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HOUSE OF CARDS, LIBERALS FUELED WALL ST. WOES
NY Post ^ | 24 Sep 2008 | STAN LIEBOWITZ

Posted on 09/24/2008 5:05:45 AM PDT by XHogPilot

HOW did America wind up in its worst financial crisis in decades? Sen. Barack Obama explained it this way last week: "When sub-prime-mortgage lending took a reckless and unsustainable turn, a patchwork of regulators systematically and deliberately eliminated the regulations protecting the American people." That's exactly backward. Mortgage lending took that "reckless and unsustainable turn" because of regulation - regulation driven by liberals and progressives, not free-market "deregulators." Pushed hard by politicians and community activists, the regulators systematically and deliberately altered financially sound lending practices. The mortgage market was humming along just fine when, in the late 1980s, progressives decided that it needed to be "fixed." Their complaint: Some ethnic groups got approved for mortgages at lower rates than others. In reality, mortgage lenders were simply being prudent - taking care to provide mortgages to those who could best afford to make the payments. The shift began in 1989, when Congress amended the Home Mortgage Disclosure Act to force banks to collect racial data on mortgage applicants. By 1991, critics were using that data to paint lenders as racist by showing that minority applicants were approved at far lower rates. Banks were "Shamed By Publicity," as one 1993 New York Times headline put it. In fact, they found a racial disparity only by ignoring relevant data on applicants' ability to make mortgage payments - such as their assets and credit history. But the political pressure was intense - with few in politics or media eager to speak the truth. And then, in 1992, came a study from four researchers at the Boston Fed, which seemed to bear out the critics' contentions. That study was, in fact, based on quite flawed data - but the authors' political, media and academic protectors stifled most serious criticism, smearing the reputation of one whistleblower

(Excerpt) Read more at nypost.com ...


TOPICS: Front Page News; Government; News/Current Events; Politics/Elections
KEYWORDS: bailout; bushhud; communityreinvestact; crisis; housingbubble; walloftext; wallstreet
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To: STONEWALLS

That, and the GOP candidate for President is more interested in excusing the activities of his fellow Congressman than in actually identifying and holding the culprits responsible. Franks and Dodd should be in jail; not just off their committees. Instead, they are being allowed to manipulate and hang ornaments of further stupidity (credit card and student loan debt) as if nothing can be laid at their feet. The White House is either in panic, knee-jerk mode or they know perfectly well what they are doing; Next stop; Socialism


21 posted on 09/24/2008 5:35:15 AM PDT by Tucson
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To: scooby321
why isn't the GOP hammering this?

Because even conservatives don't want to believe it.

They'd rather believe it's the "rich, evil CEO's" and corporations who are at fault.

22 posted on 09/24/2008 5:35:15 AM PDT by what's up
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To: XHogPilot

Both parties are to blame for this—they are all complicit. This has been gradually building for decades in the form of a demonization of good judgement, policital correctness, crony capitalism, and an erosion of accountability & responsibility.

Most of us know how this horror show will end: in an orgy of wealth transfer, debt forgiveness, and hyperinflation. Evenually, the economy will collapse under the weight of massive debt and US Gov will be unable to keep it “guarantees”. This could play out in months or years, but I’m convinced it will happen.

Sadly, most Americans are so stupid on this issue they can’t tell up from down. We got a good swift kick in the ass coming and we (collectively) deserve it. I think most Freepers are good people and will suffer with everyone else.

The only silver lining, if there is one, is that the adversity of the coming debacle might (finally) restore some common sense to the masses. Time will tell.


23 posted on 09/24/2008 5:37:43 AM PDT by rbg81 (DRAIN THE SWAMP!!)
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To: XHogPilot

Case closed.


24 posted on 09/24/2008 5:39:42 AM PDT by billhilly (I was republican when republican wasn't cool. (With an apology to Barbara Mandrell.))
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To: XHogPilot
The very next year, the Boston Fed announced new requirements for banks - rules that have now turned out to be monumentally catastrophic: Adopt "relaxed lending standards" or risk being labeled as racists, and face serious penalties under the federal Community Reinvestment Act

And now we have Boston Barney Fwank who has been their point man in charge of the banking committee during this crisis.

Ugh.

25 posted on 09/24/2008 5:40:50 AM PDT by what's up
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To: XHogPilot
Right below the article is this ad (emphasis mine):

Mortgage Rates Drop - Fed at 2%
$200,000 loan for $708/month. Free Quotes - No SSN Rqd. Save $1000s!

26 posted on 09/24/2008 5:40:57 AM PDT by Oatka (A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
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To: P-Marlowe
EVERYONE was afraid to offend the poor and the minorities

The Clinton administration forced lenders to make bad loans. No-one was scared of the poor. They were scared of being put out of business.

This control of business by a Totalitarian state is what von Mises would have called "Fascism".

27 posted on 09/24/2008 5:44:34 AM PDT by agere_contra (It's 'We the People', not 'We the Media')
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To: scooby321

I think they are behind the scenes. I heard a Senator from Virginia, DeMint (not sure how to spell it), on the John Gambling radio show this morning. That guy is VERY IMPRESSIVE. There are still some fighters out there who are not going to let the rats pin this on the Republicans.


28 posted on 09/24/2008 5:44:53 AM PDT by jersey117
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To: XHogPilot
Community Reinvestment Act

Plus ACORN and NACA.

An informative article "The Trillion-Dollar Bank Shakedown That Bodes Ill for Cities" by Howard Husock in the Winter 2000 City Journal says:

A radical group called ACORN Housing has a $760 million commitment from the Bank of New York; the Boston-based Neighborhood Assistance Corporation of America has a $3-billion agreement with the Bank of America; a coalition of groups headed by New Jersey Citizen Action has a five-year, $13-billion agreement with First Union Corporation. Similar deals operate in almost every major U.S. city. Observes Tom Callahan, executive director of the Massachusetts Affordable Housing Alliance, which has $220 million in bank mortgage money to parcel out, "CRA is the backbone of everything we do."

Senator Obama knows much more about how this works than he lets on.

29 posted on 09/24/2008 5:47:23 AM PDT by foxfield
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To: XHogPilot
Dems are all mining this WSJ hit piece on McCain for talking points today. Look for some of them in Friday's debate. I am amazed the WSJ ran it as an opinion piece.
30 posted on 09/24/2008 5:48:01 AM PDT by montag813
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To: Earthdweller
What you are saying is a stretch ...

I was asking a question in response to possible reasons why the Reps are not jumping on this.

31 posted on 09/24/2008 5:51:18 AM PDT by SERKIT ("Blazing Saddles" explains it all.....)
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To: scooby321

“why isn’t the GOP hammering this?”

Because, yet again, they are being cowered by an obviously Democrat-leaning press.

To even MENTION that Obama’s “Advisors” and prominent black Democrats are a$$-deep in this would be RACIST, doncha know....

Repubs are still hammering on the “DRILL NOW” theme, but have you heard that in the press lately? NO...


32 posted on 09/24/2008 5:54:00 AM PDT by tcrlaf (SARAH PALIN-The American Everywoman (Yes, You Really CAN!))
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To: agere_contra
The Clinton administration forced lenders to make bad loans. No-one was scared of the poor. They were scared of being put out of business.

Nobody "forced" anyone to make bad loans. These institutions made a conscious decision to make bad loans hoping that the good loans would be profitable enough to make up for the bad loans. Interest rates were calculated on projections that the default rate on these bad loans would not exceed the monetary gain they anticipated from the payments on the good loans.

They capitulated to the rules and made a conscious decision to give bad loans to minorities and pray that their default rate would not exceed their profit level. They were wrong and we get to pay for it.

Not only did financially sound people have to pay higher interest rates in order to pay for all these deadbeats, but now we are going to have to pay higher taxes and obviously higher interest rates in the future to undo all the damage.

This trillion dollar bailout is only going to buy time. The recession is coming, and with it double digit unemployment and double digit inflation and double digit interest rates.

We survived it before, we will survive it again. Let us not forget that without Jimmy Carter, we would never have had Ronald Reagan. The gas lines ultimately were worth the cost.

33 posted on 09/24/2008 5:55:49 AM PDT by P-Marlowe (LPFOKETT GAHCOEEP-w/o*)
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To: raybbr
When that rat senator demanded an apology from Wall Street for creating this crisis in the hearing yesterday, Paulson and Bernanke exchanged glances but neither had the guts to hang the blame on the politicians who are the authors of this disaster. What gutless scoundrels!
34 posted on 09/24/2008 5:56:13 AM PDT by shove_it (and have a nice day)
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To: SERKIT

I know why the Reps in Congress are not jumping on it....they looked the other to all the corruption in the first place because they are all spineless and afraid of being painted racist by the MSM. This is how a communist state works...intimidation.


35 posted on 09/24/2008 5:56:25 AM PDT by Earthdweller (Socialism makes you feel better about oppressing people.....)
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To: XHogPilot

Why is EVERYONE afraid to mention the MASSIVE inner-city mortgage frauds that got us into this mess?

In Indianapolis ALONE, we had over 1,0000(!!!) homes involved in just TWO Mortgage fleecing schemes!


36 posted on 09/24/2008 5:57:09 AM PDT by tcrlaf (SARAH PALIN-The American Everywoman (Yes, You Really CAN!))
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To: Earthdweller

they looked the other way to all the corruption


37 posted on 09/24/2008 5:57:25 AM PDT by Earthdweller (Socialism makes you feel better about oppressing people.....)
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To: rbg81

Bingo

Republicans are gutless

Democrats are skilled racial extortionists

Independents are wimps

We are all losers....


38 posted on 09/24/2008 5:57:31 AM PDT by KCengineer ( Speaking the TRUTH)
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To: XHogPilot
And today we have AP reporting that Barney Franks said this:

“The private sector got us into this mess…The government has to get us out of it. We do want to do it carefully.”

Average Americans are believing him. Obama is way up in the polls.

39 posted on 09/24/2008 5:58:21 AM PDT by Neverforget01
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To: tcrlaf
Why is EVERYONE afraid to mention the MASSIVE inner-city mortgage frauds that got us into this mess?

Communist totalitarian intimidation by the MSM.

40 posted on 09/24/2008 6:00:10 AM PDT by Earthdweller (Socialism makes you feel better about oppressing people.....)
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