Hard Politics disguised as “Truth” about the Bailout from the New York Times

The New York Times—aka the Walter Duranty Papers [1]  has a 90+ year history of apologizing for Communism, fostering any form of anti-anticommunism that might assist our enemies, has used race-bating, overt racism and other propagandistic stratagems for decades in their quest to attract voters toward leftist causes. Their op-ed pieces routinely contain articles—more like screeds—that crank out visions of oppression and criminal activity by Republicans. They never criticize the left unless the topic drifts toward the Clintons.

The topic of the day is the bailout. We expect the Times to glubber and moan over the ‘little guy’ getting hurt and blame the whole mess on capitalism in some form or another.  Let us see how closely they conform to their stodgy image today:

“The fifth major federal bailout this year — after Bear Stearns, Fannie Mae, Freddie Mac and the American International Group — is now in the works. Taxpayers have every right to be alarmed and angry. The latest plan is not necessarily a bad one, and officials had to move quickly to prevent credit markets from seizing up.”[2]-- Hard Truths About the Bailout EDITORIAL, New York Times.” [Emphasis is mine in all quotes.]

Fair, so far. How does the NYT know what the plan is? They have nota  clue.

“But make no mistake, this crisis could have been avoided if regulators had enforced rules and officials had dared to question risky lending and other dubious practices.”

We should stop here for a pause. The rest of the screed denigrates the Bush years with carting the responsibility for this disaster. Congress plays a major role in legislation and oversight on these matters. Stooges from the Clintoonery era sat on Fanny Mae’s stool and worked the levers. Let us place blame where it needs to be placed. Not all the blame belongs on Bush—Congress has much to answer for too.

Now, Off topic, we now see the socialism that creeps in from the NYT like a bug in the rug:

“Lawmakers should use the bailout legislation to also extend unemployment benefits, bolster food stamps and provide aid to state and local governments to provide health care and other services that are especially important during tough times.”

Backdoor or alleyway socialism. Take this opportunity to attack capitalism and soak the taxpayer. Here, any change in the markets, up or down, is a signal that somebody will be unfairly treated and we need to rush money to help the poor. Is this a veiled plea to bail our California—a place that has ruined their economy with phony social programs and the celebration of sloth, sodomy and drugs?[3]

“How will the government help to create the jobs of the future? How will the most vulnerable Americans be protected? And they need to explain that the cost of the bailouts will compete with other spending.”

The government does not create jobs. That is the private sector and 80% of new jobs come from the small businesses, the ones that Obama’s tax policies will hurt the most. This is tax whoring. Here the topic changes from regulation to handouts. The COST of this mess will be born by the top 50% in this country who pay 97% off all federal taxes. The ‘little guy’ gets a free ride on this one.

“If lawmakers and administration officials really want to restore confidence, the bailout must be only a first step. The hard work of establishing and enforcing the regulations that are needed for a truly trustworthy financial system, still lies ahead.”

Fine, and this is also the truth in literal terms. Missing in this message is the basis for this mess: defaults on mortgages. Here, we can find to fault with the leftist parasites who, in earlier decades, forced banks and other intuitions into giving mortgages and loans to drug addicts, dead beats, losers and other high-risk types with the threat of lawsuits. Pick any inner city, like Baltimore, for proof of this. Conveniently, the leftists provided a sewer to dump these phony loans and that was called Fanny Mae. They selected a top leftist; a Clintoonery-enlightened gifted criminal named Franklin Rains to lie about the financial status of this financial cesspool and allowed to take a few hundred million in bonuses for his fine work.

The Scam: Give money away to minorities no matter what.

The phony notion of Greenlining.org[4] that is the opposite of Redlining[5] is shown here on their website:

"Empowering Communities With Capital"

Mission Statement: Our goal is to empower low-income and minority communities by attracting investments for health, education, home ownership, employment, and minority entrepreneurship using a holistic advocacy approach.” [Emphasis is mine in all quotes.]

Here is more.

Financial Institution Management and Supplier Diversity

“As a result of the change in federal banking regulators and a new congress, Greenlining is active in a number of changes affecting the banking industry. Greenlining has been promoting a new banking bill that encourages far greater diversity at the senior management of banks.  Greenlining also produces annually an analysis of the diversity of the boards of directors of major banks (click here for report).  With the support of the Comptroller of the Currency, John Dugan, and John Reich the Director of OTS, Greenlining is developing with all the major banks a common metric and goals for supplier diversity directed at small minority-owned businesses.”--Greenlining.org [Emphasis is mine in all quotes.]

Philanthropy

“Greenlining has taken the lead nationally in urging financial institutions to quadruple their philanthropy from 0.5% to 2% of pre-tax income.  This would increase banking philanthropy from $1.5 billion a year to $6 billion a year.  At 2% of pre-tax income, Citigroup and Bank of America for example, both of whom are behind Wal-Mart in philanthropic giving, would each give 600 million a year.”-- Greenlining.org [Emphasis is mine in all quotes.]

Now, this all sounds nice, but notice that there is no incentive to do much more than insist that banks and the government just give away capital and real estate to minorities just because they are minorities. Redlining was an obtuse business practice that resulted in citing regions in cities where loans and mortgages had resulted in defaults and such. Parts of cities were marked off in red on maps because the financial risk was too high. Greenlining is the antithesis of this practice: you must loan [or give] money to minorities for homes and other items even if they are bad credit risks. The result is now: mostly minorities have defaulted on their mortgages even when many were not required to put any money down. The down payment is known to minimize defaults in minority communities such as in New York.[6] We must review affirmative action programs and their disastrous outcomes in light of what greenlining.org is professing. As with other government programs such as The Great Society, HUD, welfare, War on Poverty, busing and more, the outcome is just another disaster. Look at California for a preview of what is coming.[7]

Stupidity in Action:

From 2004 we read that Bush wanted nothing-down mortgages.[8]

“In announcing the plan Monday at a home builders show in Las Vegas, Federal Housing Commissioner John Weicher called the proposal the "most significant FHA initiative in more than a decade." It would lead to 150,000 first-time owners annually, he said.”—2004.

“Nothing-down options are available on the private mortgage market, but, in general, they require the borrower to have pristine credit. Bush's proposed change would extend the nothing-down option to borrowers with blemished credit.”-- Bush seeks to increase minority homeownership By Thomas A. Fogarty, USA TODAY

Others in the Republican Party did not agree with this bailout:

“"To ask the 94 percent of people who are paying their mortgages on time to pay additional funds so they can bail out scam artists and speculators and, frankly, banks who may have made bad loans is not fair," Rep. John A. Boehner of Ohio, the Republican leader, told reporters Thursday.””[9]

This is stupid, and plays into the hands of the left. Bush is a monumental failure in much of what he has done, but letting dead beats get free houses is about the stupidest thing any politician has done since FDR went with Yalta while his brain was decaying.

Now, Marxian vultures like Nancy Pelosi and Harry Reid get to huddle with Bush and his Goldman Sachs buddies at Treasury and do what? Stick the taxpayer with bad loans! The drooling leftists are hovering like kites to see what they can pick out of the sugar plum tree shakings.

This will cost the average worker [130 million] about 7,000$ in taxes or debt on average, but since 20% of the top pay 80% of the taxes, the load for those in the bottom half will be zero and those making $70,000 and up will pay about $40,000  each, on average, before this is finished.

It would have been cheaper to let Frankly Smack and Frumpy Fred go down. The mortgages would have then been bought up at auction and somebody could have made money off the mess.

The costs of reversing this blunder are high, but what prophylactics will be plastered on the walls to stop another round of this? Are we going to still allow dead beats to buy and flip houses or get a free house and then get equity loans so they can finance their drug businesses or buy cars and gold chains? McCain on the Senate Floor called for more controls on Fanny Mae and her half-wit brother.

Yes, regulation is the way to do this, but we can expect the left to insert minority loop-holes to let the water run out of any vessel that Bush and his morons might cobble together to fix this bleeding. This is the second biggest tax whoring event in history—“Climate Change”[10] is 100 times bigger than this.

If we continue to give away tax money to persons whose credit history is worth as much as dung then we will just be subsidizing failure and we will all go down in a blizzard of inflation and worthless money!

We need 15% down with no alternatives for home and other big ticket loans.  Period.  We need the interest rates to be raised to 6% or higher to prevent inflation.

Times ahead are tough as Obama has an ambitious 1 trillion dollar spending plan that includes socialized medicine[11], high gas prices, limited oil production and taxes everywhere. We might not survive this mess if they booger the plan in Washington in the next few days. We cannot survive another trillion dollars in social programs even if we didn’t have a financial meltdown. We cannot survive %5 gasoline prices[12] either.

Ready for bank runs? Have you checked your accounts?  The government already takes 26% of your money now and they need about 26% more.

Our politicians now cannot be readily distinguished from warm horse droppings.

We need a ‘change’ all right. It is not clear if McCain can do the job, but Obama and his Afro-Leninists [13]are certainly not the answer.

What a mess.

rycK

Comments to: ryckki@gmail.com