Saturday, October 4, 2008

Giving loans to non-whites caused financial crisis.

It has just been reported that the federal government has just signed a bill for 700 billion dollars to bail out lenders such as Fannie Mae. Most Americans are upset that this has happened and in fact, majority of the callers to the Capitol switchboard was against bailing out these lenders that are controlled by Jewish Supremacists CEOs. But the real question is why are we in this mess in the first place? The easy answer is that the we have an unconstitional banking system that is dictating our money policy, which is called the Federal Reserve. The Constitional specifically states that U.S. Congress is to control and regulate our financial policy and to print and regulate our money. However, the Federal Reserve, a private bank now prints and loans money out to the United States, in which we then have to pay back with interest. But to the question at hand, why are these financial lenders collapsing? The media will not shed light on the answer, and the political leaders will not discuss it, but the reason these lenders are collapsing is that Fannie Mae ( the headquarters is on the right), just to name one, announced back in 1999 that they were changing their policy and ease the credit requirements on loans which would increase home ownership rates among minorities. Steven A. Holmes, published an article in the Wall Street Jounal, which he stated, "The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring. Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits." (you also can go to wickipedia.com and they acknowledge this as well). "In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans." Holmes went on to say that one study indicates that "18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market." Now that obviously is not too much of a problem during any economic boom, but may "run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's," said Holmes. He goes on to say that "Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites." As a result, hispanic applicants jumped by 87.2 per cent from 1993 to 1998, and blacks, who got mortgages increased by 71.9 percent. In July of 1999, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups. And of course, another main reason there is such a push to obviously, the blame game. Back in 1999, the policy change came when HUD began investigating allegations of so called "racial discrimination" in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants. To read the complete article by Holmes, click below. But there you have it, now it's 2008, and we are in the financial crisis that we are in, in part, because of the reckless and irrisponsible actions of these lenders that basically was another "give away" program to non-whites. Until then.


2 comments:

Maggi said...

I have looked at the "White Christian" website, as well as reading some of your blog, and I just want to say that I am disgusted. I am absolutely 100% white, but things like these make me wish that I wasnt. Christains come in all colors. God loves them all. Just as much as He loves the white ones. And who the hell are you to say anything different?

JOHNNY said...

Sir, I don't mean any disrepect. However America is a great country. This country is the envy of countries all around the world. Some of the reason's are simply. One is in America everyone that has the drive can do or be whatever they want. Two if you white,black,hispanic or whatever you can live the America dream. You can send your kids to best schools and have a nice home. But Fannie Mae and Freddie mac were pushed to offer loans to people that normally would not have. However; not only were black's and hispanics losing their homes. So were good white people.
Not everyone can be as smart as you sir. Not everyone knows that adjustable rate mortagages are a bad investment. When I purchased my home I knew better. But if you're living in a apartment or bad neighborhood. And you're shown something that sounds good by someone that you believe you can trust then whose fault is that. Not just the homeowner, but the predatory lender also. Race should not be an issue in this day and age.

America has come along way since the civil rights movement. It is time that people look towards what the future. If you're a true Christian than you know that God is color blind. Don't wait until it's to late to realize that hatred does not make life easier. It only makes you angry about things you can't control. Cause when you get to heaven your neighbor may be black.