It is with the utmost confidence that I report from our ocean side retreat at Camp Waldorf.There are many positive developments to report,the battle lines could not be clearer and with the truth on our side and our opponents armed with nothing but lies our victory is all but assured.
First I want to share two excellent articles posted on the Columbia Law Blog. They both do an excellent job of correcting the false narrative that our opponents have tried to pass off as truth.The first is by Brad Miller, Roosevelt Institute Senior Fellow; Former U.S. Representative for North Carolina’s 13th Congressional District. It is entitled “Set the Wayback Machine for Housing Finance Reform, But To When?”Brad has provided some useful information that may be critical in Re. Hensarling’s Amnesia therapy.It appears that our opponents forgot that they were once the biggest cheerleaders of the Sub-Prime mortgages that truly caused the financial crisis.
“I need not remind my colleagues on the committee that Americans currently enjoy the highest rate of homeownership in the history of America,” Republican Congressman Hensarling said at a congressional hearing on May 24, 2005. “The benefits of free enterprise and competition have been plentiful. With the advent of subprime lending, countless families have now had their first opportunity to buy a home or perhaps be given a second chance. The American dream should never be limited to the well-off or those consumers fortunate enough to have access to prime loan rates.”
Let’s try and spread this quote far and wide. I would hope that many of our opponents are forced to be reminded of this in the coming days. If need be, we will remind their constituents that their blind faith in sub-prime actually predated their blind support of our countries unlawful attempted seizure of two private companies. Both equally damaging revelations.
The second is by renowned champion of the truth David Min entitled “The Future of the Federal Housing System.”
“Importantly, the presence of government guarantees into housing finance has overlapped neatly with financial stability, as the below chart illustrates. Prior to the New Deal, when such guarantees were introduced, our financial system suffered debilitating crises every 5-10 years. The introduction of broad government guarantees in housing finance has coincided with a tremendous and unprecedented period of financial stability lasting some 80 years, which ended in 2007. Perhaps not coincidentally, this was the first time since the late 1940s when purely privately funded mortgages comprised a significant share of the market. As has been well documented, loans originated for PLS grew to account for about 40% of all mortgages, and these same loans experienced incredibly high default rates (about 30% on average).”
Bloomberg put together a great presentation that will be very useful in our cause that we wanted to share:
BB_fNFRN (Entire presentation)
This screen shot does a great job showing where we would stand if the lawless sweep were never enacted and more importantly if it were reversed.
The launching of the “Middle Class Prosperity Project” by Senator Elizabeth Warren and Congressman Elijah Cummings will play a critical role in sharing many of the truths we profess here.
“After the Great Depression, Congress enacted progressive policies to build and expand the middle class. But Washington became captive to powerful interests that game the system at the expense of the middle class.”
Our key allies are quickly coming to the realization that the 2016 elections will largely be a debate on the financial crisis. What caused it and who saved us from it will be hotly debated. The winner of this debate will surely be our next President.Thankfully for us our opponents have largely staked their claim on the big lie that Fannie and Freddie caused the crisis.There is a method to their madness, envisioning a Clinton/Bush matchup they seek to pin the blame largely on President Clintons Home ownership expansion programs.If Fannie and Freddie were left in conservatorship and Democrats were continued to be muzzled from defending Fannie and Freddie and all they represent defeat in 2016 will be certain.It is now more critical than ever that we push to correct the false narrative; our victory is tied tightly to our success in spreading the truth and refuting the lies.
We remind those on both sides of our struggle that we are still holding a hand full of aces. Keep the Faith!