Thursday, May 20, 2010

Choking on Mendacity. Barack Obama's Way

ShoreBank and the Chicago Way. Turnip Trucking: Have We Learned Nothing from the Financial Crises? John Powers, Chicago Daily Observer. One snapshot:
Howard Stanback, presently on the Board of Directors for the Shorebank Neighborhood Institute. He has also previously served as President of the Hyde Park Community Association and is a former Board Chairman of the Woods Fund. Before joining Shorebank he was employed by the New Kenwood LLC, a real estate development co-owned by Allison Davis (Barack Obama’s former boss at the Davis, Miner, Barnhill Law Firm) and Tony Rezko. He and Barack Obama previously served together on the board of the Woods Fund.
Read on, full turnip truck.

Wall Street "Reform" Just More Crony Capitalism - Rep. Paul Ryan, RCP

...And let's not forget what the Woods Fund did:

Could it be because together, through Annenberg, the Woods Fund and the Joyce Foundation, Barack Obama and Bill Ayers funded Bill Ayers' extremist projects to the tune of two million and that school grants not only went to ACORN but for hate-filled, anti-American political purposes rather than educational ones? Chicago schools still rank among the worst in the country. Obama's ACORN and other allies are out stealing votes. Bill Ayers is a respected Chicago citizen. How very amusing.

More. Heritage Morning Bell: Dodd Bill is Just the Beginning of ‘Too Big to Fail’:

Specifically, Cantwell wants to criminalize violations of the bill’s extremely complex new derivatives provisions, and Feingold is demanding the resurrection of Depression Era prohibitions on banking diversification. Not only has our federal government already criminalized the violation of far too many arcane regulations, but the derivatives provisions already in the bill are sure to drive investment, jobs and revenues out of our domestic markets and into foreign ones. And Feingold’s claims that restoration of the Glass-Steagall would prevent “too big to fail” bear no relation to reality. None of the major entities at the core of the 2008 financial crisis would have been affected by Glass-Steagall because none of them are commercial banks. Bear Stearns, Merrill Lynch, Lehman Brothers, AIG, Fannie Mae and Freddie Mac all dug their financial crisis graves by making terrible decisions that would have been perfectly legal under a Glass-Steagall regime.

Speaking of Fannie and Freddie, there is still nothing in this bill that addresses the perverse incentives and moral hazard that is created when the federal government sticks its nose into the housing market. Last year, the two financed or backed about 70% of single-family mortgage loans. They hold about $5 trillion in their investment portfolios. Both are losing money fast, with those losses being covered by the U.S. taxpayer. Last month, Freddie announced it had lost $8 billion in the first quarter of 2010 and would be asking for another $10.6 billion in taxpayer help. Not to be outdone, Fannie announced an $11.5 billion loss and asked for another $8.4 billion from taxpayers. That’s atop the nearly $145 billion of your dollars that Fannie and Freddie have already received. Fannie and Freddie alone prove this bill does nothing to end “too big to fail.” Fannie and Freddie should be partly wound down, the rest broken up and sold off — not replaced, reformed, or rejuvenated. The Dodd bill does none of that.
Read on. There's more bad stuff in this bill, especially pernicious for small business.

God save us from The One and his cronies.

Related: Biggert has questions on ShoreBank, Crony Capitalism Shores Up ShoreBank, Will (Obama) Bail out ShoreBank?, Obama's Chicago Way Avenues to Power, Rep. Luis Gutierrez is a Crook, The ShoreBank, Serious Windows Story, Schakowsky for ShoreBank Bailout, Schakowsky's Obscene Spouse Creamer,, The House that Hate Built, Civics Chicago Style, Business as Usual Obama, Obama, Dancing with Tony, Obama Lies on Rezko. Obama Haunted by Sleaze, Obama's Dogpatch Democrats.Follow the Money Hits O?, Follow the Money

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