The Big Lie Again

Guest post by Bill Paige

The assignment of scapegoats has begun in earnest. As is historically the case, those most guilty of literally selling out the American people, are now working feverishly to scare them into believing the following:

  • It was the poor and members of minority populations, now called dead beats that defrauded financial institutions worldwide.
  • It was the poor and members of minority populations that bundled together pieces of paper of dubious worth, known as securitized mortgages, sold them to each other, and ultimately to Fannie Mae and Freddie Mac that caused all the credit defaults that now threatens our economy and the futures of our children.
  • It was the poor and members of minority populations that developed the highly technical financial algorithms that magically assigned AAA, AAB…, ratings to the newly created securitized mortgage and bundled bonds. In past criminal schemes, they called them Junk Bonds.
  • It was the poor and members of minority populations that made huge profits and salaries by producing the inflated appraisal required to continue the Pon’zi Scheme.
  • It was the poor and members of minority populations that developed no documentation, no down payment, no principal payment, and no job required loans.
  • It was the poor and members of minority populations that reviewed, approved and underwrote all of the sub-prime mortgages that sound like something only the best customers get.
  • It is now the poor, members of minority populations, and all earnest hardworking people, both in this country and abroad, that have been defrauded, robbed, deceived, betrayed, and sold out!

So listen and beware when the truly guilty speak, point fingers, and blame others.


13 thoughts on “The Big Lie Again

  1. “No one is talking about the banks which wanted the regulations tossed out the window so they could profit off making bad loans….d’uh.”

    You have got to be kidding me! That is all they have been talking. I have yet to hear anyone blame this situation on the poor and members of minority populations. God job on trying to place the race card.

  2. Of course it was not the fault of the poor and minority populations who took advantage of the offer of free money with which to buy a house.

    It was the fault of the political hacks who coerced banks into making those loans and who created Fannie and Freddie with such regulatory advantages that other lenders could not compete unless they went along with the sub-prime formula.

    Those hacks would be Jimmy Carter, Bill Clinton and the Community Organizers of Acorn who exploited the Community Reinvestment Act to extort banks to offer those mortgage snares with which to trap both lenders and borrowers.

  3. Thank you for giving people something to truly THINK about. CROOKS can also wear neckties. Crimes against humanity can happen in America without a single shot being fired. That’s why America needs to follow the MONEY Trail of this crisis.

  4. MB – Your link confirms my point.

    When a mortgage broker ‘helps’ a person in an unstable neighborhood get a ‘no money down’ variable rate mortgage they really can’t afford to pay when interest rates go up, and housing prices drop below the balance owed, who gets hurt?

    Not the broker, he sold the loan to Fannie Mae.

    Not the investors, the government implicitly guaranteed Fannie Mae investments from the beginning.

    But the guy who was ‘helped’ to get the loan now has a house he can’t sell for what he owes, a note he can’t pay, and he will be bankrupted and lose not just the house, but any other savings or assets he had accumulated before taking the bait.

    Had government not interfered in the marketplace, that guy would have been renting and maybe putting aside some money toward his retirement or to put money down on a house he could afford with a fixed rate and enough equity on day one to be able to sell out if he had too.

    As Henry D Thoreau put it, the most frightening thing he could imagine was to learn that someone from the government was coming to help him.

  5. Don, you’re a better contortionist than those 14 year old Chinese Olympic gymnasts. Confronted with a failure, you choose to pin the blame on everyone except for the actors with the most information, freedom, and ability to make the right choice.

    Next up: Don Tabor blame the homeless dude who died in fire AND the government because the homeless guy was trying to stay warm with a poorly constructed space-heater that was only made that way because the government didn’t impose the right regulations on the manufacturer.

  6. Oh BM, you have yet again made a poor rebuttal. Don has clearly made the point correctly. How long did it take you to google something to link? you pompous jackass!

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