Thursday, October 30, 2008
Tuesday, October 28, 2008
No Christmas Parade, no fireworks.
The internationally known fireworks company, Grucci, has pulled out of an annual Christmas event on Long Island because the town of Patchogue decided to break with its 15-year tradition of holding a Christmas Boat Parade: This year it decided to rename the event the Patchogue Holiday Boat Parade.
Grucci vice president Phil Butler, a vocal critic of the secularization of Christmas, accused the parade’s organizers of “using all the themes of Christmas and plagiarizing all those themes.” Grucci is headquartered on Long Island.
Catholic League president Bill Donohue commended Butler’s decision: “If more people like Phil Butler stood up to the high priests of political correctness, the dumbing-down of Christmas would cease Christmas is the only holiday that is singled out by these authoritarians. They do not object to Jewish or Muslim holidays, nor do they object to holidays like Martin Luther King Day. And they relish Kwanzaa celebrations. But when it comes to Christmas, they quickly become censors. “So Kudos to Grucci. Let this be the first of many counterpunches thrown at the cultural fascists this year.”
Contact Phil Butler at: pbutler@grucci.com
NY Post link.
Grucci vice president Phil Butler, a vocal critic of the secularization of Christmas, accused the parade’s organizers of “using all the themes of Christmas and plagiarizing all those themes.” Grucci is headquartered on Long Island.
Catholic League president Bill Donohue commended Butler’s decision: “If more people like Phil Butler stood up to the high priests of political correctness, the dumbing-down of Christmas would cease Christmas is the only holiday that is singled out by these authoritarians. They do not object to Jewish or Muslim holidays, nor do they object to holidays like Martin Luther King Day. And they relish Kwanzaa celebrations. But when it comes to Christmas, they quickly become censors. “So Kudos to Grucci. Let this be the first of many counterpunches thrown at the cultural fascists this year.”
Contact Phil Butler at: pbutler@grucci.com
NY Post link.
Monday, October 27, 2008
Thursday, October 23, 2008
Dear Fellow Business Owners
As a business owner who employs 30 people, I have resigned myself to the fact that Barack Obamawill be our next president, and that my taxes and fees will go up in a BIG way.
To compensate for these increases, I figure that the Customer will have to see an increase in my fees to them of about 8-10%.
I will also have to lay off six of my employees. This really bothered me asI believe we are family here and didn't know how to choose who will have to go. So, this is what I did.I strolled thru the parking lot and found eight Obama bumper stickers on my employees cars. I havedecided these folks will be the first to be laid off.
I can't think of another fair way to approach this problem. If you have a better idea, let me know.I am sending this letter to all business owners that I know.
SincerelyWard
JOOA Corp.
I don't think there are any federal anti-discrimination laws that would apply here.
To compensate for these increases, I figure that the Customer will have to see an increase in my fees to them of about 8-10%.
I will also have to lay off six of my employees. This really bothered me asI believe we are family here and didn't know how to choose who will have to go. So, this is what I did.I strolled thru the parking lot and found eight Obama bumper stickers on my employees cars. I havedecided these folks will be the first to be laid off.
I can't think of another fair way to approach this problem. If you have a better idea, let me know.I am sending this letter to all business owners that I know.
SincerelyWard
JOOA Corp.
I don't think there are any federal anti-discrimination laws that would apply here.
Tuesday, October 21, 2008
Saturday, October 11, 2008
This weeks sign that the apocolypse is upon us
OCTOBER 10, 2008
From the Wall St. Journal
Switzerland's Green Power Revolution: Ethicists Ponder Plants' Rights
Who Is to Say Flora Don't Have Feelings? Figuring Out What Wheat Would Want
By GAUTAM NAIK
ZURICH -- For years, Swiss scientists have blithely created genetically modified rice, corn and apples. But did they ever stop to consider just how humiliating such experiments may be to plants?
That's a question they must now ask. Last spring, this small Alpine nation began mandating that geneticists conduct their research without trampling on a plant's dignity.
Beat Keller
"Unfortunately, we have to take it seriously," Beat Keller, a molecular biologist at the University of Zurich. "It's one more constraint on doing genetic research."
Dr. Keller recently sought government permission to do a field trial of genetically modified wheat that has been bred to resist a fungus. He first had to debate the finer points of plant dignity with university ethicists. Then, in a written application to the government, he tried to explain why the planned trial wouldn't "disturb the vital functions or lifestyle" of the plants. He eventually got the green light.
The rule, based on a constitutional amendment, came into being after the Swiss Parliament asked a panel of philosophers, lawyers, geneticists and theologians to establish the meaning of flora's dignity.
"We couldn't start laughing and tell the government we're not going to do anything about it," says Markus Schefer, a member of the ethics panel and a professor of law at the University of Basel. "The constitution requires it."
In April, the team published a 22-page treatise on "the moral consideration of plants for their own sake." It stated that vegetation has an inherent value and that it is immoral to arbitrarily harm plants by, say, "decapitation of wildflowers at the roadside without rational reason."
On the question of genetic modification, most of the panel argued that the dignity of plants could be safeguarded "as long as their independence, i.e., reproductive ability and adaptive ability, are ensured." In other words: It's wrong to genetically alter a plant and render it sterile.
Many scientists interpret the dignity rule as applying mainly to field trials like Dr. Keller's, but some worry it may one day apply to lab studies as well. Another gripe: While Switzerland's stern laws defend lab animals and now plants from genetic tweaking, similar protections haven't been granted to snails and drosophila flies, which are commonly used in genetic experiments.
It also begs an obvious, if unrelated question: For a carrot, is there a more mortifying fate than being peeled, chopped and dropped into boiling water?
"Where does it stop?" asks Yves Poirier, a molecular biologist at the laboratory of plant biotechnology at the University of Lausanne. "Should we now defend the dignity of microbes and viruses?"
Seeking clarity, Dr. Poirier recently invited the head of the Swiss ethics panel to his university. In their public discussion, Dr. Poirier said the new rules are flawed because decades of traditional plant breeding had led to widely available sterile fruit, such as seedless grapes. Things took a surreal turn when it was disclosed that some panel members believe plants have feelings, Dr. Poirier says.
Getty Images
Switzerland requires that geneticists conduct their research without trampling on a plant's dignity.
Back in the 1990s, the Swiss constitution was amended in order to defend the dignity of all creatures -- including the leafy kind -- against unwanted consequences of genetic manipulation. When the amendment was turned into a law -- known as the Gene Technology Act -- it didn't say anything specific about plants. But earlier this year, the government asked the ethics panel to come up rules for plants as well.
The Swiss debate isn't just academic twittering. Like other countries in Europe, Switzerland has long kept a tight rein on crop genetics, fearing that a mutant strain might run amok and harm the environment. Swiss geneticists say the dignity rule makes their job even harder.
Related Reading
The Ethics Committee on Non Human Gene Technology and the Swiss Committee on Animals Experiments have created brochures with the goal of defining the dignity of plants and animals.
The Dignity of Living Beings With Regard to Plants
The Dignity of Animals
Crazy Talk?
Several years ago, when Christof Sautter, a botanist at Switzerland's Federal Institute of Technology, failed to get permission to do a local field trial on transgenic wheat, he moved the experiment to the U.S. He's too embarrassed to mention the new dignity rule to his American colleagues. "They'll think Swiss people are crazy," he says.
Defenders of the law argue that it reflects a broader, progressive effort to protect the sanctity of living things. Last month, Switzerland granted new rights to all "social animals." Prospective dog owners must take a four-hour course on pet care before they can buy a canine companion, while anglers must learn to catch fish humanely. Fish can't be kept in aquariums that are transparent on all sides. The fish need some shelter. Nor can goldfish be flushed down a toilet to an inglorious end; they must first be anesthetized with special chemicals, and then killed.
Rhinoceroses can't be kept in an enclosure smaller than 600 square yards. Failure to comply can lead to a fine of 200 Swiss francs, or about $175. "The rules apply for zoos and private owners," says Marcel Falk, spokesman for the Federal Veterinary Office in Bern.
Are there pet rhinos in Switzerland? "I hope not," he says.
New Constitution
In another unusual move, the people of Ecuador last month voted for a new constitution that is the first to recognize ecosystem rights enforceable in a court of law. Thus, the nation's rivers, forests and air are no longer mere property, but right-bearing entities with "the right to exist, persist and...regenerate."
Dr. Keller in Zurich has more mundane concerns. He wants to breed wheat that can resist powdery mildew. In lab experiments, Dr. Keller found that by transferring certain genes from barley to wheat, he could make the wheat resistant to disease.
When applying for a larger field trial, he ran into the thorny question of plant dignity. Plants don't have a nervous system and probably can't feel pain, but no one knows for sure. So Dr. Keller argued that by protecting wheat from fungus he was actually helping the plant, not violating its dignity -- and helping society in the process.
One morning recently, he stood by a field near Zurich where the three-year trial with transgenic wheat is under way. His observations suggest that the transgenic wheat does well in the wild. Yet Dr. Keller's troubles aren't over.
In June, about 35 members of a group opposed to the genetic modification of crops, invaded the test field. Clad in white overalls and masks, they scythed and trampled the plants, causing plenty of damage.
"They just cut them," says Dr. Keller, gesturing to wheat stumps left in the field. "Where's the dignity in that?"
From the Wall St. Journal
Switzerland's Green Power Revolution: Ethicists Ponder Plants' Rights
Who Is to Say Flora Don't Have Feelings? Figuring Out What Wheat Would Want
By GAUTAM NAIK
ZURICH -- For years, Swiss scientists have blithely created genetically modified rice, corn and apples. But did they ever stop to consider just how humiliating such experiments may be to plants?
That's a question they must now ask. Last spring, this small Alpine nation began mandating that geneticists conduct their research without trampling on a plant's dignity.
Beat Keller
"Unfortunately, we have to take it seriously," Beat Keller, a molecular biologist at the University of Zurich. "It's one more constraint on doing genetic research."
Dr. Keller recently sought government permission to do a field trial of genetically modified wheat that has been bred to resist a fungus. He first had to debate the finer points of plant dignity with university ethicists. Then, in a written application to the government, he tried to explain why the planned trial wouldn't "disturb the vital functions or lifestyle" of the plants. He eventually got the green light.
The rule, based on a constitutional amendment, came into being after the Swiss Parliament asked a panel of philosophers, lawyers, geneticists and theologians to establish the meaning of flora's dignity.
"We couldn't start laughing and tell the government we're not going to do anything about it," says Markus Schefer, a member of the ethics panel and a professor of law at the University of Basel. "The constitution requires it."
In April, the team published a 22-page treatise on "the moral consideration of plants for their own sake." It stated that vegetation has an inherent value and that it is immoral to arbitrarily harm plants by, say, "decapitation of wildflowers at the roadside without rational reason."
On the question of genetic modification, most of the panel argued that the dignity of plants could be safeguarded "as long as their independence, i.e., reproductive ability and adaptive ability, are ensured." In other words: It's wrong to genetically alter a plant and render it sterile.
Many scientists interpret the dignity rule as applying mainly to field trials like Dr. Keller's, but some worry it may one day apply to lab studies as well. Another gripe: While Switzerland's stern laws defend lab animals and now plants from genetic tweaking, similar protections haven't been granted to snails and drosophila flies, which are commonly used in genetic experiments.
It also begs an obvious, if unrelated question: For a carrot, is there a more mortifying fate than being peeled, chopped and dropped into boiling water?
"Where does it stop?" asks Yves Poirier, a molecular biologist at the laboratory of plant biotechnology at the University of Lausanne. "Should we now defend the dignity of microbes and viruses?"
Seeking clarity, Dr. Poirier recently invited the head of the Swiss ethics panel to his university. In their public discussion, Dr. Poirier said the new rules are flawed because decades of traditional plant breeding had led to widely available sterile fruit, such as seedless grapes. Things took a surreal turn when it was disclosed that some panel members believe plants have feelings, Dr. Poirier says.
Getty Images
Switzerland requires that geneticists conduct their research without trampling on a plant's dignity.
Back in the 1990s, the Swiss constitution was amended in order to defend the dignity of all creatures -- including the leafy kind -- against unwanted consequences of genetic manipulation. When the amendment was turned into a law -- known as the Gene Technology Act -- it didn't say anything specific about plants. But earlier this year, the government asked the ethics panel to come up rules for plants as well.
The Swiss debate isn't just academic twittering. Like other countries in Europe, Switzerland has long kept a tight rein on crop genetics, fearing that a mutant strain might run amok and harm the environment. Swiss geneticists say the dignity rule makes their job even harder.
Related Reading
The Ethics Committee on Non Human Gene Technology and the Swiss Committee on Animals Experiments have created brochures with the goal of defining the dignity of plants and animals.
The Dignity of Living Beings With Regard to Plants
The Dignity of Animals
Crazy Talk?
Several years ago, when Christof Sautter, a botanist at Switzerland's Federal Institute of Technology, failed to get permission to do a local field trial on transgenic wheat, he moved the experiment to the U.S. He's too embarrassed to mention the new dignity rule to his American colleagues. "They'll think Swiss people are crazy," he says.
Defenders of the law argue that it reflects a broader, progressive effort to protect the sanctity of living things. Last month, Switzerland granted new rights to all "social animals." Prospective dog owners must take a four-hour course on pet care before they can buy a canine companion, while anglers must learn to catch fish humanely. Fish can't be kept in aquariums that are transparent on all sides. The fish need some shelter. Nor can goldfish be flushed down a toilet to an inglorious end; they must first be anesthetized with special chemicals, and then killed.
Rhinoceroses can't be kept in an enclosure smaller than 600 square yards. Failure to comply can lead to a fine of 200 Swiss francs, or about $175. "The rules apply for zoos and private owners," says Marcel Falk, spokesman for the Federal Veterinary Office in Bern.
Are there pet rhinos in Switzerland? "I hope not," he says.
New Constitution
In another unusual move, the people of Ecuador last month voted for a new constitution that is the first to recognize ecosystem rights enforceable in a court of law. Thus, the nation's rivers, forests and air are no longer mere property, but right-bearing entities with "the right to exist, persist and...regenerate."
Dr. Keller in Zurich has more mundane concerns. He wants to breed wheat that can resist powdery mildew. In lab experiments, Dr. Keller found that by transferring certain genes from barley to wheat, he could make the wheat resistant to disease.
When applying for a larger field trial, he ran into the thorny question of plant dignity. Plants don't have a nervous system and probably can't feel pain, but no one knows for sure. So Dr. Keller argued that by protecting wheat from fungus he was actually helping the plant, not violating its dignity -- and helping society in the process.
One morning recently, he stood by a field near Zurich where the three-year trial with transgenic wheat is under way. His observations suggest that the transgenic wheat does well in the wild. Yet Dr. Keller's troubles aren't over.
In June, about 35 members of a group opposed to the genetic modification of crops, invaded the test field. Clad in white overalls and masks, they scythed and trampled the plants, causing plenty of damage.
"They just cut them," says Dr. Keller, gesturing to wheat stumps left in the field. "Where's the dignity in that?"
Thursday, October 9, 2008
Opposed by who?
By STEPHEN LABATON
NY Times, Published: September 11, 2003
The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.
The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.
The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.
''There is a general recognition that the supervisory system for housing-related government-sponsored enterprises neither has the tools, nor the stature, to deal effectively with the current size, complexity and importance of these enterprises,'' Treasury Secretary John W. Snow told the House Financial Services Committee in an appearance with Housing Secretary Mel Martinez, who also backed the plan.
Mr. Snow said that Congress should eliminate the power of the president to appoint directors to the companies, a sign that the administration is less concerned about the perks of patronage than it is about the potential political problems associated with any new difficulties arising at the companies.
The administration's proposal, which was endorsed in large part today by Fannie Mae and Freddie Mac, would not repeal the significant government subsidies granted to the two companies. And it does not alter the implicit guarantee that Washington will bail the companies out if they run into financial difficulty; that perception enables them to issue debt at significantly lower rates than their competitors. Nor would it remove the companies' exemptions from taxes and antifraud provisions of federal securities laws.
The proposal is the opening act in one of the biggest and most significant lobbying battles of the Congressional session.
After the hearing, Representative Michael G. Oxley, chairman of the Financial Services Committee, and Senator Richard Shelby, chairman of the Senate Banking Committee, announced their intention to draft legislation based on the administration's proposal. Industry executives said Congress could complete action on legislation before leaving for recess in the fall.
''The current regulator does not have the tools, or the mandate, to adequately regulate these enterprises,'' Mr. Oxley said at the hearing. ''We have seen in recent months that mismanagement and questionable accounting practices went largely unnoticed by the Office of Federal Housing Enterprise Oversight,'' the independent agency that now regulates the companies.
''These irregularities, which have been going on for several years, should have been detected earlier by the regulator,'' he added.
The Office of Federal Housing Enterprise Oversight, which is part of the Department of Housing and Urban Development, was created by Congress in 1992 after the bailout of the savings and loan industry and concerns about regulation of Fannie Mae and Freddie Mac, which buy mortgages from lenders and repackage them as securities or hold them in their own portfolios.
At the time, the companies and their allies beat back efforts for tougher oversight by the Treasury Department, the Federal Deposit Insurance Corporation or the Federal Reserve. Supporters of the companies said efforts to regulate the lenders tightly under those agencies might diminish their ability to finance loans for lower-income families. This year, however, the chances of passing legislation to tighten the oversight are better than in the past.
Reflecting the changing political climate, both Fannie Mae and its leading rivals applauded the administration's package. The support from Fannie Mae came after a round of discussions between it and the administration and assurances from the Treasury that it would not seek to change the company's mission.
After those assurances, Franklin D. Raines, Fannie Mae's chief executive, endorsed the shift of regulatory oversight to the Treasury Department, as well as other elements of the plan.
''We welcome the administration's approach outlined today,'' Mr. Raines said. The company opposes some smaller elements of the package, like one that eliminates the authority of the president to appoint 5 of the company's 18 board members.
Company executives said that the company preferred having the president select some directors. The company is also likely to lobby against the efforts that give regulators too much authority to approve its products.
Freddie Mac, whose accounting is under investigation by the Securities and Exchange Commission and a United States attorney in Virginia, issued a statement calling the administration plan a ''responsible proposal.''
The stocks of Freddie Mac and Fannie Mae fell while the prices of their bonds generally rose. Shares of Freddie Mac fell $2.04, or 3.7 percent, to $53.40, while Fannie Mae was down $1.62, or 2.4 percent, to $66.74. The price of a Fannie Mae bond due in March 2013 rose to 97.337 from 96.525.Its yield fell to 4.726 percent from 4.835 percent on Tuesday.
Fannie Mae, which was previously known as the Federal National Mortgage Association, and Freddie Mac, which was the Federal Home Loan Mortgage Corporation, have been criticized by rivals for exerting too much influence over their regulators.
''The regulator has not only been outmanned, it has been outlobbied,'' said Representative Richard H. Baker, the Louisiana Republican who has proposed legislation similar to the administration proposal and who leads a subcommittee that oversees the companies. ''Being underfunded does not explain how a glowing report of Freddie's operations was released only hours before the managerial upheaval that followed. This is not world-class regulatory work.''
Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.
''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''
Representative Melvin L. Watt, Democrat of North Carolina, agreed. ''I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' Mr. Watt said.
NY Times, Published: September 11, 2003
The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.
The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.
The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.
''There is a general recognition that the supervisory system for housing-related government-sponsored enterprises neither has the tools, nor the stature, to deal effectively with the current size, complexity and importance of these enterprises,'' Treasury Secretary John W. Snow told the House Financial Services Committee in an appearance with Housing Secretary Mel Martinez, who also backed the plan.
Mr. Snow said that Congress should eliminate the power of the president to appoint directors to the companies, a sign that the administration is less concerned about the perks of patronage than it is about the potential political problems associated with any new difficulties arising at the companies.
The administration's proposal, which was endorsed in large part today by Fannie Mae and Freddie Mac, would not repeal the significant government subsidies granted to the two companies. And it does not alter the implicit guarantee that Washington will bail the companies out if they run into financial difficulty; that perception enables them to issue debt at significantly lower rates than their competitors. Nor would it remove the companies' exemptions from taxes and antifraud provisions of federal securities laws.
The proposal is the opening act in one of the biggest and most significant lobbying battles of the Congressional session.
After the hearing, Representative Michael G. Oxley, chairman of the Financial Services Committee, and Senator Richard Shelby, chairman of the Senate Banking Committee, announced their intention to draft legislation based on the administration's proposal. Industry executives said Congress could complete action on legislation before leaving for recess in the fall.
''The current regulator does not have the tools, or the mandate, to adequately regulate these enterprises,'' Mr. Oxley said at the hearing. ''We have seen in recent months that mismanagement and questionable accounting practices went largely unnoticed by the Office of Federal Housing Enterprise Oversight,'' the independent agency that now regulates the companies.
''These irregularities, which have been going on for several years, should have been detected earlier by the regulator,'' he added.
The Office of Federal Housing Enterprise Oversight, which is part of the Department of Housing and Urban Development, was created by Congress in 1992 after the bailout of the savings and loan industry and concerns about regulation of Fannie Mae and Freddie Mac, which buy mortgages from lenders and repackage them as securities or hold them in their own portfolios.
At the time, the companies and their allies beat back efforts for tougher oversight by the Treasury Department, the Federal Deposit Insurance Corporation or the Federal Reserve. Supporters of the companies said efforts to regulate the lenders tightly under those agencies might diminish their ability to finance loans for lower-income families. This year, however, the chances of passing legislation to tighten the oversight are better than in the past.
Reflecting the changing political climate, both Fannie Mae and its leading rivals applauded the administration's package. The support from Fannie Mae came after a round of discussions between it and the administration and assurances from the Treasury that it would not seek to change the company's mission.
After those assurances, Franklin D. Raines, Fannie Mae's chief executive, endorsed the shift of regulatory oversight to the Treasury Department, as well as other elements of the plan.
''We welcome the administration's approach outlined today,'' Mr. Raines said. The company opposes some smaller elements of the package, like one that eliminates the authority of the president to appoint 5 of the company's 18 board members.
Company executives said that the company preferred having the president select some directors. The company is also likely to lobby against the efforts that give regulators too much authority to approve its products.
Freddie Mac, whose accounting is under investigation by the Securities and Exchange Commission and a United States attorney in Virginia, issued a statement calling the administration plan a ''responsible proposal.''
The stocks of Freddie Mac and Fannie Mae fell while the prices of their bonds generally rose. Shares of Freddie Mac fell $2.04, or 3.7 percent, to $53.40, while Fannie Mae was down $1.62, or 2.4 percent, to $66.74. The price of a Fannie Mae bond due in March 2013 rose to 97.337 from 96.525.Its yield fell to 4.726 percent from 4.835 percent on Tuesday.
Fannie Mae, which was previously known as the Federal National Mortgage Association, and Freddie Mac, which was the Federal Home Loan Mortgage Corporation, have been criticized by rivals for exerting too much influence over their regulators.
''The regulator has not only been outmanned, it has been outlobbied,'' said Representative Richard H. Baker, the Louisiana Republican who has proposed legislation similar to the administration proposal and who leads a subcommittee that oversees the companies. ''Being underfunded does not explain how a glowing report of Freddie's operations was released only hours before the managerial upheaval that followed. This is not world-class regulatory work.''
Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.
''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''
Representative Melvin L. Watt, Democrat of North Carolina, agreed. ''I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' Mr. Watt said.
Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES
NY Times, Published: September 30, 1999
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.
''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''
Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.
Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.
Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.
Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent.
In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent.
Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites, in part because blacks and Hispanics in particular tend to have on average worse credit ratings.
In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.
The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.
This is the link.
NY Times, Published: September 30, 1999
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.
''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''
Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.
Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.
Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.
Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent.
In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent.
Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites, in part because blacks and Hispanics in particular tend to have on average worse credit ratings.
In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.
The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.
This is the link.
Tuesday, October 7, 2008
Monday, October 6, 2008
Thomas Jefferson quote.
"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered."
Thomas Jefferson
Letter to the Secretary of the Treasury Albert Gallatin
1802
Thomas Jefferson
Letter to the Secretary of the Treasury Albert Gallatin
1802
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