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

 

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>>

Gordon Campbell: On The US Foreign Policy Somersaults Over Syria And Iran

Amidst the day-to-day reports about the military advances of the Islamic State fighters in Iraq and Syria, one remarkable aspect of this war has barely been mentioned. More>>

ALSO:

Daphne Lawless: The Whale Oil Leaks: Anti-Politics From Above

As we go to press, the election campaign has been turned upside down by a new book by investigative journalist Nicky Hager. Dirty Politics is based mainly on a leak of 2 gigabytes of emails and Facebook messages from “Whale Oil”, the vicious ... More>>

ALSO:

Branko Marcetic: When John Key Was Concerned About Dirty Politics

If Nicky Hager needs some support in the midst of a whirlwind of government criticism for his allegations of “dirty tricks” by the National Party, he may find one unlikely ally – John Key, six years ago. More>>

Jim Miles: Israeli War Crimes In Gaza

Israel reveals its true colours and true aspirations every time it attacks Gaza (or any other self-perceived enemy) as being the ethnic cleansing of Palestine, even to the degree - as the references above indicate - to the act of genocide. More>>

David Swanson: Top 9 Reasons To Stop Bombing Iraq

1. It's not a rescue mission. The U.S. personnel could be evacuated without the 500-pound bombs. The persecuted minorities could be supplied, moved, or their enemy dissuaded, or all three, without the 500-pound bombs or the hundreds of 'advisors' (trained ... More>>

Binoy Kampmark: Comedian’s Death: Robin Williams And The Virtues Of Suicide

The Grim Reaper never runs out of converts. Put another way, death never gets his full due. Comedians do not figure well in this – they are particularly attractive targets in the business of death. More>>

Suzan Mazur: "Oomph" & Origin Of Life At Hydrothermal Vents

The notion that life originated in hydrothermal vents was for a long time a sleepy area of scientific inquiry because the vents first found, known as 'black smokers,' were way too hot and acidic. But in 1989, Michael Russell, a British geochemist who ... More>>

Get More From Scoop

 
 
 
 
 
 
 
Top Scoops
Search Scoop  
 
 
Powered by Vodafone
NZ independent news