Mother Jones and the Left gets it wrong, again, as the Lefies try to defend legislative fraud in the name of financial reform.

Editor's notes: today marks another legislative milestone, the passage of the so-called Wall Street Reform bill. It makes promises that cannot possibly be true; increases the power of the Federal Government; offering the banking industry bailouts in perpetuity: further isolates Wall Street from the "general population," protecting Wall Street form public supervision and doing nothing to resolve the actual causes of the subprime mortgage crisis. Here is a Leftist AP review of this event:

WASHINGTON – Congress on Thursday passed the stiffest restrictions on banks and Wall Street since the Great Depression, clamping down on lending practices and expanding consumer protections to prevent a repeat of the 2008 meltdown that knocked the economy to its knees.

A year in the making and 22 months after the collapse of Lehman Brothers triggered a worldwide panic in credit and other markets, the bill cleared its final hurdle with a 60-39 Senate vote. It now goes to the White House for President Barack Obama's signature, expected as early as Wednesday. READ MORE >>>

One can go to the referenced site immediately above but will not find a single comment about what was left out of this financial reform bill. And what was left out proves that this bill was not a serious effort at financial reform. Understand that there is not a single moment of thought given to a reform of Fannie Mae or Freddie Mac. More than this, the nations central banking institution, The Federal Reserve (also known as "the Fed") was actually given more power -- "the Fed" being a privatized money making concern that exists without outside oversite, created in the dark of night and out of view from the public, free to supervise itself.

Understand that Midknight Review does not see Fannie and Freddie as the originators of the financial collapse but their use by the financial leaders/superintendents in government render them complicit to the financial collapse without question.

The Quote

The Left rejects our conclusion. Here is part of an article written in Mother Jones "debunking" conservative theory as presented by Midknight Review in this post: But a look at the actual data shows that Fannie and Freddie—while certainly plagued with problems—are not the root causes of the subprime mortgage meltdown nor the financial collapse. First, context: Fannie and Freddie's roles, in part, consisted of buying up lots of mortgages in the secondary mortgage markets, i.e., taking them off the books of mortgage originators, and allowing those originators to extend more credit to potential homeowners. Over time, the two GSEs' positions as secondary purchasers of mortgages was used to try to expand homeownership to groups of Americans that traditionally didn't have access to this kind of credit—namely, low-income citizens. READ MORE >>

In the above summary, Mother Jones - another one of those Marxist web rags - has both correctly stated the case and proved itself wrong in denying complicity for Fannie and Freddie. Look, you cannot or should not write an article that begins with "It's time to put to rest a lingering myth that, all evidence to the contrary, just won't die [referring to Fannie/Freddie complicity - jds] and end that same article with "The Democrats say the twins are too big and complex and troubled to include in this bill. " Again we suggest that you READ the article here >>

Two considerations: first, if we are going to parse words, we will never see the problem solved. Whether we typify Fannie and Freddie's complicity as "causative" or "contributive" is beside the point. Mother Jones allows for the two GSE's (Government Sponsored Enterprises) to be hugely problematic, so much so that Congress must deal with them at a latter time. Remember the words quoted above: "the twins are too big and complex and troubled to include in this bill." Seems silly, then, to quote this in the same article in which the author tries to exonerate the institutions.

Secondly, look to "The Quote" above. The admission is made as to the purpose of Fannie/Freddie -- to take "subprime" mortgage paper out of the lending system giving the banks - as it turns out - the money and "room" to write more and more high risk, toxic paper -- Mother Jones prefers the word "subprime" but it is all the same.

According to the wacko's at Mother Jones, toxic paper - "housed" at Fannie and Feddie - was not the problem. Such flies in the face of TARP - Troubled Assets Relief Program. The first response to the financial collapse by Henry Paulson and Company, saw subprime loans (Troubled Assets) as causative to the degree that these loans received first attention as the corporate high rollers tried to salvage their financial ocean of money. Let's not forget that originally, the financial crisis was called "the subprime mortgage crisis," giving evidence to our point that subprime mortgage "paper" was causative, Fannie and Freddie being the two GSE's used to relieve the public banking world of these high risk loans.

Point of Post: (1) to support and even justify the conservative opinion that Fannie and Freddie played a central role in the subprime mortgage crisis of 2008-2009. (2) To ridicule the Left for their adolescent analysis of the financial disaster that has been front and center for nearly two years. Know this: leislators cannot possible know that the new financial reform law will prevent a similar disaster from ever happening again -- a claim of Mr. Novice, Barack Obama made today as he celebrated another legislative fraud imposed upon the people in his quest to centralize the power of government in the name of macroeconomics.

Midknight Review believes that the financial circumstance of this country is run by people we do not know and for reasons that will never be explained. We do not pretend to know more than this. Understand that it our belief that more than 24 trillion dollars has been run through the TARP, almost without notice. The reader is referred to the articles at Washington Times, the Sonoran Alliance, the Digital Journal, and Soda Head for a better understanding of the extravagance of the TARP sourced financial recovery.