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The Cloward Piven Strategy 11/22/09 Updated 12/13/09 November 22, 2009

OK so what is The Cloward Piven Strategy?

Let’s start with this explanation.

Today Senator Harry Reid continues to ignore the wishes of the majority of  the citizens in the United States by pushing and getting 60 votes to start the discussion on a very, very bad healthcare bill that is unsustainable in monetary support with any amount of taxes collected or seized.

Here is: H.R. 3962 that was Passed 60 to 39 to move forward for debate.

If H.R. 3962 gets passed it will  be the beginning of the collapse of our economy. This is far worse than any Global Warming Ponzi Scheme that Al Gore is running. As outlined in Cloward Piven Obama Care is the first step of many to implement the Cloward Piven Strategy.

Here is a definition of the Cloward Piven Strategy from Wikipedia.

Cloward Piven Strategy

Richard A. Cloward

Frances Fox Piven

Democratic Socialists of America

Time for you to do some homework and research to be more informed about what I am writing about.

OK so let’s talk about these people: Barack Obama, Saul Alinsky, Richard A. Cloward, and his wife Frances Fox Piven.

Saul Alinsky

“Alinsky’s teachings influenced Barack Obama in his early career as a community organizer on the far South Side of Chicago.[7][8] Working for Gerald Kellman’s Developing Communities Project, Obama learned and taught Alinsky’s methods for community organizing.[7][9] Several prominent national leaders have been influenced by Alinsky’s teachings,[7] including Ed Chambers,[5] Tom Gaudette,Michael GecanWade Rathke,[10][11], and Patrick Crowley.[12]

Saul Alinsky wrote two books.

Reveille for Radicals

and

Rules for Radicals

Saul Alinsky wrote this:

“What follows is for those who want to change the world from what it is to what they believe it should be. ‘The Prince’ was written by Machiavelli for the Haves on how to hold power. ‘Rules for Radicals’ is written for the Have-Nots on how to take it away.”

So how does this all tie together? As you all know Barack Obama was greatly influenced by Saul Alinsky in addition to Frank Marshall Davis.

Both of these gentleman were radical socialists and in the case of Frank Marshal Davis had connections to the CPUSA (Communist Party United States of America.)

As you have figured out by now that Barack Obama is the most radical president that has ever been elected to office.  This becomes obvious in his callous disregard for the Constitution of the United States of America.  The idea that Barack Obama, Nancy Pelosi, Harry Reid, Chris Dodd and Barney Franks all say that the citizens of the United States have the “RIGHT” to government provided health care proves that quite blatantly.

If you can find anywhere in the US Constitution where Citizens of the United States of America have the RIGHT to healthcare please let me know so I can post it here.

As these government programs like the “Public Health Care Plan” and “Cap and Tax’ are pushed into law and forced unwillingly down the throats of the citizens of the United States of America, It starts to become evident that these programs are unsustainable with any amount of taxes that will be collected. As the huge numbers of less fortunate people in this country start to TAKE from the system more than they GIVE to the system you can see how this will start to collapse the financial structure of the US Federal Government subsequent imploding the US Economy.  The implosion will take place as the US Debt becomes so big that there is no way to ever repay it.  As the dollar collapses we will not longer be able to sell our debt to countries like China as they will deem the US Dollar as worthless. When the US Dollar becomes worthless that is a classic case of bankruptcy.  As Taxes and Penalties are demanded  and collected buy the Socialist government, it becomes very apparent how the Capitalist Free Enterprise System of the United States will collapse and become non existent due to the high costs of doing business and being able to compete with a Government run entity that may include everything from health care to “Green Manufacturing of Government Designed and Mandated Automobiles.”

As private capitalist enterprise starts to deteriorate the Central Socialist Plutocratic Party Government will start to take over and create a One Plutocratic Party System (A Marxist Socialist Party) that looks a lot like a Communist Society will start to emerge.

Classic Marxism

As you do your homework  on the Cloward Piven Strategy, it will become quite evident on the path that this The Untied States of America is headed in. It is so difficult to believe that the “Lamestream Media” refuses to report on this.

12/13/09  Today the Socialist Democrats jammed a 1.1 TRILLION dollar budget down the throats of the citizens of the United States. This is the first of many unsustainable budgets to be passed further deteriorating the quality of life for generations to come. This is the Cloward Piven Strategy in action.  Not only are people out of work and not paying taxes, but more and more jobs will be lost and there will be no amount of taxes that can be collected to ever repay this debt.  So what does that mean? Well seeing as how the government can not declare bankruptcy the Fed will print more money thus devaluating the dollar even more. In turn this will lower the quality of life in this country to 3rd world standards.  There will ultimately be three classes of people.

Proletariat,

Petite Bourgeoisie,

Plutocrats

As proletariats we will own nothing.  We will work for the government (Central Plutocratic Party System) and the government will provide everything the Central Plutocratic Party System determines what we our needs are inorder to be productive and Support the Central Plutocratic Party System.

The Petite Bourgeoisie will be the Modest Small Business people that will provide the support for the Central Party System.

We now start to see the difference between a FREE MARKET SYSTEM and what we thought as CAPITALISM.

In a FREE MARKET SYSTEM we are allowed to Create and Save income to improve our lives and quality of life.

In a CAPITALIST system we are controlled by the Central Plutocratic Party system seen in the graphic above.  When we are controlled by the Central Plutocratic Party System we are not allowed to improve our own quality of life, rather we are mandated in improving the Quality of life and existence of the Central Plutocratic Party System.

At this time the only thing that will stop this from occurring is reducing and eventually dissolving  the Democratic Socialist Party from ever running again for office in the United States.

The only way this country can be saved is with a two party system consisting of the Republican Party and the Libertarian Party or possible the Tea Party if it becomes a certified Political Party.

It is now up to you how you will vote in 2010 and 2012.

STMarie


 

Barack Obama’s Disrespect for American Citzens April 5, 2009

I haven’t been posting lately as everyday Barack Obama, Timothy Franz Geithner, Nancy Pelosi, Barney Franks, Harry Reid or Chris Dodd say something utterly stupid or even contrary to what each other is saying.

However now Barack Obama is dissing the People of the United States.  This man has no conscience to even think about what is on the TelePrompTer in front of him.. He just reads and reads and has no idea what he is really saying.

He insulted me and called me arrogant.  That really really pisses me off. He is by far the dumbest hammer in the box.

I can’t believe that people actually voted for him and sleep well at night knowing what they did.  I am just so disgusted in the man. So far Barack Obama has done only a few things right.

1. Not raising the federal gas tax,

2. Not reinstating the Fairness Doctrine.

3. Recognizing that we have a very severe problem at the southern border.  Although he has yes to take any action to help control the problems down there.

The number of things that he has done wrong to splinter the country are far to numerous to even begin listing here. However there is one.  Now that GM has changed the name from General Motors to Government Motors and Barack Obama has fired Rick Wagoner, I can hardly wait to hear what kind of cars Barack Obama is going to mandate that Government Motors produces. I see a very very sad ending to this saga. If we had just let GM go into chapter 11, In 24 months, after the courts are finished, GM would be a leaner meaner machine and it would be strong again. But instead Barack Obama is giving GM a cane, a wheel chair and a gurney to Limp forward in to the coming years. I personally don’t see GM surviving under government control.  If you question this at all, Just let me know about all the pleasant experiences you ever had at the DMV.

If he is smart and I know he isn’t, he should decline appearing at Notre Dame and call it a day.

The Tea Party is about to begin on April 15th and it doesn’t look good for the socialists.

Waiting for April 15th.

STMarie

 

Barack Obama is Systematically Destroying This Country February 27, 2009

In Barack Obama’s quest to transfer power from the people to the government Barack Obama is making decisions with out the consent of the voting citizens of the United States.  Today’s announcement that he is going to with draw troops on August 10, 2010 is a good idea. But this is how stupid Barack Obama is, He just announced to the world that we have surrendered and are incapable of finishing what we started. If Barack Obama had withdrawn the troops quietly in an organized or systematic way that would have been OK.  Everyday Barack Obama shows his short comings in his ability to lead this country. And again I’m sure today’s news will again remove the confidence in the investors in this county and the markets will weaken even further.  You can see the downward spirial of the market here as I track it as Barack Obama makes his plans to ruin Wall Street and destroy the savings of US Citizens.

https://stmarie.wordpress.com/2009/02/26/barack-obamas-propaganda-and-conspiracy/

I just want to explode as I watch the market and my life’s savings disappear.  It is bad enough the Bill Clinton started this mess, George W. Bush contributed to it when he got side tracked with 9/11 and didn’t grab the bull by the balls and stop the emerging mortgage melt down by taking action against the Socialist party and stop the madness at Fannie Mae and Freddie Mac.  And now the voters of The United States of America have giving a person that has roots in Marxist Socialism a credit card with no limits or good credit.  If you think 9/11 changed America for the worst, Just wait till you see the shambles that Barack Obama is going to leave.  Most of my friends say, “Give him a chance he is only in office for a few months.”  In the few months that Barack Obama has been in office he has not give us hope, rather he has done just the opposite, he has destroyed the confidence of the public. The only people that have confidence in Barack Obama are people that believe that they deserve a life of entitlement provided free by the entrepreneurs that have started businesses to give this country jobs.

Today Barack Obama has made the proclamation that he (in the name of the Government)  is mandate that the successful people today making $250,000.00 or more will be subject to extreme high taxes which amount to extortion as these people that make that amount of money have no say in how much Barack Obama wants to take from them.

Barack Obama wants to use the taxes that he is going to take from people that make over $250,000.00 to provide subsidized welfare in the name of healthcare to the public.

See my page on my comments on healthcare.

https://stmarie.wordpress.com/2009/02/03/barack-obama-social-healthcare-and-the-democrats/

Let’s listen to Barney Franks statement about “RECOVERING” the money that the wealthy have due to the currant tax rate.

This was an interview with CNBC which is one of the most liberal media stations on the air. According to Barney Franks the people that have been successful must now have that money “RECOVERED.” As if that money never belonged to the sucessful people to begin with and the government is “ENTITLED” to that money and must take it back.

Just think about what Barney Franks is saying.  Just think.  Basically if the socialists believe you have to much money they will take it back and PUNISH you for being successful. What is this going to do to the psyche of anyone that wants to start a small business, create jobs and provide a privately run enterprise? It will discourage anyone from starting a business for fear of being successful and making over $250,000.00 a year.  And here is the worst of this, $250,000.00 is not a lot of money for some one to earn if they own a small business.  Ok so what amount would be? I think that any one making over $750,000.00 a year should be taxed at a slightly (maybe 8%) more in Income tax.

Wake up America.  This is not good.  You can think about today as we are all having a rough time.  But what is emerging is not a good plan for the future of your children or your not to distant future.

ST

 

A Question For You The Tax Payer 2/26/09 February 26, 2009

I hope I can make this a short question.

Why is it that you and I the taxpayer do not have enough money or credit to go to the GM , Ford, Chrysler, Honda or Toyota dealer to buy a new car? Or go out and buy furniture, Go out to eat dinner,  Go to Best Buy and buy a new flat screen, buy new stoves or refrigerators, pay the mortgage, or just pay monthly bills?

Why is it then that Barack Obama, Nancy Pelosi, Barney Franks, Harry Reid and the other democrats can spend Trillions of dollars that they do even have to spend, Nor do they have the credit with other countries to borrow from?   Oh Yeah I forget, We the taxpayers have involuntarily extended credit to the democrats with out uncollected tax payments.

Please leave a comment on how you would like to answer this question. I really would like to get this thread going.

Thanks,

ST

 

What the Dysfunctional Socialist (Democratic) Party is Doing For/To The Citizens of the United States. February 20, 2009

Barack Obama, Nancy Pelosi, Harry Reid, Barney Franks et al  are the new political criminals in our society. As they bask in the sun of jamming the largest spending bill down the throats of the US citizens without even giving the citizens a chance to vote or comment on it, we begin to see the damages that are now occurring especially on Wall Street. For years people have been self sufficient in their savings for the future. Now all of that has been wiped out and the new Socialist Party (the Democrats) have now made us totally dependent on the US Government with threats of government controlled national banking system. Just think, Barack Obama and his fellow thieves will be able to go into your account at any time and demand fees, taxes, assessments, surcharges or anything else they decide to take from your account.  Just think of your phone bill with all those government unjustified mandated charges.  Your bank account will look just like that.

Just like his predecessor, Bill Clinton, Barack Obama has sent a mandate to spend 75 Million dollars to force lending institutions to write loans to people that should have never had a loan to begin with. Again Barack Obama is creating a land of “Entitlement” rewarding non-responsible  people with tax money provided by hard working Tax Payers that make their home loans on time.

Again I have to keep going back to what Bill Clinton did in 1997.

http://bulk.resource.org/gpo.gov/register/2005/2005_10024.pdf

http://bulk.resource.org/gpo.gov/register/2005/2005_10025.pdf

This is where Bill Clinton made a similar mandate for lending institutions to write loans bases on quantity instead of quality.

There is one huge difference between what Barack Obama is doing and what Bill Clinton did.

Bill Clinton mandated the law gambling with investors money i.e. people that had stocks and other savings in various institutions.

Barack Obama is gambling with every tax payer’s money and the huge taxes that will need to be collected in the future from the children that are now growing up. Barack Obama has made it very difficult for the children in the future to be self sufficient in savings and investments as they will be paying back a very high rate in taxes back to not only the US Government but to local State Governments also.

So now lets look at what is happening here in California where I live. Yesterday the California government finally created a budget for the future and besides spending cuts (Which I give Kudos to the Socialist Party for doing) it also levied $12 Billion Dollars in tax hikes. We now have the highest sales tax in all of the states, DMV taxes have doubled, and there is an undetermined increase in State Income Taxes that the Socialist Party forced upon the citizens in California.

So what does that mean to us here in California. Well, because any TAX CUTS the Federal Socialists gave us in California, the State Socialists are taking back.  So in a nut shell Californians gained nothing.  Even though California is in line for millions of federal tax payers money in the “State Bailouts.” I imagine this will happen in a lot of other states as California usually sets a lot of precedents  for what other states do.

The Socialists are just making it worse and worse every day.  Today we are experiencing a 6 year low in all the markets and what is worse banks are on the point of collapse from fears of being nationalized. This my friends would be the end of the Free Market that we here in the United States have enjoyed for over 200 years.

ST

 

William J. “Bubba” Clinton and the Economic Democratic Disaster of 2007 through 2012 January 18, 2009

Hello again,

I has been a while since I have posted any thoughts as I wanted to let time take it’s toll. In the past few months our country has deteriorated to almost the same level as the Great Economic Crash of 1929.  The collapse of our economy is a well orchestrated plan by the Democratic Party to completely destroy any other party representing the American people in modern day politics, Thus making the United States a one party Socialist country.  I also want to make it perfectly clear that if this was happening with the Republican Party the events would be just as detrimental to the well being and the freedoms and privileges that we as Americans have enjoyed up until now. This is a multiple party Democracy. I hope it remains that way to keep checks and balances in order.

The American people have voted and they have chosen a person to be president of the United States based mostly on the color of his skin.  The American people have thrown aside any questions about qualifications or ulterior motives of the person they have put into office.  The country is so caught up in Obama merchandising of commemorative pins, coins, songs, banners, comic books, bobbles, SWAG, buttons, banners and other items that are so insignificant to the problems that lay ahead of us in the near and long term future.

My own story is in the past three days I have found out that I have to come up with $25,000.00 in order to save my house.  I am able to do it but it comes at a huge price and that is not spending any money to help grow the economy.  This is exactly what I have not wanted to do all my life. I always felt that it was my patriotic duty is to spend money and keep the economy going. I can no longer do that.

Finally the damage that Bill Clinton inflicted on the United States of American by expanding the CRA of 1977 http://files.ots.treas.gov/65203.pdf finally has had a personal effect on me.

In a nut shell, Just as Barack Obama, Nancy Pelosi, Harry Reid and Barney Franks are creating a country of “entitlement without responsibility” today, so did the creators of the expansion of the CRA in 1995 and put into law by Bill Clinton in 1997.

I have been on leave for awhile just sitting back and watching the new administration being formed for Barack Obama”s “New Way to do business in Washington.”

I have been watching him put a great number of former Clintonistas back into power including Hillary herself. Now Appointing Hillary is a pretty crafty way for Barack to achieve job security.  The best way for Barack Obama to keep Hillary from running against him in 2012 was to put her in his cabinet. Hillary is not qualified at all to be Secretary of of State. but Hillary’s appointment is a monkey off of Barack Obama’s back. By re-appointing a lot of the same people that contributed to the melt down of the economy during the Clinton era back into power  just shows how unqualified Barack Obama really is.  If Barack was really going to bring a “New Way of Doing Business In Washington” he would have never brought back anyone that only knows how to run Washington the “OLD WAY.”

Barack Obama has one huge problem on his hands…. no not the economy.. Nancy Pelosi.  Out of the “DUMB BOX OF HAMMERS” ( Harry Reid, Barney Franks, Nancy Pelosi et al.) Nancy Pelosi seems to be the dumbest and the most incendiary dumb hammer in the box.

Here is why I say that.  Barack Obama says he wants to “Reach across the aisle” to the Republican Party to work with them. In the meantime Nancy Pelosi is starting her own private Nuclear War with the Republicans. http://www.foxnews.com/politics/2009/01/18/pelosi-open-prosecution-bush-administration-officials/

Now Nancy Pelosi is butting heads with Barack Obama… or will Barack Obama turn against the Republicans like a rabid junk yard dog and then absolutely nothing will get done for the next 4 years.

I find it so odd that Nancy Pelosi would attempt to bring criminal charges against the Republican party and not her own Democratic Party Members that were in office in 1997 when the mandates to systematically destroy the economy were put into place.

On this page you will find what exactly Bill Clinton Mandated. He put for that institutions shall be examined and rated.  “and institute more effective sanctions against institutions with consistently poor performance.” This means that if loan organizations did not write enough loans to low income and unqualified people, the institutions would be penalized.

http://bulk.resource.org/gpo.gov/register/2005/2005_10024.pdf

POINTS ASSIGNED FOR PERFORMANCE UNDER LENDING, INVESTMENT AND SERVICE TESTS  http://bulk.resource.org/gpo.gov/register/2005/2005_10025.pdf

Lending Service Investment

Outstanding …………………………………………………………………………………………………………………………… 12 6 6

High Satisfactory ……………………………………………………………………………………………………………………. 9 4 4

Low Satisfactory ……………………………………………………………………………………………………………………. 6 3 3

Needs to Improve ………………………………………………………………………………………………………………….. 3 1 1

Substantial Noncompliance ……………………………………………………………………………………………………… 0 0 0

http://bulk.resource.org/gpo.gov/register/2005/2005_10024.pdf

“Community and consumer groups also have criticized the agencies for failing aggressively to penalize banks and thrifts for poor performance.

Noting that the CRA examination process could be improved, President Clinton requested in July 1993 that the Federal financial supervisory agencies reform the CRA regulatory system. The President asked the agencies to consult with the banking and thrift industries, Congressional leaders, and leaders of community-based organizations across the country to develop new CRA regulations and examination procedures that ‘‘replace paperwork and uncertainty with greater performance, clarity, and objectivity.’’ Specifically, the President asked the agencies to refocus the CRA examination system on more objective, performance-based assessment standards that minimize compliance burden while stimulating improved performance. He also asked the agencies to develop a well-trained corps of examiners who would specialize in CRA examinations. The President requested that the agencies promote consistency and evenhandedness, improve CRA performance evaluations, and institute more effective sanctions against institutions with consistently poor performance.”

http://bulk.resource.org/gpo.gov/register/2005/2005_10026.pdf

http://bulk.resource.org/gpo.gov/register/2005/2005_10027.pdf

OK so now you are asking why I will not let this go. Here is the reason.  I believe that Bill Clinton instituted  the biggest crime against the economy by mandating the 1997 CRA reform act. He pitted the performance of the number of loans serviced in this country against the quality of the loans thus mandating that the institutions write a huge number of loans whether the loans had proper documentation or using creative, often corrupt loan instruments to people that could not qualify or ever pay back the monies owed on the mortgage, credit card or what ever type of credit program that the loan applicant had applied for.

I find it very offensive that the public view George W. Bush as the worst president ever.  Ok so he was not the best.  But he was not the cornerstone of our now failed economy.

To me, I would have thought that giving todays state of the economy that the following video (not from Fox News Network) would have been the death nail of the Democratic Party representitives that are in office now and at least for the next two years until elections in 2010. This shows the total disregard for the wishes of the American People as these legislators have put their own agenda ahead of what was really necessary for the good of the people of the United States of America.

The award of worst president ever would go to Bill Clinton’s and his adminstration (Barney Franks et al.) for setting up the mandates for greed that eventually took a toll on the stability and the currant collapse of the US Economy that we have today.  And when the Bush adminstration called to light the impending disaster in 1993 the Clinton Adminstration (Yes the same people that are in office now.) repeatedly argued that there was no problem with Freddie Mac or Fannie Mae. I will never forget or forgive Bill Clinton and his adminstration for this disastrous decision. And what makes matters worse is that this fact was completely pushed under the carpet by everyone and the story has not been revealed to the public in any depth except by one or two stories on Fox New Network.

My point is that the people of this country have elected the political party of entitlement.  We are seeing this in the way that Barack Obama is spending money.  In addition instead of telling people that things will get better he is telling people things are going to get a lot worse.  We know that is true.  But why be so pessimistic and drive people to be so dependent on big government.

If this is any indicator of what we have in store for the future it will never get better again for a long time.  In one of my earlier blogs I mentioned Rod Blagojevich who is in Barack Obama’s posse of corrupt Chicago politics. What I see in the future is that Barack Obama may…I stress may get involved with “Pay to Play” for the huge government contracts for infrastructure improvement. Maybe that will be Barack Obama’s Achilles heel.  Time will tell.

OK on to my next topic.  Jobs.   Barack Obama says he is going to create 3 million new jobs.  My question is jobs for who?  If Barack Obama had said I’m going to create 3 millions jobs for American Citizens and not for illegal immigrants, I would be happy.  But Barack Obama is not making any provisions like that. So now Barack Obama has turned the green light back on for an explosion of Illegal Immigrants from all over the world especially from south of the border.

OK so we all know that the Unions of this country by and large helped put Barack Obama into power.  If Barack Obama empowers unions to get established in more occupations, thus increasing costs of business operation, we will see even more jobs go overseas.

Finally, I want to ask Barack Obama how he is going to pay for the trillions of dollars of entitlement bestowed on the citizens of the United States.  He is spending money that does not exist so it has to be printed.  Ok so now my dollar will be worth .. oh say .. $0.20. Wow just like any other third world nation. How about that?

Who is going to pay back the trillions of dollars you are spending Barack Obama?  The only real source there is are the Baby Boomers.  And they will be fading to black soon.  So who will pay that back and at what rate?  60% Income tax for what is left of the middle class and 80% for 1% of the wealthy that are left in the US?

Thank you Bill Clinton, Barack Obama, Nancy Pelosi, Barney Franks and Harry Reid for bringing us the next 8 years (Barack Obama will rig it so he gets elected to a second term) of economic and social hell.

STMARIE



 

Everyday We Learn More About The Community Reinvestment Act of 1977 (Updated 11/20/10) (Please Scroll Down For New Articles As This Article Always Stays On The First Page) September 29, 2008

In August of 2008 my cousin sent me this video. Like most Utube videos I didn’t give it much thought to really watch it. But for some reason I sat through the whole 11 minutes and began to think. I said this can’t be true. This has to be someone’s mean spirited video against Bill Clinton and the Democrats. But at almost the end the frame kept coming up saying “If you don’t believe it Google it yourself.” I took that to task and did about a months research to see if this could have happened. Did Monica Lewinsky really upstage the the biggest travesty in the economic history of the United States? What you are about to read will make you think. My goal here is not to change anyone’s mind. It is rather to get people to think and perform their due diligence to research the past track record and core beliefs of the party and candidate that they are going to vote for.

Please read, enjoy and just do some research instead of listening to popularity polls and who your friend is going to vote for.

Here is an updated version (With a much better sound track).

Slowly Bill Clinton’s 1997 Expansion of the CRA started to create financial discrepancies in Fannie Mae and Freddy Mac.  Later on I will go into detail about the original Community Reinvestment Act of 1977 that was created by Jimmy Carter. The Democrats have been lying to us since 2004 stating there are no problems with Fannie Mae or Freddy Mac.  The Democrats blocked Republicans that saw a future melt down of the United States economy and wanted to regulate or at least oversee these financial institutions.  The Democrats said no.  You don’t believe me? Watch this video of real conversations in the United States Congress, not a commercial or program that was created to change the minds of the public.

In this video we see Maxine Waters stating that Fannie Mae and Freddi Mac are not broken.   As of today 3/15/09 we are discovering why the Democrats especially Maxine Waters did not want to interfere with the lending practices that was eventually going to cause Fannie Mae and Freddie Mac to collapse. Here is a news story that is developing today 3/15/09

http://www.knx1070.com/play_window.php?audioType=Episode&audioId=3566977

As this story unfolds I have been doing the research to understand the connection from when Maxine Waters stated to Congress in early 2004 that Fannie Mae and Freddie Mac did not have to be fixed and “there is not crisis at Fannie Mae and Freddie Mac.” The reason that Ms. Waters did not want any regulation for Fannie Mae and Freddie Mac was that Ms Waters and her husband Sidney Williams were investors in OneUnited Bank in Massachusetts.  In fact, Sidney Williams joined the Board of Directors of the minority owned OneUnited Bank in early 2004. The video above from the congressional hearings were conducted in late 2004 after Sidney Williams joined the Board of Directors for the minority owned OneUnited Bank.

Here is an article written by Susan Schmidt at the Wall Street Journal going into detail on what I just discussed in the previous paragraph.

http://online.wsj.com/article/SB123705585093130641.html

Maxine Waters released this statement on 3/15/09

http://www.house.gov/apps/list/press/ca35_waters/PR090313_fallout.html

Ms. Waters states the following:

“My husband Ambassador Sidney Williams, who has represented the United States as an Ambassador and has been a respected and active member of the Los Angeles community for many years, was asked to sit on the board of OneUnited Bank. This bank services our community and was the successor to the bank of which we had been customers at for many years.  He accepted the position and did not accept any director’s compensation for his work on behalf of the bank and the community it serves.”

“Despite suggestions to the contrary, I have fully disclosed all of my financial interests in official filings.  These filings included the stock my husband purchased upon joining OneUnited’s board (it is required under Massachusetts law, where OneUnited is headquartered, that individuals hold stock in a bank before joining its board).  Furthermore, Ambassador Williams is proud to be invested in a minority owned community bank that was given an “outstanding” lending rating from its regulator for its lending activity in underserved communities in Los Angeles, where traditional banks have refused to lend. I even took additional steps beyond what is required of Members of Congress when I voluntarily and publicly disclosed my husband’s relationship with OneUnited during an October 30, 2007 Financial Services Committee hearing entitled “Preserving and Expanding Minority Banks.”(3) Both the Federal Deposit Insurance Corporation and the Office of Thrift Supervision were present at this hearing.”

However Ms. Waters doesn’t mention anything about the dollar amount in investment positions that Ms Waters and her husband had in OneUnited Bank.

This is from Ms Schmidt’s Wall Street Journal article:

“Ms. Waters and her husband, Sidney Williams, were investors in two African-American owned California banks that merged with other lenders in 2002 to form OneUnited. Congressional financial-disclosure forms show Ms. Waters acquired OneUnited stock worth between $250,000 and $500,000 in March 2004, as did Mr. Williams. Mr. Williams joined the board of OneUnited that year. Each sold shares in September 2004–including Ms. Waters’s entire stake–but Mr. Williams continued to hold varying amounts of the company’s stock. On the lawmaker’s most recent financial-disclosure form, dated May 2008 and covering the prior year, Ms. Waters reported that her husband held between $250,000 and $500,000 worth of the bank’s stock.”

OK so how does this all get connected?

It appears that Ms. Waters and her husband Sidney Williams were financially involved with a minority owned lending institution called OneUnited Bank. During the course of Ms. Waters and Mr Williams involvement with OneUnited Bank, sub-prime loans were being made to minorities that could not afford to pay back the loans that were being made. This of course was a derivative of William Clinton’s mandated 1997 expansion of the Community Reinvestment Act of 1977.  Ms. Waters did not want any regulation against Freddie Mac and Fannie Mae because Ms. Waters and Mr. Williams were making a lot of money off of their investments in OneUnited Bank. In turn I would imagine that OneUnited Bank sold these loans maybe to Fannie Mae or Freddie Mac or both and did not service or carry the loan debt of the sub-prime loans.  So why would Maxine Waters want any kind of regulation for Fannie Mae or Freddie Mac as the Republicans asked for in the the above video that I have re-linked here.

Here is were this gets real interesting.

Austin Tighe who represents the NAACP has filed a lawsuit on March 13th, 2009 against HSBC and Wells Fargo banks for discrimination and predatory lending practices towards minorities in particular Afro Americans. Mr. Tighe states that the two aforementioned banks “Discriminated” against poor Afro Americans for writing bad loans to that group of people. How strange that Mr. Tighe would never bring these charges against OneUnited Bank that I’m sure did the same thing for years.

http://news.yahoo.com/s/ap/20090313/ap_on_re_us/naacp_mortgage_discrimination

And even more interesting:

Barack Obama was an associate attorney from 1993 to 1996  at the following law firm:

http://www.lawmbg.com/

While Barack Obama was employed buy Minor, Barnhill & Galland, Barack Obama represented ACORN in a lawsuit against CitiBank for not writting enough Sub-Prime Loans to Afro-Americans.

http://www.allbusiness.com/finance/529735-1.html

So now let’s look at the origins of the Community Reinvestment Act of 1977

The CRA was devised by Jimmy Carter (D) in 1977 when he was in office. I have to admit that President Carter’s intention was very good. Lending Institutions were practicing something called “Redlining.” Lending Institutions were refusing to write loans in any way or form in predetermined zip codes usually in inner cities or blighted areas of a city like for instance Brooklyn, NY.

Here is an article in the NY Times dated December 25, 1989

http://www.nytimes.com/1989/12/25/nyregion/bank-redlining-still-prevalent-loan-critics-say.html?n=Top/Reference/Times%20Topics/Subjects/B/Black%20Culture%20and%20History

Jimmy Carter’s goal in mandating the CRA in 1977 was a good thing because as you know there were people in those zip codes that could easily qualify for a traditional 30 year loan.  In addition there were landlords that wanted to do improvements to their properties but they couldn’t get a loan to do that.

http://www.answers.com/topic/community-reinvestment-act-of-1977

This all went horribly and tragically wrong when in 1997 Bill Clinton went beyond the original intention of Jimmy Carter’s 1977 CRA and mandated that banks should make loans to people that could not qualify for a traditional 30 year loan. If Bill Clinton hadn’t created this mandate. Then bank’s and third party lending institutions would have not ventured into creative lending practices like the 5/25, 2/28, No Down Payment and Interest Only loans. When the banks and lending institutions created these creative lending practices they created an artificially high number of home buyers that would have not qualified for a traditional, secured 30 year loan. The result of the number of people that could now qualify for a mortgage loan created a “Sellers Market.” Buy the nature of “Supply and Demand” and “What the market will bear”, sellers of both new and pre-owned houses were allowed to inflate the prices in the housing market otherwise know as the “Housing Bubble.” This was exacerbated by the fact that a person that could have qualified for a $150,000.00 traditional 30 year loan could now qualify for a $250,000.00 home with creative financing like a 5/25, 2/ 28, No Down Payment, or interest only loan. This led to people qualifying, borrowing and buying a house way beyond their fiscal capabilities. Eventually these new homeowners could not support the bubble payment that was in their mortgage contract and the housing bubble collapsed. This in turn eventually affected the people that had good 30 year loans and were able to pay the mortgage back. This phenomena proceeded to fester like a cancer throughout the financial markets all over the world for one simple reason:  The Devaluation of the American Dollar. Now we fear that China will not buy our debt as they have in the past. I’m sure there is a lot more that I don’t know pertaining to how far this line of falling dominos goes.

“Clinton Administration Changes of 1995”

In early 1993 President Bill Clinton ordered new regulations for the CRA which would increase access to mortgage credit for inner city and distressed rural communities.[6] The new rules January 31, 1995 and featured: requiring strictly numerical assessments to get a satisfactory CRA rating; using federal home-loan data broken down by neighborhood, income group, and race; encouraging community groups to complain when banks were not loaning enough to specified neighborhood, income group, and race; allowing community groups that marketed loans to target to groups to collect a fee from the banks.[4][7] The new rules, during a time when many banks were merging and needed to pass the CRA review process to do so, substantially increased the number and aggregate amount of loans to low- and moderate-income borrowers for home loans, some of which were “risky mortgages.” Banks set up CRA departments, a CRA consultant industry was created and new financial-services firms helped banks invest in packaged portfolios of CRA loans to ensure compliance. Established and new community groups began marketing such mortgages. The Senate Banking Committee estimated that as of 2000, as a result of CRA, such groups had received $9.5 billion in services and salaries. As of that time such groups also had received tens of billions of dollars in multi-year commitments from banks, including ACORN Housing $760 million; Boston-based Neighborhood Assistance Corporation of America $3 billion; a New Jersey Citizen Action-led coalition $13 billion; the Massachusetts Affordable Housing Alliance $220 million.[4] The number of CRA mortgage loans increased by 39 percent between 1993 and 1998, while other loans increased by only 17 percent.[8][9] Related rule changes gave Fannie and Freddie extraordinary leverage, allowing them to hold just 2.5% of capital to back their investments, vs. 10% for banks. By 2007, Fannie and Freddie owned or guaranteed nearly half of the $12 trillion U.S. mortgage market.[5] Due to massive financial losses, on September 7, 2008 the Federal Housing Finance Agency (FHFA) put Fannie Mae and Freddie Mac under the conservatorship of the FHFA.[10]”

Here is a detailed description of 1995 CRA Rule 60 FR 22156 (May 4, 1995) (1995 Rule) from the Federal Register.

http://edocket.access.gpo.gov/2005/pdf/05-4016.pdf

Please read Sections C & D on page 10024

“C. Experience With the 1978 Rule The experience with the 1978 rule was summarized in the http://edocket.access.gpo.gov/2005/pdf/05-4016.pdf to the Agencies’ 1995 CRA rule. 60 FR 22156 (May 4, 1995) (1995 rule).

It stated: The CRA has come to play an increasingly important role in improving access to credit in communities—both rural and urban— across the country. Under the impetus of the CRA, many banks and thrifts opened new branches, provided expanded services, and made substantial commitments to increase lending to all segments of society. Despite these successes, the CRA examination system has been criticized. Financial institutions have indicated that policy guidance from the agencies on the CRA is unclear and that examination standards are applied inconsistently. Financial institutions have also stated that the CRA examination process encourages them to generate excessive paperwork at the expense of providing loans, services, and investments to their communities. Community, consumer, and other groups have agreed with the industry that there are inconsistencies in CRA evaluations and that current examinations overemphasize process and underemphasize performance. Community and consumer groups also have criticized the agencies for failing aggressively to penalize banks and thrifts for poor performance. Noting that the CRA examination process could be improved, President Clinton requested in July 1993 that the Federal financial supervisory agencies reform the CRA regulatory system. The President asked the agencies to consult with the banking and thrift industries, Congressional leaders, and leaders of community-based organizations across the country to develop new CRA regulations and examination procedures that ‘‘replace paperwork and uncertainty with greater performance, clarity, and objectivity.’’ Specifically, the President asked the agencies to refocus the CRA examination system on more objective, performance-based assessment standards that minimize compliance burden while stimulating improved performance. He also asked the agencies to develop a well-trained corps of examiners who would specialize in CRA examinations. The President requested that the agencies promote consistency and evenhandedness, improve CRA performance evaluations, and institute more effective sanctions against institutions with consistently poor performance.

D. The 1995 Rule and Subsequent Guidance

The experience with the 1978 rule led the Agencies to replace it in 1995 with a rule designed to emphasize performance (Quantity of loans) rather than process (Quality of Loans), promote consistency in evaluations, and eliminate unnecessary burden. 60 FR 22156. Among other things, it established a large retail institution test comprised of three tests: one for lending, one for investment, and one for service.”

If you notice that this mandate created a “TEST” for the banks.  Does this sound familiar to what Timothy Geitner is doing right now.

And then came the unregulated start up third party lenders (Countrywide, New Century Mortgage) that thrived under the auspices of the CRA and started issuing loans to people with no income or little income and no money down.  For the most part these third party lenders had no intention of servicing these loans. These third party lenders had the intentions of making a lot of money on the sales commissions then they would sell the loans to Ginnie Mae to be issued as “MBS’s that in turn were issued to various investment groups as an investment vehicle. The next thing to happen is that as these very bad mortgage loans started to sour so did the Mortgage Backed Securities that were in 401 Ks, IRAs an any other type of investment portfolios became worthless. Banks, Brokerage firms, pension plans, and anyone or any company that had bought and sold these worthless MBSs began to fail.  And now the picture is a little clearer as to how we got to where we are today June 15, 2009

http://www.sec.gov/answers/mortgagesecurities.htm

All of this was done by third party lenders with the mandated Bill Clinton’s 1997 expansion of the CRA as its mantra.

This is from Wikipedia Community Reinvestment Act

“Congressman and 2008 Republican presidential candidate Ron Paul has partially attributed the ongoing subprime mortgage crisis to legislation such as the CRA.[16] Economist Stan Liebowitz has also expressed his opinion that banks were forced to loan to un-credit worthy consumers with “no verification of income or assets; little consideration of the applicant’s ability to make payments; no down payment.” However, the chief executive of Countrywide Financial, the nation’s largest mortgage lender, is said to have “bragged” that to approve minority applications “lenders have had to stretch the rules a bit”, suggesting that Countrywide was responsible for relaxing its standards rather than the other way around.[17]”

Yes, they were unregulated but the democrats blocked any reform as they were on the take like old business as usual. And so wealth and prosperity of bankers and third party loan companies grew through the both of the Bush administrations.  But there was danger ahead and during the years there were various people including John Mc Cain that saw a problem in the works.  He was defeated by democratic stonewalling as any change would not allow poor people to continue to get loans under the CRA that they could not afford . These third party lenders were not regulated and would not be regulated or the Democrats would be defeating themselves in the quest to take from the rich and give to the poor.  The poor did not have a way to pay for the bad loans that could not be paid by the people that took out these loans that they were “Entitled” to by the CRA. Now that being said there were a lot of things that the Bush Administration could have done but those pesky Democrats that were on the take from “Wealthy Banks” would not allow their (Democrats) cash cow to die.  Finally now all those bad loans that were mandated by the CRA came to a head.

Now again the Democrats want to protect all the irresponsible people that took out these loans that the government said they were “Entitled” to according to Jimmy Carter’s CRA.  As it may happen shrewd businessmen both Republican and Democrat capitalized on an extremely flawed mandate called the CRA. No matter what they did, the federal law said that now people who didn’t have the resources to pay back the loans should be given an easier way to qualify for a loan. Enter the Clinton administration that created a mandate that led to the birth of sub-prime loans.  The third party lenders (unregulated, non banks) then exploded over the years.  These third party lenders then packaged these very bad, risky loans as an investment that the likes of Freddie and Fannie who bought them without qualifying their credibility.  Housing prices exploded. Why, Because of sub-prime loan, people that could not only not afford homes but they could afford more expensive homes.   But guess what? They qualified for risky no down payment, interest only loans to pay for inflated housing prices.  Enter the person who takes the 2/28 loan because he or she is going to “FLIP” the house and make a lot of money by artificially pumping up the price of that some poor person can qualify for a loan for.  Thank you CRA. What makes it worse it that now the Democrats are turning like rabid dogs on all the CEOs that made big profits off of the CRA.  The democrats provided a vehicle for CEOs to make a lot of money off of the CRA and like all people both democrat and republican who are in the business to make money did exactly that.  Now The Democrats call them “RICH BASTARDS” and do not want to reward them for making good on a law (CRA) that they (Democrats) passed.

I do not see good things with Obama as he profited from this situation also.  More than likely if Obama gets into office he will go back on his word and with the power of the Democratic Majority will seek to raise taxes to payback up to 700 Billion dollars. For the next 4 years Obama and the Democratic Party will blame this on the Bush Administration who were only partial responsible for the sub-prime debacle. I think Obama has a hidden agenda that no one knows about, not even Joe Biden.  It scares the manure out of me. Yes, he wants change……..but change to what is what no one really knows.  Billy Carter wanted change too and he got his change 31 years later with the change of a destroyed American economy. He wanted all poor people to own a home. But how were those poor people going to pay for the loans?  Fast forward to 1995 Bill Clinton mandates that it should be even easier to for poor people to get mortgages and the sub-prime era begins. Fast forward to 2008.  700 Billion tax dollars to pay for the bad loans that were written in the past under the command of Bill Clinton, Jimmy Carter and the CRA. That is how poor people were able to buy and then loose their houses.  And yes, I realize that Obama has sold a lot of uneducated people bill of goods, but we all pay the price if he gets elected. Far worse than what we have now.

Ultimately this has come full circle now that the tax payers are now paying for bad debt that was started in 1977 and built up over the years.  The mantra of the Democratic party is Tax and Spend. Taxpayers are now buying houses for poor people. Sounds a little like Social Communism.  The more and more I look at what is going on I am coming to this decision: If Barack Obama and Nancy Pelosi get control of this government they could destroy Wall Street and the RICH BASTARDS.  If this happens and everyone’s savings and investments are lost and have to rely on the Government then this will be the beginning of Marxist Socialism in the United States.  The Democrats are constantly complaining about the deficit. Why is that? Again the Democrats mantra is TAX & SPEND. Well, it is obvious. The Democrats want a huge surplus of money in the coffers to be a socialist government. The Democrats want the US Government to have all the money and power to do what ever they want to do.

Remember, if the Democrats can keep people poor, uneducated, unemployed and desperate they will always have a voter base.

I am not sold on Mc Cain and I will now probably vote third party (undecided as of this time) for the first time in my life. There will be no change as long as we keep re-electing a Democrat or a Republican.

1/4/2010

Fast Forward to September 16, 2009. Barney Franks still lives in a state of denial and authors H.R. 1479.

I found this new revelation when I read this article in the Washington Examiner online.

CRA 2009

“This morning House Financial Services Committee chairman Rep. Barney Frank held a hearing on H.R. 1479, the “Community Reinvestment Modernization Act of 2009.” The bill’s purpose is “to close the wealth gap in the United States” by increasing “home ownership and small business ownership for low- and moderate-income borrowers and persons of color.” It would extend CRA’s strict lending requirements to non-bank institutions like credit unions, insurance companies, and mortgage lenders. It would also make CRA more explicitly race-based by requiring CRA standards to be applied to minorities, regardless of income, going beyond earlier requirements that applied solely to low- and moderate-income areas.”

This my friends is the same thing all over again that Bill Clinton did in 1997 mandating that banks continue to issue Home Mortgage loans to people  that cannot afford to qualify or make the payments. This again put the banks and lending institutions in a perilous situation that will cause the further collapse of our US Economy.  Barney Franks and the Pelosians keep coming up with Marxist Socialist Entitlement programs that are unsustainable with the available tax dollars given the high unemployment and the lack of income that allows an individual to sustain mortgage loan payments.  If this H.R. 1479 becomes law it will mean more banks will close, More people will lose their jobs as the real estate market disintegrates due to an ever increasing number of foreclosed home loans.

OK so now you ask yourself what else could possible go wrong.  Who would provide the Mortgage Back Securities comprised of bad loans that were bought from the banks?

Fannie Mae and Freddie Mac Receive Unlimited Future Funds To Stay Afloat.

While you were enjoying your Christmas Eve Dinner (1/24/09), The US mortgage security entities became “nationalized” with US Tax Dollars. This simply means that for years to come the US taxpayer will pay for all the bad loans that Jimmy Carter, Bill Clinton and Barack Obama mandated with the creator being Barney Franks.

“The government has handed its ATM card to beleaguered mortgage giants Fannie Mae and Freddie Mac.

The Treasury Department said Thursday it removed the US$400-billion financial cap on the money it will provide to keep the companies afloat. Already, taxpayers have shelled out $111 billion to the pair, and a senior Treasury official said losses are not expected to exceed the government’s estimate this summer of $170 billion over 10 years.

Treasury Department officials said it will now use a flexible formula to ensure the two agencies can stand behind the billions of dollars in mortgage-backed securities they sell to investors. Under the formula, financial support would increase according to how much each firm loses in a quarter. The cap in place at the end of 2012 would apply thereafter.

By making the change before year-end, Treasury sidestepped the need for an OK from a bailout-weary Congress.”

OK do you see what this Marxist Socialist Democratic Party is doing so far?  There is no change. This is a repeat of Jimmy Carter (D) (1977 to 1981), Bill Clinton (D) (1993 to 2001) and now Barack Obama (D) (2008-2012).

ST Marie