It Figures… Obama’s Nominee For Housing Chief Helped Create Subprime Mortgage Crisis

Housing Nominee Mel Watt Helped Create The Subprime Crisis – Daily Caller

Mel Watt, President Obama’s nominee for director of the Federal Housing Finance Agency, pushed government programs to help welfare recipients buy homes during the creation of the subprime mortgage bubble.

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Watt, a 20-year Member of Congress from North Carolina’s 12th district, also had a hand in programs allowing borrowers with poor credit to buy homes with no down payment. The American financial system was subsequently destroyed when millions of bad borrowers defaulted on their loans, setting off a market crash that wiped out nearly 40 percent of the net worth of Americans.

In 2002, Watt teamed up with Freddie Mac and Fannie Mae, Bank of America, BB&T, and UJAMMA Inc., to announce Pathways to Homeownership, a pilot initiative designed to give home loans to welfare recipients.

A press release from Watt’s campaign office in October 2002 said that the loans to the welfare recipients would require “as little as $1,000 of the down payment to come from their own funds” and that the city of Charlotte would help borrowers obtain a “down payment subsidy” to cover the rest of the 3% down payment.

If approved to head up Federal Housing Finance Agency (FHFA), Watt will be regulating the very government agencies whose rules he negated in 2003.

Watt, alongside then-Democratic Massachusetts Rep. Barney Frank, blocked Bush Administration efforts to reduce Fannie and Freddie’s overexposure to subprime loans. “I don’t see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,” Watt said in a banking committee hearing, downplaying the risks inherent in pushing.

In 2007, a full year after the real estate market peaked and began to plummet under the weight of millions of mortgage defaults, Watt and Frank co-sponsored a bill forcing Fannie and Freddie to meet even higher quotas for affordable lending and investing in an “Affordable Housing Fund” for inner city communities.

Watt’s deregulation of Fannie and Freddie came after the government-sponsored enterprises spent billions in his congressional district. “Freddie Mac has purchased $9.5 billion in mortgages made to an estimated 82,000 Charlotte-area residents,” Watt’s staff announced in 2002.

Many of those risky loans ultimately led to the housing bubble and financial crisis. Charlotte was among the hardest-hit areas of the country. The 6.09 percent foreclosure rate for the North Carolina city was more than double the national average of 2.85 percent, according to the Charlotte Observer. CNN.com listed Charlotte number five of the hardest hit foreclosure hotspots in America in 2011.

Watt began setting the subprime wildfire several years before it engulfed the nation. In 2001, Watt helped start the Congressional Black Caucus’ “With Ownership, Wealth” (WOW) initiative, which sought to add one million black households to the ranks of America’s homeowners by 2005. The program was designed to close a racial gap in homeownership between blacks and whites, which according to Watt stood at 46.7 percent vs. 73 percent respectively.

Watt, who once said he has “no use” for a majority of white voters “in the democratic process,” blamed racist lending practices for this gap and in 2008 called for “a more coordinated approach to dealing with these issues of discrimination, failure to be fair in loan terms.”

He continued his race demagoguery in an interview with the National Community Reinvestment Coalition. “Discrimination is an ongoing problem. How do you really effectively legislate and regulate through governmental agencies to eliminate that problem?”

The WOW initiative, relying on Fannie Mae and Freddie Mac’s secondary market mortgage purchases and corporate bank sponsorship forced by the Community Reinvestment Act, set low standards for mortgages to help spur black homeownership. Whether it alleviated the racial disparity in home ownership is unclear, but Americans across racial lines responded to Watt’s government-created incentives for bad mortgage lending. Demographic research [pdf] shows that of the subprime borrowers who were foreclosed on in the ensuing meltdown, a solid majority were white and non-Hispanic.

Watt also drove hard to increase loans to borrowers making no down payment or showing extremely bad credit. “Loan products will be aimed at borrowers experiencing challenges in accumulating wealth and who have not developed traditional credit histories, or who have impaired credit,” explained a 2002 press release on the WOW initiative from the Congressional Black Caucus. “Other mortgage products will be available for low- and moderate-income borrowers with incomes at or below 100% of the Area Medium Income.”

As Watt’s scheme and other public incentives artificially stimulated demand, Charlotte saw home prices rise precipitously before they collapsed in 2006. The failure of many Charlotte residents to pay off their loans led to the housing price collapse. Nationally, the wave of subprime defaults bankrupted Fannie and Freddie, which were placed into a conservatorship by the Treasury Department in 2008.

But rather than punish Watt for pushing this policy, Obama is promoting him to be the chief regulator of the mortgage entities.

“Mel has led efforts to rein in unscrupulous mortgage lenders. He’s helped protect consumers from the kind of reckless risk-taking that led to the financial crisis in the first place. And he’s fought to give more Americans in low-income neighborhoods access to affordable housing,” Obama said on Wednesday, announcing Watt’s nomination.

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Radical Environmentalist Sally Jewell: Yet Another Outrageously Inappropriate Nominee

Radical Environmentalist Sally Jewell: Yet Another Outrageously Inappropriate Nominee – Moonbattery

Cindy Sheehan thinkalike Chuck Hagel for Secretary of Defense. Gabbily anti-American traitor Hanoi John Kerry for Secretary of State. Advocate of killing American citizens without due process John Brennan for CIA director. Obama’s habit of selecting the worst conceivable person for each high position continues with his choice of Sally Jewell for Secretary of the Interior.

Remember Drakes Bay Oyster Company, which had survived for 80 years before getting ground out of existence largely by the envirofascists of the National Parks Conservation Association? Jewell is vice chairman of the NPCA’s board.

Kimberley Strassel sums up Jewell’s mission:

Lock up land, target industries, kill traditional jobs.

Jewell has never held office. But lack of experience didn’t hold Obama back. The important thing is that she will help keep the unemployment rate sky high, thus increasing dependence on government. Among her credentials:

Ms. Jewell, who joined the REI board in 1996 and rose to CEO in 2005, has been central to campaigns that have squelched thousands of jobs in the name of environmental purity.

REI, for instance, actively supported the Clinton-era Roadless Area Conservation Rule, which in 2001 locked up a third of all national forests, dealing another blow to logging and mining. When former Washington Gov. Christine Gregoire in 2006 announced she’d fight the Bush administration’s effort to inject some flexibility into the rule, she held her press conference at REI’s headquarters, flanked by Ms. Jewell. … REI’s well-heeled clientele ultimately got 58 million acres of “pristine” walking trails; Western loggers got to tell their kids they no longer had a job.

REI’s bigger influence, however, has come from funneling money to radical groups via the Conservation Alliance, a foundation it created with Patagonia, The North Face and Kelty in 1989. Ms. Jewell was lauded by the group in 2010 for committing REI to giving more than $100,000 a year to this outfit.

The money has been going not only to kill jobs, but to drive up energy prices, another critical front in the liberal War on Prosperity.

The Conservation Alliance maintains a list of the “successes” it has notched via the dollars it sends to militant environmental groups like Earthjustice. In the past few years alone that list has included “77 oil and gas leases halted” in Utah, 55,000 acres put off limits to oil and gas jobs in Colorado, the destructions of functioning dams, and the removal of millions of new acres from any business pursuit.

The Alliance is particularly proud of its role in getting the Obama team in 2012 to lock up half of Alaska’s National Petroleum Reserve – set aside 90 years ago specifically for oil and gas. Rex Rock, the president of the Arctic Slope Regional Corporation, which represents the economic interests of the Inupiat Eskimos, wrote that the decision will “cripple the lone economic driver for our communities,” and make the Inupiat “exhibits in an outdoor museum.”

Eskimos exist to please well-to-do liberals with their noble savage rusticalness. Allowing them to improve their lot in life would spoil everything.

A third front in the War on Prosperity is ever-increasing taxation. Jewell is on board here too:

“I know tax is a dirty word, but if we were paying a carbon tax that accounted for our impact on greenhouse gases, that would in fact change our consumption,” explained Mrs. Jewell in 2009.

One last qualification: she donated $10,000 to Obama’s catastrophic reelection.

As with Obama, every decision she makes will be predicated on what is most harmful to Americans.

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Obama Defense Secretary Nominee Chuck Hagel Endorsed By Communist Party USA

Hagel Endorsed By Communist Party USA – WorldNetDaily

After reportedly receiving support from Iran, Chuck Hagel, President Obama’s defense secretary nominee, has yet another endorsement to add to his resume, this one coming from the Communist Party USA.

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People’s World, the Communist Party USA’s official magazine, touted Hagel as “represent[ing] the more sober elements who have called in our national discourse for rejection of the old cold war tactics, the unilateralism and the continual push for wars all over the world.”

The magazine’s labor editor, John Wojcik, slammed the ”neocon” U.S. Senate for trying to “force Hagel to disavow his opposition to what they call the ‘successful’ surges in Iraq and Afghanistan.”

A People’s World blast email further lamented Hagel “is still the subject of controversy due to some mild criticism he made of the State of Israel.”

Wojcik contended “it was the U.S. Senate, not President Obama’s nominee, Chuck Hagel, that fell down on the job at the hearings.”

“It was allowed to become a place for right-wing grandstanding and unacceptable efforts to rewrite history,” he continued.

Wojcik conceded that Hagel “does not have the kind of record that progressives conclude will make him a Secretary of Defense who would chart the entirely new foreign policy direction the times require.”

Last week Hagel took heat from Sen. Jim Inhofe, R-Oka., who asked during the Senate hearings why Iran supports Hagel’s nomination as defense secretary.

As a senator, Hagel opposed sanctions on Iran, instead calling for “direct, unconditional talks.” He was one of only 12 senators who refused to sign a letter asking the European Union to declare Hezbollah a terrorist organization.

WND reported Hagel went on the Middle East satellite network Al Jazeera in 2009 to argue that before dealing with the nuclear arsenals of rogue nations such as Iran and North Korea, the U.S. and Russia must first lead the effort by phasing out their own nuclear weapons.

WND also reported Hagel serves on the board of the Ploughshares Fund, a George Soros-funded group that advocates a nuclear-free world.

The Ploughshares Fund has a long history of anti-war advocacy and is a partner of the Marxist-oriented Institute for Policy Studies, which has urged the defunding of the Pentagon and massive decreases in U.S. defense capabilities, including slashing the American nuclear arsenal to 292 deployed weapons.

Hagel’s thesis on minimizing the U.S. nuclear arsenal was reiterated in a 2012 report he co-authored titled “Global Zero: U.S. Nuclear Policy Commission.”

The report called for an 80-percent reduction in U.S. nuclear weapons to about 900, with only half of those being deployed. It further called for the eventual phasing out of short-range nuclear weapons and the elimination of ICBMs and B-52 bombers.

The report was the initiative of the Global Zero advocacy group, which works for a nuclear-free world.

Hagel co-authored the commission report with former U.S. diplomat Thomas Pickering, who reportedly previously held clandestine meetings with Hamas aiming to open U.S. dialogue with the terrorist group.

Iran is arguably the largest state sponsor of terrorism.

Regarding his views on jihad, WND exposed that in unreported remarks during a 2007 Senate hearing, Hagel posited that terrorism does not arise from religious beliefs but instead is a response to despair and a lack of hope.

The Communist Party USA may ideologically support some of Hagel’s ties.

WND reported Hagel sits on the board of a fund that serves as the main financial backer of a group urging the U.S. to join the U.N.’s International Criminal Court, which could prosecute American citizens and soldiers for “war crimes” and other offenses.

Opposes U.S. missile defense

Ploughshares, meanwhile, opposes America’s development of a missile defense system and contributes to scores of anti-war groups highly critical of U.S. foreign policy and military expansion.

Ploughshares is directed by Joseph Cirincione, who served as an adviser on nuclear issues to Obama’s 2008 presidential campaign. Cirincione also was director of nuclear policy at the Center for American Progress.

Among the groups to which Ploughshares donates are the anti-Israel Americans for Peace Now, the Arms Control Association, the Carnegie Endowment for International Peace, the Center for Constitutional Rights, the Center for Policy Alternatives, the Soros-funded Center for Public Integrity, the radical Citizen Action, Citizens for Environmental Justice, the Coalition for New Priorities and the radical Institute for Policy Studies.

More grantees include the New America Foundation, the Nonviolent Peaceforce, the Nuclear Age Peace Foundation, the Nuclear Freeze Foundation, the Nuclear Weapons Freeze Campaign, Peace Action, the Peace Studies Association, Physicians for Human Rights and Physicians for Social Responsibility.

Ploughshares has also funded the Soros-financed Connect US Fund, which urges more U.N. helmets on U.S. troops, as well as the Center for American Progress, which has strong influence on White House policy.

Also on the list of Ploughshares grantees is The Bulletin of the Atomic Scientists, which has long petitioned for the U.S. to reduce its nuclear stockpiles. According to Pavel Sudoplatov, a former major-general in Soviet intelligence, the work by the magazine editors was for the benefit of the Soviet Union.

Two of the magazine’s founding sponsors, Leo Szilard and Robert Oppenheimer, were accused of passing information from the Manhattan Project to the Soviets. Both were also key initiators of the Manhattan Project.

Ploughshares funds the International Crisis Group, a small organization that boasts Soros on its board and is a key promoter of the Responsibility to Protect doctrine used to justify the NATO airstrikes in Libya last year.

Massive defense slashes

Another Ploughshares grantee is the Institute for Policy Studies.

Ploughshares is listed on the institute’s website as a partner organization.

The institute works with the Center for American Progress to release an annual “Unified Security Budget,” which reportedly has influenced White House military policy. Previous recommendations from the two groups’ yearly Unified Security Budgets have been adapted by the Obama administration.

The 2012 budget, reviewed in full by WND, called on Obama to use the U.S. Armed Forces in part to combat “global warming,” fight global poverty, remedy “injustice,” bolster the United Nations and increase “peacekeeping” forces worldwide.

The budget called for massive, second-term slashes to the military budget. The savings are to be used to invest in “sustainable energy” and in fighting worldwide climate change.

The report makes clear the stated objective of transforming the U.S. Armed Forces to stress conflict resolution and diplomacy.

The report takes issue with the use of forces on the ground in various countries to secure or influence the longer-term strategic position of other nations.

It recommends scaling back all U.S. ground forces by 20 percent and reducing the Navy’s surface fleet by 20 percent, including two carriers and carrier combat air wings. It also calls for reducing the Air Force by two combat air wings while cutting standing peacetime overseas deployments in Europe and East Asia by up to 50,000 troops at a time.

The budget’s authors strongly argue for the reduction of the U.S. nuclear arsenal to no more than 292 deployed nuclear weapons and the complete elimination of the Trident II nuclear missile. It’s a process Obama already initiated in April 2010 when he signed a deal with Russia reducing stocks of weapons-grade plutonium.

The accord with Russia was signed at a nuclear summit in Washington arranged by Obama at which leaders of 47 nations committed to reducing the world’s nuclear stockpiles. One week earlier, Russian president Dmitry Medvedev and Obama signed the Strategic Arms Reduction Treaty, or START, committing both countries to reducing their deployed nuclear arsenals.

Obama had broadly proclaimed his disarmament intentions during a 2007 campaign speech.

“Here’s what I’ll say as president: America seeks a world in which there are no nuclear weapons,” Obama said.

By 2010, as president, he was arguing: “We need to change our nuclear policy and our posture, which is still focused on deterring the Soviet Union – a country that doesn’t exist.”

Obama’s declaration came just as Russia signed a major arms deal with Syria and began to revive its Cold War-era naval bases in the Middle East, including in the Syrian ports of Tartus and Latakia on the Mediterranean.

The joint CAP and IPS report, meanwhile, recommends the U.S. cease all further development of missile defenses.

The report pushes for all current missile defense programs to be cut, including Ground-based Midcourse Defense, Airborne Laser and Kinetic Energy Interceptors.

“It is unwise to fund more advanced systems for missile defense while current ones have yet to be proven effective against their targeted threats,” complains the report.

The military’s vital Research, Development, Test, and Evaluation program is to be cut by $10 billion across the board.

Next on the chopping block: the complete cancellation of the second SSN-744 Virginia Class submarine. While the Unified Security Budget describes the new model as “unnecessary to address any of the threats facing the United States today” and “a weapon looking for an enemy,” the SSN-774 is designed for covert collection of intelligence, transportation of special operations teams and launching of tactical Tomahawk missiles – flexible capabilities tailored to rapid responses required by the 21st-century’s conflicts with irregular combatants.

Similarly targeted for cancellation are the V-22 Osprey helicopter and the Navy and Marine Corps versions of the F-35 Joint Strike Fighter.

Combating ‘global warming’

The 2012 Unified report sets the tone of its lofty agenda by demanding immediate reductions in the military’s already heavily slashed budget. But there is one exception requiring massive increases in funding – any spending that funds “alternative energy” or focuses Defense Department resources on combating “climate change as a security threat.”

The report authors recommend investing “the lion’s share” of the few allotted military increases in addressing the so-called “threat” of climate change.

The report wants Obama to take billions of dollars from the U.S. military and instead use them for a “green stimulus.”

These groups also envision the military as a tool to fight so-called global warming. In 2011, IPS released a 40-page CAP-endorsed report titled “The Green Dividend,” a term IPS defines as “a major shift of resources from the military budget to sustainable energy.”

The IPS research paper identifies the Pentagon as the “largest institutional energy user – and greenhouse gas emitter – on the planet,” arguing that if it undertook a “crash program” to convert to renewable energy sources and clean vehicles, it could make a significant impact on global emissions.

IPS calls on the Pentagon to contribute to a green world “by simply getting out of the way, by handing over unneeded military installations to be converted into green job incubators.”

The report lauds Obama’s first-ever U.S. Global Development Policy, which was issued in September 2010 and declares that the primary purpose of development aid is to pursue broad-based economic growth as the means to fight global poverty.

The report goes on to recommend that massive funds be sent to combat global woes, including an increase of $3.5 billion to “Global Health” investment and $2.14 billion to support United Nations peacekeeping and ensure that the United States does not fall behind in U.N. payments.

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Obama’s ATF Director Nominee Helped Design ‘Fast And Furious’

Obama’s ATF Nominee On DOJ’s Fast And Furious Design Team – Big Government

As part of President Barack Obama’s 23-point gun control plan, he nominated Minnesota U.S. Attorney B. Todd Jones – who currently doubles right now as the acting director of the Bureau of Alcohol, Tobacco, Firearms and Explosives – to be the ATF director.

Jones was personally a part of the high-ranking Department of Justice unit that first met on October 26, 2009, to create the new DOJ policy that was used to justify “gunwalking” in Operation Fast and Furious. In Fast and Furious, the ATF “walked” roughly 2,000 firearms into the hands of the Mexican drug cartels. That means through straw purchasers the agency allowed sales to happen and didn’t stop the guns from being trafficked, even though they had the legal authority to do so and were fully capable of doing so.

Border Patrol Agent Brian Terry and hundreds of Mexican citizens – estimates put it around at least 300 – were killed with these firearms.

Obama nominated Jones after he said in his gun control plan that the “ATF has not had a confirmed director for six years. There is no excuse for leaving the key agency enforcing gun laws in America without a leader. It is time for Congress to confirm an ATF director.”

According to a congressional report from House Committee on Oversight and Government Reform chairman Rep. Darrell Issa and Senate Judiciary Committee ranking member Sen. Chuck Grassley, Jones was one of several senior DOJ officials in the meeting. Before the meeting, then-Deputy Attorney General David Ogden disseminated a strategy that became the new law enforcement platform on which gunwalking was based.

“On October 23, 2009, Deputy Attorney General Ogden disseminated this strategy to the heads of Department components, including the ATF, DEA, and FBI,” the Issa-Grassley report, released on Oct. 23, 2012, reads. “The Deputy Attorney General also formed a Southwest Border Strategy Group, which he headed, responsible for implementing the new strategy. The Strategy Group’s first meeting was on October 26, 2009, when it assembled to discuss the new strategy.”

“The meeting invitation included Deputy Attorney General Ogden and his deputies Ed Siskel and Kathryn Ruemmler (both of whom would later leave the Justice Department for the White House Counsel’s Office); Assistant Attorney General Breuer and his deputies, Jason Weinstein, Kenneth Blanco, and Bruce Swartz; ATF Acting Director Kenneth Melson and Deputy Director William Hoover; the U.S. Attorney for the District of Arizona, Dennis Burke; and the U.S. Attorney for the District of Minnesota, B. Todd Jones, then serving as Chair of the Attorney General’s Advisory Committee,” the report continues.

From that meeting came what’s become known as the “Ogden memo,” which contains a paragraph many involved in gunwalking have pointed to as their legal basis for the practice. “Thus, given the national scope of this issue, merely seizing firearms through interdiction will not stop firearms trafficking to Mexico,” the paragraph, printed on page seven of the memo, reads. “We must identify, investigate, and eliminate the sources of illegally trafficked firearms and the networks that transport them.”

The Department of Justice has withheld documents, details, and more information about these meetings and this group from congressional investigators and internal DOJ investigators at the Department of Justice. Many mainstream media outlets have claimed Attorney General Eric Holder and other senior officials were “vindicated” or “cleared” by the DOJ’s Inspector General when his report came out in the fall 2012. But these documents and details remain hidden from the American people, leaving open more questions about what role Holder or his aides played in gunwalking in Operation Fast and Furious.

“The Committees were unable to ascertain any further details regarding this meeting,” the Issa-Grassley report adds.

As Townhall’s Katie Pavlich notes, Jones also has a penchant for threatening and retaliating against ATF Operation Fast and Furious whistleblowers. Issa said Obama’s decision to nominate Jones is a “slap in the face” to the Terry family.

“Acting Director Jones was at the helm of ATF as many troubling problems from the fallout of Operation Fast and Furious festered,” Issa declared. “His specific decisions on a number of Fast and Furious related issues raise concerns about his judgment and ability to lead the agency.

“While I continue to believe that ATF needs to have a Senate confirmed Director, President Obama has a responsibility to find a nominee who can win confirmation and is not saddled by a string of bad decisions related to the agency’s greatest recent failure.”

A Justice Department spokeswoman hasn’t returned Breitbart News’ request for comment in response to these revelations about Jones and hasn’t answered whether Holder will release the documents and information surrounding those Fast and Furious formative meetings.

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