Friday, 23 January 2015

"Corrupt investigation produces corrupt reform": Sub-Prime Lending.

Democrats set up a fake investigation into the 2008 financial crash, burning through ten million dollars. 80 staffers were paid for and supplied to Democrats, none for Republican members.  The commission absolved the government, blamed capitalist greed, and called successfully for even more government.  To get there, they railroaded the Republican members of the Financial Crisis Inquiry Commission into a blind corner. A new book by FCIS member, Peter Wallison,  details the shenanigans of Pelosi's friend, Angelides, who was put in charge.

-The commissioners weren't told when 100's of witnesses were being interviewed with no cross examination and under no oath.
-A memo from the Fannie Mae chief credit officer showed government policy drove risky lending. It was suppressed.
-That 3/4 of the nothing-down mortgages ended up on Fanny Mac and Mae books was suppressed.
-The draft was only shown the other commissioners the week before it was published and three quarters of the Republican dissent was deleted from the version sold in stores.

From the article:
"As a result, Fannie and Freddie, now under full federal control, are back making low down payment loans to low-income borrowers, and the Dodd-Frank-mandated Consumer Financial Protection Bureau is forcing banks to ignore credit risks in the name of affordable housing. A corrupt investigation led to corrupt reforms."
Kabuki Performance

No comments:

Post a Comment