three presidential contenders delivered major economy-themed speeches this week, yet John McCain demonstrated a better understanding of the housing crisis than either of his potential Democratic opponents
Must read:
Democrats criticized McCain’s speech for lacking specifics, displaying their fondness for laundry lists of government “solutions” to complex problems. The Democrats’ various proposals indicate that they have misdiagnosed the causes of the current crisis, attributing too much blame to “predatory lending” while absolving irresponsible borrowers who took out loans they could not afford. Conservatives needed to hear the Republican nominee present a broad and accurate overview of the crisis; the specifics can wait.
Rising home prices led lenders to lower their standards, McCain said. “Some Americans bought homes they couldn’t afford,” he added, “betting that rising prices would make it easier to refinance later at more affordable rates.”
Wall Street helped inflate the housing bubble, McCain argued, by betting big on mortgage-backed securities. When housing prices started to decline and foreclosures started to rise, a widely dispersed network of investors found themselves owning a lot of questionable mortgage debt, which sent investors into a panic.
In McCain’s formulation, irresponsible lending and borrowing created the problem, and uncertainty is at the root of its spread throughout the financial community. If accurate, this diagnosis demonstrates the folly of the Democrats’ proposed cures, which would reward irresponsibility and increase uncertainty among investors.
Meet a left-wing housing entitlement thug
Loading ...
September 26, 2008 - 04:34 PM on September 26th, 2008
If the Democratic congress, Pelosi, and Reid spent as much time legislating, as they do playing partisan politics and making nasty accusations, our country would be in good shape.They both say that from now on, after we get the 750 Billion, we’ll make sure there is oversight! … then, they attach a multi-billion dollar pork bill for Acorn, to the bailout bill. Pelosi and Reid should be reminded that only 15% of the country give them a favorable rating. Conditions would rapidly improve in America, if Pelosi and Reid would step down, so we could replace them with legislators who represent most of the people … not just 15%.
September 26, 2008 - 05:45 PM on September 26th, 2008
You are right Gina. There is only one thing I’d do different. They shouldn’t be allowed to step down.
All of the frauders, looters, and Constitutional criminals that caused this mess should be marched off to the Guillotine.
September 27, 2008 - 06:30 PM on September 27th, 2008
Gina, I think I LOVE you! It is so refreshing to hear from someone that can see the facts, and can think for themself. As opposed to listening to the extreme left liberal media’s rhetoric! Again, thank you ever so much for weighing in! It is delightful to have read you opinion! Keep blogging, you are good at it!