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
“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.” That is some revelation! But, it isn’t true and there is zero, zip, nada evidence to suggest such that report ever existed. There is no record and the media has nothing on it, other than among the paranoid conspiracy crowd, which is hardly credible. While I was active as a narcotics agent I was often amused at the accusations about my agency by people who “knew for a fact that…(insert rumor)” when they didn’t know squat, they were running off at the mouth. People in the DEA, the CIA, DOD, etc., are not mindless, robotic, zealots absent any sort of moral code, they are people of good character, recruited because of a clean record, good maturity, intelligence and education. So, in order to believe this crackpot story about the CIA being complicit in the narco trade you have to believe all these decent, mostly God fearing, 100% patriotic Americans, would sell out to the dark side and risk their careers, their good names and even prison sentences for what? Where’s their payoff? It’s absurd and only an ignorant paranoid nutcase on the fringe of sanity would even go there. If I for an instant ever though anyone in my agency or an allied agency was doing something this despicable and evil I would have busted them personally and it would have been front page news. But, this never happened in my 20 years of dedicated public service as an undercover agent and front line soldier fighting drug dealers and drug cartels and working real drug conspiracies on a daily basis. I would think that if anyone would have knowledge of the CIA being involved in something like what has been alleged I would know…and I never saw any evidence of that at anytime and I saw one hell of a lot more secret stuff than any of you will ever know about.
Catherine says more in five hundred words than everybody else says in several thousand. Write your friends, copy the link, and spread the word. And the last time I checked, Bush (both of them), Clinton, Obama, Gore…none of them are Jewish, and the major property owner in Manhattan is the Episcopal parish of Trinity Wall Street, not a synagogue or a bank. Greed and duplicity, like generosity and kindness, are not the unique heritage of any ethnic group. The anti-Semitic balderdash on this page by cowards who are afraid sign their names is worthy of the tradition of the Klan. If you write things like this on the web take off the hood and sign you name.
Mike Linton
Murfreesboro, Tennessee
You are very stupid if you think it is the Jews! Who is the largest and richest expatriate community in the WORLD?
The Chinese. Now, who stands to benefit the most from the crisis – The CHINESE
NOW, WHERE HAVE ALL THE WORLD’S FACTORIES, AND ECONOMIC LIFE BLOOD GONE TO?
CHINA. ASK YOUR SELF – WHO BENEFITS?
Catherine,
Excellent. Keep up the great work! I’ll be digging and facebooking your letter for wider exposure and readership. I’m so bored with petty establishment pawns trying to exonerate those who, at least in more honest days, would have met with a fate no less than the gallows!
Best,
Dalmazio
ok. so the US government is corrupt, its politicians professional liars and your country is bankrupt, how do you advise the world gets out of this mess? Follow the Chinese model?
Interesting article.
But I am in the housing business in several states. There are a few problems with the math.
There was a housing bubble for those who were rich.
There never was a housing bubble for those who were poor. 2-3 bedroom homes in the urban areas of the country have always cost less then what it cost to actually build them. Period. That is not a bubble.
Currently we have a housing crater in the urban areas of the country. Right now every major urban area has foreclosed homes that can NOT be sold for 50% to 1% of what it cost to build them.
Next problem with the math. The banks are getting over 750 billion dollars to cover loses on foreclosures. That is a lie. The banks do not lose any money on mortgages and have never lost one single penny on a mortgage. The math is simple they get the money for less than 1% and loan it at over 5% and as high as 10% subprime. So as long as 1 out of 2 mortgages pay then the bank makes money. You do the math but it is simple. Now we have less than 1 million foreclosures at average of less than 1 thousand dollars interest per month for 12 months so the actual maximum lose of all foreclosures combined not counting all that paid is 12 Billion for a year!
So what really is going on?
It is simple, everyone in America is being lied to, and everyone talking about it is either an idiot, fool, paid off, liar or a little of all three.
The Chinese and Indian governments on purpose created corporations and let stupid American corporations borrow money from American banks to steal everything that was not nailed down in America to include factories, material, technology and take it to China and India. China and India never ever ever ever planned on paying back the loans. That is why the trillions of debt is not getting paid! It never will get paid! That is how China and India both countries who dwarf America have 20% economic growth! They stole our money and used it to steal all of America’s resources that were not nailed down. And they did it by borrowing all of our money with no intention of repaying it!!!! We are all idiots in America. The Chinese and India used the greed of Wall street Against America!!!! And if we do not wake up and stop paying AIG and Citi and tarp money we will all be starving in the streets in 2 years!
That is the real story!
The Tarp is a lie and cover up!
Aig and Citi bailout is a lie and a cover up!
The real story is how China and India used American greed to loan corporations money to steal our manufacturing, technology and resources with the forethought of never repaying the loans!!! Now the idiots in America who were fooled and who did this want to walk away with millions in bonus’s while Americans are losing there jobs by the millions, being kicked out of there homes by the millions and the Chinese and India is laughing all the way to there new factories and technology centers!!!
Wake up America, do the math and take it all back!!!
If it is true that the Global Elite always created wars, revolutions and economic crisis, to multiply the debt on the average citizen, then the liar Greenspan served them very well!