THE PENNY KING’S COMMANDS FOR THE RESIGNATION OF SENATOR CHARLES SCHUMER
Alex S. Gabor
August 19, 2007
Meanwhile, clients of the Penny Appreciation Fund, managed by The Penny King, continued to get 10,000% daily returns on their pennies by saving and cashing them in for a dollar each.
The Penny King has been buying pennies from random clients for the past decade but only since last October did he begin to pay $1.00 for each of them, causing some areas of Los Angeles to suffer penny shortages, mostly as a result of homeless and poor people on the streets hoarding them in anticipation of production of the film by the same name.
In his press release, Schumer added that if Fannie and Freddie’s regulator, the Office of Federal Housing Enterprise Oversight (OFHEO) doesn’t act soon to temporarily allow the companies to provide more liquidity, he will introduce legislation to do so as soon as Congress reconvenes in early September.
According to “The Penny King”, this is an act of treason on Schumer’s part.
Schumer is a fools fool. It was Fannie Mae and Freddie Mac who caused the housing bubble in the first place over the course of the past two decades. If they hadn’t kept raising their loan limits and kept their infinite unlimited ceiling on the amount of assets they could acquire, if they had continued on their past course, no one in America could afford to buy another home”, said the Penny King in a fast paced interview while he purchased five pennies for five dollars from a homeless woman in front of the ARCO station near Ventura and Topanga Canyon Blvd in Woodland Hills, California recently.
It was built into the massive Ponzi Scheme,” said another anonymous government investigator who said that the Securities and Exchange Commission is now investigating more than half of the Wall Street firms who were or are still engaged in the fraudulent sale of mortgage backed securities amounting to over $1 trillion dollars in phony asset values.
Some government securities lawyers and perhaps even some judges are going to hang for what appears to be the beginnings of the biggest debacle in global financial history.
Over the course of the past two decades both government sponsored institutions have raised the limits on the amount of money they could underwrite for a home loan from $70,000 to well over $400,000. That is almost a 500% rate of national home loan inflation. Over twenty years that amounts to an average real rate of housing inflation of more than 23%. “No wonder real estate investors have become the phony millionaires they really are!” says the Penny King.
This has created a five trillion dollar fraud on American soil right under everyone’s noses and only the sanest economists can see what has been done to our homes, our land, and our economy.
Schumer and his friends in the U.S. Senate should be indicted for intentionally attempting to incite fraud while they take money from Fannie and Freddie lobbyists for some of their favorite pet political projects.
The behind the scenes horse-trading going on with our global economy is phenomenal – not fit to make into a g rated movie, it is so obscene“, so speaks the Penny King!”
An entire army of mortgage, housing, real estate and construction industry lobbyists have descended upon Washington D.C. in the past month or so in an attempt to battle for the survival of what some say is becoming a dinosaur in the age of modern reason. “The mortgage industry, whose name means death, is dead”, according to the Penny King.
Those lobbyists are very hard at work with pumping more false information into the minds of legislators in order to lift the asset caps put into place by OFHEO in the first place to stop the madness which had been creating the housing asset bubble.
OFHEO is the fall guy for the housing crash and all fingers will attempt to blame it for the global depression which started in 2005 when concerns about the housing bubble were brought to the attention of sane economic planners.
The Penny King went on to say, “If they had just left the caps at $70K back in the 80’s we would not now be in this horrible collapse of the entire mortgage industry. We could have planned it better. There are now no buyers anywhere on the planet for new loans secured by rapidly collapsing real estate values. If there are, they are the greater fools by a long shot.”
We cannot afford a ‘wait and see’ approach when it comes to a credit crisis that threatens to derail our economy,” said Schumer. “The Bush administration continues to ignore one tell-tale sign after another that the subprime woes are threatening the broader mortgage markets. Fannie and Freddie are uniquely positioned to inject badly needed liquidity into the economy, but the President won’t let them do their job. These companies need their caps lifted now. If the Bush administration won’t act, we will.”
Countering Schumer’s comments, the Penny King argued that “Fannie and Freddie are both figments of human imagination invented by crooked lawyers, bankers and politicians who convinced the rest of the world that they add value to human life.
They had done nothing but fuel an immense illusion of wealth in a ponzi scheme like none seen in the history of this world. They have been both bankrupted by their lack of morals, integrity and devoid of all sane rationality or reasoning. They are like a mob of bankers who are now losing their job security because the farmer found the fox in the henhouse and his shotgun is cocked and ready to blow him away. The people of America are the farmers. The fox is the bankers and the lawyers, their lobbyists and their politicians who represent their interests ahead of the people.
Senator Schumer recently wrote a letter to James B. Lockhart III, the director of the Office of Federal Housing Enterprise Oversight (OFHEO), urging him to consider temporarily raising the limit on purchases of home loans by Fannie Mae and Freddie Mac in response to increasing concerns of a credit crunch spilling into the broader mortgage market.
According to Schumer, raising the caps would allow Freddie and Fannie to provide much needed liquidity in a mortgage market that is drying up for all lenders—including Countrywide, the nation’s largest mortgage lender.
The mortgage market doesn’t need another decade of illusions and false wealth creation. It needs an entire reform movement by the people for the people, not for the bankers.
There are no more qualified buyers left in America. They all live in traps called homedebtorships. 98% of Americans who took out stated income loans cannot afford the house they live in. That is more than 2 million families about to go bankrupt as their notices of default hit their doorsteps.
Since OFHEO rejected Schumer’s request to raise the portfolio caps last Friday, it has become increasingly clear that the deterioration in the mortgage markets has gone from bad to worse.
Liquidity is virtually nonexistent for loans that do not conform to Fannie and Freddie’s portfolio standards (e.g., “jumbo” loans), which is hurting current and aspiring homebuyers’ ability to access lending, according to Schumer’s press agents.
Fannie and Freddie are an illegal and illusory monopoly that has been wrapped around America’s neck waiting for the bucket to be knocked out from under her feet”, according to the Penny King.
His command to the American media and public is quoted exactly verbatim: “Therefore, all ye who have great faith and appreciation in the symbolisms of the Lincoln Penny and have lost all faith in the value of all United States dollars which are backed by less than an ounce of copper, go forth, gather them all up, impeach and cause therefore the resignations of all their powers, and any and all who would or could continue to support the global fraud which those bankers, lawyers and politicians have fueled for the past two centuries since my last visit to this godforsaken planet.”
Senator Schumer says he has been at the forefront of Congressional efforts to contain the subprime market crisis and ensure that irresponsible underwriting of this magnitude is not allowed to happen again.
The Penny King asks, “Where was he when the bankers and lawyers were approving all those liar loans and did he take out a stated income loan on his home too?”
Being that the crisis has worsened his press releases contained false and misleading information which influenced the prices of stocks in the mortgage industry and therefore he must also be charged with Securities Fraud for failing to disclose in his press releases that he owns directly or indirectly certain securities in the industry or related to it, says the Penny King.
Unfortunately this entire mess occurred while he has been in office and only now is he screaming much too loudly for more reforms which aid and abet the criminals who caused it in the first place all while appearing to be trying to help the poor suckers who took out “death loans”, another word for mortgages.
In May, Schumer introduced the first major legislation to deal with unscrupulous lending practices to this Congress, the Borrowers Protection Act, which would upgrade standards that mortgage brokers must abide by when making new loans to borrowers.
The Borrowers Protection Act should repeal the mortgage, real estate and housing industry subsidies of the banking establishment by disallowing mortgage interest as a deduction and encourage real home ownership by giving credits to those who pay off their home loans early.
That way the banks would be forced to lend to more productive enterprises such as production of real goods and services to the rest of the world.
Schumer secured $100 million in foreclosure prevention funding that was approved by the Senate Appropriations Committee for HUD Housing Counseling programs in the Transportation, Housing and Urban Development, and Related Agencies spending bill.
With these funds, non-profit agencies are supposed to be able to provide individual counseling by working one-on-one with borrowers who are in unsuitable subprime loans.
Schumer is missing the point. It would have created better conditions if that $100 million were allocated to a non profit organization that loaned money interest free, after all, all money created in America is really a figment of the imagination, it doesn’t exist except on paper and computers, so why charge us interest Mr. Schumer?” asked the Penny King.
Schumer has vowed to continue fighting for additional resources from both the federal government and the private sector to equip foreclosure prevention groups working on the front lines to keep homeowners in their homes. He would like to perpetuate the illusions of the past by recreating them in the future. Mortgages are like pre-teen sex, it is best to abstain from them.
According to James B. Lockhart III “it would undermine the core mission of each GSE if an increase in portfolio limits were allowed, since the motivation behind such a push is to help bolster the faltering subprime and Alt-A credit markets.
Lockhart makes it amply clear in a letter to Schumer that he feels the GSEs need to focus upon serving their traditional markets — prime, conventional and conforming — and not jumping in to save subprime and Alt-A, which he characterized as victims of “shoddy underwriting practices.”
According to the OFHEO Fannie Mae and Freddie Mac continue to be of “significant supervisory concern”, which translated from government double speak really means, both GSE’s are bankrupt.
The politicians, the bankers and the lawyers, they seem to have all fallen down when the Penny King got his brand new copper crown. Schumer and Lockhart were not available for comment.
Editorial Comment: The Penny King is the title of a documentary comedic drama being filmed on the streets of Los Angeles. The character “The Penny King” is also a figment of the imagination, but pennies have real appreciating value for many more reasons than the fact that some man acting in street theatre is buying them for dollars each every Sunday off the Boardwalk in Venice Beach, California. All actors who participate in the docucomedic drama get paid the same. A dollar for each penny they bring to the table according to the ability of the producers to pay on any given day.
Photo Courtesy of Alex S. Gabor Syndicate.