This current financial mess is generating more lies and finger pointing than I can believe. The Democrats are trying desperately to wiggle out from under and responsibility. They are lying through their teeth.
The first point that the Dems try is the lie that de-regulation is responsible for this. The second is pointing fingers at the Bush administration. The fact is that the sub-prime mess is as a result of the libs noticing that black borrowers got approved 70% of the time and whites got approved 80% of the time. No one ever commented that Asian borrowers generally got approved 90% of the time. The immediate liberal reaction was that this just had to be racially motivated and that only nasty racial bias could be blamed. Nonsense. The only color sense that money people have is green. The fact that the black community is more concerned about identifying with baggy-drawered rap punks with poor attitudes than with learning good life skills doesn’t seem to compute. Money people don’t care about the color of someone’s skin. They care about their track record of repaying loans in a timely manner. It costs money to go after bad payers or slow payers. It costs money to deal with the whole repossession bit. Repossessed property generally can not be sold at any kind of profit.
Lenders also did charge higher interest rates to people in neighborhoods that had track records of poor repayment practices. They were vilified for “predatory” lending practices. The fact is that it costs more to do business in bad neighborhoods than in good ones. Since libs do not seem to think that people should pay the penalties for their own actions and decisions they didn’t think that the people receiving these loans should pay the price of doing business in their neighborhoods.
Be that as it may. The Congress passed legislation to force lenders to offer “fair” loans to sub-prime borrowers. This was done by the Democrats. Now when Congress passes laws a couple of things happen. First, the business community has to figure out a way to implement the new law. Second, they have to figure a way to make a profit doing so. Poorly thought out and poorly written laws which address huge amounts of money generally attract all kinds of opportunistic people. It is of interest to note that the majority of the bribes – sorry contributions – that came from Fanny Mae, Freddie Mac, and others which have benefited from these laws have gone to Democrats who are on the committees that oversee these programs. Dodd and Obama have been the majority recipients of these bribes.
Early in the first Bush administration there were reports and warnings that we were headed for a mess. The Democrats on these oversight committees pooh-poohed and denied these reports.
Now, there are those who think that the government can solve a depression – which we do not have yet. In fact, we have not had a recession yet. But anyway, government can do nothing to make a depression better other than get out of the way. Those who worship FDR have not studied history very well. Even those who lived through it don’t seem to understand economics. FDR and the New Dealers did not make the depression better, they made it worse and prolonged it. The stock market crash of the late 1980’s was worse than that of 1929. The standard response of the left was to become hysterical and cry out for “the gummint to DO SOMETHING”. Ronald Reagan – the only president who actually studied and understood economics – refused to let Congress do anything rash and stupid. The economy recovered quickly and we had lower unemployment and greater prosperity than at any other period in our history.
Now we are faced with a 700 billion dollar bailout. Just how much will wind up in the pockets of Congressmen as bribes so that the fleas and ticks that feed off government programs can gorge at will.
Only thing I can say for sure is it won’t benefit thee and me. And we will ultimately wind up paying for it.
Last point. Financial decisions made to appease some politically correct bunch are suicide.