Translating Obamas Lies (Again)
In what has become a common theme President Obama once again slammed the door on Black America and chose to follow His Treasury departments lies.In one of the most cowardly moves of his Presidency President Obama unleashed his Treasury goons to smash the hopes of every Black civil rights group who pleaded for the release of Fannie and Freddie.
In the following quote by Obama Chief housing adviser and Treasury counsel, Dr. Michael Stegman weaves a tapestry of deception in hopes of conning Black America once again.
“None of us should be misled by the increasingly noisy chorus of the advocates of recap and release, many of whom have placed big bets against reform so they can make a profit, and are doing everything they can to make sure that those bets pay off. Nor should their promise that recap and release would generate a pot of money for affordable housing be taken seriously. Recapitalizing the GSEs would not itself provide any resources for affordable housing. Nor can a related – or even unrelated – sale of Treasury’s investment in the GSEs provide any resources for affordable housing. The proceeds of the sale of any GSE obligations acquired by Treasury must by law be “dedicated for the sole purpose of deficit reduction.”
Their cleverly crafted lies read like the fine print in a predatory mortgage.With such strong language, one might be tempted to believe that a recap release could not legally provide any resources for affordable housing.But let’s examine this a little closer:
“Nor should their promise that recap and release would generate a pot of money for affordable housing be taken seriously. Recapitalizing the GSEs would not itself provide any resources for affordable housing. Nor can a related – or even unrelated – sale of Treasury’s investment in the GSEs provide any resources for affordable housing. The proceeds of the sale of any GSE obligations acquired by Treasury must by law be “dedicated for the sole purpose of deficit reduction.”
Here Stegman conveniently fails to mention what the Leadership Conference pointed out back in June when at administrations request they offered how they hoped the GSE issue would be wrapped up:
“C. Contribution of Treasury’s warrants for common stock of Fannie Mae and Freddie Mac to the affordable housing funds. Often lost in public discussion of the GSE conservatorships is the fact that the Treasury Department currently owns warrants for 79.9% of the common stock of each of Fannie Mae and Freddie Mac. While it may not be widely appreciated, these warrants are extremely valuable. In recapitalizing the GSEs, the government should maximize the warrant value and use that value in support of affordable housing.
The value of the warrants could easily exceed $100 billion. If the Administration were to contribute a portion or all of these warrants to affordable housing, that would ensure funding of necessary assistance to our communities for a generation. It is important to note, however, that this value is only achievable to the extent that a recapitalization allows value to flow over time to the Fannie and Freddie common stock to which these warrants are tied. The warrants cannot easily be sold in the market, or exercised with the common stock received then sold in the market, before the end of this Administration. But the Administration can keep this value in the housing sector and devote its use to constituencies that need help. The huge amount of value in the warrants can make this a “top 10” or even “top 5” legacy item for President Obama. Of course, future administrations may not have the same priorities, and they may use this substantial long- term value for other purposes, unless it is contributed to the trusts.”
Leadership conf 6:15
Stegman conveniently neglected to mention the warrants because that did not fit into the plan, the plan to try and con Black America into believing that a recap release would provide no benefit to them.
“Who bought Maxine Waters”
The fact that the Administration went to such great lengths to address the affordable housing debate speaks volumes to what a powerful effect our campaign has had.Way back when we began to get momentum by reawakening black Americas belief in the GSEs I was warned by a very reliable Treasury source that officials within Treasury were inquiring: “who bought Maxine Waters?” Making the offensive assumption that her concern for the GSEs was prompted by her being bought off by a hedge fund. They were furious because Black America was their only obstacle in achieving their goal of turning Americas secondary mortgage market over to their Blackstone masters.The Treasury had enjoyed the greatest success in winning Obama to their side by farming our struggle a one of rich greedy hedge funds vs. the taxpayers, and they desperately sought to make a connection between them and the Black leaders.The media provided treasury all the help they needed by portraying this false claim over and over again even constantly referencing an unholy alliance between affordable housing groups and the hedge funds. Bethany McLean provided perhaps the biggest assist as her book makes the hedge fund vs. taxpayer a central theme. If she were truthful, she would have explained that every major civil right group and many black leaders were demanding the GSEs release. The fact that she left such a huge part of the story out is no coincidence nor is the fact that she ignored the river of lies surrounding the third amendment. Just as her Enron book exposed the fraud conspired by Enron as prosecuted by her husband her GSE book covered up the fraud being perpetrated by our government. Her book in no way shape or form resembles investigative journalism. It is nothing more than an obvious attempt to assist our gov in their illegal seizure of Fannie and Freddie.I can not only state I but prove that hedge funds and investors have played no role in this as I was directly involved from the very beginning. However in the end it was that lie that won the day as Senator Corker parlayed the Political Alpha note into a firestorm of media attention. The media again played right along distorting the contents of the note and framing it as hedge funds predicted Obama would recap and release the GSEs. All of this provided President Obama the cover to once again prove that although he is Americas first Black President Bill Clinton will be remembered as Americas best Black President. Time and time again Obama goes to great lengths to avoid doing anything that might be perceived as him helping the very people who played the biggest role in putting him in the office he holds.
They Did Not Kill Us They Made Us Stronger
I started this blog to ensure simply that the truth be known. It was obvious that both our government and our media could not be relied on to tell the truth. It then grew to be much more and at times took on a life of its own. I gradually became very deeply immersed in the battle to save Fannie and Freddie largely from an activist standpoint.As I said a short while ago, our work was essentially complete as we had achieved all of our objectives.I will always be most proud of the role I played in helping Black America learn the vital truth about what was truly going on with Fannie and Freddie.We had reached the point where it was up to Obama to make a decision and that he did last Monday.I never thought or heard that we had won him over or that he had made a decision before that day as I shared shortly before the Alpha note came out. In some ways, it’s just as well Obama showed his cards now rather than later.
I will continue to exercise the leadership role that was bestowed on me by all who want to know the truth about Fannie and Freddie. We know by now that the media like Obama will largely only parrot Treasury’s lies. Believe me when I tell you that the day will come when the truth is known by all. Our governments lies will be exposed, and every one of you Patriots will share in the glory, our work is not in vain, millions of Americans who don’t even know we exist, depend on our work. Millions of Americans will be cold and homeless this winter because our President lacked the courage to follow the truth. His reckless decision to follow treasury’s lies sealed the fate of millions of our most vulnerable citizens.
I had compiled enough material for this post to make it three times longer which is not unusual.I have saved thousands of pages of notes from throughout this quest and will be working more on the book I plan to publish which will cover many of these events in far greater detail.It will serve as a truthful historical record of exactly what has transpired from the beginning.It will deliver the cold hard truth that so many in our government have done nothing but run away from at all costs. I will make sure it is in every library in our country and will do all I can to make sure that the truth is known.
This entire experience has opened my eyes to the fact that the financial media and our government has no intentions of sharing the truth. The media is largely motivated by their lust for access to power, hype and greed. Because of this I feel compelled to expand my role and provide the truth on other areas of injustice besides just the GSEs, I will be sharing more about that very soon. keep the Faith