Wednesday, September 17, 2008
Wall Street Mess The Fault Of Democrats
It started in 1977 with the Worst.President.Ever Jimmy Carter. In case the direct link doesn't work - it says "by subscription only" - do a search using the terms Age And Experience: Carter's Catastrophes in Investor's Business Daily. From said IBD article:
In 1977, Carter, along with a Democrat Congress, created a worthy project with noble intentions — the Community Reinvestment Act. Over strong industry objections, it mandated that all banks meet the credit needs of their entire communities.
In 1995, President Clinton imposed even stronger regulations and performance tests that coerced banks to substantially increase loans to low-income, poverty-area borrowers or face fines or possible restrictions on expansion. These revisions allowed for securitization of CRA loans containing subprime mortgages.
By 1997, good loans were bundled with poor ones and sold as prime packages to institutions here and abroad. That shifted risk from the loan originators, freeing banks to begin pyramiding and make more of these profitable subprime products.
Under two young, well-intended presidents, therefore, big-government plans and mandates played a significant role in the current subprime mortgage mess and its catastrophic consequences for the U.S. and international economies.
Hardest-hit by the mortgage foreclosures have been the citizens that Democrats always claim to help most — inner-city residents who fell victim to low or no down payment schemes, unexpected adjustable rates, deceptive loan applications and commission-hungry salespeople.
Now we're having to bail out at huge cost Fannie Mae and Freddie Mac, the very agencies that were supposed to stabilize the system. In time, this should improve the situation. But the party of Carter and Clinton that midwifed our mortgage mess now wants to be trusted to take over and have the government run our entire system of health care!
Carter and Clinton and their band of Little Socialists forced lenders to provide risky loans for people who didn't financially qualify for the loans.
Speakeress of the U.S. House, the heavily botoxed Nanny Pelosi says, "don't blame us [Democrats]," but they are the responsible culprits. Every single last one of them.
Pelosi is only doing what Democrats do best, she is practicing the three tenets of Democrat Dogma:
3) When caught, blame the other guy.
In 1999, Bubba Clinton signed into law the repeal of the Glass-Steagall Act.
The purpose of The Glass-Steagall Act, passed in 1933, was to...: PBS:
...limit the conflicts of interest created when commercial banks are permitted to underwrite stocks or bonds. In the early part of the century, individual investors were seriously hurt by banks whose overriding interest was promoting stocks of interest and benefit to the banks, rather than to individual investors. The new law bans commercial banks from underwriting securities, forcing banks to choose between being a simple lender or an underwriter (brokerage).
[The repeal will], "save consumers billions of dollars a year through enhanced competition." He said it also would protect consumers' rights and require banks to expand the availability of funds for community development.
"It was sweaty, it was tense, but it had momentum," Sen. Charles Schumer (D-New York) said of the final bargaining session. He and Sen. Christopher Dodd (D-Connecticut) whose states are home to Wall Street and the banking industry (New York) and the insurance industry (Connecticut), helped broker the agreement.
(And only one senator registered as not voting. Any guesses on who the non-voter was? You got it: John McCain!) It passed the House 362 to 57. This was not a squeaker by any stretch. Then it was signed by Bill Clinton. He could have vetoed it, and even threatened to do so, but insisted on language being included in the bill that ensured application of the Community Reinvestment Act (CRA) to the financial institutions that were basically created by the law. (BTW - The deadlock on this amendment was broken by Chuck Schumer and Chris Dodd looking out for Wall Street and insurance companies who stood to gain tremendously under the bill.) When he got his way, he signed the bill amidst much hoopla. In fact, looking back on the process, the biggest worry about the bill was in protecting consumer privacy. There was nary a discussion about undermining the banking infrastructure.
Considering how anything the Democrats touch turns out being something with disastrous and wretched results, we still have people who believe that our health care system should be run by the government. These are the same people - almost always Liberals - who cringe and create false accusations that the government already has too much of our personal and private information. So what do these folks want to do? They want to turn over their entire medical history to the government. These people are daft, simply daft. They want to do to our health care system what Carter, Clinton, Dodd and Schumer did to the financial industry.
Someone in the MSM should ask Barack Hussein Obama, Junior if he thinks the repeal of Glass-Steagall was a good idea. Somehow, I imagine he would side-step giving a direct answer.
The subprime mortgage problem and the collapse of Lehman Brothers, Bear Stearns and Freddie Mac and Fannie Mae has the fingerprints of Democrat hands all over it, from top to bottom and left to right. Don't let anyone try to tell you anything different.
Our exclusive analyst, Baby Democrat, weighs in on the Wall Street Mess:
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