The Stupidity of Rush: Blaming Sen Schumer for IndyMac Failure

Rush Limbaugh is stretching his already weak credibility with this whopper. Rush blames Sen Schumer for the failure of IndyMac which in turn caused the financial meltdown in October which in turn enabled Obama to win the Presidency. Can Rush get any more idiotic? I hope this is a joke on his part. Why would anyone hurt their already weak credibility by saying something this stupid?

The sleazy part of Rush is that he always puts out the most outrageous BS on the radio and then when he is called upon it he claims "I was only repeating what so and so said" or "I was only quoting what so and so wrote." He is a gutless wonder. I am waiting for someone to call him out on this idiotic statement . I am 100% sure he will claim he was only repeating what the Los Angeles Times, Associated Press and Office of Thrift Supervision says.

No wonder the conservative movement is in its death spiral. Someone with true conservative credentials needs to step up and take over from the blowhards who have really done more harm than good for the conservative movement.

Sen Schumer releases a letter he wrote about his concerns about IndyMac's solvency.

But depositors may have been spooked by a letter late last week from Sen. Charles E. Schumer (D-N.Y.) to the Federal Deposit Insurance Corp., the Office of Thrift Supervision and the Federal Home Loan Bank of San Francisco, saying he was "concerned that IndyMac’s financial deterioration poses significant risks to both taxpayers and borrowers."

Sen Schumer was correct. IndyMac was saddled with huge mortgage debts which went bad. IndyMac's financial situation was getting worse by the hour. So Sen Schumer releases a letter stating his concerns and then IndyMac went bad like Limbaugh wants you to believe? What IndyMac released:

Pasadena-based mortgage lender IndyMac battling fresh rumors that it is near collapse, conceded today that its financial position "has deteriorated since last quarter," and said it was working on a plan with its regulators to improve "the safety and soundness" of the bank.

I guess Rush doesn't understand the meaning of "run on the bank" because he claimed IndyMac collapsed because so many people withdrew their money. IndyMac stated:

In its statement today, IndyMac said that after the Schumer letter appeared in the media, "we did experience elevated customer inquiries and withdrawals in our branch network last Friday and on Saturday of roughly $100 million." IndyMac said that amounted to about 0.5% of its total deposits of $19 billion.

So Rush thinks withdrawals in the amount of less than half of one percent caused the collapse of the bank? It wasn't their horrendous lending practices, their willingness to lend money to anyone who walked in the door, their lack of oversight of lending associates ... none of that caused IndyMac's failure. According to Rush it was Sen Schumer's letter that did the bank in.

IndyMac's failure came after years of rapid expansion during the housing boom. From June 2005 through March 2008, the assets on IndyMac's books jumped from $18 billion to $32 billion, fueled by variable-rate loans made without verifying the finances of borrowers, who often were allowed to pay so little each month that their loan balances rose.

Well I guess Rush is oblivious to facts or its just a scheme to press on lesser informed listeners that Democrats caused Wall Street's meltdown and the ensuing economic crisis. When you are desperate I guess you have to resort to desperate tactics.