The Fed Did Indeed Cause the Housing Bubble

Catherine Austin Fitts
Global Research
March 23, 2009

This text by Catherine Austin Fitts is a response to an article entitled “The Fed Didn’t Cause the Housing Bubble” by Alan Greenspan, former Chairman of the Federal Reserve, published in the Wall Street Journal. Alan Greenspan is a liar. The Federal Reserve and its long standing partner, the US Treasury, engineered the housing bubble, including the fraudulent inducement of America as part of a financial coup d’etat.

In his article on your opinion page, “The Fed Didn’t Cause the Housing Bubble,” Alan Greenspan attributes the housing bubble to lower interest rates between 2002 and 2005. That’s amazing to me.

My company served as lead financial advisor to the Federal Housing Administration between 1994 and 1997. I watched both the Administration and the Federal Reserve aggressively implement the policies that engineered the housing bubble. These are described at my website and in my on-line book,Dillon Read & the Aristocracy of Stock Profits (http://www.dunwalke.com).

One story, for example, is the following:

“In 1995, a senior Clinton Administration official shared with me the Administration’s targets for Fannie Mae and Freddie Mac mortgage volumes in low- and moderate-income communities. We had recently reviewed the Administration’s plans to increase government mortgage guarantees — most of these mortgages would also be pooled and sold as securities to investors. Even in 1995, I could see that these plans would create unserviceable debt loads in communities struggling with the falling incomes expected from globalization. Homeowners would default on mortgages while losses on mortgage-backed securities would drain retirement savings from 401(k)s and pension plans. Taxpayers would ultimately be hit with a large bill . . . but insiders would make a bundle. I looked at the official and said that the Administration was planning on issuing more mortgages than there were houses or residents. “Shut up, this is none of your business,” the official snapped back.”

From: “Sub-Prime Mortgage Woes Are No Accident” (http://solari.com/news/announcements/08-07-07/)

One of the dirty little secrets behind the housing bubble is the long standing partnership of narcotics trafficking and mortgage fraud and the use of the two in combination to target and destroy minority and poor communities with highly profitable economic warfare. This model is global. It is operating in counties throughout the world as well as in US communities.

Of all the actions that the Federal Reserve took to engineer this housing bubble, the one that I would note is Mr. Greenspan’s efforts to pacify Congresswoman Waters regarding allegations of government sponsored narcotics trafficking at a time when open Congressional hearings would have contributed to an important discussion of the operations engaging in mortgage fraud in minority communities. See, “Financial Coup d’Etat,” Chapter 16, Dillon Read & the Aristocracy of Stock Profits which was written in 2005 and published in April 2006, drawing from an article I first published in May 1999.

“On December 18, 1997, the CIA Inspector General delivered Volume I of their report to the Senate Select Committee on Intelligence regarding charges that the CIA was complicit in narcotics trafficking in South Central Los Angeles. Washington, D.C. ’s response was compatible with attracting the continued flow of an estimated $500 billion–$1 trillion a year of money laundering into the U.S. financial system. Federal Reserve Chairman Alan Greenspan in January 1998 visited Los Angeles with Congresswoman Maxine Waters — who had been a vocal critic of the government’s involvement in narcotics trafficking — with news reports that he had pledged billions to come to her district. In February Al Gore announced that Water’s district in Los Angeles had been awarded Empowerment Zone status by HUD (under Secretary Cuomo’s leadership) and made eligible for $300 million in federal grants and tax benefits.”

Alan Greenspan is a liar. The Federal Reserve and its long standing partner, the US Treasury, engineered the housing bubble, including the fraudulent inducement of America as part of a financial coup d’etat. Our bankruptcy was not an accident. It was engineered at the highest levels.

Fascism under the U.S. Constitution will be covert until that Constitution is irrelevant. The role of a fascist press will be to suspend the mind of the public away from the Constitution's destruction. Real Courts must address the real threat of a covert intrusion of subconscious propaganda into the American system, just as the study of subconscious political programming was necessary in the Cold War. Subconscious programming is the real threat to American children, as its machinations are so readily dismissed as only "theory." There is nothing theoretical about the tyranny and power of groupthink conformity under Mind Control.

This week marks the beginning of the 7th year of the US war on Iraq, we're 7-1/2 years into bombing Afghanistan, with 17,000+ more troops now headed that way thanks to the changes wrought by a new administration, and now have US drones bombing Pakistanis at an increased rate ...

America is outraged, OUTRAGED, that AIG execs got $159 million (or is it now $200+ million?) of our money. Where is the outrage over the fact that we're still spending $720 million EVERY DAY on this continuing illegal occupation of Iraq!! Condoleeza Rice is again spewing nonsense, "We never tried to tie Saddam Hussein to 9/11." W. is on the speaking circuit (yes, seriously!) talking about his "momentous" years in the Oval Office while hundreds outside the Calgary Chamber of Commerce demand his arrest as a war criminal. Cheney is still declaring victory in Iraq and proclaiming the economy is crashing because "stuff happens". Omitted: no talk about 600 top engineers and scientists who can prove beyond a reasonable doubt that 9/11 was an inside job. No talk about the energy inside those buildings was a million times higher than a "pancake collapse" would have produced. No talk about a controlled media working only for a small elite and brainwashing millions of children for "endless war" based on lies. No talk about the trillion dollar drug industry which serves world-wide eugenics operations and fueled Wall Street greed and corruption.

Hear how 911Truther and former Bush administration official Catherine Austin Fitts was poisoned after daring to speak the truth.

The fascist attack on 9/11 will not be obvious. In the post-Orwellian age, the truth is neither popular nor easy to understand. When a powerful military controls the media, only the exceptional patriot will actually rise above Mind Control.

5,000 Children Stolen and Abused in One Pennsylvania County.

Put simply, unchecked governmental tyranny has now afflicted most of America. Over 25 million so-called "noncustodial" parents as direct victims... 3000 helpless children removed from their loving families every week, 9/10ths of them falsely began, and 1 child dying in foster care every hour... that's every hour... Countless victims of legal plundering upon our elder citizens... The list of flagrant due process and civil rights violations is dwarfed only by the number of American families directly affected by their atrocities. We are everywhere. Oh, and, by the way, even when you count all of the governmental personnel involved in these numerous horrors, we - the victims and their families - outnumber, and can outshout and outpaper, those government people, by at least a factor of 10,000 to 1, if not more...

Zeitgeist: Addendum---The true source of Terrorism and Slavery


The End of America: Movie
9/11 Visibility Website
The Exceptional Patriot: Dr. David Ray Griffin
The Exceptional Patriot: Naomi Wolf
The Exceptional Patriot: Charlie Sheen
The Exceptional Patriot: Ed Asner
The Exceptional Patriot: Jesse Ventura
Primitive Evil Resurrected in Bedford, Pennsylvania





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