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Obama’s close relationship with JP Morgan Chase was highlighted earlier this year when he tapped Bill Daley, a former top executive with the bank, to replace Rahm Emanuel as his chief of staff.
Wall Street’s generosity to Obama didn’t end with his 2008 campaign either. Wall Street donors contributed $4.8 million to underwrite Obama’s inauguration, according to a Jan. 15, 2009 Reuters report.
So far, Wall Street has raised $7.2 million in the current electoral cycle for President Obama, according to the Center for Responsive Politics. Obama’s 2012 Wall Street bundlers include people like Jon Corzine, former Goldman Sachs CEO and former New Jersey governor; Azita Raji, a former investment banker for JP Morgan; and Charles Myers, an executive with the investment bank Evercore Partners.
This should blow apart the myth that Wall Street is composed solely of greedy Republicans. But it will only work for those who care about the facts.
With the Wall Street bailout that Obama pushed through could he have possibly been paying off the people who helped get him elected? Solyndra’s $535 million bailout isn’t the only example of “stimulus” spending to bail out the people who brought him to office.
The protesters have been sold a bill of goods, Peter Wallison, a senior fellow at the American Enterprise Institute, put forth in an Oct. 12 Wall Street Journal opinion piece. He explained the protesters’ anger should be directed at “those who developed and supported the federal government’s housing policies which were responsible for the financial crisis.”
He explained that half of the mortgages in the country were either “subprime or otherwise weak by 2008.” Most were held or guaranteed by Fannie or Freddie. The biggest housing bubble (price increases) lasted from 1997 to 2007. Only a small number of risky mortgages were the result of private lending. When the housing bubble burst in 2007, weak mortgages went into default, pushing down home prices and putting Fannie and Freddie into insolvency and on the back of the government.
Investors bought market-backed securities. And the banks were forced to write down the value of their mortgage-backed assets, raising questions about the liquidity of the large financial institutions and raising investor anxiety and bank withdrawals.
Banks began to freeze credit. Propaganda from the government and a gullible media led to the punitive Dodd-Frank law, “named for Congress’s two key supporters of the government’s destructive housing policies. It also gave us the [misled] occupiers of Wall Street.”
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