Obama SUFFERS AMNESIA BLAMING BUSH for ECONOMY ..? HA..! DEMOCRATS PUMPED SUBPRIME MORTGAGE MARKET , TRIGGERING BANKING COLLAPSE .

ALL   DEMOCRATIC  PARTY  OPERATIVES  RESPONSIBLE , the  BANKING  INDUSTRY  COLLAPSE  ..  WERE  IS  GOP  ,  WHY  NOBODY  IS  IN  JAIL..?  

In the current narrative presented by Democratic Party operatives, the banking industry collapse of September 2008 was caused by tax cuts under George W. Bush and supply-side economics tracing back to the era of Ronald Reagan.

The narrative, however, ignores the personal responsibility Barack Obama and Democratic Party operatives played in creating the subprime mortgage market, beginning with the passage of the Community Reinvestment Act of 1977.

The 2008 banking collapse was triggered by a series of failures in the mortgage-backed securities market resulting from massive defaults in the subprime mortgage market and derivatives supporting the mortgage market that caused Lehman Brothers and Bear Stearns to go bankrupt. Financial giants such as Freddie Mac, Fannie Mae, Merrill Lynch and AIG threatened to follow suit, as detailed by the Guardian of London.

Obama himself played a role as an activist lawyer in Chicago, representing ACORN in the 1994 caseBuycks-Roberson v. Citibank Federal Savings Bank. In the case, ACORN pressed Citibank to make more loans to marginally qualified African-American applicants “in a race neutral way.”

ACORN Housing, then a nationwide organization with offices in more than 30 cities, used the Citibank litigation to push the group’s radical agenda to get subprime homebuyers mortgages under the most favorable terms available.

Community Reinvestment Act of 1977

The Community Reinvestment Act, or CRA, was signed into law by President Jimmy Carter in 1977 with the goal of forcing banks to provide credit to businesses and homeowners with poor credit.

Clinton expands subprime mortgage market

Securitization of mortgages into bonds, a process that became a multi-trillion-dollar business in the 1990s, increased dramatically the liquidity, or amount of money available, to make new home loans.

Because mortgage originators could sell their mortgages to investment bankers, creating mortgage-backed securities, mortgage originators did not have to hold the mortgage in their portfolio. As a result, mortgage lenders could more easily engage in riskier lending, including lending to less qualified buyers in the subprime market.

Franklin Raines

Franklin Raines’ problems began in 2004, when Fannie Mae’s regulator, the Office of Federal Housing Enterprise Oversight, or OFHEO, and the Security and Exchange Commission’s top accountant issued reports charging that under Raines’ stewardship Fannie Mae had misstated earnings for three and a half years.

The $9 billion restatement of earnings required by the OFHEO and SEC ended up wiping out 40 percent of Fannie Mae’s originally stated profits from 2001 to mid-2004.

James Johnson

James Johnson was appointed to head Obama’s vice presidential selection committee until a controversy concerning an alleged $7 millions in questionable real estate loans he received on favorable terms from failed sub-prime mortgage lender Countrywide Financial surfaced and forced him to resign.

Jamie Gorelick

In 1998, Fannie Mae Vice Chairman Jamie S. Gorelick received a bonus of $779,625, despite her alleged involvement in a scandal in which Fannie Mae employees falsified signatures on accounting transactions to manipulate books to meet 1998 earning targets. The targets, in turn, triggered multi-million-dollar bonuses for top executives, including Gorelick.

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