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” /sub-prime-mortgage-woes-are-no-accident/)
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
I just noticed that Greenspan has 5 fingers and a thumb in the picture. Has the picture been altered?
Nobody Important,
The truthseekers don’t get the attention they deserve because the people don’t want the bad news and the ones creating the problems don’t want their misdeeds to be exposed. The media shills for the criminals are happy to dish out fluff and opinions that neglect the underlying truth.
Patrick Byrne is going to be on The Daily Show tonight. He has been pointing out media corruption for several years and is considered the most hated (feared) man on Wall Street. If you caught Cramer lying to Jon Stewart, you can get the background stories in http://www.deepcapture.com.
The clip from the Aaron Task interview was scrubbed from the internet when it ended up on youtube. A copy of it was downloaded somewhere and somehow managed to be the center of Cramer’s embarassing mea culpa on The Daily Show. http://www.deepcapture.com/jim-cramer-cowly-hints-how-he-broke-the-law-2-mar-2007/
It is time that everyone knows that the theft has happened and the money is gone. We can’t get it back. There isn’t enough money in the system to pay for all the theft. That is why it is being printed. Banana republic..
Catherine hits out of the ballpark again with her stellar commentary! In my eyes, she has been a remarkable heroine since I first encountered her writings and work about five years ago after stumbling upon Mike Ruppert’s From The Wilderness website and his book Crossing the Rubicon.
We are so fortunate to experience Catherine’s formidable intellect and deep sense of integrity. A national treasure indeed!
Reminds me of Jim Cramer and the entire CNBC financial reporters missing the tanking of the Dow, and how John Stewart is skewering all of them, and for damn good reason! Too bad for Warren Buffett loves watching CNBC! If your info is crap, it doesn’t take a rocket scientist to know that your investing will be thus as well in time. Garbage in, garbage out. I used to be into CNBC. Now, I’m into Solari – people I can trust.
Catherine,
Your letter, even if it doesn’t get printed is already making the rounds on the net. I am so in awe of your continued advocacy for our republic. No doubt you have seen the overwhelming response to the Daily Show outing of the complicit financial media. I would like you to be a guest on the show. It took me some time to absorb all that you have shared and the material that you cover is expansive, but it would be wonderful if you could at least point people in that direction so that they could research this on their own.
I have put your name up as a guest. I would like the rest of the country to meet someone whom I consider a national treasure. Fans can vote up or down to show how much they want a guest to appear.
http://guests.dailyshownews.com/akira/dtd/16867-2313
or this link http://guests.dailyshownews.com/akira/ideafactory.do?discussionID=6398
Kindest regards,
Mary
I think the world of Catherine Fitts and we are lucky to have such a person around.
I have only recently discovered her and as such am eagerly reading everything I can written by her.
She is right up there with Bill Moyer’s and Ron Paul both of which are very good people according to me. The strange thing is all three are religious something I am not and even stranger is my overlooking this obvious flaw that all three of my heroes have. Haha, this will betray myself to some of my friends since I speak so highly of all three and no one else. Thank you Ms. Fitts.
First!