The Light: Hillary

When the day of reckoning comes, the record will show that those misguided, incompetent and reckless legislators who supported and were supported by the house of cards known as Fannie Mae and Freddie Mac will have cost our nation untold hundreds of billions of dollars. In fact, the losses attributed to these organizations may ultimately cross the trillion dollar threshold. Think about that for a second.

While Franklin Raines, Leland Brendsel, Daniel Mudd, and other Fannie and Freddie execs walked out the door with tens of millions of dollars, our nation is left with a financial sinkhole that will serve as a drag on our economy for years if not generations. How and why did this happen?

Shallow, weak, and financially illiterate legislators from both sides of the aisle were bought off by their crony counterparts at Fannie and Freddie. The costs of those ‘payoffs’ are currently unknown, but will be felt for a long time.

Bloomberg addresses the reality of what will likely be the escalating costs embedded in Fannie and Freddie by writing, Fannie-Freddie Fix at $160 Billion with $1 Trillion Worst Case:

The cost of fixing Fannie Mae and Freddie Mac, the mortgage companies that last year bought or guaranteed three-quarters of all U.S. home loans, will be at least $160 billion and could grow to as much as $1 trillion after the biggest bailout in American history.

Fannie and Freddie, now 80 percent owned by U.S. taxpayers, already have drawn $145 billion from an unlimited line of government credit granted to ensure that home buyers can get loans while the private housing-finance industry is moribund. That surpasses the amount spent on rescues of American International Group Inc., General Motors Co. or Citigroup Inc., which have begun repaying their debts.

“It is the mother of all bailouts,” said Edward Pinto, a former chief credit officer at Fannie Mae, who is now a consultant to the mortgage-finance industry.

While the losses at Fannie and Freddie continue to mount, do not forget that these losses are not reflected on Uncle Sam’s balance sheet (Fannie and Freddie are in receivership). The fact is Washington at large and the Obama administration specifically do not now have, nor have they ever had, the political will and courage to face the reality of the financial charades created within these organizations. What is the key to measuring the depth of theses sinkholes? Expected losses resulting from future delinquencies, defaults, and foreclosures on mortgages held by Fannie and Freddie. What are the prospects on this front?

The composition of the $5.5 trillion of loans guaranteed by Fannie and Freddie suggests that the surge in delinquencies may continue. About $1.98 trillion of the loans were made in states with the nation’s highest foreclosure rates — California, Florida, Nevada and Arizona — and $1.13 trillion were issued in 2006 and 2007, when real estate values peaked. Mortgages on which borrowers owe more than 90 percent of a property’s value total $402 billion.

Fannie and Freddie may suffer additional losses as a result of the Treasury’s effort to prevent foreclosures. Under the program, banks with mortgages owned or guaranteed by the companies must rewrite loan terms to make them easier for borrowers to pay.

How long might this entire mess take to unwind and what are the impacts on our nation’s housing market? The Obama administration’s programs  to modify mortgages are ultimately a stalling tactic to stem the foreclosure process. What does that mean for the future of our housing market? Let’s visit housing and mortgage expert Mark Hanson who recently wrote that at the current pace of foreclosures, it will take 101 months (that’s right, over 8 years!!) to clear the number of loans in the distressed pipeline.

Add it all up, and we are talking potentially a trillion dollar loss and almost a decade for our nation to reconcile the housing mess driven by Fannie and Freddie, facilitated by their Washington cronies.

Nice legacy.

LD

And Fannie Mae are not included in the big Financial Reform Bill? I am just curious since they helped create this economic situation in which we find ourselves, and have drained billions of dollars from the coffers over the past couple of years. Now they want MORE.

Oh, yeah – Freddie Mac is asking for TEN Billion Dollars. I reckon they just want to add it to their tab:

ABC News’ Matthew Jaffe reports:

Government-backed mortgage giant Freddie Mac today asked for $10.6 billion in additional federal aid after reporting a loss of $8 billion in the first three months of this year.

To date Freddie Mac has been provided with around $51 billion in government funds. The new aid would bring the total assistance to the lender to over $61 billion.

Late last year the Treasury Department essentially agreed to provide a blank check to Freddie Mac and fellow government-backed lender Fannie Mae when the agency controversially removed the cap on federal support for the lenders.

A “blank check”? That is what Geithner wants to give Freddie and Fannie? I reckon that’s what happens when you have someone in charge who can’t even fill out his own tax forms properly (or, as I like to say, a Tax cheat). Some folks aren’t happy about it, though:

Republicans have blasted the administration for that move, as well as for not putting forth a plan to overhaul the government-sponsored enterprises. Thus far the administration’s only action has been the April 14 release of a series of questions for public comment on what to do with the mortgage giants.

In addition, Treasury Secretary Tim Geithner has acknowledged that the government expects to suffer “very substantial losses” on its investments in the lenders, with recent estimates ranging around a minimum of $85 billion.

Well, that’s just jake – “a minimum of $85 billion.” That’s our money, folks.

And let’s not leave Fannie Mae out of this mix. Oh, no – now Fannie is asking for some more cash, too, a cool for $8.4 Billion more?:

Fannie Mae requested another $8.4 billion from the federal government on Monday, saying that it expects its deficits to continue due to trends in the housing and financial markets.

The government-controlled mortgage giant said it lost $13.1 billion applicable to common shareholders in the first quarter of 2010. In the year-earlier quarter, Fannie suffered a $23.2 billion loss, but an accounting change makes comparing the year-over-year losses difficult.

Fannie’s request for more federal funds comes just four days after Fannie’s twin Freddie Mac also asked for a handout – to the tune of $10.6 billion – after posting an $8 billion quarterly loss.

In using Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) to prop up the mortgage market, the government in December lifted a $200 billion limit on their bailouts, essentially giving the twin housing lenders a blank check. Fannie Mae has already received $76.2 billion from the federal government and Freddie has gotten $50.7 billion.

“In the first quarter, we continued to serve as a leading source of liquidity to the mortgage market, and we made solid progress in our ongoing efforts to keep people in their homes,” Fannie Mae President and CEO Mike Williams, said in a press release.

Just to recap, Fannie Mae and Freddie Mac were largely responsible for bringing down the housing market (click HERE to read the rest of the article).

Yes, indeedy, so no doubt the new Finance Reform Bill begins with Fannie and Freddie, right? Oh, so wrong. Chris Dodd, who benefited mightily from Fannie Mae and Countrywide says, “Nooooooooo.” Dodd thinks it should wait:

Sen. Chris Dodd (D-Conn.) said Friday that legislation to address troubled mortgage lenders Fannie Mae and Freddie Mac will have to come after the current financial-reform effort.

Fannie and Freddie, which are known as “government-sponsored enterprises” (GSEs), have been a lightning rod for criticism of Democrats during the financial reform debate.

Dodd, who is chairman of the Banking Committee and has led the effort to craft a financial regulatory reform bill, said that there was not enough room in the legislation for rules covering Fannie and Freddie.

“Fannie and Freddie and the whole GSE system and it’s a great question and a legitimate one in desperate need of reform,” he said on CNBC. “But candidly there’s only so much I could only take on with this bill, and so that comes up. But not in this round. It’s in the next wave here we have to deal with GSEs.”

Well, sure, that makes sense, right? If you live in Upside-Down World, anyway (click HERE to read the rest). What a glaring, blatant, prop-up for those two entities that have done SO much to destroy the housing market. Unbelievable.

Frankly, I think this is a dereliction of duty on behalf of our Congress people. They refuse to hold accountable the very companies who wreaked havoc with our economy. They are in collusion with them. Even worse, they continue to throw money down the money hole.

I have used this video before, but it seems mighty timely given the requests of Fannie and Freddie (Onion video alert):

In The Know: Should The Government Stop Dumping Money Into A Giant Hole?

If only this were a joke…

The challenges on our economic landscape remain daunting. While employment and manufacturing may be stabilizing, the housing and mortgage markets remain mired with real issues.

The issues within housing and mortgages are at the base of our economic crisis encompassing both Wall Street and Washington. From structured transactions on Wall Street to financial regulatory reforms in Washington, the issues ultimately come back to housing and mortgages. I will discuss all these issues tonight from 8-9pm ET as No Quarter Radio’s Sense on Cents with Larry Doyle. Bill Berliner is uniquely qualified to address these topics. Bill has extensive experience within the financial industry and currently shares this experience from his firm, Berliner Consulting and Research, LLC:

Berliner Consulting & Research is devoted to providing information, data, and advice on mortgage lending and mortgage-backed securities acquisition and management. Formed in 2008 by William Berliner, the firm is dedicated to providing outstanding information, advice, and commentary to its clients.

The firm provides advice and analysis to clients on a wide variety of mortgage products and mortgage-backed securities. Located in Southern California, Berliner Consulting & Research provides assistance in developing loan origination, securities valuation, and risk-management systems. We also help lenders and investors deal with the increased reporting required for directors and regulators by providing expert writing and report-creation services.

In regard to Bill’s background:

A respected analyst and author with a wide variety of experience, Mr. Berliner began his career in the Government Operations department at Bear, Stearns & Company in 1985. He was promoted to the trading floor in 1986, and eventually ran the position tracking (“Pops”) desk for the MBS trading desk. He worked in CMO trading from 1988-1993, when he left to join Nikko Securities. After stints at Nikko, Prebon Yamane, and the New York State Banking Department, he joined Countrywide’s Capital Markets unit as a CMO trader in 1996. He moved to the Fixed Income Research Department in 1998, and eventually ran the firm’s highly-regarded Trade Strategies Group until September of 2008.

Please join me this evening for what will be an engaging and informative discussion. Listen LIVE at the BlogTalkRadio website. Dial in with questions at 347-677-0792 or join our always energized chat room. As a reminder, all NQR shows are taped, archived, and available as podcasts on iTunes.

LD

The DOW continues to be on the rise, which is certainly some good news, particularly for investors. Unfortunately, that is not translating into new jobs. Quite the opposite, in fact. For the second week in a row, first time unemployment benefits have risen, this week close to half a million (484,000), a rise of 24,000.

But there is another new high, and this one is troubling indeed. Home foreclosures have had their biggest increase in five years:

A record number of U.S. homes were lost to foreclosure in the first three months of this year, a sign banks are starting to wade through the backlog of troubled home loans at a faster pace, according to a new report.

RealtyTrac Inc. said Thursday that the number of U.S. homes taken over by banks jumped 35 percent in the first quarter from a year ago. In addition, households facing foreclosure grew 16 percent in the same period and 7 percent from the last three months of 2009.

Holy smokes. Now is the time when Democrats will blame Bush and the Republicans, as if they have not been in power for over three years. Even more than that, though, is how Fannie Mae and Freddie Mac were run by Democrats. THAT is one of the single biggest issues that led to our current economic crisis, as I have noted before. Now there is this editorial weighing in on this, too, particularly in light of oversight: How Fannie and Freddie Foiled Regulators.

The headline sets the stage for how that was able to happen:

Mismanagement of Fannie Mae and Freddie Mac and obstruction of their regulators by Congress and successive presidential administrations played a pivotal role in creating and then bursting the housing bubble at the heart of the economic meltdown of 2008, according to testimony of officials before the congressionally chartered Financial Crisis Inquiry Commission. Rather than offer a serious discussion of how to reform the two government-sanctioned enterprises (GSEs), however, President Obama and the Democratic leadership in Congress are only offering legislation to punish bank CEOs and stiffen regulations for private sector banks.

In 2006, Dan Mudd, then Fannie Mae’s chief operating officer, wrote in an e-mail to Chief Executive Officer Franklin Raines that the GSE desperately needed reform because “the old political reality was that we always won, we took no prisoners … we used to… be able to write, or have written, rules that worked for us.” Mudd’s e-mail was cited in testimony last week before the FCIC by James B. Lockhart, who in 2006 was acting director of the Office of Federal Housing Enterprise Oversight (OFHEO), the GSE watchdog. Lockhart said OFHEO’s regulatory authority was inadequate because “[Fannie and Freddie] could borrow so cheaply and at unlimited amounts to fund their portfolios because their lenders and rating agencies applied no market discipline.”

Remember Franklin Raines? His name may be familiar to you not for his involvement with housing, but it sure should from his involvement with Barack Obama. Yep, Obama sought advice from Raines on housing while running his campaign. They are buddies.

Back to the editorial:

Lockhart told the FCIC that before the housing bubble burst, he recognized that the GSEs faced serious credit risks and recommended freezing Freddie’s portfolio. That recommendation ran into “quite intense” pushback, according to Lockhart. The neutered watchdog could barely enact any reform at all, he said: “OFHEO was regulating two of the largest and most systematically important U.S. financial institutions and yet its powers were much weaker than bank or even state insurance regulators … OFHEO did not have all the necessary powers to deal with these giant housing enterprises.”

Armando Falcon, Lockhart’s predecessor at OFHEO, told the FCIC that when the understaffed regulator needed additional resources to conduct a special examination of Fannie Mae’s accounting practices, “we encountered more difficulty and delay. Fannie’s lobbyists were on the Hill spreading misinformation about my motives and asserting that the special exam was unnecessary.” Whenever faced with a report with negative connotations about the companies, Fannie’s supporters would launch an assault on OFHEO — from a full investigation of the group to demanding Falcon’s resignation.

So now the question is whether the FCIC will name names in its forthcoming report of those in Congress and the executive branch who protected and advanced Fannie and Freddie, at grievous expense to American taxpayers.

No wonder our housing market is in such dire straits. No wonder our economy is in such dire straits. That companies of this magnitude can be SO mishandled, and receive so little oversight, is mind boggling. And now Obama is going to have the government, the same one that oversaw Fannie and Freddie, oversee our HEALTH CARE?

So, let’s recap: DOW up, yay! Unemployment up, BOO! Home Foreclosures up, BAD! And Debt spiraling out of control with Obama & Co. wanting to spend more and more and more, VERY BAD!!!!

I didn’t use to buy the whole “Tax and Spend Democrats” meme, but there is nothing like cold, hard reality to change a saying to a truism. Yep, we’re in for a world of hurt, alright, and the current Administration seems completely tone deaf to the grave issues facing our nation. Obama will continue hosting summits like this nuclear one that end up accomplishing essentially nothing, talking a lot, but saying nothing, and ignoring the glaring warning signs.

Hold onto your wallets, folks, it’s gonna be a bumpy ride…

My blood is boiling. Why?

The assault on the principles of free market capitalism is escalating with news that banks are poised to start reducing principal balances on certain mortgages.

I empathize with those who are strapped, but I have never felt more strongly on a topic than this principal reduction. Despite any and all bulls*%# put forth by those in Washington, the principal reduction program is an enormous escalation of the violation of moral hazard which our country sadly continues to embrace. I have no doubt it will expedite the development of a socialized housing finance system.

Do not think for a second that banks will take the hit on these principal reductions. Who will take the hit? Me and you. Those who have worked hard, saved, played by the rules, and taught our children to do the same. I have no intention of changing that approach and will work that much harder to instill these virtues in my children. That said, these virtues are under assault under this program. My children’s future is being negatively impacted as the costs of principal reduction will be pushed off on them.
(more...)

U.S. Rep. Barney Frank (D-MA)

Banks are increasingly healthy, right? Our nation’s accounting rules promote real transparency and integrity in our financial reporting, right? Housing is bottoming, right? No, no, and no!

Why so pessimistic, you may ask? I am not pessimistic at all. I am merely searching for the truth in the midst of the smoke and mirrors on Wall Street and in Washington.

Thank you to our friends at 12th Street Capital for sharing a recently released letter from Congressman Barney Frank imploring the four largest banks involved in mortgage originations to write off second liens they are holding on their books at inflated values.

Why does Congressman Frank believe these loans need to be written off? The liens must be largely written off so that Washington can then compel banks to engage in writing down principal on first liens in an attempt to keep people in their homes. Keeping people and families in homes is certainly a worthy cause, but the process is fraught with all kinds of violations of moral hazards and assorted unintended consequences. When you hear that your neighbor receives a principal reduction, how long will it take you to go to your bank and demand the same?

Let’s review Frank’s brief, two-page letter (click on image below to access pdf document). Focus on Frank’s comment that the second liens have no real value but accounting rules allow the banks to carry them at artificially high values. Can you say, “cooking the books”?

What are the projected losses in these second liens? Well, how much of this paper is outstanding? The Wall Street Journal provides a bar graph in an article, Home-Savings Moves Afoot:

So, with $1 trillion in outstanding second liens on the books, the question begs as to how much of this indebtedness is current, how much is delinquent, and how much is truly worthless but not yet acknowledged. In discussions with those in the industry, suffice it to say, the most optimistic assessment is that the industry has at least a few hundred billion in losses yet to be acknowledged.

The larger banks addressed by Congressman Frank are the largest holders of these second liens. These banks do have earnings power given the free flow of liquidity provided by the Fed and accompanying capital markets activities. That is not the case with smaller institutions. How many of those institutions are already dead, but not yet buried?

Wonder why banks are reluctant to provide credit? They need to increase capital knowing these second liens are truly an ongoing sinkhole.

LD

Jon Stewart had Harvard Professor, Elizabeth Warren on recently to discuss TARP and Wall Street. It was an interesting interview, to be sure (h/t to Pat), and provided a historical perspective:

Let’s not forget who was in charge of Fannie Mae and Freddie Mac, shall we?? Barney? Chris? Ahem. Funny how that often goes unmentioned, isn’t it?

You wanna know what else is funny about this whole negative attitude toward lobbyists? Especially after Obama ripped on them again? That he INVITED THEM TO THE WHITE HOUSE FOR A PRIVATE BRIEFING THE DAY AFTER THE STATE OF THE UNION. I am not kidding, people – how many different ways can I say, “What a freakin’ hypocrite?????” Or, “How do people buy the crap that comes out of his mouth???” Holy smokes!!! Those of us who are sentient beings knew this was happening, that he was saying one thing, while doing another. But, c’mon, how blatant can he be that he thinks we are the biggest bunch of morons on the face of the planet??? And how can so many Americans BE such morons to buy this crap from him? Good grief, people, THINK!!!

So, here it is, in black and white:

[Snip] The Treasury Department on Thursday morning invited selected individuals to “a series of conference calls with senior Obama administration officials to discuss key aspects of the State of the Union address.”

The invitation, which went to a variety of stakeholders, was sent by Fred Baldassaro, a senior adviser at the Treasury Department’s Office of Business Affairs and Public Liaison.

The invitation stated, “The White House is encouraging you to participate in these calls and will have a question and answer session at the end of each call. As a reminder, these calls are not intended for press purposes.” (Emphasis mine.)

Yeah, I’ll just bet they aren’t:

The calls are scheduled to begin at 11:30 a.m. on Thursday, with the first topic being job creation and economic growth.

Another call, at 1 p.m., is on government reform and transparency. Republicans have criticized the Obama White House for not being more transparent in its discussions with Congress on healthcare reform. Obama recently acknowledged that the legislative process has not been as open as he promised on the campaign trail.

Other issues that will be addressed on Thursday include education, climate change and healthcare reform.

Oh, yay!! Doesn’t that make you feel better? Of course, they have been there all along, steering this Healthcare bill, from Obama’s original meeting with Big Pharma to the insurance industry lobbyists. Gee, can’ imagine why so many of us oppose this current bill: because we know what actually wrote it.

But Obama better be careful before he hurts their feelings:

A handful of lobbyists told The Hill on Thursday morning that they received the invitations and were planning to call in.

Some lobbyists say they are extremely frustrated with the White House for criticizing them and then seeking their feedback. Others note that Democrats on Capitol Hill constantly urge them to make political donations.

One lobbyist said, “Bash lobbyists, then reach out to us. Bash lobbyists [while] I have received four Democratic invitations for fundraisers.”

In his State of the Union on Wednesday, Obama once again targeted K Street: “We face a deficit of trust — deep and corrosive doubts about how Washington works that have been growing for years. To close that credibility gap, we have to take action on both ends of Pennsylvania Avenue — to end the outsized influence of lobbyists; to do our work openly; to give our people the government they deserve.”

So, um, this is how Obama expects to fix it? Invite the lobbyists to participate in these major issues facing the country? Well, sure, that makes sense. In the Upside-Down World of Washington, DC, that is.

And all in the light of day, right? Oh, sure, PollyAnna:

The Treasury Department referred The Hill’s request for comment to the White House, which at press time had not responded to questions on this issue.

On Thursday afternoon, White House spokesman Josh Earnest stated in an e-mail, “As part of our effort to reach out and engage with the public and policymakers, it is standard for our outreach team to organize a conference call, so that we can include people who are not in Washington, after a major speech or announcement through the president’s priorities. These calls are targeted at a diverse group of community and government leaders including mayors, governors, faith groups, women’s organizations, representatives from the African American and Latino communities to share as much information about the administration’s agenda as possible. The calls, which include question-and-answer sessions, typically include hundreds of people from across the country…”

Lobbyists say the Obama White House has held many off-the-record teleconferences over the past year.

For example, lobbyists and others were invited to a teleconference with “senior Obama administration officials” on Monday to discuss the administration’s plan to improve the lives of middle-class families.

The invitation, which is addressed to “Friends,” emphasizes in bold and italics that “this call is for background information only and not intended for press purposes.” It advises callers to tell the operator “you’re joining the ‘White House Briefing Call.’ ”

Another lobbyist said these types of teleconferences occur “all the time.” (Emphasis mine)

And that is why many on K Street are exasperated with Obama’s use of lobbyists as a punching bag. Some have said they understood why he used strong rhetoric on the campaign trail but are irritated the White House solicits their opinions while Obama’s friends in Congress badger them for political donations.

Don’t you feel sorry for those poor lobbyists who are shaping our policies?

Or do you feel anger that we have a government that is so duplicitous, so underhanded, so hypocritical, and so conniving?? Obama gets up there spewing this bullshit at the SOTU, and the VERY NEXT DAY, meets with K Street Lobbyists. And he does so with no shame, not even a hint that the impropriety gets through to him.

Wow. Show of hands – WHO bought this crap from him and the Democrats?? Anyone? Bueller?? And we wonder why this country is in such a mess…

Like a voter scorned. Many of us are reaping the sweet rewards of, “I Told You So” with many of our Obot friends, family, and acquaintances. We did, we tried, we hoped, we cried, and nothing would sway them from the One True Messiah of Obama. Well, those days seem to be slipping away, don’t they? And one such supporter of Obama’s, who thought he was the cat’s meow, the one who would change politics as usual (I still do not, for the life of me, understand WHY people thought he would), has had it.

That would be Mort Zuckerman. If you are not familiar with the name, you surely are with the U.S. News and World Report, of which he is Editor-in-Chief, or the New York Daily News, which he owns (along with other properties). He is a gazillionaire (okay, just a billionaire), and he supported Obama in the 2008 Election. Now, he is just a tad put out as his Op-Ed, “He’s Done Everything Wrong,” indicates (h/t to Andy):

Obama punted on the economy and reversed the fortunes of the Democrats in 365 days.

He’s misjudged the character of the country in his whole approach. There’s the saying, “It’s the economy, stupid.” He didn’t get it. He was determined somehow or other to adopt a whole new agenda. He didn’t address the main issue.

This health-care plan is going to be a fiscal disaster for the country. Most of the country wanted to deal with costs, not expansion of coverage. This is going to raise costs dramatically.

In the campaign, he said he would change politics as usual. He did change them. It’s now worse than it was. I’ve now seen the kind of buying off of politicians that I’ve never seen before. It’s politically corrupt and it’s starting at the top. It’s revolting.

Holy moley! Bear in mind, this man, Mr. Zuckerman, was a SUPPORTER. I sure can’t disagree with his assessment, though. He continues:

Five states got deals on health care—one of them was Harry Reid’s. It is disgusting, just disgusting. I’ve never seen anything like it. The unions just got them to drop the tax on Cadillac plans in the health-care bill. It was pure union politics. They just went along with it. It’s a bizarre form of political corruption. It’s bribery. I suppose they could say, that’s the system. He was supposed to change it or try to change it.

Even that is not the worst part. He could have said, “I know. I promised these things, but let me try to do them one at a time.” You want to deal with health care? Fine. Issue No. 1 with health care was the cost. You know I think it was 37 percent or 33 who were worried about coverage. Fine, I wrote an editorial to this effect. Focus on cost-containment first. But he’s trying to boil the ocean, trying to do too much. This is not leadership.

Obama’s ability to connect with voters is what launched him. But what has surprised me is how he has failed to connect with the voters since he’s been in office. He’s had so much overexposure. You have to be selective. He was doing five Sunday shows. How many press conferences? And now people stop listening to him. The fact is he had 49.5 million listeners to first speech on the economy. On Medicare, he had 24 million. He’s lost his audience. He has not rallied public opinion. He has plunged in the polls more than any other political figure since we’ve been using polls. He’s done everything wrong. Well, not everything, but the major things.

I don’t consider it a triumph. I consider it a disaster.

You and me both, Mr. Zuckerman. But if I may be so bold, perhaps lofty words are not a prerequisite for the highest office in the land. Just saying. Perhaps you should have looked a little deeper into how much Obama enjoyed the adoring masses, buying the PR spin that he was The One. The problem is, he started to believe it. He believed/believes it really is all about him. But, as a truly great president said, “I feel your pain.”

And speaking of Clinton:

One business leader said to me, “In the Clinton administration, the policy people were at the center, and the political people were on the sideline. In the Obama administration, the political people are at the center, and the policy people are on the sidelines.”

Again, YES. I hate to keep harping on this, but why were you not capable of seeing this BEFORE?? When Obama regurgitated Deval Patrick’s speeches, that should have been a clue that it was absolutely NOT about policy, but all about politics. When he continually took Hillary Clinton’s policy positions for his own, instead of crafting them himself, that should have been a bit of a clue. But no. Zuckerman, and to many like him, failed to see what was right before their eyes. They believed the hype, too:

I’m very disappointed. We endorsed him. I voted for him. I supported him publicly and privately.

I hope there are changes. I think he’s already laid in huge problems for the country. The fiscal program was a disaster. You have to get the money as quickly as possible into the economy. They didn’t do that. By end of the first year, only one-third of the money was spent. Why is that?

He should have jammed a stimulus plan into Congress and said, “This is it. No changes. Don’t give me that bullshit. We have a national emergency.” Instead they turned it over to Harry Reid and Nancy Pelosi who can run circles around him.

It’s very sad. It’s really sad.

He’s improved America’s image in the world. He absolutely did. But you have to translate that into something. Let me tell you what a major leader said to me recently. “We are convinced,” he said, “that he is not strong enough to confront his enemy. We are concerned,” he said “that he is not strong to support his friends.”

The political leadership of the world is very, very dismayed. He better turn it around. The Democrats are going to get killed in this election. Jesus, looks what’s happening in Massachusetts.

Well, for a moment, perhaps, but even in other countries, people are waking up (check out The Telegraph, or Der Spiegel sometime). But here’s the thing: by caring more about appearances than policy, being liked more than fixing problems, Obama, and all who voted for him, have done this country a tremendous disservice. We told you it wasn’t American Idol for which he was running, but the presidency.

There is still some delusion, though:

It’s really interesting because he had brilliant, brilliant political instincts during the campaign. I don’t know what has happened to them. His appointments present somebody who has a lot to learn about how government works. He better get some very talented businesspeople who know how to implement things. It’s unbelievable. Everybody says so. You can’t believe how dismayed people are. That’s why he’s plunging in the polls.

I can’t predict things two years from now, but if he continues on the downward spiral he is on, he won’t be reelected. In the meantime, the Democrats have recreated the Republican Party. And when I say Democrats, I mean the Obama administration. In the generic vote, the Democrats were ahead something like 52 to 30. They are now behind the Republicans 48 to 44 in the last poll. Nobody has ever seen anything that dramatic.

Did you mention by how much Obama has run up the National Debt? You know, the one he has increased by $1.7 TRILLION since he took office? And he’s looking to increase it by even more. Oh, yippee.

If I may return to another part of Mr. Zuckerman’s editorial, no offense, sir, but OBAMA didn’t have “brilliant, brilliant political instincts during the campaign,” his HANDLERS, Axelrod and Plouffe. did. Had you taken just a few minutes and used the considerable resources at your disposal, you could have looked into his REAL record in IL. You would have seen the shenanigans he employed to even get elected. Now, maybe YOU think that is “brilliant,” but I see it as being an indicator of the man’s moral fiber, and his “win at all costs,” mentality, no matter who he steps on, or what kind of damage he does. Perhaps what Zuckerman is seeing now, is the failure of Axelrod and Plouffe to pull the man off the Campaign Trail and him getting to work. Obama still hasn’t stopped, as he heads off to Ohio on Friday.

Still, at least he is finally getting is. In this interview with Neil Cavuto (h/t to Logistics Monster), he can barely contain himself:

Mr. Zuckerman made some mighty interesting assertions in there, didn’t he, especially in terms of housing? Welcome to the reality based community, sir.

Indeed, slowly but surely, the Kool Aide is wearing off, but not until Obama has done untold damage to out country – IN ONE YEAR. Will he be able to turn it around? I don’t know, but that would presuppose he was capable of introspection, and a willingness to actually listen to the people, as opposed to talk, talk, talking to us (though apparently, he hasn’t talked at us enough – we just don’t get it, you know – because apparently, we are all a bunch of mo-rons not to buy his healthcare bill). Just a thought.

In the meantime, maybe we have all learned a lesson after this presidential election, and after the Massachusetts election. People can be hoodwinked, but not forever. When they wake up, they are none too happy at the lies they were told. That’s why we have elections, and this year is shaping up to be mighty interesting indeed…

If you wonder why America is broke, look no further than the individual who wanted to roll the dice on sub-prime lending, that is the Democrat from The People’s Republic of Massachusetts, Barney Frank. In an interview on CNBC, Frank as much admits that maybe sub-prime lending should have been more regulated. Wow! What balls!

America doesn’t need legislators who operate by looking in the rear view mirror. With the sole exception of Frank’s remark in support of auditing the Fed, he offers platitudes that can only be compared to a social misfit. In fact, as I watched this clip, I constantly envisioned Barney collecting tickets and serving soda at a local theatre . . . said with all due respect to ticket takers and soda jerks.

For Barney Frank to effectively absolve himself of the massive and corrupt bankrupting of Freddie Mac and Fannie Mae is a sin. For America not to hold him accountable is a greater sin.

This clip runs 18 minutes. WARNING: Barf bags highly recommended!

LD

Blank checks are the antithesis of good public policy.

America can not allow the passage of time to lessen the outrage over the Obama administration’s Christmas Eve bonus to the financial sinkholes known as Freddie Mac and Fannie Mae. Platitudes and posturing aside, the American taxpayer is being set up as never before.

A blank check may serve to cover a host of past financial and legislative failures promoted by the likes of Barney Frank, Chris Dodd, John Kerry et al, but who is monitoring and verifying the legitimate and proper use of these funds? Are we to blindly trust Treasury Secretary Geithner, White House economic adviser Larry Summers, and their respective staffs in this process? Are you kidding me? America needs to voice its outrage long and hard. In that spirit, I called yesterday to Audit Freddie and Fannie.

In the same vein, I am heartened by initiatives launched this week by Rep. Dennis Kucinich (D-OH), and Reps. Scott Garrett (R-NJ) and Spencer Bachus (R-AL) to pursue an investigation of this blank check.

The Wall Street Journal reports, Lawmakers Want Probe Into Treasury Aid for Fannie, Freddie:

The Treasury Department’s surprise Christmas Eve move to uncap the potential aid to Fannie Mae and Freddie Mac should be investigated, lawmakers from both political parties said Wednesday.

Rep. Dennis Kucinich (D., Ohio) said his congressional subcommittee plans to investigate Treasury’s decision to lift the existing $400 billion cap on government cash available to the two firms. Separately, Reps. Scott Garrett (R., N.J.) and Spencer Bachus (R., Ala.) called for the House Financial Services Committee to hold a hearing on the matter.

Mr. Kucinich, who chairs the domestic policy subcommittee on the House Oversight and Government Reform panel, said he is concerned about how the two government-controlled firms will use their new flexibility.

“This cannot be used simply to purchase toxic assets at inflated prices, thus transferring the losses to the U.S. taxpayers and acting as a back door [Troubled Asset Relief Program],” Mr. Kucinich said in a statement released by his office.

Messrs. Garrett and Bachus raised similar concerns in a letter to Rep. Barney Frank (D., Mass.), who chairs the Financial Services panel. The two GOP panel members decried what they called a “transparent attempt to hide the news from the American people” by announcing the news the day before a major holiday.

I am not only concerned about Geithner’s and Summer’s influence over the allocation of the funds behind this blank check, but I am equally concerned because of the influence of that individual to whom Garrett and Bachus directed their letter. Barney Frank (D-MA), Chair of the House Financial Services committee, has always been in bed with Freddie and Fannie. I do not doubt for a second that Frank would use this blank check to cover his misguided policies and misappropriated funds supporting Freddie and Fannie over the years.

Need I remind you of Frank’s “I want to roll the dice…” comment in regard to Freddie and Fannie’s support of sub-prime lending in 2003?

America can not allow time and other issues to distract us from what may very well be the single largest misallocation and misappropriation of taxpayer funds in the history of this country.

Trust Geithner? Trust Summers? Trust Frank?

Put Sense on Cents in the verify camp!!

How about you?

LD