Monday, September 15, 2008

Let’s remember that…….

The Left media and the Democrats, (one in the same), would like you to believe that Bush bailed out Freddie Mac and Fannie Mae because he started the situation. Now let’s look at it logically, the original law that made the failures possible were caused by President Carter. The Community Reinvestment Act of 1977, that claimed to prevent “redlining” (denying mortgages to black borrowers), by pressuring banks to make loans in poor to moderate income neighborhoods. This act enabled a reinforcement, and as a result, during the Clinton era this act was made even more stringent through his “Welfare Reform Act”. Loyola College economist Thomas DiLorenzo said that, to insure that banks got a high government rating, they had to issue increasingly riskier loans to people who wouldn’t normally have even qualified for a mortgage. This combined with an over-inflated housing market (land and property), has now attributed to the tumbling of the house of cards of “sub-prime” loans. The rules are ridiculous by anyone with a shred of common sense…..lax underwriting standards, no down payment, and no verification of income, interest only payment plans, and weak or non-existent credit history.

Don’t confuse my alliance with any President, and I have to admit that I voted for Bush, but today my views hardly mirror his, but he refuses to place blame on past presidents, (unlike the democrats that preceded him.) He did the only thing he could, and that was to support the two federally supported home housing lenders, and sign the law for the bail outs.

What I have problems with is the original law that enabled them to begin with! Everyone wants to blame President Bush but NOBODY, Democrats or Republicans wants to rescind the law that allowed it in the first place! So after the bail out at a price between 200 billion to half a TRILLION dollars we still have no protection in the future?

I’m sorry but I don’t understand this. Ok so a President made a mistake, it’s not the first time , nor will it be the last time, but why can’t we rescind a law? The law was asinine to begin with. Let’s change it and move on…..why?…because of the most elementary emotion in humanity……nobody wants to admit a wrong choice. Ok, Ok, let’s forget the originator of the act, and do what is right.

Please write to your senator and rescind this law so it can’t happen again!


Obama... blamed the shocking new round of subprime-related bankruptcies on the free-market system, and specifically the ‘trickle-down’ economics of the Bush administration, which he tried to gig opponent John McCain for wanting to extend. But it was the Clinton administration, obsessed with multiculturalism, that dictated where mortgage lenders could lend, and originally helped create the market for the high-risk subprime loans now infecting like a retrovirus the balance sheets of many of Wall Street’s most revered institutions. Tough new regulations forced lenders into high-risk areas where they had no choice but to lower lending standards to make the loans that sound business practices had previously guarded against making. It was either that or face stiff government penalties. The untold story in this whole national crisis is that President Clinton put on steroids the Community Redevelopment Act, a well-intended Carter-era law designed to encourage minority homeownership. And in so doing, he helped create the market for the risky subprime loans that he and Democrats now decry as not only greedy but ‘predatory.’ Yes, the market was fueled by greed and overleveraging in the secondary market for subprimes, vis-a-vis mortgaged-backed securities traded on Wall Street. But the seed was planted in the ‘90s by Clinton and his social engineers.” —Investor’s Business Daily


Anonymous said...

I believe, unfortunately, the President in office in the time of a crisis usually winds up taking the fall for all things that happen during his term. Seems to be the nature of our countries citizens to only look at what is in front of them, not look back "over their shoulders" to see what is "coming".

Anonymous said...

Thank you, Al, for giving us the details, and how far back it goes.