Obama Invents New Tax

Not only will the Federal Government require financial service businesses to foot the bill for affordable mortgages by writing junk, subprime loans with no income check, nothing down. Not only will there be quotas for unqualified home buyers who can’t pay. Obama has a great new idea, called a Financial Stability Fee. In order to keep the economy stable while all these bogus, subprime loans are being written to make mortgages affordable, Obama will need to impose a new tax.

Hotline – On Call Obama: Financial Solution Should Be Crafted In A “Bipartisan Manner”

(Obama calls for a Financial Stability Tax)

…. after the economy recovers, we should institute a Financial Stability Fee on the entire financial services industry to repay any losses to the American people and make sure we are never asked to foot the bill for Wall Street’s mistakes again. We can ask taxpayers to make an investment in the stability of our economy, but we cannot ask them to hand their money over to Wall Street without some expectation of return.

While the financial services industry goes out of business in the United States due to government quotas for issuing non-performing paper, it can keep the economy running by paying another tax; to the tune of about $100 billion per year.

But that’s not enough; the Federal Government has done so well in its FNMA and FMAC “government sponsored enterprises” that it should continue to compete with capitalists in the free market:

we should consider giving the government the authority to purchase mortgages directly instead of simply mortgage-backed securities

Capitalism works; what the financial crises of the last few months proves is that government sponsored enterprises do not. The bigger these get, the more cataclysmic the results when they fail. No amount of tax can keep a government sponsored enterprise solvent; they amount to massive theft from American taxpayers, and there is no limit to what government will steal, as we have seen in the payments made to Franklin Raines, Jamie Gorelick, Jim Johnson, Daniel Mudd, and a host of other incompetent, unqualified, unbusinesslike, socialist bureaucrats.

To add insult to injury, Obama employs Failed Franklin Raines as campaign financial adviser. Next treasury secretary?

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Get Obama, Government Out Of Business

Since the CRA’s [see Community Reinvestment Act – Carter, Clinton, Obama] inception, in the Carter administration, mortgage banking has been run into the ground – by wrong-headed government regulation.

Government Economic Experts @ Work

Government Economic Experts @ Work

Subprime, junk mortgages are a result of government forays into business, outside of the bounds permitted by the Constitution. Progressively more intrusive, more obnoxious to business and economics, government has now broken the back of banking – by forcing banking to make loans to marginal borrowers – and worse – borrowers.

The banks had to make marginal, subprime loans – or they faced, and still face, big penalties, because of government regulation.

. . .

FNMA to banks: Make the loans; we’ll guarantee them.

Now we know who really guarantees the loans; and it is not FNMA.

Our economy depends on getting government and Obama out of business. Do it now.

Who gave Obama $338,000; and why? Quiz later.

Greedy Dems Take The Bait – Almost

Greedy Dems like nothing more than $Hundreds of Billions to spread around.

The only skill more absent among Democrats than economics is vote-counting (see any connection?)

The Democrats (including Bush and his loopy Treasury Sec) will buy more votes on Thursday. Earmarks for all.

On Friday, affordable housing for those who can’t pay – will resume, full speed ahead. The sky is the limit.

Nothing down loans, interest only, no income check, flexible terms, full speed ahead.

Affordable housing, minority quotas, bad, subprime, junk mortgages, full speed ahead – on Friday.

The irony is, the new “homeowners” who can’t pay their FNMA mortgages are the maddest of all.

The Constitution does guarantee affordable housing, doesn’t it? A right you cannot refuse.

Big Party at Barney Frank’s house. Friday.

When Americans lose, government wins. Brilliant opportunism, ‘crats!

Greedy Dems Take The Bait

The greedy dems and progressives in Washington DC have taken the bait. Among these I count our profligate President Bush.

The prospect of spreading $700 billion around liberally was just too seductive.

Public opinion be damned. Applying a band-aid, however extravagant, will scarcely remove the vast tumor that Government Sponsored Enterprises and CRA have spawned in our corpus. The voting public knows this.

Public isn’t buying Wall Street bailout says Los Angeles Times.

The overwhelming majority of 40,000 contacts at Dianne Feinstein’s five office’s were against the bailout.

Rep. Sanchez (D-Lakewood) “My constituents are telling me loud and clear that they aren’t convinced.”

Public opinion is running so vastly against the bailout, one can scarcely describe it as a controversy; it is a landslide of negative public opinion. Even Stanford academics, 166 of them, urged lawmakers not to rush on the plan.

A USA Today/Gallup poll showing 75% favor the bailout stands out as as exception to the rule. A Pew poll says 53% favor.

But calls to Arizona’s congressional delegation are running overwhelmingly against the bailout.

Those same lawmakers were also mindful of a growing maelstrom in their home districts. Angry constituents have been flooding congressional offices at home and in Washington, D.C., with hundreds of phone calls registering disapproval over the proposed bailout.
. . .

Between Monday and Thursday afternoon, Giffords’ congressional office in Tucson had received 300 phone calls regarding the proposal – 252 of which were in outright opposition. Reaction at Shadegg’s offices in Arizona and Washington was similar, with 438 of nearly 500 callers this week lining up against a bailout.

“No one out there thinks this bailout deal, as it’s being called, is a good idea,” Giffords said Wednesday during a conference call with economic and financial experts from throughout Arizona. “Everybody who has contacted me so far is adamantly opposed to this.”

Rasmussen states only 25% support the bailout; 63% say congress is doing too much (Stuart Varney on Fox News Live). 99% of phone calls and email were against the bailout, in a four hour call-in program.

Will American voters swallow this lavish, extravagant, boondoogle band-aid plan by “progressives” in November? I am highly dubious that they will.

Will the government make money on the purchase of junk, subprime paper it forced banks to write? Did the government make money on its Government Sponsored “Enterprises?” If the government were good at making money, we wouldn’t need capitalism and free markets. Examine the economic juggernaut in Cuba, Washington’s new prototype. If the government did make money, where would that money go?

Affordable Housing & Subprime Loans = Disaster

What caused the crisis on Wall Street? Must see this.

H/T: Doug Ross @ Journal Video o’the day

Obama Organizes Brownshirt Enforcers In Missouri

Law enforcement officials across Missouri are organizing to prevent character attacks on the Obamessiah. Truth squads from law enforcement will keep the debate focused on “issues.” Maplewood is a suburb of St. Louis; the enlistment of brownshirts from law enforcement extends into rural areas of Missouri, however.

Via: Moonbattery Obama Truth Squads

The Show Me state shows us a glimpse of our totalitarian future: “Truth Squads” are clamping down on people who say things Obamunists don’t want to hear. Local law enforcement officials are involved throughout Missouri.

Citizens are obliged to believe that Obama is a Christian who wants to cut taxes. Failure to agree with these dubious assertions is regarded as “divisive” — i.e., verboten.

If you’re not scared yet, you should be.

GSE The Curse

Let us never forget the curse of American Government Sponsored Enterprises.

(FNMA, FMAC, and more)

“Under the OUTSTANDING leadership of Mr. Frank Raines, everything in the 1992 act has worked just fine. In fact, the GSEs have exceeded their housing goals. . . . (The affordable housing mission) has seen innovation florish, from desktop underwritting to 100% loans.” – Rep. Maxine Waters, D-California

A GSE is a mistake with no end. “Riskless capital” – Frank Raines.

You heard it here.