The Democrats have been crafting this meltdown for years

Modern Conservative ^ | Rene Guerra

[connell]

Democrat Socialist Jujitsu on American Capitalism
By Rene Guerra
 
The Democrats and the rest of the Left have craftily turned around the blame for something disastrous they caused, via insidiously cunning ways. They, of course, couldn’t have done anything of that without the help of the complicit "mainstream" media, who don't expose the true genesis of the monster that the current financial crisis is.
 
Every American should know the truth.
 
The whole thing started when the Democrats corrupted the original intention of the 1999 Gramm-Leach-Bliley Act that Bill Clinton signed rescinding the 1933 Glass-Steagall Act. The latter kept routine-business banks separate from big investment-banks. Specifically, the Glass-Steagall Act separated investment banking, commercial banking, and insurance services; thereafter, each of those three business activities could be offered only by separate institutions. The Gramm-Leach-Bliley Act brought down those barriers with the intention of stimulating capitalism, and then hell broke loose . . . when the Democrats put their hands on it:
 
1.    Upon the enactment of Gramm-Leach-Bliley, the Democrats in Congress immediately started using Fanny Mae and Freddy Mac --two Democrat-controlled outfits-- to push routine-business banks into the piñata of “ninja” mortgage business; that is, mortgages issued to people with bad credit or no credit at all, employed or not, or with no creditworthy assets to support the loan, and even to people who had recently gone through bankruptcy or foreclosure.


2.    The Democrats then encouraged Fanny and Freddy to buy those “ninjas” by the boxcar.


3.    The big investment-banks then bought the “ninjas” from Fanny and Freddy by the ton. Some did it in the assumption that, if Fanny or Fred had anointed those mortgages, they were good. Others bought them out of unfettered greed, no matter what. And some others ---Democrat cesspools, such as, for example, Lehman Brother--- bought them moved by a combination of the motivations of the previous two types of “ninja” buyers, plus a touch of malice, knowing that the sandcastle would collapse making Gramm-Leach-Bliley, a pro-capitalism measure, fail miserably.


4.    And collapse it did when “perfect-storm” conditions set in a confluent combination: the credit-card-debt bubble burst and the new-home market glut bulged. People had sunk themselves, up to their eyeballs, in credit-card debt, and couldn’t pay their mortgages. In parallel, a new-home market glut brought the hyper-inflated home market down, and then cash-strapped “ninja” home owners couldn’t get equity loans on their devaluated homes. Attempting to upset their losses, lenders responded to the whole thing by adjusting up mortgage loans, making the scenario spiralingly worse. Having used up their cash on “ninjas”, Fanny, Freddy, and the big investment-banks where left with nothing to address their other obligations. So, bankruptcy became the only option left . . . unless they would make the government (i.e., taxpayers) buy the bad paper, thus making the government (not taxpayers) the owner of the houses behind the “ninjas”. The Democrats, much to their delight, would have then moved us one step closer to socialism.

5.    Notice that ---in the process of serving poison to the investment banks, and triggering a debacle that they could use also later as an argument against capitalism--- the Democrats facilitated at the same time an environment where Democrat insiders would line their pockets from the coffers of Fanny and Freddy, such as the infamous Jamie Garolick (the very one who built the walls between the national security agencies, which contributed heavily to 9/11), Franklin Raines, James Johnson, Penny Pritzker and others who, by the way, are very close to the Obama campaign.
 
6.    Needless is to mention that Christopher Dodd and Barack Obama are the first and the second on the list of politicians who have received the largest political contributions from Fanny and Freddy.
 

7.    The Democrats have proved that crime does pay. They generated the mess, made money out of it; then they blame capitalism, mortgages at large, conservatives, and Republicans for it; and, in the end, they are adding all sort of pork to the legislation aimed at alleviating the results of their malfeasance.
 
The previous seven paragraphs can be accurately encapsulated in the statement: “The Democrats performed jujitsu on capitalism with the Gramm-Leach-Bliley Act.”

“Jujitsu: a Japanese martial art mainly consisting of cleverly attacking an opponent by using his/her strength and weight to her/his disadvantage, rather than engaging in attacking him/her directly.”
 
The Democrats craftily used the momentum that Gramm-Leach-Bliley Act sought to give to American capitalism . . . against American capitalism itself. Jujitsu, that is.
 
The Democrats have, in the end, craftily driven the government to insert itself into societal activities reserved to the private enterprise sector ---a bailout that would make the government owner of the homes behind the “ninja” mortgages--- and that is but pure socialism, the antithesis of capitalism. Perfect jujitsu!
 
Although feigning consternation and preoccupation, the Democrats and the rest of the Left are enjoying it to the maximum, like Nero playing the lyre in rapturous joy . . . while the Rome he ordered torched burns to the ground.
 
The graph below shows, more or less, the sequence of main events in the whole process.
 

 
And to complete their jujitsu on American capitalism the Democrats want the Republicans in the Congress to support the scam . . . . so that they, the Democrats, can splash it on the face of Republicans and conservatives, forever and ever, that “reality” made them betray their principles.
 
Free-entrepreneurialism supporters must understand that it would be disastrous to attempt to let the market fix itself, when the mess is well beyond self-repair. If left alone, the subprime mortgage crisis would ---like a spider-web crack on a car windshield--- spread all over, causing the complete collapse of the economy: DEPRESSION.
 
But any bailout is but socialism. What needs to be done is a workout as, Newt Gingrich and others supporters of free entrepreneurialism ( i.e. American capitalism) propose.
 
And the trick is that it has to be done in such a way that the Democrats don’t use it to apply jujitsu on capitalism a second time.
 
To start with, conservatives and Republicans should demand that paying for the “ninja” paper must be done by the lenders themselves via making the economy grow. NO governmental purchase of that paper can be accepted. At most, assistance should be given to those banks in the form of loans, as in the case of, for example, Chrysler in the 1980s. In return, the people should get immediate relief to help them replenish the money that would be lent to the “ninja” lenders, who by the way could end up not paying it back. Therefore, conservatives and Republicans must demand, AT LEAST, the following measures:
 
1.  That the Bush tax cuts be made permanent.
2.  That business taxes be lowered considerably, say, to no more than 10%.
3.  That the death tax be abolished.
4.  That no federal or state tax hikes be made for at least 10 years.
5.  That earmarks be prohibited for at least 10 years.
6.  That the president be given line-item veto powers.
7.  That government spending be cut drastically.
8.  That the size of government be reduced drastically.
 
It would be a superior choice to support a loan program to the failing banks, ONLY IF at least the eight pro-economic-growth measures listed above were included in the package.
 
Then we would be inflicting jujitsu on the jujitsu that the Democrats inflicted on capitalism.

[Califreak]

Thank you.

I felt like it was a set up.

[Enchante]

"Although feigning consternation and preoccupation, the Democrats and the rest of the Left are enjoying it to the maximum, like Nero playing the lyre in rapturous joy . . . while the Rome he ordered torched burns to the ground."

Yes, and we saw the Demagogues last night in rapturous delight as they thought the deal was falling into place to enact the massive government intervention that is always a liberal wet dream. Schumer and pals could not contain their delight.

[rlmorel]

Mark my words and mark them well. If the people displayed here are smiling...this is a bad thing for America and Americans.

Mark my words if this goes through.

This is amazing. These people pictured here are the PRIMARY architects of this situation.

And WE are supposed to just ROLL OVER and say "Have at it. You folks can be given free reign to fix it????"

[aclusux.com]

Dear Nancy, Barney, Hank, Chuck, Chris and Harry,

At a time when oil prices are at their highest and it was obvious to any layman that the financial system was about to collapse…..you folks went on vacation. That decision is mind-boggling and demonstrates a complete disconnect from reality. I can’t tell you how angry I am in your performances as “leaders” of this great country. Each of you has continuously failed the good citizens of the United States of America in a catastrophic way. Our country has never been this WEAK and it is specifically each of you that got us here.

You must be too busy focusing on the election, your party, your personal agenda and being “green” to care about the single mother putting gas in her car or the business person trying to create jobs and sell products. I’m sure that the vision each of you had in the beginning of your political careers was far better than your colossal failures today. This is the 2nd time in 10 years that banks have destroyed the economy. This will be the 2nd time in 10 years you have asked us to pay for it. You can’t trust the banks, congress and senate or the media. This paints a very dim future for my country.

This congress and senate suffers from gross incompetency and neglect. I think we should have a formal investigation into your behavior and dealings in this matter. Upon your resignation, I would ask that each of you examine the damage you have inflicted on this great country, its citizens and our reputation with rigorous integrity, logic and dispassionate impartiality. America has had enough, although, I doubt you’ve noticed the polls. 80% of Americans are sick of your performance.

In short, get a box, get your stuff and get the hell out of my government.

Contact info:

Nancy Pelosi
sf.nancy@mail.house.gov

Barney Frank
http://www.house.gov/frank/

Harry Reid
http://reid.senate.gov/

Hank Paulson
http://www.ustreas.gov/contacts.shtml

Chuck Schumer
http://schumer.senate.gov/SchumerWebsite/contact/webform.cfm

Chris Dodd
http://dodd.senate.gov/index.php?q=node/3128

[mulligan]

Democrats corrupted original intent of Gramm-Leach-Bliley bill. What was the original intent of thie GLB bill?

[A_Former_Democrat]

The continually playing of the race card has brought us to this. Always victims, never perpetrators. We see it everywhere now, employment, admissions, education, immigration, housing, finance. Boxed in because good and decent people wouldn’t speak out before it got out of hand. Instead they let the guilt trip be hung on them.

[capydick]

Excellent! May I add a number nine to above?

9) A prohibition of all campaign donations to any official running for office at any level across the country to any corporation which benefits from this bailout.

[Leisler]

"Senior Democratic congressman Barney Frank admitted that things are changing. “This is a very serious policy step that the American government is taking. It’s a fundamental shift in the relationship between the public sector and the private sector.”

The Republican strategist Alex Castellanos, most recently an adviser to Mitt Romney, warned that this would mean accepting aggressively socialistic measures that would leave conservatives unable to explain why the same paternal state we called upon to rescue Wall Street can’t bend down a little lower to provide government-paid health care, energy subsidies and every imaginable social service. "

[Shady]

Their sheer arrogance and elitist demeanor means that your reasoned passage to them is pure BS.

They can AND WILL get away with this.

It will mean bankruptcy for our Republic. The long term effects of this will be catastrophic.

What's more, all the time we are having our attention drawn toward this Demoncrat fiasco, the Iranians and Al Qeida are planning to destroy us. Soon. With assistance from China and Russia.

[Doe Eyes]

President Bush Mortgage Speech

[Scotswife]

was the guy who invented the credit default swap a democrat?

[hecht]

This is all true, but if McCain-Palin do not talk about it 24/7 they desrever to lose. Actually Palin wopuld, but they are not letting her speak.
Chutzpah : Barry is now talking about how he’d never allow this to happen again.

[ScaniaBoy]

The thesis of this article rests on the premise that the Democrats understand economics.

Highly unlikley IMHO.

[ari-freedom]

This is not the ‘soft socialism’ of letting the market do what it does and just tax and redistribute the wealth. this is a radical takeover.

[shield]

Of course they have. They hate America and have wanted to take down this country ... it will NOT happen.

[Puddleglum]

Democrats - the party of Wall Street. Who’da thunk it?

Say it again and again til it sticks, and the scales fall off of peoples’ eyes.

Obama - the candidate of the rich - the rich at YOUR expense.

[Danae]

Over my dead body.

[fella]

And nobody gets charged with a crime and nobody goes to jail and they get to keep what they have stolen from the tax-payer.

Sure the FBI is investigating but they also investigated Congressman Jefferson and he is still sitting in his seat on the Hill. Why heck, they even had video of him accepting $100,000 of what he knew to be a bribe and he still hasn't been charged with any crime. So i have no confidence in justice being done in these crimes.

[nclaurel]

I agree that they set it up after they realized the scam couldn’t go on, but I wonder if any Democrat is intelligent enough to craft this whole mess. Maybe or maybe the greed and dishonesty has just taken it’s natural toll on Americans thanks to those who stupidly kept voting crooks back in.

Remember Maxine Waters famous “burn baby burn” at the LA riots? They kept electing her.