Bankers’ Greed Reason Behind Housing Crisis

No one has ever accused Minnesota Rep. Michele Bachmann of paying too much attention to facts or common sense. Yet it is still disheartening to see in “Time To Stop Amuck Acorn’s Bank Enablers” her peddling debunked myths about the Community Reinvestment Act and Acorn while her constituents suffer in the worst foreclosure crisis in generations.

Rep. Bachmann’s district has the single highest rate of foreclosure in all of Minnesota, higher even than the urban, low-income, multicultural district of neighboring Rep. Keith Ellison. She sure doesn’t act like it, though, casting votes against every piece of legislation that would aid homeowners suffering in this crisis, including allowing judicial modifications of mortgages and reining in abusive lending practices.

Rep. Bachmann thinks the CRA’s efforts at promoting minority and middle-class homeownership caused the crisis, so how does she explain her district’s severe crisis, when it is 93% white, only 6% poor — not exactly the kind of place the CRA aims to help? She doesn’t say.

The reality, of course, is that the explosion of bad loans in the last decade wasn’t driven by the 30-year old law, but by the exorbitant profits to be made from securitizing high-interest, subprime loans. It was greed, not good intentions, that paved this path to ruin.

Read the rest of this column by Austin King at Investor’s Business Daily.

Too Late for Obama to Turn It Around?

What a difference a month makes! When my last controversial column posted on Salon in the second week of August, most Democrats seemed frozen in suspended animation, not daring to criticize the Obama administration’s bungling of healthcare reform lest it give aid and comfort to the GOP. Well, that ice dam sure broke with a roar. Dissident Democrats found their voices, and by late August even the liberal lemmings of the mainstream media, from CBS to CNN, had dramatically altered their tone of reportage, from priggish disdain of the town hall insurgency to frank admission of serious problems in the healthcare bills as well as of Obama’s declining national support.

But this tonic dose of truth-telling may be too little too late. As an Obama supporter and contributor, I am outraged at the slowness with which the standing army of Democratic consultants and commentators publicly expressed discontent with the administration’s strategic missteps this year. I suspect there had been private grumbling all along, but the media warhorses failed to speak out when they should have — from week one after the inauguration, when Obama went flat as a rug in letting Congress pass that obscenely bloated stimulus package. Had more Democrats protested, the administration would have felt less arrogantly emboldened to jam through a cap-and-trade bill whose costs have made it virtually impossible for an alarmed public to accept the gargantuan expenses of national healthcare reform. (Who is naive enough to believe that Obama’s plan would be deficit-neutral? Or that major cuts could be achieved without drastic rationing?)

(Read the remainder of Camille Paglia’s column at Salon.com, September 9, 2009.)

They Left Fannie Mae, But We Got the Legal Bills

Precisely one year ago, we lucky taxpayers took over Fannie Mae and Freddie Mac, the mortgage finance giants that contributed mightily to the wild and crazy home-loan-boom-turned-bust. In that rescue operation, the Treasury agreed to pony up as much as $200 billion to keep Fannie in the black, coughing up cash whenever its liabilities exceed its assets. According to the company’s most recent quarterly financial statement, the Treasury will, by Sept. 30, have handed over $45 billion to shore up the company’s net worth.

It is still unclear what the ultimate cost of this bailout will be. But thanks to inquiries by Representative Alan Grayson, a Florida Democrat, we do know of another, simply outrageous cost. As a result of the Fannie takeover, taxpayers are paying millions of dollars in legal defense bills for three top former executives, including Franklin D. Raines, who left the company in late 2004 under accusations of accounting improprieties. From Sept. 6, 2008, to July 21, these legal payments totaled $6.3 million.

With all the turmoil of the financial crisis, you may have forgotten about the book-cooking that went on at Fannie Mae. Government inquiries found that between 1998 and 2004, senior executives at Fannie manipulated its results to hit earnings targets and generate $115 million in bonus compensation. Fannie had to restate its financial results by $6.3 billion.

(Read the remainder of Gretchen Morgenson’s column at nytimes.com, September 6, 2009)

Obama's Healthcare Horror

Heads should roll — beginning with Nancy Pelosi’s!

Buyer’s remorse? Not me. At the North American summit in Guadalajara this week, President Obama resumed the role he is best at — representing the U.S. with dignity and authority abroad. This is why I, for one, voted for Obama and continue to support him. The damage done to U.S. prestige by the feckless, buffoonish George W. Bush will take years to repair. Obama has barely begun the crucial mission that he was elected to do.

Having said that, I must confess my dismay bordering on horror at the amateurism of the White House apparatus for domestic policy. When will heads start to roll? I was glad to see the White House counsel booted, as well as Michelle Obama’s chief of staff, and hope it’s a harbinger of things to come. Except for that wily fox, David Axelrod, who could charm gold threads out of moonbeams, Obama seems to be surrounded by juvenile tinhorns, bumbling mediocrities and crass bully boys.

Case in point: the administration’s grotesque mishandling of healthcare reform, one of the most vital issues facing the nation. Ever since Hillary Clinton’s megalomaniacal annihilation of our last best chance at reform in 1993 (all of which was suppressed by the mainstream media when she was running for president), Democrats have been longing for that happy day when this issue would once again be front and center.

But who would have thought that the sober, deliberative Barack Obama would have nothing to propose but vague and slippery promises — or that he would so easily cede the leadership clout of the executive branch to a chaotic, rapacious, solipsistic Congress? House Speaker Nancy Pelosi, whom I used to admire for her smooth aplomb under pressure, has clearly gone off the deep end with her bizarre rants about legitimate town-hall protests by American citizens. She is doing grievous damage to the party and should immediately step down.

There is plenty of blame to go around. Obama’s aggressive endorsement of a healthcare plan that does not even exist yet, except in five competing, fluctuating drafts, makes Washington seem like Cloud Cuckoo Land. The president is promoting the most colossal, brazen bait-and-switch operation since the Bush administration snookered the country into invading Iraq with apocalyptic visions of mushroom clouds over American cities.

You can keep your doctor; you can keep your insurance, if you’re happy with it, Obama keeps assuring us in soothing, lullaby tones. Oh, really? And what if my doctor is not the one appointed by the new government medical boards for ruling on my access to tests and specialists? And what if my insurance company goes belly up because of undercutting by its government-bankrolled competitor? Face it: Virtually all nationalized health systems, neither nourished nor updated by profit-driven private investment, eventually lead to rationing.

(Read the remainder of Camille Paglia’s column at Salon.com, August 12, 2009.)