Showing posts with label HUD. Show all posts
Showing posts with label HUD. Show all posts

Thursday, March 25, 2010

Obama's transportation policy to force people out of their cars

Secretary of Transportation Ray LaHood has announced a new manifesto for the Obama Administration's transportation policy. Needless to say, automobiles don't play into it very prominently.
Transportation Secretary Ray LaHood has announced that federal transportation policies will no longer favor “motorized” transportation, such as cars and trucks, over “non-motorized” transportation, such as walking and bicycling.
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“Today, I want to announce a sea change,” LaHood wrote. “People across America who value bicycling should have a voice when it comes to transportation planning. This is the end of favoring motorized transportation at the expense of non-motorized.”
LaHood's vision is one where Americans commute to work partway on foot or bicycle and partway on public transportation. “Walking and bicycling are efficient transportation modes for most short trips and, where convenient intermodal systems exist, these nonmotorized trips can easily be linked with transit to significantly increase trip distance," he said. In other words, get people out of their gas-guzzling cars so they can commute to work without polluting.
LaHood's Department of Transportation has teamed up with the EPA and the HUD to form the Partnership for Sustainable Communities. This alliance was supposedly set up to search for ways to make transportation more environmentally-friendly, specifically through the use of stimulus grants to green projects. But at a recent talk at the National Press Club, LaHood revealed the real aim of the partnership.
“Some in the highway-supporters motorist groups have been concerned by your livability initiative,” said the moderator at the National Press Club event. “Is this an effort to make driving more torturous and to coerce people out of their cars?”
“It is a way to coerce people out of their cars,” said LaHood.
The moderator later asked: “Some conservative groups are wary of the livable communities program, saying it's an example of government intrusion into people's lives. How do you respond?”
“About everything we do around here is government intrusion in people's lives,” said LaHood. “So have at it.”
LaHood recently made a splash crusading against Toyota for accusations of unsafe vehicles. Those accusations were later revealed to be exaggerated. Many wondered at the time if LaHood was attacking Toyota to enrich GM and Chrysler, which are currently owned by the federal government. Now it seems the real goal of the Obama Administration is to force people out of their cars altogether in the name of the environment.

Friday, March 19, 2010

Obama pays back housing bubble creators

Barack Obama has a long history of rewarding failure. One of the most spectacular failures in our nation's history was the collapse of the housing market that triggered the current recession. As Pajamas Media reports, one of the architects of that recession is a close Obama ally: Andrew Cuomo.
But catching up with Cuomo is his relationship with the mortgage meltdown that nearly destroyed the American economy. Appointed by Bill Clinton as secretary of the U.S. Department for Housing and Urban Development (HUD), Andrew Cuomo has been called “the father of the subprime crisis” for the policies he orchestrated.
It was Cuomo’s directives that mandated HUD to vastly increase the amount of risky home loans bought by quasi-governmental housing giants Fannie Mae and Freddie Mac. Now, Cuomo may be haunted by his tenure as HUD secretary, where he planted the seeds for the nation’s housing collapse.
Though America’s financial fortunes suffered after Cuomo’s time at HUD, his own personal fortune soared. The bulk of this financial “windfall” came courtesy of Andrew Farkas, the billionaire real estate developer who helped Cuomo amass his wealth as a business partner and campaign fundraiser. Farkas — now Cuomo’s financial chairman as he circles the governorship — has personally given Cuomo at least $1.8 million in cash.
As New Yorkers are beginning to discover, Andrew Cuomo personifies the long reach of many at the top of the Democratic Party who built their fortunes on the mortgage bubble and the sub-prime collapse, but have yet to be tarred and feathered as architects of the nation’s worst housing crisis.
It was Cuomo's HUD that, in 1996, issued a directive that 42% of loans from Fannie Mae and Freddie Mac had to be to individuals with a lower income than the median in their area. This began pumping air into the housing bubble and it never stopped. As PJM points out, Cuomo also appointed another Obama friend, Rahm Emanuel, to the board of directors at Freddie Mac. Emanuel reportedly earned at least $320,000 during his disastrous tenure.
Cuomo is currently running for governor of New York and is the White House's undisputed choice for the position. Obama is such a fan of Cuomo that key Democrats have gone to great lengths to kneecap the current governor, David Paterson, in order to clear Cuomo's path.
It's not just Cuomo and Rahm. Shaun Donovan, the current Secretary of HUD, was a deputy assistant secretary at HUD under Clinton where he helped carry out Cuomo's catastrophic policies. Donovan later moved on to head up the New York City Department of Housing Preservation and Development during the Bush Administration. There he worked with Mayor Michael Bloomberg to open up an unprecedented amount of new cheap housing to low-income families -- the same housing being offered with HUD's subprime mortgages.
In New York, Donovan was closely tied to perhaps the biggest villain of the housing crisis: ACORN. From the New York Times:
A complex of 125 apartments had fallen into such disrepair that Bush administration housing officials had foreclosed on the building and transferred it to a group they and Mr. Donovan had come to trust: the New York Acorn Housing Company.
“These renovations will transform this once-troubled property into a remarkable asset,” Mr. Donovan declared in a city news release trumpeting the apartments’ “rescue” by Acorn and its development partners.
Donovan has since disavowed his connections with ACORN, but his close work with them in the Bronx speaks volumes. Since its foundation, ACORN has spent its time shaking down mortgage companies and enforcing the Community Reinvestment Act of 1977. The group, since revealed to be a criminal organization, enacted a spate of activism that pushed the CRA farther and farther down the mortgage industry's throat. Fannie Mae and Freddie Mac were particularly compliant. In 2001, Fannie Mae announced it had rushed to make over $10 billion in CRA loans, but that was just the beginning. The government mortgage lender wanted $500 billion in CRA loans by 2010, more than one-third of the total loans it made. Fannie Mae collapsed under the weight of those junk loans two years before its deadline.
And of course, Barack Obama himself fought with ACORN as a community activist in Chicago for fair housing. One of his closest political advisors, Valerie Jarrett, was a Chicago slumlord.