales volume for any bar in Detroit.
By providing her customers’ freedom from immediate payment demands, Heidi gets no resistance when, at regular intervals, she substantially increases her prices for wine and beer, the most consumed beverages. Consequently, Heidi’s gross sales volume increases massively.
A young and dynamic vice-president at the local bank recognizes that these customer debts constitute valuable future assets and increases Heidi’s borrowing limit. He sees no reason for any undue concern, since he has the debts of the unemployed alcoholics as collateral.
At the bank’s corporate headquarters, expert traders transform these customer loans into DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then bundled and traded on international security markets. Naive investors don’t really understand that the securities being sold to them as AAA secured bonds
are really the debts of unemployed alcoholics.
Nevertheless, the bond prices continuously climb, and the securities soon become the hottest-selling items for some of the nation’s leading brokerage houses.
One day, even though the bond prices are still climbing, a risk manager at the original local bank decides that the time has come to demand payment on the debts incurred by the drinkers at Heidi’s bar. He so informs Heidi.
Heidi then demands payment from her alcoholic patrons, but being unemployed alcoholics they cannot pay back their drinking debts. Since, Heidi cannot fulfill her loan obligations she is forced into bankruptcy. The bar closes and eleven employees lose their jobs.
Overnight, DRINKBONDS, ALKIBONDS and PUKEBONDS drop in price by 90%. The collapsed bond asset value destroys the banks liquidity and prevents it from issuing new loans, thus freezing credit and economic activity in the community.
The suppliers of Heidi’s bar had granted her generous payment extensions and had invested their firms’ pension funds in the various BOND securities. They find they are now faced with having to write off her bad debt and with losing over 90% of the presumed value of the bonds. Her wine supplier also claims bankruptcy, closing the doors on a family business that had endured for three generations, her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 150 workers.
Fortunately though, the bank, the brokerage houses and their respective executives are saved and bailed out by a multi-billion dollar no-strings attached cash infusion from the Government. The funds required for this bailout are obtained by new taxes levied on employed, middle-class, non-drinkers.
Now, do you understand?
July 28th, 2009 at 7:06 pm
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