Re: Capitalism didn't kill the banks – socialism did
Charlie Chan
> ... it was Bill Clinton and his cronies,
> with their politically correct affirmative action. That is the fact of
> the matter – the Clinton administration compelled the banks to lend to
> minorities, to comply with racial and social quotas that defied all
> the rules of banking.
>
> In 1994 the New York Times reported jubilantly that the Clinton
> administration was leaning heavily on lenders to embrace people in low-
> income neighbourhoods or minority groups.
>
> From then on, the madness gathered pace. In 1999, pressured by
> Clinton, Fannie Mae started a programme of extensive expansion of
> loans to people with low to moderate credit. Clinton's housing
> secretary Andrew Cuomo warned Fannie Mae and Freddie Mac that such
> loans must amount to 50% of their portfolio by 2001. Other government
> agencies joined the crusade. In 1999 the Justice Department was
> reported as trying to establish "a system of racial quotas in lending,
> regardless of credit risk".
>
> Clinton's Federal Reserve compelled banks to accept welfare cheques
> and unemployment benefit as income sources to qualify for a mortgage.
> As the PC terror grew, brokers advised clients to claim they were 1%
> Native American to qualify for loans. These included the lunatic
> "Ninja" (No income, no job, no assets) loans. The most flagrant
> example was a $480,000 (£324,000) mortgage to an illegal alien from
> Mexico.
>
> The scale of the engineered destabilisation of the housing market was
> astronomic. In 1994 the share of sub-prime mortgages to total
> origination was 5% ($35bn); by 2006 it had grown to 20% ($600bn). No
> market could survive subversion on that scale. When the Justice
> Department is intervening in the housing market, to describe the
> economy as either "free" or "capitalist" is a bad joke. That was
> Clinton's legacy. The Oval Office Onanist may have done wonders for
> the US dry-cleaning industry, but he destroyed the housing market and,
> by extension, the banking sector.
**********************************************************************************************
On Nov 26, 5:58 am, RichAsianKid <richasian...@hotmail.com>
wrote in Soc.Culture.China, et al:
> Background cross-reference:
> http://mangans.blogspot.com/2007/12/mortgage-crisis-and-immigration.html
>
> "Hispanics hold up to 40 percent of mortgages in the troubled subprime
> loan market......"
>
> And:
> http://news.ncmonline.com/news/view_article.html?article_id=aadd1425a...
>
> "According to the NAACP, African Americans hold more than half of the
> sub-prime mortgage loans at risk of foreclosure."
>
> * * * *http://news.scotsman.com/opinion/Gerald-Warner-Capitalism-didn39t-kil...
> Gerald Warner: Capitalism didn't kill the banks – socialism did
> Published Date: 23 November 2008
>
> AT LAST – the death of capitalism has occurred, as so often predicted
> by all those rheumy-eyed revolutionaries bumming drinks off students
> in pubs ("See me, son, ah'm a socialist. Did ye ever read a book
> called The Ragged Trousered Philanthropists? Magic!"). Zzzz…
>
> The thesis is that the banking system, propelled by the centrifugal
> force of its own greed, has spun off its axis, as it was always
> predestined to do through the operation of Marxist historical
> inevitability, and a new order is arising under which the financial
> institutions are progressively falling into public ownership. Under
> the stimulus of this unlooked-for remission, even the moribund Labour
> Left is sitting up and taking some thin gruel.
>
> Alas for all those ragged-trousered philanthropists holding a mirror
> hopefully to the nostrils of capitalism, a detailed diagnosis shows
> that socialism is not the cure but the cause of the malady. The notion
> that capitalism cannibalised itself is bunkum and the evidence is
> irrefutable. Amid all the myriad analyses of the financial collapse,
> one sole premise commands universal assent: the crisis originated in
> the sub-prime mortgage meltdown in America.
>
> If we establish what caused that, we shall have discovered the root of
> the banking crisis. Well, that is easy: it was Gordon Gekko and his
> ilk, was it not? Actually, no: it was Bill Clinton and his cronies,
> with their politically correct affirmative action. That is the fact of
> the matter – the Clinton administration compelled the banks to lend to
> minorities, to comply with racial and social quotas that defied all
> the rules of banking.
>
> In 1994 the New York Times reported jubilantly that the Clinton
> administration was leaning heavily on lenders to embrace people in low-
> income neighbourhoods or minority groups.
>
> From then on, the madness gathered pace. In 1999, pressured by
> Clinton, Fannie Mae started a programme of extensive expansion of
> loans to people with low to moderate credit. Clinton's housing
> secretary Andrew Cuomo warned Fannie Mae and Freddie Mac that such
> loans must amount to 50% of their portfolio by 2001. Other government
> agencies joined the crusade. In 1999 the Justice Department was
> reported as trying to establish "a system of racial quotas in lending,
> regardless of credit risk".
>
> Clinton's Federal Reserve compelled banks to accept welfare cheques
> and unemployment benefit as income sources to qualify for a mortgage.
> As the PC terror grew, brokers advised clients to claim they were 1%
> Native American to qualify for loans. These included the lunatic
> "Ninja" (No income, no job, no assets) loans. The most flagrant
> example was a $480,000 (£324,000) mortgage to an illegal alien from
> Mexico.
>
> The scale of the engineered destabilisation of the housing market was
> astronomic. In 1994 the share of sub-prime mortgages to total
> origination was 5% ($35bn); by 2006 it had grown to 20% ($600bn). No
> market could survive subversion on that scale. When the Justice
> Department is intervening in the housing market, to describe the
> economy as either "free" or "capitalist" is a bad joke. That was
> Clinton's legacy. The Oval Office Onanist may have done wonders for
> the US dry-cleaning industry, but he destroyed the housing market and,
> by extension, the banking sector.
>
> Yet, today, his party has been mandated by a brain-damaged electorate
> to cure the disease it caused. Nothing succeeds like failure. The
> beneficiaries here are Gordon Brown and his interventionist party.
> People are still talking about the "£37bn bailout". Did they not
> notice a further £3bn bleeding out of Northern Rock on Friday?
>
> So it will continue. Alistair Darling ordering banks how to conduct
> their business; banks hoarding taxpayers' money while charging
> exorbitant rates; HBOS dying noisily. All the testosterone-charged
> takeover frenzy of the past decade, with bankers borrowing zillions to
> buy institutions they could not afford, has come home to roost. This
> was not capitalism, but a dependency culture. For many, addictive
> dependency shifted from state handouts to private handouts based on
> phantom credit.
>
> Those proclaiming the death of capitalism have misread the situation.
> The US succumbed to Frankfurt School Marxism by allowing PC enforcers
> to do for the American financial system what the Communist Party did
> to the economy of the Soviet Union for 70 years. In Britain, the
> dependency culture transferred much of its clientele from social
> security offices to bank managers' waiting rooms. Capitalism did not
> die by its own hand; but it may yet prove to have been murdered.