Posted on 09/26/2008 10:37:22 AM PDT by PurpleMountains
There would not have been any massive housing bubble leading to disaster if Democrats did not pass legislation requiring banks to give mortgages to people who had no way to pay them back or no intention of paying them back Please remember the Community Redevelopment Act, a minority lending bill first pushed and created by Jimmy Carter and revved up by President Clinton by appointing his cronies to Fannie Mae and Freddie Mac, with orders to instruct banks to issue many more of these mortgages under threat of fines if they did not do so.
(Excerpt) Read more at forthegrandchildren.blogspot.com ...
A banking buddy told me Janet Reno promised a “reign of terror” if the banks didn’t devote a percentage of their loan money to sub prime.
Corruption in the name of socialism brought us here. Many people in high places got wealth (in New York) and power (in Washington) from the idea of broadly extending home mortgages (not to mention credit cards) to people who couldn’t pay them back. The risk is that the same wealthy and powerful people will get more wealth and more power from the solution.
Oddly, only John McCain — not a libertarian stalwart — stands between the U.S. and (the next step to) socialism. The Democrats support Bush in overthrowing constitutional principles in the name of expediency (i.e., keeping their political supporters safe). The Republicans are beginning to show some spine against this outcome. With Bush in the wrong camp, only McCain can lead the way to a better of many bad solutions.
An election is occurring at a propitious time. It remains to be seen if McCain will stand with the Founders or with the “community organizers”, and which side the voters will choose — if they get a choice.
I suspect the second is much larger but don't have the numbers to back that up. Both were bad and stupid on the banks' part, but if we want to show how much of the problem was caused by the CRI we need some qualitative data on it.
I would have to disagree with your assessment of McCain. It’s the House Republicans that put the brakes on things. McCain has now been forced to side with the house in order to avoid joining the democrats.
I don’t know what McCain’s plans were when he “suspended campaigning”, but he now has the opportunity to get in front of a Republican House parade that may actually be headed in the right direction. If he sides with Bush and the Democrats, he and we are doomed. If he does the right thing — and can communicate it to the American people — his and our stocks rise.
It has never taken much to change an upward or downward housing market into a bubble or a bust. Just the pressure of the CIA could easily have been all the market needed to make the bubble, once the Clinton people set to work.
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