In 2008, our economy collapsed. So Americans elected the people who had engineered the collapse. Because apparently we have the same nihilistic desire to go the way of the Dodo bird that every single other great culture in history degenerated to before their collapses.
Barney Frank: The Community Reinvestment Act Was a ‘Republican Failure’
By Jim Geraghty
Posted on October 12, 2011 9:19 AM
In today’s Wall Street Journal:
Asked who was to blame for the 2008 financial crisis and whether any bankers should have been prosecuted, Mrs. Bachmann and former House Speaker Newt Gingrich put the onus on the federal government, with Mr. Gingrich suggesting that former Senate Banking Chairman Chris Dodd and Rep. Barney Frank, former chairman of the House Financial Services Committee, should both be jailed.
“It was the federal government that pushed the subprime loans . . . that pushed the community reinvestment act,” said Mrs. Bachmann, citing what she considered the causes of the housing meltdown.
Mr. Frank released an emailed statement in response: “In fact, Chris Dodd and I were in the minority from 1995 until 2006, so Gingrich is blaming us for Republican failures.”
So panicked is the response from Congressman “I want to roll the dice a little bit more in this situation towards subsidized housing” Frank that he forgets that from May 2001 to the end of 2002, Democrats controlled the Senate and Dodd was the second-ranking Democrat on the committee after chairman Paul Sarbanes.
It is also revealing that Frank believes that Bush-administration assent to policies he supported means that the consequences of those policies are, ipso facto, “Republican failures.” As Peter Wallison lays out on the Journal’s op-ed page, you can blame Wall Street for reckless gambling on mortgage-backed securities all you want, but the risk of the mortgage-backed securities never takes off unless the federal government starts pushing lenders to lower their standards for worthy borrowers. Sure, the big-bank investors never should have gone dancing in the minefield, but the minefield was set up by federal policies that encouraged massive loans to “borrowers with blemished credit, or were loans with no or low down payments, no documentation, or required only interest payments.”
It is rather amazing that with laughably inaccurate defenses like this, Frank is still considered a significant voice in the Democratic party today.
First of all, the Community Reinvestment Act was passed in 1977 during the Carter administration the last time Democrats controlled EVERYTHING. For the Democrat control of the House, see here; for the Senate, see here). It is yet another of so many other examples of the clear and present danger that Democrats pose to the United States of America.
The Community Reinvestment Act was radically and insanely expanded in the last two years of the Clinton Administration.
The problem that Republicans had in doing away with the atomic bomb buried in the underbelly of the once-free market mortgage system was that to do away with CRA would have been decried as “racist.” Because Democrats are vile cockroaches and that is basically the only play in their playbook.
For his part, Barney Frank was successful SEVENTEEN TIMES in shielding Fannie Mae and Freddie Mac from regulation (at least in part so his homosexual lover could have a job). The article I link to includes an interesting image:
The Fact of the matter is that Democrats were crawling all over this economic collapse:
“I think the responsibility the Democrats have may rest more in resisting any efforts by Republicans in the Congress or by me when I was President to put some standards and tighten up a little on Fannie Mae and Freddie Mac.”
But the same Democrats who refused to put some standards and tighten up a little on Fannie Mae and Freddie Mac” became hard-core obstructionists in blocking Bush from doing ANYTHING to save our economy even as Republicans like John McCain repeatedly warned that America was the Titanic and Fannie Mae and Freddie Mac were the two giant icebergs. And then after the collapse that Democrats did everything they could to cause, they were ready to demonize Bush and the very people who had warned of the impending disaster and who had repeatedly tried to avert that disaster.
The mainstream media refused to hold liberals accountable for the failure of liberal policies because the mainstream media are a) liberals themselves and b) outright propagandists.
Fannie Mae and Freddie Mac expanded to gargantuan proportions, controlling well over 60% of the mortgages in America. When Fannie and Freddie collapsed FIRST BEFORE ANY OTHER BANKING INSTITUTION, that collapsed initiated a loss of confidence in the private lenders because those lenders had purchased billions in Fannie Mae’s and Freddie Mac’s toxic assets.
If you EVER want to have a functioning economy again, never elect another Democrat for so much as rat catcher. Repudiate racist race-based policies that are socialist interferences with the free market, and allow the free market to make loans to people – and ONLY to the people – who can afford to pay those loans back, regardless of the color of the applicant’s skin.
Obama promised to “fundamentally transform” America. And he’s done so. If you like blacks and poor people being crushed, than you ought to be happy about Obama’s “fundamental transformation.” Because that is exactly what the man has brought with his idiotic Marxist policies.