A butterfly effect, a small butterfly flutters it's tiny wings and the small buff grows and develops over time into a huge hurricane.

The Butterfly

- Community Reinvestment Act revisions of 1995 by Bill Clinton, inventing the 'sub prime' loan. A social engineering regulation to force banks to provide mortgage loans to poor risk of repayment buyers. This revision changed “traditional lending requirements such as requiring a down payment or limiting mortgage payments to 28 percent of income.” The Boston branch of the Federal Reserve, said these were “arbitrary” and “outdated".

- After relaxing lending standards, President Bill Clinton’s administration's goal of having 67.5 percent national home ownership by 2000 was exceeded.

- A redlining investigation by Clinton's secretary of Housing and Urban Development, Andrew Cuomo, of Fannie Mae entailed the proposal that 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low- to moderate-income borrowers by the year 2001.

Economic Storm

- The S. 900 [106th]: Gramm-Leach-Bliley Act of 1999 which deregulated parts of the Glass Steagall Act. Passed the Senate on Nov. 4 1999, The total votes were 90 Ayes (Joe Biden among them; 36 Democrats, 44 Republicans), 8 Nays, 1 Present/Not Voting (John McCain). The Act passed the House on Nov. 4 1999. The total votes were 362 Ayes (Nancy Pelosi among them; 152 Democrat, 210 Republican), 57 Nays (Barney Frank among them), 15 Present/Not Voting. No amendments regarding changes to CRA certification of banks where allowed as the Clinton Administration stressed that it "would veto any legislation that would scale back minority-lending requirements."

- Community Organizing groups like ACORN (Association of Community Organizations for Reform Now)push banks to make CRA compliant loans. ACORN proudly touted "affirmative action" lending and pressured banks to make sub-prime loans. This is where Barack Obama learned his Executive skills. He funneled money to ACORN from the the Foundations he chaired or headed which funded ACORN's push for sub prime lending. He trained ACORN activists in how to pressure banks into giving CRA loans.

Category 1 Economic Hurricane

- Easy Credit after 9/11. Interest rates where kept deliberately low after the Terrorist attack to bolster economic growth and consumer confidence.

- Congressman Barney Franks vouches in 2003 for the "soundness" of Fannie Mae and Freddie Mac, and said "I do not see" any "possibility of serious financial losses to the treasury." He declared that the federal government has "probably done too little rather than too much to push them to meet the goals of affordable housing."

- Rep. Maxine Waters, D-Ca, said in a Sept. 25, 2003 hearing of the House Committee on Financial Services, "We do not have a crisis at Fannie Mae and in particular Freddie Mac under the outstanding leadership of Frank Raines."

Category 2 Economic Hurricane

- Commodity prices, among them oil, begin a climb to highs that are multiples of 2000 prices.

- In a 2004 hearing, Rep. William Lacy Clay, D-Mi, tried to inflame and misdirect an investigation that found illegal activity at Fannie Mae by calling it a "lynching," . Both Clay and Fannie Mae CEO Franklin Raines are African American.

- Lobby money from Fannie Mae/Freddie Mac is paid out to supporters. Obama managed to become the third biggest all-time recipient of Fannie Mae/Freddie Mac PAC and Lobby money after only three years in the Senate, $105,849.With a 30 year head start, Democratic Sen. Chris Dodd, was number one in receiving loot from Fannie Mae/Freddie Mac, $133,900.

- Any attempt to create any regulatory legislature was derailed by lobby pressure from Fannie Mae and Freddie Mac. Efforts started in 2004/2005 to put them under the supervision of a world class regulator at a new agency within the Department of the Treasury among them. John McCain signed onto this as a co sponsor in 2006. The changes where blocked in committee or by other means for the reasons stated by Representative Frank, Barney H D-MA, who received $40,100 from Fannie Mae/Freddie Mac, He said "These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis, the more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing." Representative Mel Watt(D-NC) added "I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing."

Category 3 Economic Hurricane

- FASB 157 goes into effect Nov. 15, 2007. An accounting change that changed asset values to Mark - to - market means devaluing assets to their current market value and not the maturity book value. Devaluing assets in a soft market even if there are no plans to sell the asset in a soft market.

- Housing Bubble bursts. Joe Biden endorsed bill to revise the bankruptcy laws passes. In 2005, Senior Senator Joe Biden helps develop democratic support for the Bankruptcy Abuse Prevention and Consumer Protection Act. Notice the misleading name Consumer Protection Act, I love how congress always names laws that will harm someone as a law that will protect them. This law prevents saving a primary house by renegotiating the mortgage loan when you file for bankruptcy if you own the house less than 730 days. Now people who bought houses they couldn't afford in the first place and now can't pay their bills, will lose their house and any money they put into it. Many houses enter the market with no one able to buy them. Prices of homes begin to plummet.

- Government passes a $150 billion in a stimulus package for the nation.

- Government bailout of $29 billion for the bad assets of Bear Stearns to entice J.P. Morgan to buy the investment bank .

- Government bailout of $85 billion for 80 percent of AIG.

- Government bailout of $300 billion for Fannie Mae and Freddie Mac.

Category 4 Economic Hurricane

- $700 Billion rescue plan enacted in America to purchase the assets containing the sub prime mortgages banks where forced to make because of the Community Reinvestment Act.

- On Sept. 25. 2008, in an appearance by Bill Clinton on ABC's "Good Morning America" . There was reference to his party's reluctance to place more restrictions on Fannie and Freddie. Bill Clinton said, "I think the responsibility that the Democrats have may rest more in resisting any efforts by Republicans in the Congress, or by me when I was president, to put some standards and tighten up a little on Fannie Mae and Freddie Mac."

Category 5 Economic Hurricane

World wide depression of capitalist based democracies. Rise of Islamofascists in the middle east in countries rich from oil revenue. Rise of Socialist bastions in South America similarly enriched from oil revenues. A scenario similar to the 1930's and the rise of Nazi Germany and Imperial Japan.

Other Social engineering butterflies upsetting the economy. 

Regulations for Biofuel Subsidy is already causing;

- Higher Food costs

- Famine in Haiti

Regulations against Nuclear Power Plants.

Regulations against American territory oil drilling.

What will their category 5 status look like?

The ultimate strategy to gain power. Create an economic mess by passing laws ostensibly to equalize social disparity. Count on human nature to not remember the details of what you did after a year or two and be able to connect the consequences to the cause. Foster the birth of the ills onto your enemy when they come to fuition, and then promise the harmed voters you can make the changes to correct them if they join you. Sway the non devoted with promises to buy their vote with lower taxes or more government handouts. Obtain the power.

The sub prime mortgage debacle started with Bill Clinton and his congress lowering the mortgage acceptance requirements of borrowers by passing changes to the Community Reinvestment Act in 1995 (http://en.wikipedia.org/wiki/Community_Reinvestment_Act). This lowered the income and verifications needed for credit worthiness for mortgage loans by creating a new class of loans, sub prime mortgages. This law was passed to remove regulations because of a mortgage loan approval disparity between whites and minorities. Loan approval rates of 72% for minorities and 89% for whites was being called evidence of racial discrimination by lenders. A Democratic social engineering of business practices was needed right away!

Because the regulations allowed anyone of any race access to the lower standards, the ratio of white to minority of a loan acceptance did not change. As many poor whites where getting loans as poor minorities. To try to get the ratio to be even, more and more loans where given to people with fewer and fewer verification checks made on them. All in an attempt to try to meet the requirements by law to have as many loans accepted from minority borrowers as white borrowers. Eventually the minimum loan requirements became a signature with claims of income and no verification. Finally, loan acceptance equity, 100% for everyone.

So mortgages become easier to get. Unfortunately, no one preplanned for a large amount of new first time buyers. Demand for houses went up, but the amount of houses available had not been built up to accommodate this extra demand. The price of houses started to go up faster than normal as the laws of low supply and high demand took effect. As the price of houses went up quickly from year to year, builders tried to increase the supply to meet the demand. Mortgage originators accepted any and all loan applicants. Soon, the speculators noticed the quick rise in home prices, and began buying houses to sell a few months later for a profit. This added to the demand and the rise in home prices.

Everyone was happy. Builders sold houses as fast as they could build them. Mortgage bankers where loaning money as fast as they could get new money to loan. Poor people who couldn't have paid for a house before the prices went up could easily qualify for a house now.

In 2005, Senior Senator Joe Biden authors the Bankruptcy Abuse Prevention and Consumer Protection Act. Notice the misleading name Consumer Protection Act, I love how congress always names laws that will harm someone as a law that will protect them. This law prevents saving a primary house by renegotiating the mortgage loan when you file for bankruptcy if you own the house less than 730 days(http://en.wikipedia.org/wiki/Bankruptcy_Abuse_Prevention_and_Consumer_Protection_Act). Now people who bought houses they couldn't afford in the first place and now can't pay their bills, will lose their house and any money they put into it.

Suddenly everyone is not happy. Builders can't sell anything they are building. Mortgage bankers can't get anyone to pay the loans they have. Homeowners are Homeowners no more and have no credit to continue to be good consumers either.

The economy tanks. Construction companies lay off workers and stop buying material. Material suppliers go out of business. Mortgage bankers suffer huge losses. Bankers go out of business or get bailed out by the government if they have the lobby power. News of economic slowdown spreads and puts the fear of insecurity into the population. The slowdown is overexagerated by the Democrats and hyped as a recession so bad that they haven't seen things this bad since the Depression. It isn't, remember the 21% inflation and 11% unemployment President Jimmy Carter saddled America with? The Democrats fool the regular population into believing the they are the only ones who saw the problem coming and they could fix it if voted into office. Well, I suppose they did see it coming and know how to fix it, they created it.

Although one man did suspect a problem and tried to prevent it. In 2003, Senior Senator John McCain introduced a significant regulatory overhaul in the housing finance industry since the savings and loan crisis from ten years before. He wanted to place two of the primary agents guaranteeing subprime loans, Fannie Mae and Freddie Mac under the supervision of a new agency within the Department of the Treasury. Democrats prevented passing the changes, Representative Barney Frank(D-MA) said "These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis, the more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing." Representative Mel Watt(D-NC) added "I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing." The Democrats had prevented the plan from being unraveled.

The person that was destined to reap the rewards and be able to win the White House, Hillary Clinton, was usurped in her run by a newcomer. Although a bitter battle was fought by her to be able to claim the bounty of the plan, it was not to be. Junior Senator Barack Obama soon became the new anointed one to lead the party because of his superior speaking charisma. He was presented to the populace with as much ceremony and aplomb as possible on August 28, 2008 so that no one would doubt he is 'the one'. Senior Senator Joe Biden is given to him as Vice President. This is Joe Biden's reward for helping make some of the bankruptcy reform laws that would enable the Democrats to claim a poor economy.

A nice strategy. Pass laws to make the economy drop through the floor. Blame your enemy for all the ills you concoted behind the scenes, laws that normal people, especialy the young, will not have knowledge of or remember. Offer up promises of change and hope because you are the one they have been waiting for to fix the problems. Promise more money for the voters on the fence by lowering taxes to buy their vote. Ask for more governmental control and power to regulate so this mess doesn't occur again. They should make a movie with a plot similar to this, it would be great.

May the Force be with you, John McCain.

Since the day Senior Senator John McCain picked Governor Sarah Palin as his Vice Presidential pick, Junior Senator Barack Obama and his hand picked team have been been flummoxed.

He has been sidetracked into attacking Sarah Palin by master strategist John McCain. Falling into the trap with both feet in mouth. The choice of Vice President is the first telling judgement decision a Presidential nominee makes. Barack Obama chose Joe Biden, John McCain chose sarah Palin. Once again John McCain's judgement genius shines brightly.

Barack Obama's campaign spokesman Bill Burton said of the choice "Today, John McCainput the former mayor of a town of 9,000 with zero foreign policy experience a heartbeat away from the presidency,". This only served to highlight Obama's lack of experience and completely neglected to consider the fact she is a Governor of a State. Perhaps Barack Obama doesn't consider Alaska one of the 57 states in the U.S.A.

Democratic Congressman Russ Carnahan in referring to Sarah Palin in an introduction speech used the jab. “There’s no way you can dress up that record, even with a lot of lipstick,”. Later that day, Barack Obama used a lipstick jab which may have been planned, or may have been a spur of the moment thought "You can put lipstick on a pig," he said. "It's still a pig.". Considering the other campaign members use of the lipstick reference and the reaction of his audience, it's hard to believe his denial that he wasn't purposefully making a snide remark about Sarah Palin. Either way, it was a bad judgement call to use it.

Obama has continued to attack Sarah Palin on non issues, drawing laughs at a campaign stop by calling her a “moose shooter.” Again he fails to react to his real oponent, John McCain. Instead he is distracted and off target. He fails to realize his true target, or to formulize an adequate strategy of attack or defense. Instead he is resorting to school yard retort's of name calling.

If he is paralyzed and confused by what he considers a country bumpkinsh religious zealot from the sticks for upwards of two weeks, what will he do when faced with crisis generated by the likes of Russia's Prime Minister Vladimar Putin, Iran's President Mahmoud Ahmadinejad, or China's President Hu Jintao.

This election, our choices are Obama change, or McCain change. Junior Senator Barack Obama extols change with the hyperbole of Robin Hood high tax economics, big government socialist program fireworks, and the charisma to melt eyelashes of smitten admirers. Senior Senator John McCain works towards change with bi-partisan written law, partnerships with people of any party who will roll up their sleeves to put America first, and the character of a person who can and has fought evil and survived.

The smoke screen tax break for 95% of Americans is misleading tax the rich and give to the poor proposal. After the 5% who have their taxes raised are forced to cut back on their employee payroll or close up their business all together, the newly unemployed can be grateful to Barack Obama that they can get a few hundred dollars a month for food stamps.

The money left over from the 'tax the rich' (i.e. smal busuness owners and farmers) after food stamps are doled out, will be used to make bigger more inefficient prone socialist bureaucracies to design other ways to make Americans subservient to the government instead of the government subservient to Americans.

Senator Obama's charisma has helped him develop a devoted following. His tele-promptor speeches are mesmerizing. His performance when faced with questions he has no advanced speech for leave something to desire. His dismal performance in the Saddleback forum may point to his cowardly decision not to face John McCain in a town hall style debate where unknown questions may be presented.

John McCain has concrete work on ethic's reform in the congress, winning the Paul H. Douglas Ethics in Government award. He has fought steadfastly, and often alone, against pork-barrel projects. In 2002 he succeeded with campaign finance reform.

With some of his democratic and independant collegues, he has proposed and backed laws for a strong national defense and foreign policy. In 2005, he formed and lead 'The Gang of 14', a bipartisan group (seven democrats and seven republicans) of Senators in the 109th Congress that successfully negotiated a compromise to avoid the deployment of an organized use of the filibuster by Senate Democrats.

On October 26, 1967 he was captured by the North Vietnamese during the Vietnam war. After 5 and a half years of torture, he was released March 14, 1973. Despite this treatment, he was instrumental in 1995 with the U.S. normalization of diplomatic relations with Vietnam.

Judgement is what we can expect from Junior Senator Barack Obama. He has little experience, but his judgement more than makes up for it. Senator John McCain on the other hand, as claimed by the Democratic party members, has poor judgement despite his many years of experience.

On August 8 2008, Russia invaded Georgia on the pretense they where protecting Russian citizens. Junior Senator Obama huddled with his advisers for hours and then proclaimed that both sides should talk and form a cease fire. Later he suggested that the U.N. Security Council should solve the issue, forgetting that Russia has a veto in the Security Council. Finally, three days after the invasion, he makes a statement harshly criticizing Russia. A statement virtually identical to Senator McCain's given immediately after the invasion.

When Russia invaded Georgia, there was no huddle with foreign relations advisers for hours for John McCain. McCain immediately knew Russia was the aggressor and condemned them. A position Junior Senator Obama finally achieved after 3 days of advisor consulting.

In the Saddleback Forum Junior Senator Barack Obama constantly intellectualized his decisions to seem to be from both sides. When asked about when he thought life begins, unable to straddle, Junior Senator Obama declared that when life begins is above his pay grade.

During the Saddleback Forum, when Senator McCain was asked when life begins, the answer was instant and unequivocal. At conception was his judgement.

When Junior Senator Obama was in the senate for the few days he actually worked before taking off to become the rock star Democratic American Idol star, I mean Democratic Presidential nominee, he declared the Iraq war lost and demanded all of our troops be withdrawn immediately. In his considered opinion, experience and wisdom, there was no strategy or tactic the Coalition Forces could use that would ever bring peace to Iraq.

Back in 2003, Senator McCain warned we needed to provide our troops with enough manpower and resources to win the war. When things where going badly, he pushed for a surge in troops and clashed with his own party leaders to make them see the wisdom of his judgement. Now we are well on the way to a peaceful Iraq.

During Junior Senator Obama's time in the Illinois state senate, he voted over 130 times 'present'. Not able to judge whether to vote yes or no for legislature which he had ample time to study, a job he was being paid to do.

During Senator McCain's long time in the U.S. Senate, he formed alliances with Democrats and Independents to author legislation on ethics. Not content to just vote for whatever was proposed, he originated and made judgement's about legislature with fellow senators of all ilk he judged to be helpful.

For a Vice Presidential nominee, Junior Senator Barack Obama picked Senior Senator Joe Biden. Someone he could count on for his many years of foreign relations experience. After all, he conjectured, someone in the office should have a clue if they where elected.

Senator McCain made a short phone call to a little known Governor of Alaska and was able to assess her character. He picked Governor Sarah Palin as his Vice Presidential nominee. When people heard this, they where shocked at how fast he could just flippantly pick his VP. Now they are amazed at how perfect his pick is.

Obama refined his position on Iraq. He refined his position on late term abortion. He refined his position on the Strategic Petroleum Reserve. He refined his position on off shore oil drilling. His judgement is slow, taking days, weeks, months to gestate.

McCain judges correctly with less then a moments thought, his experience and wisdom have made good judgement for him an instinct.

When we live in a world where America can end as we know it within an hour of the push of a button, we need a person with experience, wisdom, and good judgement to lead the Free World.

Senator John McCain selected Alaska Governor Sarah Palin as his partner for the Presidency.

Senator McCain turned 72 on August 28th, still working hard and strong for the American people he has served since graduating from the Naval Academy. A man who lived through years of torture for his country and yearns to give more. Iron character standing hard against Washington ear marks and exuberant spending.

Governor Palin is 44 with a family of 5 children she is raising while working to reform politics as usual since being elected Mayor of her town. A smart successful woman who will get up for the 3 am call to hunt pork in Washington. Nice to all and good natured, yet she leaves a field of strewn bodies of those ethically challenged or fiscally irresponsible.

The combination of these two political reformers on the pork and lobby institution in Washington D.C. should be interesting to watch. The pork waste of the democratic, republican, and independent members of the congress will be leaned out. The stranglehold on the purse strings of America by the lobbyists of Washington will be trimmed. An interesting time to come. For ear mark pork politicians and ethically challenged legislative lobbyists, may you live in interesting times.

The CIA and NSA discover evidence Iran has developed nuclear weapons and dirty bomb technology. Iran plans to supply nuclear bombs to terrorist groups who want to transport them to America and Israel in suicide bombing attacks. The President calls an emergency meeting of the best cabinet his party was able to provide to plan a course of immediate action to thwart this threat to American lives.

Secretary of the Interior says “I vote we should double the guards on all National Parks in Northeast Alaska so the caribou aren’t harmed.”

Secretary of Education says ” I vote we should provide free education to the madrases educated Muslim terrorists so they can learn the errors of their ways.”

Secretary of Defense says “I vote we withdraw all troops from anywhere near Iran so they don’t feel threatened.”

Secretary of Commerce says “I vote we sanction the Iranian government and stop selling them American made goods so our citizens aren’t burdened with money from their citizens.”

Secretary of Homeland Security says “I vote we place the names of the people in the Iranian government on the ‘do not fly’ list.”

Secretary of State says “I vote we open an ‘office of communications’ in Iran and talk to them so they will understand us and our common grounds.”

President Obama says “I have carefully considered the matter and have drawn upon my omnipotent judgement abilities and I vote ‘Present’.”

Barack Obama visited Germany on his tour of the Middle East and Europe in an eight day crash course in world politics. While in Germany, he gave a speech to 200,000 European citizens, carried live by every news network. The entire speech. For free, worldwide press coverage for as long as the speech lasted. What a political coup!

What did Senator Obama miss to get even more photo ops? Well, he didn’t visit the wounded troops at the Landstuhl Regional Medical Center. O’ wait, the military said no press could come on the visit. O’ well, no photo op, scratch that off the itinerary. Instead, Barack Obama spent time at the gym, before going to his adoring European fans.

Worldwide covered photo op. Visit wounded troops. Hmmm.. have to do the thing that gets the best political gain and adds to his ‘god-like’ fan worship. Photo op it is.