Comment

Comment by Patricia M. McBride on October 3, 2010 at 5:26pm

Mike, although I agree that Fannie Mae and Freddie Mac are deep into this, none of this could have or would have happened had it not been for the socialists in congress like Barnie Frank and others who pushed these bad loans on Freddie and Fannie who then pushed them in packages on other banks without letting them know the true risk behind them. I can in no way blame the banks alone nor were they the people who started this. This was started by the democrats currently in congress and perpetuated by law suits against red lining and other false allegations brought by the Obamas of this world. I am about sick of people blaming this whole mess on the bankers as many were forced to take loans they would not have otherwise taken.

Comment by Michael "Mike" Yost on October 3, 2010 at 2:53pm

Actually it was the TARP bill- Troubled Assets Relief Program in October 2008 and was designed to purchase those "toxic assets" that was preventing the lending. Because it gave such unlimited powers to the Sect. of Treasury- then Hank Paulson- he instead decided to use the money to make Banks take government loans from the funds in exchange for both Common stock and also guaranteed dividend Preferred Stock. As of this date, we have no exact accounting of what has been repaid and what hasn't.

It also was used to prevent the collapse of several Wall Street Investment banks as well Because of the Gramm-Leach-Bilily act that removed the safeguards that were under with the Glass-Steagal Act, Brokerage houses and Banks had since merged in many cases. If the banks collapsed, so would they.

In all honesty, instead of continuing the ballooned salaries, golden parachutes, and bonuses, many of these people, IMHO, deserved instead to be JAILED and sent to prison for a very long time. THEY created these "mortgaged back securities" that allowed this to happen. Freddie and Fannie were just as complicate and also should have had their Chairman and other operatives jailed as well. They were as much instrumental in creating these "derivatives" that traded as "safe" investments when indeed, they were NOT safe, but creating the bubble that ultimately had to burst. It was on PAPER ONLY that homes inflated in value and when it all came down like the house of tissue paper it was built on, everything "hit the fan".

Unless we GET GOVERNMENT OUT OF THE MARKET MANIPULATION business, this will take decades to even come close to resolving itself. These banks and others who created this should have failed and used the bankruptcy courts to start over and begin anew as FREE MARKET banks and lenders without direct government intervention with Laws like the Community Reinvestment Act, G-L-B Act, and others. Return to the Glass-Steagal protections and we end the issue totally. No, instead, this Administration THINKS it can regulate them into profitability when in fact, they are making loans to the small and mid-size business impossible (but that is ANOTHER Story within itself with the new Bank/Wall Street Regulation bill that just recently became law).

WAKE UP people. You MUST, now more than ever, start working to get the candidates elected to win this nation back and who understand that America was founded on FREE MARKET principles and we don't have a "Free Market" anymore. Our very national survival depends on having Congressional Representatives who understand the CORE REASONS of what happened and will resolve to end this control over every aspect of our lives.

God bless each of you and GOD BLESS AMERICA,
Mike Yost
Yost for Congress - 2010
http://yost2010.com

Comment by Patricia M. McBride on October 3, 2010 at 7:43am

Have forwarded to everyone on my list. Thank you for all you do, Billie!