‘Jaw-Dropping’: Former U.S. Treasury Secretary Makes Bombshell Claim About Russia and 2008 Financial Crisis (and Why It May Sound Familiar)

The Chinese “received a message from the Russians” back in 2008 suggesting a pact to sell Fannie Mae and Freddie Mac securities on the market, which would have nudged down the price of the debt of Fannie and Freddie and also maximized the chaos on Wall Street, a former U.S. official told BBC. It confirms a report that TheBlaze TV’s For the Record first aired back in September 2013.

Read more at The Blaze Read More......

So Obama Inherited a Mess, Did He? From Whom?

For the past three and a half years, we have had to endure the nonstop whining of Barack Obama and his surrogates telling us over and over that he inherited the financial mess that required him to add trillions of dollars to the national debt, to run trillion-dollar-plus deficits for each year that he's been in office.

Now he is telling us that he needs another four years and trillions more in money borrowed from China to complete the clean-up of the mess he inherited.

Well, for once, he nearly has it right. He inherited not simply a financial mess, but a historic financial disaster. Even the most virulent anti-Obama partisans will admit that Barack Obama didn't directly create the 2007-2008 financial meltdown.

But Obama's own claims that it was all the fault of his predecessor, George W. Bush, sounded a little thin the first time he uttered them, while now they appear remarkably transparent. The source of the financial crisis precedes Bush by a number of years, and like many landslides, it starts with a small pebble being dropped that starts the whole thing.

Looking backward through the historical record might help us decide just who provided Barack Obama with the financial legacy he has to cope with if it wasn't Bush.

Read more at American Thinker Read More......

Senate Passes Financial Overhaul Bill

FOXNews.com, 5/20/2010 - WASHINGTON (AP) -- The Senate has passed a sweeping overhaul of how the government regulates banks and Wall Street. ∴ The legislation is aimed at preventing a repeat of the financial meltdown two years ago that plunged the nation into a deep recession. ∴ The Senate passed the bill on a 59-39 vote, giving President Barack Obama a major policy victory. ∴ The bill now must be merged with a House version. A key House negotiator predicts the bill will reach Obama's desk by the Fourth of July. ∴ The massive legislation touches all points in the financial sectors, from Wall Street CEOs and first-time home buyers, to high-flying traders and small town lenders. ∴ The bill calls for new ways to watch for risks in the financial system. Read More......

Video: Dems turned deaf ear to Bush Admin. & McCain warnings leading to financial meltdown

(Via email): This video clearly shows that George Bush warned Congress starting in 2001 that this economic crisis was coming if something was not done to control Fannie Mae and Freddie Mac. But Congress refused to listen on the assurances of Congressman, Barney Frank and other leading Democrats.

Remember this when you hear "It was Bush's fault," from our current POTUS and Democrats. Read More......

Reverse Mortgages May Be Next Subprime, Center Says

BLOOMBERG.COM, 10/6/2009 by Alexis Leondis - Reverse mortgages may be the next subprime crisis, according to the National Consumer Law Center. ∴ Some of the same U.S. lenders that helped drive the real estate boom with loans to home buyers who couldn’t afford the payments are now targeting seniors, the center said. Brokers, who are given financial incentives to sell the loans, may be making misleading claims to potential customers, according to a report titled “Subprime Revisited,” that was released today by the Boston-based NCLC. Read more at Bloomberg.com... Read More......

Obama Says Financial Regulations Must Be Strengthened Globally

BLOOMBERG, The administration has proposed an overhaul of U.S. financial regulations including oversight of the systemic risk large financial institutions pose to the economy, new ways for the government to dismantle failed companies and a regulator to oversee financial products for consumers. ∴ Obama reiterated his calls for Congress to act on his regulatory proposals, which he also made in a speech on Wall Street Sept. 13.

“As I told leaders of our financial community in New York City earlier this week, a return to normalcy can’t breed complacency,” Obama said in today’s address. “Our government needs to fundamentally reform the rules governing financial firms and markets to meet the challenges of the 21st century.”

Read more at Bloomberg.com... Read More......

IBD: A Debt The Founders Wouldn't Believe

INVESTORS BUSINESS DAILY/EDITORIALS, 6/26/2009 by Sen. Judd Gregg - In a 1789 letter to James Madison, Thomas Jefferson wrote: "The earth belongs to each of these generations, during its course, fully, and in their own right. The 2d. generation receives it clear of the debts and encumbrances of the 1st. The 3d of the 2d. and so on. For if the 1st. could charge it with a debt, then the earth would belong to the dead and not the living generation. Then no generation can contract debts greater than may be paid during the course of its own existence." ∴ What would Thomas Jefferson think today, as the Obama administration puts this generation on a path to drive the debt sky-high, effectively leaving our children and grandchildren to foot the bill? Read more at IBD... Read More......

Recovery, Meet Sobriety

WASHINGTON POST, 6/11/2009, by George F. Will - Noting that people "criticize me for harping on the obvious," Calvin Coolidge justified that practice by saying, "If all the folks in the United States would do the few simple things they know they ought to do, most of our big problems would take care of themselves." Consider what individual Americans know they ought to do, and what their government should know not to do. Don't miss the wisdom that follows...

Hat tip: John H. Detweiler
John says, "George can be both amusing and correct." Read More......

Letter from a Dodge Dealer

Via email (Hat tip: Stella Guenther) May 19, 2009 - My name is George C. Joseph. I am the sole owner of Sunshine Dodge-Isuzu, a family owned and operated business in Melbourne, Florida. My family bought and paid for this automobile franchise 35 years ago in 1974. I am the second generation to manage this business.

We currently employ 50+ people and before the economic slowdown we employed over 70 local people. We are active in the community and the local chamber of commerce. We deal with several dozen local vendors on a day to day basis and many more during a month. All depend on our business for part of their livelihood.

We are financially strong with great respect in the market place and community. We have strong local presence and stability. I work every day the store is open, nine to ten hours a day. I know most of our customers and all our employees. Sunshine Dodge is my life.

On Thursday, May 14, 2009 I was notified that my Dodge franchise, that we purchased, will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them.

My new vehicle inventory consists of 125 vehicles with a financed balance of 3 million dollars. This inventory becomes impossible to sell with no factory incentives beyond June 9, 2009. Without the Dodge franchise we can no longer sell a new Dodge as "new," nor will we be able to do any warranty service work.

Additionally, my Dodge parts inventory, (approximately $300,000) is virtually worthless without the ability to perform warranty service. There is no offer from Chrysler to buy back the vehicles or parts inventory.

Our facility was recently totally renovated at Chrysler's insistence, incurring a multi-million dollar debt in the form of a mortgage at Sun Trust Bank.

HOW IN THE UNITED STATES OF AMERICA CAN THIS HAPPEN?

THIS IS A PRIVATE BUSINESS NOT A GOVERNMENT ENTITY.

This is beyond imagination! My business is being stolen from me through NO FAULT OF OUR OWN. We did NOTHING wrong.

This atrocity will most likely force my family into bankruptcy. This will also cause our 50+ employees to be unemployed. How will they provide for their families? This is a total economic disaster.

HOW CAN THIS HAPPEN IN A FREE MARKET ECONOMY IN THE UNITED STATES OF AMERICA?

I beseech your help, and look forward to your reply. Thank you.

Sincerely,

George C. Joseph
President & Owner
Sunshine Dodge-Isuzu Read More......

AP Sources: Obama admin. weighs regulatory panel

BREITBART NEWS, 5/19, 2009 by Martin Crusinger - WASHINGTON (AP) - The Obama administration is actively considering creation of a regulatory commission to protect consumers of financial products in an effort to crack down on some of the abuses that helped trigger the current financial crisis, according to administration and industry officials. Read more at Breitbart...

brainchild: How about a citizen regulatory commission to crack down on lawmakers, eg. Barney Frank, Chris Dodd and others? Read More......

Kyl Warns Obama Administration Not to Fire Bank CEOs

(Update1)
BLOOMBERG, 5/8/2009 by James Rowley - A leading Senate Republican warned the Obama administration against removing chief executive officers at banks that received U.S. assistance, saying “the great fear” would be government management of companies. ∴ “If you think that Washington can run car companies and banks and so on, well, then you’ve not been paying attention to how we’ve been doing back here,” Senator Jon Kyl said of the Treasury’s threat of management changes at banks getting “exceptional” aid. Last month, the administration forced out General Motors Corp. CEO Rick Wagoner as a condition for more U.S. aid. Read more at Bloomberg... Read More......

FACT CHECK: Obama disowns deficit he helped shape

BREITBART, 4/29/2009 WASHINGTON (AP) - "That wasn't me," President Barack Obama said on his 100th day in office, disclaiming responsibility for the huge budget deficit waiting for him on Day One. It actually was him—and the other Democrats controlling Congress the previous two years—who shaped a budget so out of balance. ∴ And as a presidential candidate and president-elect, he backed the twilight Bush-era stimulus plan that made the deficit deeper, all before he took over and promoted spending plans that have made it much deeper still. Read more at Breitbart News... Read More......

EXCLUSIVE: Senator's husband's firm cashes in on crisis

WASHINGTON POST, 4/21/2009, by Chuch Neubauer - On the day the new Congress convened this year, Sen. Dianne Feinstein introduced legislation to route $25 billion in taxpayer money to a government agency that had just awarded her husband's real estate firm a lucrative contract to sell foreclosed properties at compensation rates higher than the industry norms. ∴ Mrs. Feinstein's intervention on behalf of the Federal Deposit Insurance Corp. was unusual: the California Democrat isn't a member of the Senate Committee on Banking, Housing and Urban Affairs with jurisdiction over FDIC; and the agency is supposed to operate from money it raises from bank-paid insurance payments - not direct federal dollars. Read more at the Washington Post... Read More......

Samuelson: Our Depression Obsession

Comment: More from Samuelson. Things have changed since the period after WWI. --JHD

WASHINGTON POST, 4/20/2009 by Robert J. Samuelson (H/t: John H. Detweiler) - The Great Depression of the 1930s was the most momentous economic event of the 20th century. It was a proximate cause of World War II, having fed the Nazis' rise in Germany. It inspired a new American welfare system as a response to mass misery. Everywhere, it discredited unsupervised capitalism. Given today's economic crisis, our renewed fascination with the Depression is natural. But we ought not stretch the parallels too far. Read more at the Washington Post... Read More......

NYT: Dear AGI, I Quit!

NEW YORK TIMES, 3/25/2009, Op-ed by Jake DeSantis, Executive Vice President, A.G.I. Financial Products - The following is a [resignation] letter sent on Tuesday by Jake DeSantis, an executive vice president of the American International Group’s financial products unit, to Edward M. Liddy, the chief executive of A.I.G.

DEAR Mr. Liddy,
It is with deep regret that I submit my notice of resignation from A.I.G. Financial Products. I hope you take the time to read this entire letter. Before describing the details of my decision, I want to offer some context:

I am proud of everything I have done for the commodity and equity divisions of A.I.G.-F.P. I was in no way involved in — or responsible for — the credit default swap transactions that have hamstrung A.I.G. Nor were more than a handful of the 400 current employees of A.I.G.-F.P. Most of those responsible have left the company and have conspicuously escaped the public outrage. Continue reading at NY Times.com... Read More......

Auto bailout approved by Bush administration

The Patriot Post, Friday Digest, Vol. 08 No. 51 - President George W. Bush announced Friday morning that the White House will include General Motors and Chrysler in the Treasury Department's fiscal bailout plan. The automakers will receive $13,4 billion in emergency loans now, plus another $4 billion in February contingent on the companies undertaking reorganization dictated by the federal government. Among the conditions is Tennessee Republican Sen. Bob Corker's proposal that the automakers negotiate wage and benefit cuts with the United Auto Workers to better align them with competition from foreign companies making autos here in the United States, but that requirement is non-binding. GM and Chrysler must also limit executive pay and eliminate their corporate jets. On 30 March, GM and Chrysler will be made to give account of their condition.

"These are not ordinary circumstances, in the midst of a financial crisis and a recession allowing the US auto industry to collapse is not a responsible action," the president said, adding, "Chapter 11 is unlikely to work for the American automakers at this time." Fair-weather capitalism is also unlikely to work at any time. Read More......

Gordon Brown's Financial Folly

The Heritage Foundation, October 17, 2008, "Gordon Brown's Financial Folly: The Global Economy Does Not Need More Regulation" by Brett D. Schaefer

Prime Minister Gordon Brown authored an op-ed in the Washington Post on October 17 suggesting that the current international financial crisis requires a radical expansion of global governance over international financial institutions and transactions. Brown's op-ed is a study of internal contradictions and confusion and should not be taken as a serious proposal [Emphasis added].

Brown's proposal coincides with ongoing meetings between the Bush Administration and European officials and the announcement of a special G-8 summit as early as next month to focus on the global financial crisis. The Bush Administration should not make the creation of a powerful new international regulatory authority a part of its legacy. Read more at www.heritage.org Read More......

Nonsense

"In each of the first two presidential debates, Barack Obama claimed that 'Republican deregulation' is responsible for the financial crisis. Most viewers probably accepted this idea, especially because Republicans generally do favor deregulation.

But one essential fact was missing from the senator's narrative: While there has been significant deregulation in the U.S. economy during the last 30 years, none of it has occurred in the financial sector. Indeed, the only significant legislation with any effect on financial risk-taking was the Federal Deposit Insurance Corporation Improvement Act of 1991, adopted during the first Bush administration in the wake of the collapse of the savings and loans (S&Ls). FDICIA, however, substantially tightened commercial bank and S&L regulations, including prompt corrective action when a bank's capital declines below adequate levels and severe personal fines if management violates laws or regulations." Read more from this Wall Street Journal article. Read More......

McCain explains his YES vote on Bailout

"It's insanity and it's obscenity. Until we stop it, until we get a president who says I'm going to veto these bills, I'm going to make the people famous who put them on there... It's terrible, and it really is corrupting... The corruption in Washington is not the lobbyists, it's the system that allows the lobbyists to take advantage of these back-room deals."

See the video at Breitbart from MSNBC's Morning Joe Show HERE

Best wishes to Gov. Palin in the VP debate tonight! Read More......

Allen Alley warns: OR Retirement Fund at Risk...

Allen Allen, Republican candidate for Oregon State Treasurer
Email Notice, Received September 29, 2008

Oregon Retirement Fund at Risk in Current Financial Crisis - The impact of the current US financial crisis will linger for years and will have a long-term effect on Oregon. Now is the time for strong, decisive and experienced leadership in the Office of the State Treasurer. That's why I need your vote and financial support.

As your State Treasurer, I will take action to restructure our investment portfolio in order to rebuild capital. This is critical because the PERS fund has already lost over $6 billion in the past year - and that was before this latest wave of bad news. The recent collapse of Lehman Brothers alone cost the fund another $124 million. It is imperative that we stop the bleeding and put PERS back on track.

If we fall behind on our obligations, the state will be compelled to make up the difference during a time when economic activity is stagnant or, even worse, in recession. This situation could also adversely affect the state's credit rating, which would make issuing bonds to invest in our schools, roads and other infrastructure more difficult. It is hard to overstate how high the risks are right now.

My opponent recently stated that he believes that Oregon investments are doing fine. That's when PERS had lost over $6 billion. In addition, he takes every opportunity to promote the idea of implementing a sales tax on Oregonians. My opponent is dangerously out of touch. Right now we need leadership and that's what I will bring as your next State Treasurer.

Sincerely,
Allen Alley (see new campaign ad) Read More......