It takes a lot to surprise us but Peter Wallison’s decision to double down on his “big lie” with the release of his new book “Hidden in Plain Sight” defies all sanity. Peter has been hell bent on proving that government affordable housing mandates caused the financial crisis. He has relentlessly pursued this false claim never allowing the truth to get in his way.
Our reader Matt points out “Check out this event for Wallison’s book release.Who invited Zandi to the book club meeting?🙂 He just decimates all of Wallison’s key premises of his book in a nonchalant fashion.Starting at the 41:45 mark:” Mark Zandi is Chief Economist at Moody’s. I suggest everyone watch the clip beginning at 41:45
Mark provides us with a critical fact that proves beyond a shadow of a doubt the true perpetrators of the crisis.Mark points out that to correctly determine who played the biggest role in creating the financial crisis one can simply examine the realized losses of the participants. Not the write-downs, not the anticipated losses that Treasury used when forcing Fannie and Freddie to take draw after draw to increase their debt and interest owed. What Pete attempts to do is to create a maze of numbers to confuse people into believing his false premise. So just what were the actual realized losses?
Of all the mortgages originated between 2006-2013 10% actually failed and produced 1 trillion dollars in losses. So based on a percentage of all the mortgages they underwrote in this period just how do the various players stack up?
Realized losses of all mortgages originated between 2006-2013
Fannie and Freddie- 3 Percent
Big Banks- 6 Percent
PLMBS/ Private mortgage co.s (Ameriquest etc.) 23 Percent
It was simple facts like these that caused Pete to become the laughing stock of the FCIC. The fact is that Peter Wallison was named to the Financial Crisis Inquiry Commission by House Speaker John Boehner. He was one of the four Republican appointees; the commission’s goal was to investigate the causes of the financial crisis. “In voting on the adoption of the final report the Commission was split evenly along partisan lines, with Angelides, Born, Georgiou, Graham, Murren, and Thompson (appointed by Democrats Pelosi and Reid) all voting in favor and Thomas, Hennessey, Holtz-Eakin, and Wallison (appointed by Republicans Boehner and McConnell) all dissenting. Among those dissenting Thomas, Hennessey, and Holtz-Eakin collaborated on a single report while Wallison, from the American Enterprise Institute drafted his alone and proposed that the crisis was caused by government affordable housing policies rather than market forces.[” (Wikipedia) No way were the other Republican-appointed members going to sign on to Peters outrageous lies. Although they would have loved to blame government mandates for the crisis, they were not willing to destroy their reputations by endorsing Petes fraud.
Unsurprisingly the back of Petes book is covered with glowing endorsements from a host of right wing zealots who share in Wallison’s lust to reverse decades of hard-fought gains in equal housing that have been made to ensure the American dream is accessible to all Americans by falsely blaming the mandates for the crisis.The one trait they all share is a refusal to allow the truth interfere with their warped ideological agenda. But what may surprise some is that none other than Former FHFA head Ed Demarco joins in endorsing Peters devious plot. This is no surprise to us however as we have seen right through Demarco’s endless lies for years.Ed was truly the fox guarding the hen house, and his despicable actions have helped to hide the truth for years.
In closing, I want to praise all of you who have taken the time to do a customer review on Amazon I encourage everyone to do so if you can. http://www.amazon.com/Hidden-Plain-Sight-World%C2%92s-Financial/dp/1594037701/ref=sr_1_1?s=books&ie=UTF8&qid=1421499069&sr=1-1
Please remember to click on the “was this review helpful link” for all of the 1-star reviews. This will keep them on the top.
Busy week, recovery nearly complete,many key meetings working to change the false narrative. We have quite a bit to cover, stay tuned this weekend.
We will be examining Obamas fork in the road. (Self explanatory)
Calabria awakes from two-year coma: still hates Fannie but remembers the sweep is illegal. (This is a classic)
Incredible reforms mean the Fannie and Freddie from 2007 no longer exist. (Safer than ever before)
Judge Sweeney may wait until all discovery concludes before ruling on motion to stop discovery? (Liking her more every day)
4 days in NYC next week, first stop WSJ. (Is a truce possible?) Keep the Faith!