Speaking of Chutzpah

Kanjorski MisManages Washington

In the last post I answered Paul Kanjorski's absurd assertion that Hazleton City looks bad. This post debunks the next two questions posed by Congressman Kanjorski who said he would start answering once Barletta did.

Kanjorski said he would be happy to answer any questions Barletta has, but only after Barletta tells him a few things. Kanjorski wants Barletta to tell him:

• Why Hazleton city is near bankruptcy.

• Why Barletta wants to sell the city water authority.

He issued a press release today instead of enjoying the holiday making the same claims about mismanagement so Paul, here is your answer.

When Hazleton's Mayor Lou Barletta announced his plan to lay the foundation for a long term solution to the City of Hazleton's financial crunch many of the taxpayers of the City and Congressman Paul Kanjorski actually did not see the presentation at City Hall. Due to the impact on low income working families and seniors of the City SOP has obtained the file for the presentation from the City's website.

As you are about to see the fixed cost expenses are outpacing revenue despite the Paul Kanjorski's claims in this Times Leader article yesterday that the City was mismanaged.

The first slide(not in the presentation but presented here) shows the one time revenue sources by year from 2004 that have postponed the financial crunch from occuring sooner.

The next slide demonstrates how adjusted income failed to keep pace with adjusted expenses.

This next image shows how real estate tax revenue actually declined over the period from 2004-2008.

There was a slight increase in Earned Income Tax Revenue but considering the time frame one could argue that it was essentially flat.

Likewise the Mercantile and Business Privilege Taxes were essentially flat to only very slightly down.

Emergency Municipal Services Tax revenue took a dramatic drop due to Harrisurg and Todd Eachus's messing with the way the revenue is collected. Municipalities across the state suffered, not only Hazleton, because our legislators lack the acumen to understand their mistake.

Employee insurance costs are up over $417,000 for the period 2004-2008. Every municipal employer, as well as most private entities, in the state is facing the same exhorbitant rise in those costs.

Employee salaries really demonstrate one of the biggest reasons for Hazleton's financial crunch. Unfortunately one of the only solutions to this problem is to decrease the size of the police department which in SOP's opinion is not an option given the current crime element trying to take a foothold on Hazleton's streets.

This graph showing overtime costs illustrates another uncontrollable problem for Hazleton that is tied to the last chart. Police investigations into crimes in Hazleton, just like the Derrick Kichline murder, are the biggest reasons for these overtime costs. Snowplowing in the winter time is another factor contributing to this area. If someone can figure out how to control crime and the weather, Warren Buffet and Bill Gates, move over another billionaire will be joining the crowd.

Just these three budget areas demonstrate the devastating impact on the budget of the City of Hazleton and to its taxpayers.

That presentation in a nutshell sums up the reason the sale of the Water Department of the HCA is even being considered. The Mayor and City Council weighed different options before coming to this conclusion. The proposal has spawned ideas on how to help solve Hazleton's problems while staunch Democratic opponents Todd Eachus and Paul Kanjorski use their constituents as pawns in their game of debaucherous political shenanigans. While Wilkes Barre touts its Intermodal Center Hazleton is not forgotten but purposely ignored. Hopefully those alternate ideas will help Hazleton until new representation emerges in Harrisburg and Washington that is willing to put politics aside in the name of progress.

Why doesn't Paul Kanjorski ask Todd Eachus why Pennsylvania is in the shape it is in? Paul, how about that $1.2 billion deficit? How about the federal deficit runup since you and Obama got an unchecked and unbridled hold on our purse strings in a little over a year and a half? Mr. Kanjorski you have mismanaged the financial industry for years because your two friends, Fannie Mae and Freddie Mac, gave you so much money you had to look the other way. Heck Freddie Mac received so much it has now changed its name to Big Mac. You are hypocritical of your claims of mismangement. Out of touch too. How many cities and states are facing severe financial crises in light of the 10+ percent unemployment and the fact unemployment benefits are looking like they will be extended for TWO years?

Mr. Kanjorski, there are the answers to your questions. Balls in your court. Start explaining your actions or inactions. You bailed out Wall Street, the auto industry, and mismanaged Medicare, Medicaid, and Social Security into insolvency. You abolished town hall meetings, raised our taxes and socialized healthcare. Care to respond?

WORLD LEADERS IDENTIFY THE ENEMY: Iran, North Korea, Deficits

Obama still calling for more stimulus but world leaders balk

The problem is that Obama and Democrats like Paul Kanjorski fall for the Kenysian theory on the economy. When the government spends a $1.00 it produces a $1.50. Well as we all see "that ain't happenin".

Like many bad ideas, the current Keynesian revival began under George W. Bush. Larry Summers, then a private economist, told Congress that a "timely, targeted and temporary" spending program of $150 billion was urgently needed to boost consumer "demand." Democrats who had retaken Congress adopted the idea—they love an excuse to spend—and the politically tapped-out Mr. Bush went along with $168 billion in spending and one-time tax rebates.

The cash did produce a statistical blip in GDP growth in mid-2008, but it didn't stop the financial panic and second phase of recession. So enter Stimulus II, with Mr. Summers again leading the intellectual charge, this time as President Obama's adviser and this time suggesting upwards of $500 billion. When Congress was done two months later, in February 2009, the amount was $862 billion. A pair of White House economists famously promised that this spending would keep the unemployment rate below 8%.

Seventeen months later, and despite historically easy monetary policy for that entire period, the jobless rate is still 9.7%. Yesterday, the Bureau of Economic Analysis once again reduced the GDP estimate for first quarter growth, this time to 2.7%, while economic indicators in the second quarter have been mediocre. As the nearby table shows, this is a far cry from the snappy recovery that typically follows a steep recession, most recently in 1983-84 after the Reagan tax cuts.

The response at the White House and among Congressional leaders has been . . . Stimulus III. While talking about the need for "fiscal discipline" some time in the future, President Obama wants more spending today to again boost "demand." Thirty months after Mr. Summers won his first victory, we are back at the same policy stand.

Meanwhile, in Congress, even many Democrats are revolting against Stimulus III. The original White House package of jobless benefits and aid to the states had to be watered down several times, and the latest version failed again in the Senate late this week. (See below.) Mr. Obama is having his credit card pulled too—not by the bond markets, but by a voting public that sees the troubles in Europe and is telling pollsters that it doesn't want a Grecian bath.

Hence the world leader focus on DEFICITS. Kanjo is watching the US implode around him yet he stlll wants to proclaim that more big bank regulation is the answer. Okay Paul, when the savings and loan crisis hit was it big banks or small banks that caused the problem? If you restrain big banks too much what will stop the consumer or the bank executive from making small banks more attractive and cause them to take unnecessary risks??

Too big to fail...or too big to let fail?? Fannie and Freddie got a pass in this bill. Isn't that why it happened...too big to let fail....?

Rick Santelli Smokes Kanjorski

Given the fact that Fannie Mae and Freddie Mac had to delist their stocks on the NYSE I thought this video to be appropriate to show how Kanjorski tries to peddle his wheelbarrow full of weeds. Hear what Kanjorski says.

"I say that we are including them in the reform, that's another misnomer, we're going to do Fannie and Freddie reform its just that we cant do it in this present bill, we don't have the time and the effort.... It has nothing to do with the election."

Fannie Mae and Freddie Mac Delist Shares On NYSE

Fannie Mae and Freddie Mac were featured in this article about how much money they invested in Democrats including Congressman Paul Kanjorski.

Rep. Paul Kanjorski (D-Pa.) has received $65,500. Kanjorski chairs the House Financial Services Subcommittee on Capital Markets, Insurance and Government-Sponsored Enterprises, and Freddie Mac and Fannie Mae are government-sponsored enterprises, or GSEs.

Today the mortgage giants own or guarantee almost 31 million home loans worth about $5.5 trillion representing almost half of the mortgages. The twins were ordered by their federal regulator to no longer trade their shares on the New York Stock Exchange.

The Federal Housing Finance Agency (FHFA) and its predecessor agency have overseen the operation of Fannie Mae and Freddie Mac since September 2008, when they were both placed under conservatorship, a form of control similar to what is found in a bankruptcy process.

Since that time, the Treasury Department has poured $83.6 billion into Fannie Mae and $61.3 billion into Freddie Mac to cover losses on the trillions of dollars worth of mortgage-backed securities they own or guarantee.

Billions of additional losses are forecast in coming years, with the Congressional Budget Office estimating that nearly $400 billion in tax dollars will eventually be needed. The government controls the majority of the shares of each firm. Not a bad return on a $65,000 investment.

So far, taxpayers have poured $145 billion into Fannie and Freddie to keep them afloat and to buoy the overall housing market.

Fannie Mae, Freddie Mac, the FHA and the Veterans Administration backed nearly 97 percent of home mortgages in the first quarter of this year, according to trade publication Inside Mortgage Finance.

CNBC’s Rick Santelli Rips Kanjorski For Ignoring Fannie/Freddie Reform

From 1989-2008 Paul Kanjorski received $65,500.00 from Fannie Mae and Freddie Mac. Paul, it wasn't "too complicated" for you to take their money now was it?


Press release from House Republican Leader John Boehner

Washington, May 11 - Follow @GOPLeader on Twitter for updates..

Democrats still don’t get it, and they refuse to reform Fannie Mae and Freddie Mac, the government mortgage companies that sparked the meltdown by giving high-risk loans to people who couldn’t afford it. Standing up for American taxpayers, CNBC’s on-air editor, Rick Santelli teed off on Rep. Paul Kanjorski’s (D-PA) claim that Democrats’ couldn’t reform Fannie & Freddie in their financial regulation bill because it was “too complicated,” asking: “It’s too complicated? You think taxpayers that go to work to pay the money you are subsidizing, it will end up a half a trillion, do you think they think complicated is an excuse?"

The exchange couldn’t have come at a worse time for Rep. Kanjorski and Congressional Democrats, because Fannie and Freddie simply won’t go away. As the Financial Times reported today:

“Fannie Mae said on Monday it would need an additional $8.4bn in aid, as the US government-controlled mortgage finance company continued to suffer heavy losses on its bad loans…Fannie Mae’s appeal for help comes on the heels of a similar plea last week by smaller rival Freddie Mac, which asked for an additional $10.6bn cash infusion. The latest requests for aid bring the total amount of taxpayer dollars drawn down by these companies to $148bn since the 2008 government-led bail-out.

“Anthony Sanders, a senior scholar at the Mercatus Center at George Mason University, called Fannie and Freddie ‘our own Greek tragedy.’ Mr. Sanders estimated that total taxpayer liability was about $8,000bn for the combined companies, including public debt and loan guarantees.”

But the unlimited bailout that the Administration has bestowed on Fannie and Freddie doesn’t seem to bother Democrats, though the latest giveaway may come at an “inconvenient time,” as the New York Times noted today:

“Fannie Mae’s request on Monday for another $8.4 billion in federal aid comes at a politically inconvenient time for the Obama administration, which is pressing to pass sweeping financial legislation without resolving the company’s future…. Democrats want to defer an overhaul of federal housing policy until next year, after the midterm elections. But Republicans have seized on the continuing losses to argue that a plan for the two companies should be a priority of the current legislation.”

Republicans have been pressing for an end to bailouts that would get the government out of the mortgage business once and for all. But Democrats are not only unwilling to reform Fannie and Freddie, they are doubling down on the failed government mortgage companies – burning through hundreds of billions of taxpayer dollars in the process. As the Washington Post noted in a report today: “Under the terms of the government's 2008 emergency takeover of Fannie and Freddie, the Treasury must pump money into either firm whenever its worth, as measured by assets minus liabilities, goes into the red. Late last year, the Obama administration pledged unlimited backing.”

For years, Republicans raised red flags about Fannie and Freddie’s financial condition and proposed responsible reforms only to be thwarted by Democrats who have deep political ties to the worst offenders. These same powerful Democrats are now pushing for a financial reform bill that doesn’t even address the need to fix these government mortgage companies. As the Wall Street Journal wrote last week, “reforming the financial system without fixing Fannie and Freddie is like declaring a war on terror and ignoring al Qaeda.”

House Republicans’ plan would phase out taxpayer subsidies of Fannie Mae and Freddie Mac over a number of years and end the current model of privatized profits and taxpayer losses. Find out more by clicking HERE.

Fannie and Freddie's End Run With Our Money

Does anyone in this administration have a clue?

Read the article about Fannie Mae and Freddie Mac. Are you getting taken care of by the goverment like this??

We Could Be On The Hook For $7 Trillion

Obamamessiah, have you been listening to your underlings. The Treasury Department has not resolved its problem with giving and getting an accounting relative to the TARP funds. According to ABCNews.com

"Our concern right now is that we do not seem to be a priority for the Treasury Department," the Congressional Oversight Panel's Elizabeth Warren told a Senate Finance Committee hearing today. "We have sent letters. We have requested that there be someone named so that we can get technical information. And so far, we have not been a first priority."

"I'm talking about accountability in a very real sense of this word," she said later. "As I see it, you really have two options here. Either you get Treasury to get some religion on this point -- and put their own standards in place, or Congress is forced to step in. We will do everything we can on your behalf, as your congressional oversight panel, but what we can best do for you now is to identify and pinpoint that this is precisely where the problem starts. And then the problem has roll down effects all the way through the system of lack of accountability, complexity that no one can figure out what's going on, so that we never identify the place where we need to start the solution."

Neil Barofsky, Special Inspector General for the Troubled Asset Relief ProgramB also expressed concerns because his office now has to monitor nearly $3 trillion.

"$2.9 trillion is just short of what the entire federal government spent in fiscal year 2008," noted committee chairman Max Baucus. "It's like having a second United States government budget dedicated solely to saving the financial system, and that is truly surreal."

Baucus cautioned that this number could skyrocket to $7 trillion when other measures are added, such as $3 trillion in Federal Reserve programs, Treasury's $400 billion support for Fannie Mae and Freddie Mac, and the administration's budget request for a placeholder worth up to $750 billion.

"If all these additional amounts materialize, taxpayers could be on the hook for a total of more than $7 trillion," Baucus said. "This is a huge, unprecedented financial commitment. It strains the comprehension of taxpayers and policy-makers alike."

Another Paul Kanjorski Flip-Flop

Almost every time Paul Kanjorski speaks one needs to do research because it will prove he thinks seeing both sides means speaking out of both sides of his mouth.

In yesterday's New York Times Floyd Norris wrote If mark-to-market accounting is to blame for the current financial crisis, then the National Weather Service is to blame for Hurricane Katrina; if it hadn’t told us the hurricane hit New Orleans, the city would never have flooded.

This is the logic the bankers are using, and they are getting sympathetic ears in Congress. The bankers have gotten two members of Congress to introduce a bill to establish a new body that could suspend accounting rules for financial institutions.

On Thursday, members of a House subcommittee joined in demanding that the rules be suspended. It was a bipartisan lynching of the accounting rule writers.

The panel’s chairman, Representative Paul E. Kanjorski, Democrat of Pennsylvania, said the accounting rule “does provide transparency for investors,” but that “strict application” of the rule had “exacerbated the ongoing economic crisis.”

Then he issued the threat. “If the regulators and standard setters do not act now to improve the standards, then the Congress will have no other option than to act itself.”

Sadly, a victory for the bankers would not help them much. Even if it were true that banks would be held in higher regard now if they had not been forced to write down the value of their bad assets — and that is, at best, debatable — changing the rules now would be counterproductive. Would you trust banks more? Would other banks be more inclined to trust banks?

Marcy Gordon of the AP wroteThe threat of legislation was a reversal of stance for Kanjorski, who had previously said Congress shouldn't intervene in establishing accounting rules such as the mark-to-market standard now at issue.

Jon Stewart would have a field day with Paul Kanjorski after what he did to Jim Cramer. Paul told us there was no crisis at Fannie Mae or Freddie Mac. And this..well Paul I am not shocked. Put your brain in gear before you put your mouth in motion! You could be accused of misuse of power by means of the tongue. Verbal cannabalism is usually expressed as speech.

Paul Kanjorkski Stretching The Baseball Facts

Paul Kanjorski, in his usual arrogant attitude, fired back at the Associated Press over their story concerning Freddie Mac and the Washington National baseball tickets. He states that the Associated Press mislead the public in its story. Paul, what a crock. How many times in your career have you mislead the public? The Veteran's Hospital in Wilkes Barre is one example but we will save that for another day.

Kanjorski blames George Bush for everything. I don't know what he is going to do after January 20, 2009.

Here is the part of the AP story Paul wants everyone to forget.

"The records obtained by the AP reflect growing concern within Freddie Mac over a chorus of criticism from Republicans worried that Freddie Mac and Fannie Mae had grown too big. The two companies owned or guaranteed over $5 trillion in mortgages.

The Bush administration and Federal Reserve Chairman Alan Greenspan were sounding the alarm about the potential threat to the nation's financial health if the fortunes of the two mammoth companies turned sour. They did eventually, when they took on $1 trillion worth of subprime mortgages and when their traditional guarantee business deteriorated. Commercial banks regarded Freddie Mac and Fannie Mae as competitors and were anxious to pick up business that would result from scaling back the two companies.

Pushing back, Freddie Mac enlisted prominent conservatives, including Gingrich and former Justice Department official Viet Dinh, paying each $300,000 in 2006, according to internal records."

"The AP previously described, in October, how Freddie Mac thwarted efforts to bring a tough regulatory bill sponsored by Republican Sens. Chuck Hagel of Nebraska, John Sununu of New Hampshire, Elizabeth Dole of North Carolina and John McCain of Arizona to a full Senate vote.

At a meeting days after Hagel's bill went to the full Senate, Syron and McLoughlin berated the company's in-house lobbyists for failing to keep Hagel's bill corralled in committee, said the four people familiar with events at Freddie Mac at the time.

Freddie Mac shifted into high gear, secretly paying a Republican consulting firm, Washington-based DCI Group, $2 million to kill Hagel's legislation. The covert lobbying campaign targeted Republican senators in 2005-06.

According to the newly obtained records, DCI's deployment was part of a broader campaign that targeted mainly Republicans on Capitol Hill.

The internal Freddie Mac documents show that 17 of the lobbying firms and consultants paid in 2006 were specifically directed to focus on Republicans and four on Democrats, with varying targets for the rest."

Paul, the Democrats had control of Congress, not the Republicans. That is why Freddie Mac needed to concentrate on the Republicans. There was little disagreement in the Democratic party to leave Freddie Mac alone.

Paul, do you really want us to believe that Freddie Mac buys individual tickets for each game as oppossed to having box seats. Here is the pricing for the Washington Nationals. It is reported that Diamond Club seats are $90.00, not $45.00. Let's entertain Paul's story for a moment. The price of his ticket is $45.00. The price of parking is between $15.00 to $40.00 for valet per game. The average price of an entree at Kosher Sports is between $11.00 and $20.00. Burgers at the Hard Times Cafe located at the stadium are almost $9.00. The price of a domestic draft beer is $7.50. The price of a mixed drink is between $8.00 and $12.00.

Lets add it up. $45.00 for ticket, $20.00 for parking, $9.00 for a sandwich, $8.00 for a mixed drink, and these prices are the low end. $82.00 is what I get, not $45.00. When you go to the ball park do you only have one beer???

When you go to your seat what are the chances that the CEO and lobbyists of Freddie Mac are sitting next to you? But, according to Paul, it was the Associated Press that is misleading the public.

Once Again Paul Kanjorski Goes National

How Freddie Mac Splashed Cash to Halt RegulationDec 8 2008- According to internal Freddie Mac documents obtained by the AP, Reps. Bob Ney, R-Ohio, and Paul Kanjorski, D-Pa., spent the evening in hard-to-obtain seats near the Nationals dugout with Freddie Mac executive Hollis McLoughlin and four of Freddie Mac's in-house lobbyists. Both were members of the House Financial Services Committee.

AP IMPACT: How Freddie Mac halted regulatory drive By PETE YOST – 7 hours ago- According to internal Freddie Mac documents obtained by the AP, Reps. Bob Ney, R-Ohio, and Paul Kanjorski, D-Pa., spent the evening in hard-to-obtain seats near the Nationals dugout with Freddie Mac executive Hollis McLoughlin and four of Freddie Mac's in-house lobbyists. Both were members of the House Financial Services Committee.

Company documents: Kanjorski took gift of lender Sunbury, PA Dec 8 2008-According to confidential company documents obtained by The Associated Press, Reps. Bob Ney, R-Ohio, and Paul Kanjorski, D-Pa., spent the evening in hard-to-obtain seats near the Nationals dugout with Freddie Mac executive Hollis McLoughlin and four of Freddie Mac’s in-house lobbyists. Kanjorski declined comment through a spokeswoman.

AP IMPACT: How Freddie Mac halted regulatory drive- Phila. Dec 8, 2008 According to internal Freddie Mac documents obtained by the AP, Reps. Bob Ney, R-Ohio, and Paul Kanjorski, D-Pa., spent the evening in hard-to-obtain seats near the Nationals dugout with Freddie Mac executive Hollis McLoughlin and four of Freddie Mac's in-house lobbyists. Both were members of the House Financial Services Committee.

Even Oregon got into the picture. AP IMPACT: How Freddie Mac halted regulatory drive
12/8/2008, 12:43 a.m. PST By PETE YOST The Associated Press- According to internal Freddie Mac documents obtained by the AP, Reps. Bob Ney, R-Ohio, and Paul Kanjorski, D-Pa., spent the evening in hard-to-obtain seats near the Nationals dugout with Freddie Mac executive Hollis McLoughlin and four of Freddie Mac's in-house lobbyists. Both were members of the House Financial Services Committee.

From dust thouart to Asheville, N.C. thou shalt return. Miami, Cleveland, I could keep going.

Lets return to two of my previous posts. If you really want to go to the September 23, 2008 post and my September 21, 2008 post. Why is it new to the Associated Press?

Obama and Kanjorski Benefited From Freddie Mac and Fannie Mae's Influence

Here is a Youtube.com video where Daniel Mudd, Fannie Mae CEO calls Obama and the Dems the "Family" and "Conscience" of Fannie Mae. He is speaking before the Congressional Black Caucus at its 2005 swearing in ceremony.



The Associated Press reported how Freddie Mac influenced Congressional action to thwart increased regulatory oversight. Of course, Paul Kanjorski would be at the cetner of that influence.

"When the Washington Nationals played their first-ever baseball game in the nation’s capital in April 2005, two congressmen who oversaw mortgage giant Freddie Mac had choice seats — courtesy of the very company they were supposed to be keeping an eye on.

Efforts to tighten government regulation were gaining support on Capitol Hill, and Freddie Mac was fighting back. The baseball tickets for the home opener were means of influence.

According to confidential company documents obtained by The Associated Press, Reps. Bob Ney, R-Ohio, and Paul Kanjorski, D-Nanticoke, spent the evening in hard-to-obtain seats near the Nationals dugout with Freddie Mac executive Hollis McLoughlin and four of Freddie Mac’s in-house lobbyists."
Bob Ney would be the same Congressman who authored the Ney-Kanjorski bill which attempted to gut state predatory lending laws.

Ney would be the same former Congressman who was sentenced to 30 months in jail after admitting "that he performed official acts for Abramoff's lobbying clients between 2001 and 2004, receiving in exchange luxury vacation trips, skybox seats at sporting events, campaign contributions and expensive meals." Would they be the same tickets Paul Kanjorski accepted and uncovered by the Associated Press?

Paul Kanjorski, Rahm Emanuel, and Freddie Mac

The ink isn't dry on this election before we start to hear the horror stories. Here is the latest about Rahm Emanuel.

Emanuel Was Director Of Freddie Mac During Scandal By BRIAN ROSS and RHONDA SCHWARTZ
November 7, 2008

New Obama Chief of Staff, Others on Board, Missed "Red Flags" of Alleged Fraud Scheme

President-elect Barack Obama's newly appointed chief of staff, Rahm Emanuel, served on the board of directors of the federal mortgage firm Freddie Mac at a time when scandal was brewing at the troubled agency and the board failed to spot "red flags," according to government reports reviewed by ABCNews.

According to a complaint later filed by the Securities and Exchange Commission, Freddie Mac, known formally as the Federal Home Loan Mortgage Corporation, misreported profits by billions of dollars in order to deceive investors between the years 2000 and 2002.

Emanuel was not named in the SEC complaint (click here to read) but the entire board was later accused by the Office of Federal Housing Enterprise Oversight (OFHEO) (click here to read) of having "failed in its duty to follow up on matters brought to its attention."

Paul Kanjorski is part of the fraud perpetrated on American citizens. It is not coincidental that all the players live in the same House.

Murtha Rats Out Kanjorski On Fannie Mae and Freddie Mac

The folks over at The Weekly Standard wrote this story on John Murtha's Freddie/Fannie Distortions. "(I)t's worth looking at the rest of his recent interview to get a sense of how he views the credit crunch. Here's how Murtha describes how we got into this financial mess:

Six months ago they said to me... Paul Kanjorski - who's on the Banking Committee said 'Fannie Mae and Freddie Mac aren't going to make it. A hundred banks are going to go bankrupt.' I said 'well what the hell are we doing about it? What do you mean?' I could hardly believe that. Finally the president kept saying things are all right. Well the president has no credibility. When he says something nobody believes that.

And so finally Bernanke and Paulson came over. Scared the hell out of us. I mean, scared us... made us... convinced us that we had to do something. And of course they sent a 3 pages thing over -- an open door."

JSchmidt of Brookfield, CT asks these questions of Kanjorski. "Murtha paints a picture that does not reflect reality. He is either foolish or dishonest--or both.And what of Kanjorski? Murtha says that Kanjorski knew 6 months ago that Fannie Mae and Freddie Mac were going under. That was well before the severity of the problem became fully apparent.Where were Kanjorski's warnings, and call for an immediate response?- None"

This information is consistent with Jim Lehrer's interview with Paul Kanjorski:

REP. PAUL KANJORSKI (D), Pennsylvania: Well, of course, I'm on the committee of jurisdiction, so I've been watching...

JIM LEHRER: The Financial Services Committee.

REP. PAUL KANJORSKI: That's right. I've been watching this disaster, if you will, unfold for probably two years now, and particularly since last August -- not this immediate past August, but the August before that, when the subprime mortgage problem was created.

In the meantime nobody told Barney Frank. On July 14,2008 he is quoted as saying "I think this is a case where Freddie Mac and Fannie Mae are fundamentally sound."

Paul Kanjorski, may I ask a few questions? What do I do now? When will stocks come back? When will I see my 401(k) rise? Can I still retire? What's next for home prices? Is my job safe? Can I count on my money fund? Will my taxes shoot up? You found a solution for your corporate friends now how about homeowners.

Kanjorski Told Us Fannie and Freddie Weren't Failing In July

7/11/08: Kanjorski Reacts to Fannie and Freddie Share Losses

WASHINGTON - Today, Congressman Paul E. Kanjorski (D-PA), Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, released the following statement on his reaction to recent turmoil in the stock prices of Fannie Mae and Freddie Mac.

"We must not over react to the recent drops in Fannie Mae's and Freddie Mac's stock prices. It is important to have contingency plans in the works, but the two government sponsored enterprises are not failing. The Office of Federal Housing Enterprise Oversight has assured me that it is working to ensure the safety and soundness of Fannie Mae and Freddie Mac. Both companies continue to have sufficient capital and liquidity, as I understand.

Shocking Video Unearthed Show Paul Kanjorski and his fellow Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam

This shocking video posted by NakedEmperorNews on YouTube shows Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis. You can see Paul Kanjorski at the hearing sitting next to Maxine Waters as the camera pans around to focus on her as she speaks. As I wrote before, Paul Kanjorski misled the public about his true efforts to reform Fannie and Freddie. This episode should be called the Fannie, Paulie, Freddie MAC hour.

Kanjorski Protected Fannie Mae and Freddie Mac

In response to the present financial fisaco Paul Kanjorski released a list contaning the legislative attempts and actions he took to ensure the financial stability and health of Fannie Mae and Freddie Mac, two government sponsored enterprises(GSEs) where oversight fell directly under his subcommittee. In a September 21, 2008 article by Borys Krawczeniuk of the Scranton Times Tribune Kanjorski defended his financial oversight record.

A release from his office is quoted “From the very start, Congressman Kanjorski calls for a strong, independent regulator that has the resources needed to get the job done,” the timeline says. “More than two dozen ... hearings follow in the next several years and legislation begins to move forward afer the identification of accounting problems at Freddie Mac and Fannie Mae.”

It goes on to blame President George Bush and a Repbulican Congress for ignoring his efforts. The problem with Paul Kanjorski is that he is incapable of thinking, incapable of governing, and incapable of telling the truth.

On the very same day the folks over at gatewaypundit published an article titled "Bush Called For Reform of Fannie Mae & Freddie Mac 17 Times in 2008 Alone... Dems Ignored Warnings ."

It states "For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted. Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems. The White House released this list of attempts by President Bush to reform Freddie Mae and Freddie Mac since he took office in 2001.Unfortunately, Congress did not act on the president's warnings:"

If you click on the link for that article you can read President Bush's attempts that seem to refute Paul Kanjorski's asssertions at feeble attempts to straighten out Fannie Mae and Freddie Mac. After all Paul did take their PAC money but tried to tell the American public it doesn't influence the way he does his job. Paul, so why did you take their money?????

Freddie, Fannie, Paulie

In congressional testimony last week, FBI Director Robert Mueller confirmed that the bureau is investigating 24 financial institutions, "large corporations, where the allegations would be that there were misstatement of assets," he said.

A senior official tells ABC News that lending giants Freddie Mac and Fannie Mae are in the government's sights, as well.

So Paulie, how are those contributions working out for you!?