9/24/09:How Did We Get in this Wall St. Mess?

" I -- six -- WJ okay. Why are we in this Wall Street mask. I have wrote about in The Herald yesterday Barney -- bailout and I tried the best I could. I thought to make the case of the source of the problem is Freddie Mac if -- okay. All the callers who calling -- to say to me you can stop we already did a joke. Or. Admission whatever have you want to view it -- shut the door having covered. How do you adding it is as Freddie Mac Fannie -- at the heart and I thought I had explained it pretty well let let's -- watching Fox News. In Jim Angle did a report on this -- did a great job of going to walking through how none of the mess we're in right now none of the seven billion dollar. Bail out talked could have happened. Without the affirmative government programs. That were implemented by the pseudo government entities of Fannie Mae and Freddie Mac. "

" Fannie Mae and Freddie Mac backed by the federal government by mortgage loans from the lenders who make them but four years ago both -- in trouble over shoddy accounting. Sandy made chief Franklin range president Clinton's former budget director was fired to placate those in congress who watched over them Fannie and Freddie promised to do more to help poor people get mortgages."

" there -- keeping you need to know the guy thing were all Democrats. Appointed by Democrats it was the Clinton appointees. Who were a running Fannie Mae Freddie Mac and you were backed by Chris Dodd who who got more money from them that anybody. In Barney frank. Chris Dodd Barney frank Bill Clinton all Democrats I'm not I'm. I'm not in rejecting that that's just the fact. Jim Johnson and Franklin -- prominent Democrats and they were caught red handed screwing with the books. And so they had to do something the -- and the answer was well we'll keep our democratic allies depending us we'll start dumping money. In too risky loans to special categories of lenders. Special categories. Just me very few listeners of 969 are in the special categories Jim Angle at Fox News continues."

" That led them to buy riskier and riskier home loans from private lenders. Creating incentives for every one to make -- loans eventually they bought trillions of dollars worth of mortgages a substantial portion of the based on poor credit. Then resold many of them to financial institutions. Who thought they were safe because the federal government was behind the."

" Yeah now stop right there you go trillions of risky loans it shouldn't have been made that wouldn't have been made with out. The government interventionist Jim Braude programs say you've got to extend these. Low cost loans to riskier lenders because of their skin color because of the neighborhood they live then because of their voting demographic you must extend these loans. And so trillions of risk. Are taken and then the banks were happy. The investor base were happy to buy it up and then to leverage against it and create derivatives on why because what Jim Angle just said. They knew that build the money came from Freddie Mac and Fannie Mae and that you and I the taxpayers were all on the -- take out that connection. Freddie Mac Fannie Mae and -- taxpayers. And Wall Street doesn't take these things explode them into this mess because the promise isn't there."

" And so shaky mortgages spread throughout the system but in 2005 the Senate banking committee then chaired by Republican Richard Shelby tried to -- the and the two organizations. By testing some strong new regulations. All the Republicans voted for all the Democrats including the current chairman senator Chris Dodd voted against --"

" Did you hear that that's a statement of fact not spin not partisanship of fact. Just like every Democrat in the state senate here voted to let teachers who failed the teacher's exam teach anyway. Every Democrat on the committee including Chris Dodd who -- stopped. This -- Voted to keep it going. Every Republican voted to stop it that's what happened."

" And that was after Fed chairman Alan Greenspan had issued a stark warning to senators that Fannie and Freddie were playing with fire Greenspan said without stronger regulations we increase the possibility of insolvency and crisis without restrictions on the size of Fannie Mae and Freddie Mac. We put at risk our ability to preserve safe and sound financial markets in the United States. "

" Which turned out to be exactly right now because Democrats blocked at those new regulations never got consideration by the full senate. And died so that's how we got into this mess and how we missed the chance to avoided getting out of -- now of course will be a lot more difficult."

" And -- this is interesting 2005 who was in the Senate. They knew freshly minted United States senator from Illinois 2005. Not Clay Aiken -- paying attention. Well it was brought all of us an abrupt about senator Barack Obama has cast to. Significant votes as US senator. He had a chance to vote for. Stopping Freddie Mac and Fannie Mae from continuing their let's throw this money around to support our social causes. Any voted. Wrong you've got it wrong he voted to keep Fannie Freddie in business. Which allow this thing to explode the last two years and helped create this mess so there's -- Obama's judgment one. I skit really was Hughes is standing by the hack democratic machine that's what he always -- didn't Illinois. He wasn't robbed even though we did get the second highest amount of money. Freddie Mac -- Fannie -- He believed in the cause he did what is good liberal democratic you know own rules said the do he didn't buck the system he went along with the -- machine which is you always did and then the second vote he cast that mattered the easily cast to. To vote against the search. And instead vote for his plan to have surrendered to allocate up last march. Two significant votes. He's oh for two. That Steve Barack Obama record that's not spin this not discussion that's record he's made one other significant choice he said. I know the guy who's smart enough to be my vice president won a heartbeat away from the big chair."

" Part of what a leader does. It's instilled confidence is demonstrate that he or she knows who they're talking about -- people if you listen literally control what I'm suggesting we can fix this. The stock market -- I don't know who all got on television. Didn't just talk about that you don't know the differences agrees that look this could happen."

" President Roosevelt got on television in nineteen join nine there you go -- speaking -- the who now takes the role of most prominent non disclosed gay personnel that Clay Aiken has given it up. Laura and rent them to words Michael Tom Cruise. That's a pretty good dubbed that Kevin now has another suggesting Kevin you're on 969 thanks for the call."

" Michael actually have to should -- all. All right lets you federal we challenged people that I had never ever -- seeing. Rule blurred or anything with them being you know wine with another wall Gary that you just never hear about it one as Ryan Seacrest. Like he walks -- that -- up but it goes all been saying it but by a -- his mother to Award shows and -- but you can that was you know an."

" Kevin J -- there is the phrase brings his mother kind of the key phrase right there."

" Well it's Kevin spacey brought his mother so but the other person. Yeah I know Reeves he's never been linked to another one I liked about him. It's like you know I got my wife you're -- imminent -- between you know anything or partly."

" I -- item on the -- I know so little that key arteries other then he is a terrible actor who has been one of the best movies of all time the matrix. I don't I I don't know -- Ryan Seacrest he's out. I I I I -- go on there Jennifer is on 969 at TKK Jennifer Clay Aiken has given up the throne who is the new like king of the on how did -- openly gay but no one will admit that person's."

" Well ironically Michael I'm afraid I'm surprised you haven't thought it didn't. Anderson who are."

" He's not out. Not. Row I studied -- Gaza DI -- so openly."

" Severed the link you anything or any."

" RC -- get -- no that's not just I just thought he was out maybe. OK well I'll next kimonos for it and do the -- are. -- give thanks for the call Jennifer at 6178221969. Around the ninth time for Verizon Wireless customers. When we come back you saw the story from U -- about promoting. Campaign activity on campus the -- credit. Two college credits to thank them another movement on college campus is related to the presidential election. And I'm hearing echoes of it right here. In our. Local community I -- Michael Graham 9690. --"

" Thanks for downloading and listening to Michael brown. Come back often Boston's -- evolution maybe 69 WTKK. He is on life and awe and demand."