{"id":17532,"date":"2011-11-02T16:52:27","date_gmt":"2011-11-02T16:52:27","guid":{"rendered":""},"modified":"2011-11-02T16:52:27","modified_gmt":"2011-11-02T16:52:27","slug":"bloomberg_blame_congress_not_banks_for_mortgage_mess","status":"publish","type":"post","link":"https:\/\/www.rushlimbaugh.com\/daily\/2011\/11\/02\/bloomberg_blame_congress_not_banks_for_mortgage_mess\/","title":{"rendered":"Bloomberg: Blame Congress, Not Banks, for Mortgage Mess"},"content":{"rendered":"

RUSH: Folks, it\u2019s an amazing day out there. There\u2019s so much going on. We have the Colorado vote.<\/a> We have Democrat operatives<\/a> admitting that I have been right all along, that Obama\u2019s jobs bill was never intended to pass. We\u2019ve got a Rasmussen Reports poll that shows support for Obama\u2019s $35 billion state and local government bill to go out and hire teachers and so forth is only supported by 22% of American voters — and then there\u2019s this. The Mayor New York City, “Michael Bloomberg said this morning that if there is anyone to blame for the mortgage crisis that led the collapse of the financial industry, it\u2019s not the ‘big banks,\u2019 but Congress.” Bloomberg actually has said something now that makes sense. This is the first time I can recall in I don\u2019t know how long that Bloomberg has said something that makes sense.<\/p>\n

“Speaking at a business breakfast in midtown featuring Bloomberg and two former New York City mayors, Bloomberg was asked what he thought of the Occupy Wall Street protesters. ‘I hear your complaints,\u2019 Bloomberg said. ‘Some of them are totally unfounded. It was not the banks that created the mortgage crisis. It was, plain and simple, Congress who forced everybody to go and give mortgages to people who were on the cusp. Now, I\u2019m not saying I\u2019m sure that was terrible policy, because a lot of those people who got homes still have them and they wouldn\u2019t have gotten them without that. ‘But they were the ones who pushed Fannie and Freddie to make a bunch of loans that were imprudent, if you will.<\/line><\/p>\n

“‘They were the ones that pushed the banks to loan to everybody. And now we want to go vilify the banks because it\u2019s one target, it\u2019s easy to blame them and Congress certainly isn\u2019t going to blame themselves. At the same time, Congress is trying to pressure banks to loosen their lending standards to make more loans.'” He\u2019s right about that. The subprime thing is in the process of being repeated. So Bloomberg gets it right. So now, more and more people see it. See, everybody knows this. Everybody knows the banks didn\u2019t do it. Everybody knows it was Congress — and Democrat presidents, by the way — responsible for the collapse of the home industry. It\u2019s very simple. It\u2019s just now that more and more people are starting to acknowledge it. <\/p>\n

Perseverance, I always say.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: To the phones we go to Atlanta. Jim, thank you for calling. You\u2019re up first today. Great to have you with us, sir.<\/p>\n

CALLER: Mega dittos, Rush. How you doing today?<\/p>\n

RUSH: Very well. Thank you.<\/p>\n

CALLER: I was just calling to make a comment on Bloomberg\u2019s statement, that he was definitely correct in saying that Congress was the cause for the housing failure that we\u2019ve had.<\/p>\n

RUSH: Damn straight.<\/p>\n

CALLER: I\u2019ve been a mortgage banker for 28 years, and because of the decisions, my income has dropped 90% and I had to get out of the mortgage industry and find something else at an age in the mid-fifties.<\/p>\n

RUSH: Wow. Okay, so you can confirm people like you were ordered by federal officials to make loans to people couldn\u2019t pay \u2019em back?<\/p>\n

CALLER: We had to come up with “loan programs,” and there\u2019s an admirable idea. We were told to devise loan products that put people into homes that really, you know, couldn\u2019t afford the house.<\/p>\n

RUSH: Wait a second. I know you\u2019re trying to be a nice guy, but what\u2019s admirable about that? See, this is where we get caught up in somebody\u2019s good intentions. Yeah, we would love for everybody to have a house. Why not on the beach in the Hamptons?<\/p>\n

CALLER: Well, basically everybody should have a piece of American Pie, own a home. But, you know, quite honestly, we saw people were, you know, no credit, no down payments, no nothing; and, you know, we had to put them into homes in order to buy a house.<\/p>\n

RUSH: Wait. You just said that you thought they should have a home; it was admirable. So what difference does it make if they can\u2019t afford it?<\/p>\n

CALLER: Good question. That\u2019s what we thought, the banks. But, you know, when they revised the Community Investment (sic) Act, they told the banks: “If you want federal funds you have to get people into houses.” We felt basically they were buying votes, putting people into homes to buy votes.<\/p>\n

RUSH: That\u2019s exactly what they were doing. Very admirable, too. But, anyway, you\u2019ve seen 90% of your income vanish?<\/p>\n

CALLER: Yes.<\/p>\n

RUSH: What Bloomberg was saying is what we all know: They\u2019re trying to blame people like you is the thing. They\u2019re blaming you for hooking people into these loans. That\u2019s what\u2019s going on: People like you are trying to be blamed for this when you were forced to do it, and everybody knows it. It\u2019s just Bloomberg finally said it \u2019cause he\u2019s probably ticked off by now.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Okay, the mortgage broker from Atlanta said that it was an “admirable objective” to get everybody in a house. Why stop there? Why not get everybody in a house in the Hamptons? But that\u2019s not the point of this. The point of this is: Bill Clinton, the federal government, Janet Reno, various Democrats members in Congress, created a program that led to the collapse of the housing industry and a huge problem in our financial system : The subprime mortgage. They then tried to blame it on guys like the caller from Atlanta, tried to blame it on the big Wall Street bankers! Yep, even Obama is out there saying (paraphrased), “These poor people got hoodwinked. These evil bankers.” The “predator lenders,” I think they were called. Yeah, these predator lenders, you know what they did?<\/line><\/p>\n

They left their cushy offices on Wall Street and they went down to homeless areas in Manhattan and all over the country and they found these schlubs and they say, “Come here! I\u2019m gonna lend you some money, and I\u2019m gonna force you into a house, and you\u2019ll never be able to pay me back!” That\u2019s what they want us to believe? That\u2019s what happened? These poor saps were sucked in by a bunch of evil idiots who lent money to people who were never going to pay it back? That\u2019s not what happened at all. The mortgage bankers were forced to lend the money because it was such an “admirable” idea: Home ownership for every American, yes. <\/p>\n

So what happens then is that these mortgage bankers, under the threat of investigation from Janet Reno and Barney Frank, had to concoct ways to make that worthless mortgage worth something to them. So they found ways to sell what was worthless to a bunch of dupes who they lied to about what they were selling; and then those dupes figured out that they were dupes, and they repackaged the whole thing to another set of dupes. And that kept happening, until finally they run out of dupes — just like the end of a Ponzi scheme. At the end of the day, there weren\u2019t any dupes left to buy these worthless mortgages. That\u2019s the simplified version of what happened here; and if they hadn\u2019t done this — if they hadn\u2019t come up with these derivatives and credit default swaps and all these other phony baloney ways to assign value to worthless loan paper — they mighta gone out of business!<\/p>\n

You can\u2019t stay in business giving money away. And that\u2019s what they were being forced to do, for the express purpose of Democrats being elected to office by these people — and now look what\u2019s happened. The value of everybody\u2019s home has plummeted. Folks, this is an outrage! It\u2019s near criminal what has happened, and it was all perpetrated by Democrats in the federal government. I\u2019m sure there were some Republicans along the way who thought it was of a good idea, too, because they didn\u2019t have the guts to oppose it since it involved “the poor;” and there were Republicans out there talking about the wonderful aspect of home ownership for all and what it meant for America and what it meant for their administration to be able to put so many people in homes. Why, look at what we did! Look at what it says about America!<\/p>\n

Blah, blah! It was all phony and trumped up. So while a bunch of phony politicians engage in something near criminal to get themselves votes and make themselves look good the value of everybody else\u2019s house plummets to, in many cases, underwater — and that is the primary reason this economy is in the sorrowful shape that it\u2019s in now. That subprime mortgage is the primary reason for unemployment today; it\u2019s the primary reason for economic collapse throughout other areas of the economy — and it was brought to you by Bill Clinton and Barney Frank and Janet Reno and Chris Dodd and any other Democrat you might want to name. You know it and I know it, and now Bloomberg (probably ticked off at these Occupy Wall Street people for polluting his city and whatever else), finally has had enough and looked at it and said, “You know, let me tell you something: It\u2019s not the bankers that are your problem. Congress did this.” Yeah, Congress did it along with a couple of presidents. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Tim in Salem, Oregon. I\u2019m glad you called, sir. You\u2019re next on the EIB Network. Hello.<\/p>\n

CALLER: Hi, Rush. Dittos.<\/p>\n

RUSH: Thank you very much, sir.<\/p>\n

CALLER: I would like to give you a different way to look at the real estate loan problem and that is to follow the money trail. Real estate loans generate loan fees. I recently reviewed a local bank, and 80% of their revenue came from generating real estate loans and then selling them on the third market. Banks have about 6,000 pages of bank regulations, and they have federal examiners coming in annually. One of the things that they look for is loan concentrations based on industry. So the bank examiners knew about the banks\u2019 real estate concentration. When I worked for a major bank, we had real estate loans that have put on the market value that exceeded our net worth, so what we did is we securitized the loans and then told them to a third party.<\/p>\n

RUSH: Yeah, that\u2019s pretty consistent so far.<\/p>\n

CALLER: So take a look at whether the banks currently secured ties to the loans and then sold them to a third party and they did that to get the loan fees.<\/p>\n

RUSH: Yeah, that\u2019s exactly what happened. Down the line many times.<\/p>\n

CALLER: So it\u2019s the third party. (silence)<\/p>\n

RUSH: Uh, okay. It\u2019s the third party — and we don\u2019t want to go “third party.” That\u2019s how we lose. (interruption) Standard & Poor\u2019s fault? All right. No matter what we\u2019re gonna have people who want to deflect the blame from Congress. We\u2019re always gonna have people saying, “Congress didn\u2019t do it, politicians do it, Democrats didn\u2019t do it.” There\u2019s enough blame on this mortgage business to go around a number of times. I start with whoever it was that had the idea, and that\u2019s the Democrats and their motivation. Quick votes, pure and simple, spending other people\u2019s money into oblivion. <\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: Folks, it\u2019s an amazing day out there. There\u2019s so much going on. We have the Colorado vote. We have Democrat operatives admitting that I have been right all along, that Obama\u2019s jobs bill was never intended to pass. We\u2019ve got a Rasmussen Reports poll that shows support for Obama\u2019s $35 billion state and local […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[],"tags":[],"yoast_head":"\nBloomberg: Blame Congress, Not Banks, for Mortgage Mess - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2011\/11\/02\/bloomberg_blame_congress_not_banks_for_mortgage_mess\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"Bloomberg: Blame Congress, Not Banks, for Mortgage Mess - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: Folks, it\u2019s an amazing day out there. 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