Posted by
Boomer911 on Monday, September 22, 2008 12:29:45 PM
The political posturing by the democrats in light of the recent housing and market troubles has been one of shrugging shoulders and the old stand-by, blaming Bush. The democrats ruse of blaming republicans has gone relatively un-answered by many on the right who know exactly why we are in this situation. What defense has been mustered has not gained much traction in any of the media outlets (gee, big surprise) and therefore have not caught on with the people.
Well let me start by pointing out an article on Bloomberg called "How the Democrats Created the Financial Crisis" by Kevin Hassett. He lays out some pretty convincing points but averts talking about a Carter era bill that was renewed under the Clinton administration which mandated lenders to make loans easier and more available to minorities. In essence, they mandated lenders to give loans to those who could not repay the debt. But don't worry, the government, with the aid of OUR money is going to bail everyone out. Hooray for socialism! But what is also great about the article is how he ties the money to Obama and other democrats. Its a good read!
"If that bill had become law, then the world today would be different. In 2005, 2006 and 2007, a blizzard of terrible mortgage paper fluttered out of the Fannie and Freddie clouds, burying many of our oldest and most venerable institutions. Without their checkbooks keeping the market liquid and buying up excess supply, the market would likely have not existed.
But the bill didn't become law, for a simple reason: Democrats opposed it on a party-line vote in the committee, signaling that this would be a partisan issue. Republicans, tied in knots by the tight Democratic opposition, couldn't even get the Senate to vote on the matter.
That such a reckless political stand could have been taken by the Democrats was obscene even then.
Wallison wrote at the time: ``It is a classic case of socializing the risk while privatizing the profit. The Democrats and the few Republicans who oppose portfolio limitations could not possibly do so if their constituents understood what they were doing.''
And of course, my favorite:
"There has been a lot of talk about who is to blame for this crisis. A look back at the story of 2005 makes the answer pretty clear.
Oh, and there is one little footnote to the story that's worth keeping in mind while Democrats point fingers between now and Nov. 4: Senator John McCain was one of the three cosponsors of S.190, the bill that would have averted this mess."