Posted on 11/23/2009 5:08:23 PM PST by jazusamo
No one will really understand politics until they understand that politicians are not trying to solve our problems. They are trying to solve their own problems — of which getting elected and re-elected are No. 1 and No. 2. Whatever is No. 3 is far behind.
Many of the things the government does that may seem stupid are not stupid at all, from the standpoint of the elected officials or bureaucrats who do these things.
The current economic downturn that has cost millions of people their jobs began with successive administrations of both parties pushing banks and other lenders to make mortgage loans to people whose incomes, credit history and inability or unwillingness to make a substantial down payment on a house made them bad risks.
Was that stupid? Not at all. The money that was being put at risk was not the politicians' money, and in most cases was not even the government's money.
Moreover, the jobs that are being lost by the millions are not the politicians' jobs — and jobs in the government's bureaucracies are increasing.
Let's Speak Frankly
No one pushed these reckless mortgage lending policies more than Rep. Barney Frank, who brushed aside warnings about risk and in 2003 said he wanted to "roll the dice" even more in the housing markets. But it would very rash to bet against Frank's getting re-elected in 2010.
After the cascade of economic disasters that began in the housing markets in 2006 and spread into the financial markets in Wall Street and even overseas, people in the private sector pulled back. Banks stopped making so many risky loans. Homebuyers began buying homes they could afford, instead of going out on a limb with "creative" — and risky — financing schemes to buy homes that were beyond their means.
(Excerpt) Read more at investors.com ...
Good pic of him, that was a few years ago. :-)
Thomas Sowell is THE MAN !!!!
OMG, he’s BLACK, he can’t be one of us.
Actually that’s true, he’s way above us.
‘Why would a bank lend money to fools with no job, no income, and no down payment? Because the loan was insured by the Federal Housing Administration.
The bank wasn’t taking any risk. The only risk was to the taxpayers.’
Thanks for the ping jaz. A good read as usual.
It’s sad that so many people in this country are incapable of understanding what Dr. Sowell says. The man’s work should be in every school in this country. Most of the people who voted for Obama probably never heard of Thomas Sowell, and we are all injured because of that.
You’re so right, if the people who listen to the Jackson’s and Sharpton’s listened to Dr. Sowell we’d have a much smarter country.
My congressman (Todd Platts-R PA) voted for Jack Murtha earmarks so he could some for his district.
bump to the top
As always, Sowell is right on the money!
He tells it like it is ...
more is the pity ...
God help us in our day, in Jesus name, amen.
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