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September 25, 2008

How Affirmative Action Caused the Financial Crisis

The mortgage mess became so huge as to threaten our entire financial system because Fannie Mae and Freddie Mac fat cats paid off liberal Senators, most prominently Chris Dodd, John Kerry, Barack Obama, and Hillary Clinton, to block reform attempts by responsible grownups like George Bush and John McCain. But how did these quasi-socialist mortgage giants get into trouble in the first place? As Ann Coulter observes, it was largely a matter of granting mortgages on the basis of Affirmative Action:

Under Clinton, the entire federal government put massive pressure on banks to grant more mortgages to the poor and minorities. Clinton's secretary of Housing and Urban Development, Andrew Cuomo, investigated Fannie Mae for racial discrimination and proposed that 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low- to moderate-income borrowers by the year 2001. […]
Threatening lawsuits, Clinton's Federal Reserve demanded that banks treat welfare payments and unemployment benefits as valid income sources to qualify for a mortgage. That isn't a joke — it's a fact.
When Democrats controlled both the executive and legislative branches, political correctness was given a veto over sound business practices.
In 1999, liberals were bragging about extending affirmative action to the financial sector. Los Angeles Times reporter Ron Brownstein hailed the Clinton administration's affirmative action lending policies as one of the "hidden success stories" of the Clinton administration, saying that "black and Latino homeownership has surged to the highest level ever recorded."
Meanwhile, economists were screaming from the rooftops that the Democrats were forcing mortgage lenders to issue loans that would fail the moment the housing market slowed and deadbeat borrowers couldn't get out of their loans by selling their houses.
A decade later, the housing bubble burst and, as predicted, food-stamp-backed mortgages collapsed. Democrats set an affirmative action time-bomb and now it's gone off.

Imagine what would happen if we applied Affirmative Action principles to choosing the next president.

On a tip from Burning Hot.

Posted by Van Helsing at September 25, 2008 6:58 AM

Comments

Back in 2003, Barney Fag, oops -- Frank said this:

http://www.taxfoundation.org/blog/show/23617.html
"The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disastrous scenarios. And even if there were a problem, the Federal Government doesn't bail them out. But the more pressure there is there, then the less I think we see in terms of affordable housing."

Posted by: Barney Rubble at September 25, 2008 7:22 AM

I tell you it is this sense of entitlement with libs that knows no boundaries. The libs were wining that poor people aren't getting loans. THAT IS BECAUSE YOU ARE SUPPOSED TO PAY BACK A LOAN! On Fox, Barney "Hide the Frank" Frank was shown back in 2006 saying that the current structure of Freddie and Fannie was secure and nothing catastrophic will happen in the future. Hello? Here were two of the most enormous buyers of mortgages on the planet and this monopoly wasn't seen as dangerous to the demotards if people were to go bad on their debt? They knew some of these mortgages were bad to begin with! After all, they were giving these loans to deadbeats and losers that could never pay them off. This is what happens when libs are in control of ANYTHING. This sense of entitlement has to be beaten out of these nitwit libs. Can anyone say welfare? Abortions? Subprime loans?

Posted by: Sol Rosenberg at September 25, 2008 7:36 AM

As Ann Coulter put it: "They Gave Your Mortgage To A Less Qualified Minority."

There was an extremely misguided idea ... promoted by the Clinton AND Bush administrations... that home ownership would lead to poor people exercising stable middle class values and financial propriety. In fact, it only works the other way around.

Nature does not long tolerate fools.

It's ironic to hear economically illiterate politicians blaming "greed" for the scandal. Avarice is not served by loaning money to people who can't pay it back.

Posted by: V the K at September 25, 2008 7:45 AM

If I knew it was gonna be this much damn trouble, I wouldda picked my own damn cotton.

Posted by: Shooter1001 at September 25, 2008 8:12 AM

Even with all the evidence about who is really responsible for this mess, the far left loonies still don't believe it. It is the same tired mantra from them; It's Bush's Fault.
I recommend buying stock in Alcoa or reynolds as the demand for tinfoil hats seems to be huge!

Posted by: Zen at September 25, 2008 8:19 AM

Ya if I wanted to read Coulter's articles, I can just go to her website too ;)

Posted by: wizdum at September 25, 2008 9:45 AM

ABOLISH AFFERMATIVE ACTION

Posted by: Spurwing Plover at September 25, 2008 1:23 PM

Posted by: BURNING HOT at September 25, 2008 7:50 PM

Demos should be screwed in the as** for their part in thsi scandal and the loss/thievery from hard-working Americans...oops. Barney "Fag' wanted that all along and will enjoy it...maybe he's going at it on the vegetable Kennedy now...

Posted by: hatedemos at September 28, 2008 9:44 PM