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September 18, 2008

Mortgage Meltdown's Roots in Moonbattery

Despite his ties to Freddie Mac and Fannie Mae, Obama has been exploiting the current financial crisis by spinning it into evidence that we must abandon economic freedom in favor of socialism. Yet coercive intrusion by government moonbats had a large hand in creating the crisis. From Investor's Business Daily:

[I]t 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.
[…] Clinton-era corruption, combined with unprecedented catering to affordable-housing lobbyists, resulted in today's nationalization of both Fannie and Freddie, a move that is expected to cost taxpayers tens of billions of dollars.
And the worst is far from over. By the time it is, we'll all be paying for Clinton's social experiment, one that Obama hopes to trump with a whole new round of meddling in the housing and jobs markets. In fact, the social experiment Obama has planned could dwarf both the Great Society and New Deal in size and scope.

Clinton crony Franklin Delano Raines looted the quasi-governmental Fannie Mae for almost $100 million in compensation in just a few years before he had to abandon his CEO post under an ethical cloud. Since then he has moved on to other nefarious activities, serving as a "high level economic advisor and donation 'bundler' to the Obama Campaign."

Jim Johnson, who also stuffed his pockets with $millions as Fannie Mae CEO, served on Obama's VP search committee. Obama chucked him under the bus when his involvement in the questionable loans scandal at Countrywide Financial became public.

Fannie Mae and Freddie Mac have been big believers in greasing the wheels in Washington, as an alternative to restricting themselves to sound business practices. Despite being a junior Senator of little apparent consequence, Obama managed to soak up more of their money than any other Senator after Chris Dodd.

Whatever Obama means by Change, it won't pertain to the corruption that results when the government meddles in the private sector's business.

On a tip from The Him.

Posted by Van Helsing at September 18, 2008 8:37 AM

Comments

Both Democrats and Republicans did nothing to stop it from happening. But it definitely did begin with Clinton administration.

Of course the debt bomb was created by too many people trying to live beyond their means - everyone wanting the nicest house, newest cars, newest everything - then charging it all. I doubt even this collapse will change much at all - when the recovery begins it will all happen again. Boom, bust, boom, bust.... the more things change the more they stay the same.

Posted by: Anonymous at September 18, 2008 8:52 AM

But I didn't inhale!

Posted by: BillyBobBlowJobClinton at September 18, 2008 9:00 AM

@ Anonymous:

Not if government gets their hands out of private business and back into the pants of interns where they ostensibly belong.

Private businesses have the sense not to drive themselves into bankruptcy by giving loans to people who can't afford to pay them back.

Fannie Mae and Freddie Mack are not private businesses and should never have been allowed to do business in the private sector in the first place.

The government has no business competing with it's own citizens for revenue. They get enough out of us in taxes. Having to compete with these two boated giants for market share and coerced by draconian, feel good, anti-discrimination laws killed off otherwise solid companies and is what is killing this economy.

Posted by: The Him at September 18, 2008 4:18 PM

Saying that blame should be placed on Republicans and Democrats equally because of inaction is simply, dead wrong. Here is a quote from John McCain on May 25, 2006:

I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.

That bill was blocked by Democrats in committee. In other words, it never even made it to the floor.
So, based on this, it should be obvious that McCain, and the other sponsors of this bill, all Republican, saw this crisis coming and tried to do something about it. Unfortunately, they were blocked by Democrats on the banking committee. So, please, don't blame the Republicans for this one. They tried to fix this years ago and were thwarted by Democrats who received large campaign contributions from FannieMae/FreddieMac.

Posted by: ArcherB at September 19, 2008 5:50 AM

The pure,undisguised corruption of our despicable Senators and Congressmen(and women)has reached epidemic proportions.
They openly legislate the legality of financial crimes against the citizenry of this once great nation.
To create organizations (Fannie Mae,Freddie Mac,etc.)to help U.S. citizens who have a steady work history,decent credit rating,AND a down payment,to purchase a home is in the best tradition of America.To give a $400,000 mortgage to people who have NO DOCUMENTATION of earnings,not one dollar for a deposit,no history of employment and in many cases NO PROOF OF CITIZENSHIP, is without doubt straight up FRAUD against the U.S. Taxpayer.

That an organization created by politicians and funded strictly by U>S> Taxpayers should make even $1.00 in political donations,let alone pay hundreds of millions of dollars in "consulting fees" to relatives and friends of politicians is the boldest form of fraud imagineable.

If you want to survive and you want your children and grandchildren to survive, you MUST VOTE OUT all Congressmen and Senators running for re-election whether they are Democratic theives or Republican theives.

Posted by: Bklyn Ron at September 22, 2008 10:11 AM