Government Engineered Mortgage Crisis: No Racism Here, Move Along (Update 3)

Posted on 30 September 2008

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.

5 Comments For This Post

  1. M Holeth says:

    Yes, credit ratings are an issue.
    But it’s also in part because those mortgages
    weren’t
    being
    paid.
    Call me crazy…

  2. Reporter says:

    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

  3. Reporter says:

    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?

  4. Anjelica says:

    Howdy, I saw your web logs in a newfound directory of blogs. I dont know how your web logs popped up, might have been a typoo, NEwayYour story looks miraculous. Have a an awesome day.

  5. eddyq says:

    Of course they weren't being paid … they were balloon notes. The borrowers were told that the price of the property would do nothing but go up so don't worry about them ballooning because you will be able to refinance using all of the gain as collateral. But things didn't work out that way so all those folks had to default. Then, as you can guess, it snowballed.

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