Bank of American gets another bailout

BANKS PROPERTY MARKET & THE YEAR 2009

Countrywide Financial The embattled mortgage lender has announced a fourth-quarter loss of $422 million, Perhaps most shocking was the announcement that 33% of all subprime-mortgage loans that Countrywide holds were delinquent in the fourth quarter. That's a massive number.

Freddie and Fannie were blamed as being the beginning and the end all of the mortgage mess but those who blame them are trying to cover up their own involvement in this mess. If not, they should know that these companies only buy contracts from lenders that make the loans, they don't make the loans, they don't make much if any rules as to who those lenders can make those loans to. "These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."Had the Republican-controlled Executive branch and the Republican-controlled Legislative branch wanted to reform Fannie Mae and Freddie Mac in 2003, they could have done so - regardless of the point of view of one Rep. Barney Frank.

WHO CAUSED THIS SUBPRIME SITUATION IN THE USA

REPUBLICAN OR DEMOCRATE TO BLAME:??? The US BLOGS are saying Sen. Christopher J. Dodd, D-Conn., Rep. Barney Frank, D-Mass. - Washington have a lot to do with the crises. They along with their Washington cronies caused this crisis. They sold out this country for a few dollars more to their political coffers. Barney Frank insisted for years that "nothing was wrong" with any government sponsored mortgage agency and both Frank and Dodd have been implicated in scandals where they or there lovers have received some sort of compensation from the agencies in question. Conservative people have always pushed to get any and all regulation out of the business world. "Just let the free market handle it" they have always said and continue to say. The free market always does the right thing. The problem is that the only goal of the free market is to make money, usually short term money, regardless of who gets crushed in the process. In this case we had lenders doing almost anything they wanted for many years in order to get that short term profit in their pockets and short sighted buyers ignorantly jumped at the chance to buy a house they couldn't afford. There was no consideration for the long term health of any market or our country. It was all about the money and greed. And of course republicans pushed it along every day making speeches and policy that kept as much regulation away as was possible in order to facilitate that short term, greed based philosophy. They think government is always the devil and free markets should do anything they want.
Now we are all paying the price.

Dodd returned to the U.S. Senate as chairman of the powerful Banking Committee, where he promised to protect "the safety and soundness of our financial institutions." Guess what happened?? Dodd's party has controlled both houses of Congress for the last two years. And although Dodd like to be in the spotlight of congressional Democrats allegedly trying to solve the current crisis, the five-term senator is facing mounting criticism that he and others did way too little, too late to prevent this money meltdown. "During the past 20 years,""PACs and employees of finance-related firms have contributed more than $13 million to Dodd's election efforts, including nearly $6 million in the past two years."That's $250,000 per month from people who expect legislative protection by Dodd & of course he would have to be greatful for this. Great for some.

DEMOCRATS: The Democratic Party is to blame for the general problem some say. Dodd & Frank are to blame for the specifics. The Democrats blame "greedy" Republicans when there is video evidence of Bush, McCain, Republicans in Congress, and even Alan Greenspan trying to avert disaster by requesting increased regulation on Fannie & Freddie. Well, the Democrats blocked those efforts at EVERY TURN! They were getting payoffs! The "greedy" Capitalists are to blame because they began buying up all the bad debt from Fannie & Freddie because they figured it was backed by the Government. And guess what.....our Federal Government is doing just that...trying to bail out the idiots that purchased all of that toxic debt.Now we face a major GLOBAL financial crisis. Elderly people could see their life's savings completely wiped out. Wall Street has their share of the blame. Democrats pushing and accelerating a program called the Community Reinvestment Act. Look it up. It the last days of this idiocy, they were offering no down payment mortgage loans.

If any regulation is needed, it is of the Federal Reserve that sat back and did nothing. The Fed is the central culprit here.

Source: http://blogs.usatoday.com/oped/2009/01/unregulated-pri.html

2009 Obama is saying as we say the Recession was caused by the finance and banking execs who paid themselves large amounts of bonuses & salaries. These & their board of directors are the ones to blame to the financial collapse.

FEBRUARY 2009: The Treasury Department overpaid for the assets it purchased as part of the $700 billion financial sector bailout, according to testimony of a bailout oversight official before Congress on Thursday. At a Senate Banking Committee hearing, Elizabeth Warren, head of the Congressional Oversight Panel, testified that the more than $254 billion in assets that the government purchased in 2008 are worth just $176 billion - $78 billion less than what Treasury paid for them. Congressional Budget Office estimated that the Treasury has lost $64 billion on its investments in the Troubled Asset Relief Program.

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