One thought on “Obama Debt Commissioner: Reduce Spending and US Will End Up A Third World Nation

  1. Obama hasn’t a clue they he helped cause this mess along with his Dem friends. One of the basic tenets of credit is that you do not loan money to an individual or business for all that matter unless you satisfy three things. 1. You must provide proof of stable income, giving you the ability to pay back the loan. This is you must have a stable job with proof that you will be employed in that job for at least the term of the loan or mortgage. You must prove your income by tax returns or payroll stubs. 2. You must demonstrate that you have a good credit history, showing that you have used credit in the past and have repaid loans on time as agreed. You demonstrate that you “keep your word”. 3. You have to make a down payment on the loan or mortgage so you have something to lose if the loan goes bad for any reason. You usually have to put 10% down so the lender has a cushion in case the loan goes bad and he has to repossess. This way it improves the lender’s ability to break even and it makes sure the borrower won’t arbitrarily default on the loan. This has been the way credit has been handled all over the world for the last hundred years at least.
    Then along comes President Jimmy Carter in 1977 who signed the COMMUNITY REDEVELOPMENT REINVESTMENT ACT into law to help provide affordable housing to low income people who couldn’t meet the traditional loan requirements of the last 100 years. (ADMIRABLE IDEA…RIGHT?) Then in 1995, President Bill Clinton strengthened the COMMUNITY REDEVELOPMENT ACT, with the approval of THE HOUSE OF REPRESENTATIVES. Clinton and his Democratic friends Barney Frank, Christopher Dodd, and Barack Obama worked on the credit rules to do away with the income requirement that had to be proven, eliminated the down payment, and ended the credit requirements. All three then went to the banks and threatened them with lawsuits (Obama filed three lawsuits against Citibank.) and demonstrations, and boycotts, in poor neighborhoods if they didn’t make these loans. Barney Frank even admonished them “you have nothing to lose as they are government guaranteed”. Again, his exact words, not mine. The guarantee part was the loans were bought by FANNIE MAE AND FREDDIE MAC, government sponsored entities staffed by Democratic Party friends of Bill Clinton, such as Franklin Raines, Jim Johnson Jamie Gorelick and RAHM EMMANUAL, who is now Obama’s chief of staff and number one advisor. These executives paid THEMSELVES $200,000,000.00 in only six months time. FANNIE MAE AND FREDDIE MAC also paid Cristopher Dodd (D-CT), Barack Obama (D-IL) and John Kerry (D-MA) some $360,000.00. Did any of this come out in the media during the Presidential Campaign? The Democratic Party controlled THE HOUSE OF REPRESENTATIVES since January 2006. FANNIE MAE AND FREDDIE MAC spent $150 million dollars in lobbying in ten years to keep the Republicans and media away from them.
    Now the stage was set for the feeding frenzy that drove THE UNITED STATES OF AMERICA to the brink of bankruptcy.

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