The far-left — and even some REPUBLICANS — continue to argue that ESG is just a theory and that it’ll never affect YOU. But the story Glenn shares in this story proves quite the opposite. In fact, new banking policies that are designed to allow more Americans to purchase homes could affect you GREATLY if it leads to another housing and economic collapse… just like the one in 2008.
Below is a rush transcript that may contain errors
GLENN: Let me tell you a little bit about The Great Reset. And ESG.
ESG is regarded to -- by many in mainstream media, as a hoax.
As something that just is not happening. Let me give you two stories, that have come out today. The first one is from Bloomberg. And it will show you how it is working, on the highest of levels.
And it is the E. Now, some people will -- will admit. Okay. The E is happening. Yeah. We're if we go to rid of fossil fuels.
So the E is happening. But not the S and the G. So let me give you the first one. The head of the World Bank came under fire recently, for not being tough enough on climate change.
This is, by the way, on Bloomberg. So now he'll go all in on ESG. World Bank President David Malpass caused for expanding the development lender's mission to explicitly include public goods, such as climate change. Weeks after his hesitance to publicly confirm his belief in global warming, led to calls for his removal.
So he's like, well, you know I -- I'm not sure we know all of the causes of global warming.
Everybody in the power players, they all said, he's got to go. Well, he didn't. Instead, managers at the Washington-based institution, will now review its operational model and financial model, to find ways to boost lending, including using more grant and blended finance.
Malpass said in a note to bank staff on Monday and seen by Bloomberg News. US Treasury secretary, Janet Yellen last month proposed changes for the World Bank and regional development banks, pushing them to move beyond country's specific loans.
To address global threats. And speed the flow of private Capitol to poor and emerging economies. The US is the world's largest shareholder of the World Bank.
Oh, okay. So they want to get a little more aggressive, in loaning money to poor countries. Okay.
Now, that's the E. Let's go to the S. We have actually people now in legislatures, Republicans all over the country, that deny ESG is even real.
October 24th, the FHFA, the federal housing finance agency, announced that lenders will soon be required to use two new credit scoring models. FICO 10T, and Vantage score 4.0. In order to sell mortgages to Fannie Mae and Freddie Mac.
Now, the FH -- the FA is the one that oversees the public/private institutions.
Remember, we're all about public private partnerships. So Freddie and fanny, what do they do?
They own most of the mortgages. They underwrite. They backstop most of the mortgages in America.
The government is on the hook for those. Your bank does not own your house.
Freddie or fanny most likely own your house.
Okay? And they -- if you're going to sell something to them, well, then they need to see the vantage score 4.0. Those quoting. These two new credit scores are deliberately designed to make millions more of people eligible to purchase homes.
Oh. Vantage score estimates that 37 million people, will receive a credit score under their new model alone. That are not currently captured by a FICA score. About 10.7 million, will have a score of 620 or above.
The minimum score for a mortgage, that can be sold to Fannie and Freddie.
Under the new credit model, people will be able to improve their scores, by engaging in activity that don't have anything to do with capital ownership or credit history. Hmm. What will they be scored on?
I wonder. A couple of things here. Stu, why does everybody, that you know lived through 2008, know the names Fannie and Freddie?
STU: They're central to the mortgage meltdown.
GLENN: Oh, they were, why?
STU: They -- partially, because they were giving out mortgages to people who didn't traditionally qualify for them.
GLENN: Right. And they were backed up, because the banks were told.
STU: You better do this stuff.
GLENN: We better get home ownership rates up. We need to have higher diversity rates among homeowners. So they gave it to people, who may be great people, but maybe didn't have the credit scores or the resources or the finances to actually pay them back. They were risky mortgages. They bundled them all together. They created all sorts of collateral -- collateralized debt obligations on top of them. And the whole house of cards fell apart.
GLENN: That's amazing. So now, 37 million Americans are going to be -- have the door open. And at least 10 million, almost 11 million, will have the score that now is about -- they can't afford a house now.
But when they improve their scores. By engaging in activities, that don't have anything to do with capital ownership or credit history.
They can have a higher score. So they can buy that house. Oh, that's great.
STU: So they're not going to have -- they're not going to become more creditworthy. They're just going to become better people. They love the environment.
GLENN: Better people. Better people.
STU: Another person who might have a higher credit score. But will give them the mortgage. Because they love clouds and the sky and trees.
GLENN: Right. Uh-huh. Uh-huh. Clean air. They'll be able to sell mortgages now to people, including many who are unqualified. Banks. And mortgage companies, will be able to do that.
And then immediately sell those to Fannie and Freddie Mac unloading the liabilities on the back of the banks. And instead, shoving it right to the taxpayers back. Banks and mortgage companies, will make truckloads of cash, without really any risk.
Almost as importantly, those companies participating in the program, are also going to receive a boost in their ESG score. Because they are now helping improve racial equity.
STU: So person A shows what a great citizen they are.
And then group B, gives them a better rate, which shows them, what a great citizen they are.
STU: And then since person A is doing business with group B. That probably raises their ESG score again.
GLENN: Yes. And then group B or A. The bank can sell it to you.
STU: Right. Yeah.
GLENN: And now it's on your back.
STU: Yeah. And I probably get a boost in my ESG score, just for taking on that terrible debt, that shouldn't be anywhere -- that shouldn't have existed in the first place. You know this sort of circuitous idea, that you can continually -- you know this is Schrute Bucks. You know, Dwight Schrute comes into the office one day.
And he has his own currency at his beet farm, and everybody is like, ah, this will work. Just keep spending Schrute Bucks on it. The economy does not work on Schrute bucks.
GLENN: No. No. This is going to make the housing market more unstable.
It will distort the market.
It will call another 2008 collapse.
You know, remember though, the people pushing ESG want you to own nothing, and be happy.
So let's think this through. What happens when you add 10.7 people into the housing market, without increasing the supply of homes?
More money in the market. Chasing fewer homes. That means, inflation. The price of housing will go up, a ton. And who owns a lot of the single-family homes these days?
Oh. Hedge funds like BlackRock. They're going to make out huge from this.
And they aren't worried about competing with those folks who are entering the marketplace. They don't even have enough credit to have a credit history. Never mind win bidding wars with BlackRock or other Wall Street firms. Here's the thing: Biden has bragged that this will make the market more inclusive, and that industry stakeholders support the moves.
This is great. Now, I want you to know this important part. This is not coming from me.
Vantage score, is selling their credit model. By making the promise.
I want you to go to vantage score.com/capital dash markets. Slash ESG.
I'll tweet this out.
But you go there, and you will see, creating social value through ESG.
Quoting their website.
Is ranting credit scores are often used by capital market participants. In both the consumer lending asset-backed securities market.
And the residential mortgage backed security market. You'll have leverage, the best in class accuracy. It will include the underserved. It will demonstrate a commitment to ESG. At some of the benefits. The key benefits, most predictive, best in class model. Credit scores are going to be updated in real time, allowing for rigorous surveillance processes.
Oh. So I watched the episode of the Black Mirror. Where your credit score is updated in realtime.
And it was a vigorous surveillance process.
STU: It sure was.
GLENN: That's on their website.
Anyone who tells you, this is a conspiracy, it's not going to happen. It's not going to reach down to you. It just has.
STU: Yeah. And, well, it has -- aren't there billions of dollars here? What are the levers of usage already?
GLENN: Yeah. Let me see if I can find it.
STU: It's not day one of this program. They're bragging about billions and billions and billions of dollars already being utilized by this program.
GLENN: Yeah. It was 8.7 -- here it is.
Is ranting scores used from March 2021 to February 2022. 14.5 billion.
Is ranting scores provided by consumer websites, 4.8 billion.
Is ranting scores used by credit card issuers, 3.7 billion.
So they are already using this. It's at Chase Lending Tree. It's at American Express. Capitol One.
Credit Karma. All of it.
All of it is being used right now. And they've been telling you, that it's just a conspiracy theory.
I urge you to go to VantageScore.com, and just peak around. Look for their credit scores.
Oh, it's so great. You can do other things, to qualify for a mortgage.
Gee, I wonder what those other things are.