Gulag USA of the Global Commie Unionist Corporate Criminal Regimes ;

The socialist policies implemented by
the Obama administration and the
Democrat leadership undermine
America's economic prosperity
and prolong the misery for millions
of companies and workers.

Despite passing multi-trillion dollar
government tax and spend initiatives,
numerous bailouts of failed businesses,
and repeated extensions of government
benefits, Americans are suffering and the
economy is languishing.

Nationwide the unemployment rate has
risen to 9.9%, while mortgage defaults
and foreclosure rates have surged to
record numbers.

Even with the tens of billions of dollars
Congress has spent on preventing
consumer mortgage defaults and
home foreclosures, things have
not improved much.

How could they?

Such government bailout measures
are temporary band-aids that fail to
address the structural problems our
economy faces.

They only delay the inevitable and
push the problem further down the road.

It doesn't matter that house payments
are now lower and the government has
picked up the tab for a few months.

If Americans cannot find a job or raise
the capital to start a business they won't
have the money to pay even reduced
mortgage payments.

The situation is grim
for millions of American homeowners.

The foreclosure crisis that the
administration hoped to address via its
"prevention program" is far from being over.

In fact the situation may be getting worse.

The Mortgage Bankers Association reports
that during the January to March period of
this year more than 10% of homeowners
missed making at least one mortgage payment.

This is an increase from the 9.1%
that missed home payments in 2009.

Right now approximately 4.3 million
Americans are either in foreclosure or
have missed at least three months
of mortgage payments.

Nationally, more than
4.6% of all homeowners
are in foreclosure, a new
record for the country
http://www.americanthinker.com/2010/05/how_to_cripple_the_free_econom_1.html

As Fannie Mae and Freddie Mac
ask for an additional $8.4 billion of
U.S. taxpayer dollars to cover their
rising mortgage losses, their cumulative
total debt to the American public comes
to $145 billion.

The citizenry hardly notices,
and the government quietly writes
a check to the two failing institutions.

This strategy is in keeping
with the American political
system's management of the
populace's collective attention,
with the understanding that if an
administration can ride out a scandal
for six months, then all will be forgotten.

The uncurious press moves on
to other events, and the limited
public memory replaces old
facts with new.

This myopic historical memory
is exactly what the political class
is using to hide its culpability in
the national mortgage crisis.

Therefore,
a quick history lesson is in order.

The 1970s brought
the Community Reinvestment
Act, followed by the Equal Credit
Opportunity Act and the Home
Mortgage Disclosure Act.

These laws were then used
by socio-political activists to
pressure banking and lending
institutions into making bad loans,
which these institutions probably
would not have made without the
new laws in place.

In the name of social justice,
the FDIC was further empowered
to audit lenders for redlining practices
and pressured regulated private
lending institutions to make
marginal and bad loans.

From within Fannie and Freddie,
two quasi-political, uninsured, and
unregulated government institutions,
these bad loans were bought and
packaged or securitized as
collateralized mortgage
obligations (CMO).

The bad loans were packaged
with a collection of good loans
into multi-year tranches so that
the entire loan package could
receive an investment-grade
bond rating.

With rating institutions
giving good ratings to these
volatile, risky CMOs, an artificial,
government-created market was born
http://www.americanthinker.com/2010/05/has_the_sec_charged_the_right.html