Book Reviews | Gordon Campbell | News Flashes | Scoop Features | Scoop Video | Strange & Bizarre | Search

 


The Fed Did Indeed Cause the Housing Bubble

Catherine Austin Fitts' Mapping the Real Deal

The Fed Did Indeed Cause the Housing Bubble

March 15, 2009 at 10:03 am

To: The Wall Street Journal

Re: “The Fed Didn’t Cause the Housing Bubble”

By: Alan Greenspan, former Chairman of the Federal Reserve

Dated: Wednesday, March 11, 2009

Ladies and Gentlemen:

In his article on your opinion page, “The Fed Didn’t Cause the Housing Bubble,” Alan Greenspan attributes the housing bubble to lower interest rates between 2002 and 2005. That’s amazing to me.

My company served as lead financial advisor to the Federal Housing Administration between 1994 and 1997. I watched both the Administration and the Federal Reserve aggressively implement the policies that engineered the housing bubble. These are described at my website and in my on-line book,Dillon Read & the Aristocracy of Stock Profits (http://www.dunwalke.com).

One story, for example, is the following:

“In 1995, a senior Clinton Administration official shared with me the Administration’s targets for Fannie Mae and Freddie Mac mortgage volumes in low- and moderate-income communities. We had recently reviewed the Administration’s plans to increase government mortgage guarantees — most of these mortgages would also be pooled and sold as securities to investors. Even in 1995, I could see that these plans would create unserviceable debt loads in communities struggling with the falling incomes expected from globalization. Homeowners would default on mortgages while losses on mortgage-backed securities would drain retirement savings from 401(k)s and pension plans. Taxpayers would ultimately be hit with a large bill . . . but insiders would make a bundle. I looked at the official and said that the Administration was planning on issuing more mortgages than there were houses or residents. “Shut up, this is none of your business,” the official snapped back.”

From: “Sub-Prime Mortgage Woes Are No Accident” (http://solari.com/news/announcements/08-07-07/)

One of the dirty little secrets behind the housing bubble is the long standing partnership of narcotics trafficking and mortgage fraud and the use of the two in combination to target and destroy minority and poor communities with highly profitable economic warfare. This model is global. It is operating in counties throughout the world as well as in US communities.

Of all the actions that the Federal Reserve took to engineer this housing bubble, the one that I would note is Mr. Greenspan’s efforts to pacify Congresswoman Waters regarding allegations of government sponsored narcotics trafficking at a time when open Congressional hearings would have contributed to an important discussion of the operations engaging in mortgage fraud in minority communities. See, “Financial Coup d’Etat,” Chapter 16, Dillon Read & the Aristocracy of Stock Profits which was written in 2005 and published in April 2006, drawing from an article I first published in May 1999.

“On December 18, 1997, the CIA Inspector General delivered Volume I of their report to the Senate Select Committee on Intelligence regarding charges that the CIA was complicit in narcotics trafficking in South Central Los Angeles. Washington, D.C. ’s response was compatible with attracting the continued flow of an estimated $500 billion–$1 trillion a year of money laundering into the U.S. financial system. Federal Reserve Chairman Alan Greenspan in January 1998 visited Los Angeles with Congresswoman Maxine Waters — who had been a vocal critic of the government’s involvement in narcotics trafficking — with news reports that he had pledged billions to come to her district. In February Al Gore announced that Water’s district in Los Angeles had been awarded Empowerment Zone status by HUD (under Secretary Cuomo’s leadership) and made eligible for $300 million in federal grants and tax benefits.”

Alan Greenspan is a liar. The Federal Reserve and its long standing partner, the US Treasury, engineered the housing bubble, including the fraudulent inducement of America as part of a financial coup d’etat. Our bankruptcy was not an accident. It was engineered at the highest levels.

Your publication of Greenspan’s breezy and bogus history of the housing bubble insults your readership.

Best Regards,

Catherine Austin Fitts

Assistant Secretary of Housing - Federal Housing Commissioner, Bush I

*************

Mapping The Real Deal is a column on Scoop supervised by Catherine Austin Fitts. Ms Fitts is the President of Solari, Inc. http://www.solari.com/. Ms. Fitts is the former Assistant Secretary of Housing-Federal Housing Commissioner during the first Bush Administration, a former managing director and member of the board of directors of Dillon Read “ Co. Inc. and President of The Hamilton Securities Group, Inc.

****ENDS*****

© Scoop Media

 
 
 
 
 
Top Scoops Headlines

 

Binoy Kampmark: Dysfunctional Hagiography: Australia & Gough Whitlam's Death

Hagiography is the curse of the Australian Labor movement. It is a movement that searches for, and craves, mythical figures and myths. Such a phenomenon might be termed mummification, and detracts from closer examination. More>>

David Swanson: On Killing Trayvons

This Wednesday is a day of action that some are calling a national day of action against police brutality, with others adding 'and mass incarceration,' and I'd like to add 'and war' and make it global rather than national. More>>

Uri Avnery: Israel Ignoring “Tectonic Change” In Public Opinion

If the British parliament had adopted a resolution in favour of the Israeli occupation of the West Bank, the reaction of our media would have been like this: More>>

ALSO:

| UK MPs blow a “raspberry” at Netanyahu and his serfs

Byron Clark: Fiji Election: Crooks In Suits

On September 17 Fiji held its first election since Voreqe “Frank” Bainimarama seized power in a 2006 coup. With his Fiji First party receiving 59.2% of the vote, Bainimarama will remain in power. More>>

Ramzy Baroud: ‘Islamic State’ Sectarianism Is Not Coincidental

Consider this comical scene described by Peter Van Buren, a former US diplomat, who was deployed to Iraq on a 12-month assignment in 2009-10: Van Buren led two Department of State teams assigned with the abstract mission of the ‘reconstruction’ of ... More>>

Gordon Campbell: On The Case For Using Air Power Against The Islamic State

There is an Alice Through the Looking Glass quality to the current response to the Islamic State. Everything about it seems inside out. Many people who would normally oppose US air strikes in other countries have reluctantly endorsed the bombing of IS positions in Iraq and Syria – not because they think air power alone will defeat IS (clearly it won’t) but because it will slow it down, and impede its ability to function. More>>

ALSO:

Gordon Campbell: On The Troubled Aftermath Of Scotland’s Independence Vote

A week can be a very long time in Scotland’s 300 year struggle for independence. The “No” vote last week that seemed to end the cause of Scottish independence for a generation, has turned out to have had an enormous fish hook attached, especially for the British Labour Party… More>>

ALSO:

Gordon Campbell: On The West’s Existential Crisis About What To Do With Putin, And The Islamic State

Say one thing for Russian President Vladimir Putin. At least he’s given NATO a purpose in life. Right now, that consists of being something that Barack Obama and David Cameron can hide behind, point at Putin, and say : “Go get him, tiger.” Just what NATO is supposed to do about Putin’s armed advance into eastern Ukraine is less than clear. But there is a lot of “steely determination” around in high places. More>>

Get More From Scoop

 
 
 
 
 
 
 
Top Scoops
Search Scoop  
 
 
Powered by Vodafone
NZ independent news