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Forum Post: Washington not Wall Street

Posted 13 years ago on Oct. 10, 2011, 7:05 p.m. EST by WELLinformed (6)
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Washington pushed CRA (community reinvestment act) and other programs with Barney Frank and congress encouraging Fannie Mae & Freddie Mac to loosen lending standards and expand home ownership to those who would not otherwise qualify.

Market bubbles & collapses

Washington lends money to banks- Bank of America received $45 billion and repaid the money with approximately $5 billion in interest (10% return for the government) [much better than the $100's millions in favors crammed into health care bill that are non health care related or $500 million to solar energy company that went BK)

Washington passes Dodd/ Frank and limits banks income streams (ie- caps on merchant credit card fees)

In response Bank of America imitates $5 monthly fee receiving robust public opposition and scrutiny from Congress

Final: Congress created the entire mess, blamed banks, then made it worse and blamed banks again.

Why? If the housing market did not bubble creating false wealth- politicians would face answering for diminished or negative GDP and lose their jobs.

Congressman bribe other Congressman by offering millions$$ in special grants and funding for their constituents in order to pass a headline (ie-healthcare) bill so they may be re-elected. Citizens are jailed for bribery.

Get off of Wall Street and onto Pennsylvania Ave.

Think of it this way: if the speed limit is 60- people drive 60 (or fined); if speed limit is 75, they drive 75 (or fined).

4 Comments

4 Comments


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[-] 1 points by WELLinformed (6) 13 years ago

Congress= Corruption Obama = inadequate economic knowledge & experience to govern during this period of US economic history

[-] 1 points by seaglass (671) from Brigantine, NJ 13 years ago

Nonsense. Wall st. owns DC. So trying to play both sides off against the middle here isn't going to work. DC /Wall st. same thing two sides of the same flypaper. Both sides owned lock stock and barrel by the 1%.

[-] 1 points by WELLinformed (6) 13 years ago

Congress is the one pulling the strings and blaming everyone else.

Washington has been stepping on the backs of the working class and lying to US citizens for years. They have spent, spent, and spent money they don't have and need to go.