A Confession, a Communist Connection, and a Congress of Academy-Award Nominees
US federal Housing and Urban Development (HUD) Secretary Alphonso Jackson was in Hong Kong shamelessly trying to unload imploding subprime mortgage-backed securities (MBS) on the Chinese with the promise of a bailout by US taxpayers (he mentioned US government backing in a 7/11/07 Bloomberg interview, viewable on BNN Bubble News Network).
Even more telling, Jackson claimed that the federal government including he and Ben Bernanke foresaw today's subprime mess "about a year and a half ago" (late 2005 or early 2006).
Remember Jackson's claim when the politicians do their Casablanca Captain Renault routine that they are shocked--shocked--to learn that there had been risky lending going on in this country.
UPDATE 4/13/08: Jackson was trying to dump MBS on Asia the month before the August 2007 effective Fed funds rate spike and stock-market quake, and the start of Bernanke's panicked bailouts.
Does Jackson's MBS shilling count as insider trading?
Irony or Crime?
- Late 2005/early 2006: Jackson/HUD and Bernanke/Fed know about mortgage time bomb.
- June 2007: Jackson/HUD celebrate Bush's "National Homeonership Month" ( HUD KICKS OFF NATIONAL HOMEOWNERSHIP MONTH Reform of the FHA will better “Promote and Protect Homeownership” News Release HUD No. 07-076 HUD Public Affairs 6/1/07).
- July 2007: Jackson/HUD try to dump MBS on Asia.
- August 2007: The bursting housing bubble/MBS market panic Wall Street and the Federal Reserve. The Federal Reserve begins bailouts in the so-called housing/stock/credit/liquidity/solvency crisis.
Alphonso Jackson update: You Paid $100k for Pictures of Your Fearless Government Leaders