Before I delve into today’s news about Treasury’s response to Senator Grassley, I want to remind our readers that I felt the letter to Treasury was far weaker than the letter to Attorney General Holder.You will note that I have not even discussed the Treasury letter until now. The only questions with any remote teeth concerned the FHFA and Treasury punted these over to FHFA director Mel Watt. The remaining questions promised that we would hear a rehash of Treasury’s tired old lies, which we did. However, I did find it amusing that although Grassley’s letter was directed to Treasury Secretary Lew he did not sign the response.keeping with tradition Lew would not publicly state the “for court only lies” concerning the 3rd amendment sweep.I explained this in depth here: https://timhoward717.com/2015/03/22/treasury-secretary-lew-blows-lid-off-of-governments-defense-confirms-true-reasons-for-sweep/#comments
Surprisingly former Senator Reid staffer Randall DeValk was a willing participant. Randy came to Treasury in the fall of 2011 to serve as counselor to none other than Former Treasury Secretary Tim Geithner.Randy undoubtedly would have been aware that the circular draw alibi was a complete farce so why he would choose to inject himself now dismays me.I would hope that Randy finds his way onto the deposition list as his response today has painted himself into a pretty tight corner. I could easily shred Treasury’s response line by line as I have done to these very same arguments in the past, but I would rather not dignify their lies with such a detailed response. Honestly, I could have written what I knew their answers would be to these questions in a matter of minutes.By choosing to respond to the Treasury letter first and punting the FHFA related questions Treasury simply made fools of themselves once again.
One positive development I noted in the response was the complete absence of Fannie, Freddie bashing that had become a common refrain from Treasury.This should not be a surprise considering the brazen double cross they just experienced at the hands of the Republicans.Now that the Republicans have ended the unholy alliance that forced them to sit idly by as the rule of law was trampled by Obama you better believe the anti-GSE rhetoric was left out intentionally.
To a large degree, the responses or lack of responses to Grassley’s letters by either Treasury or Justice is not nearly as important as the fact that they were sent. Focusing on the answers or lack of would be like news reports speculating if the first shot that started the Revolution found it’s target. The fact that the Republicans fired the first shot has transformed our struggle completely.
I am sure I wasn’t the only one who felt as if I was reading a typical WSJ-like diatribe when reading Treasuries response. This is not surprising considering some recently discovered facts that I have learned from a former WSJ reporter. They very candidly stated that it is not unusual for the WSJ to blindly back the government on certain issues, no matter how outrageous, in exchange for coveted, valuable access.This allegation was substantiated recently by Politico financial services reporter Zachary Warmbrodt when he observed on Twitter:
“Treasury just censored a question at Lew’s press conference. Someone in the front row tried to ask 1st Q and was told WSJ had to go first.The reporter was not allowed to ask her question. Treasury handpicked a few more reporters and ended the press conference.”
Our Reader Neal Newman made the following correct observation concerning WSJs ability to break the news today:
“Amazing the speed by which the WSJ was able to not only receive Treasury’s letter to Grassley, but to write a 15 paragraph analysis of its content. Impressive. Must have been some Vulcan mind meld trick. That’s it. There’s no other ethical explanation.”
Clearly once again the WSJ was rewarded for the blind backing they bestow on Treasury.
Republican Senate banking chair Senator Shelby quietly geared up to join Senator Grassley in pursuing the administration’s lawlessness and secrecy with the creation of an investigative team. The first of it’s kind in 8 years. Again anyone who still doesn’t see the direction this is headed will ignore it at their own peril.
With the 2016 matchup quickly approaching between Hillary Clinton and Jeb Bush the Republicans have their narratives well underway. It is clear that they will be following the Peter Wallison playbook and blaming the financial crisis on Bill Clintons affordable housing policies.This article by Fox lays it out nicely: http://www.foxbusiness.com/industries/2015/04/17/fannie-and-freddie-restart-risky-affordable-housing-programs/
“A little history here. Thirty years ago, almost to the day, the Dept. of Housing and Urban Development pushed Fannie to lower down payments to 3%. Both Fannie and Freddie were pushed by the Clinton Administration and Congress beginning in 1992 to increase the number of mortgages sold to poor and moderate income homeowners, after the national media reported banks were redlining neighborhoods and not selling loans there.”
More and more we will see the Hillary factor influence our cause more and more.
In closing, I want to say that the ripple effects created by our last post concerning the rogue treasury official and the damming emails still have not subsided. The jealousy our revelations rekindled amongst some of our own allies is very unproductive. Rather than allow your jealousy to distract you, focus on exposing and sharing the truth as we do.Also, keep in mind that we do have an unfair advantage considering the vast arsenal of sources we have at our disposal.
We truly walk a tightrope trying to balance many conflicting wishes, tonights song is dedicated to those don’t agree with our strategies and chose to part ways. Keep the faith!
Treasury response (Treasury response)