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 am so sorry i am 74 years old.I HAVE WORKED MY WHOLE AWAY.PAYING TAXES TO SUPPORT THESE THESE SCUM BAG POLYTICIANS.AND NOW WE HAVE AND WE HAVE AND ILLEGAL FOR FOR OUR PRESIDENT OF USA and now HESE WAving his LAW ABIDING MEXICAN ILLEGAL BUDDIES IN THE USA SICK SICK.
I don’t think they intended to collapse the bubble, I think they intended to sustain it indefinitely, if you look at the entire sub-primke food chain it was really a tool for promoting and subsidizing mass immigration & illegal immigration.
I’d like to say nearly every member of teh sub-prime food chain was engaged in promoting illegal & mass immigration but that would be an unsderstatement EVERY member of the sub-prime food chain was engaged in promoting mass immigration & illegal immigration, just look at their campaign donations, you can spot the sub-prime campaign donation recipients by their immigration report cards, there’s no deviation, everybody that took sub-prime campaign donation money voted for amnesty & mass immigration. It goes further too, everybody that stood firmly against illegal immigraiotn was obliterated with not only bi-partisan support but also with the support of the FBI. The FBI interveined in several senate & Congressional elections with leaks to discredit candidates in the middle of their elections, all the “FBI investigations” mysteriously disappeared when the candidate was eliminated.
What we have here is a massive criminal conspiracy to both loot investors & promote mass illegal immigration and globalism.
John:
Any chance you can remember the name of the book or the author?
Thanks,
Catherine
i was in austrailia in 1997. a mainstream newspaper had a shocking book review of an american touring australia. he was a journalist allowed into a meeting of 500 global leaders discussing the new millenium. they planned to turn america and other counries into “80/20 societies,” where only 20% have any real work or wealth while the other 80% are “lulled along by ‘tittietainment.'” this referred to diversions such as sexual lures, among others. after reading that, i noticed that reading about latin american countries at that time, most had 805 at or below the poverty line. thus, the global leaders planned to turn america, and possibly other industrialized countries, into the third world model their puppet governments had created.
i’m sorry the news escaped your incredibly vigilant notice although you need to look into it, because despite the fact that you claim you “would have known” had anything like that happened, one insuperable fact remains: it happened. it’s a fact jack. do a google search on iran contra and CIA and crack cocaine. to put it euphemistically, get your head out of your ass. You say that law enforcement officers aren’t mindless robots. do some justice to the profession since some of them just might be a last line of defense for the common folk when the proverbial shit hits the fan, and try not to act like one.
Proteus–
Wake up man and maybe try reading a book or two. China loses much in the current crisis due to the fact that their economy depends on exports to the West, not to mention their immense amounts of dollar reserves that they don’t want to see vanish with hyperinflation or a drop in the demand for the dollar. do your homework.
“The reality is that no one needs to waste time running in circles on evidence games related to one particularly narcotics trafficking operation. The truth is so obvious and the corruption so blatant that we can just use our common sense.”
Dead on correct. Thanks, Catherine!