Ace Of Spades: Finally: Republicans Finger Democrats as Responsbile for Fannie/Freddie Meltdown
Via Ace who has been hammering this and encouraging all of us to sent these links to everyone we know:
It should be noted that “Republicans” do not include “McCain.” Although McCain saw this crisis coming, and attempted to avert it, he is now foolishly engaging in demogogic populism, blaming Wall Street for “forcing” loans on poor people who coudn’t afford them.
He knows better. But he’s too foolish to know the truth is actually on his side. He doesn’t need to demogogue up Wall Street. This was a fifteen year campaign by the Democrats, ACORN, and Fannie and Freddie’s executives to loosen up mortgage requirements to the point where there simply where no requirements at all.
Net result? Trillions of federally guaranteed dollars flow into the housing market that shouldn’t have been there — suddenly buying a house becomes the easiest possible loan you can get.
Housing market turns into dangerously overinflated bubble. Which is what always happens when a trillion fresh, cheap, easy dollars flow into a sector and begin chasing the same limited pool of good.
Millions of credit-poor homebuyers — with erratic and unverified incomes — now have mortgages with payements well out of their range.
And finally the bubble bursts — and now all those credit-poor, erratic income homeowners now have mortgages for $350,000 on houses actually worth $150,000.
So what do they do? They walk away or stop paying. Which makes perfect economic sense.
Leaving Fannie and Freddie guaranteeing a trillion in bad mortgages. Which means you’re guaranteeing them.
Wall Street’s contribution? They stupidly bought up derivatives based on these junk mortgages, thus putting themselves, and the entire financial system, at dire risk.
But they didn’t create the risk. The stupidly bought into the risk, but they didn’t create it.
It was Barney Frank, Chris Dodd, ACORN, Franklin Raines, Penny Pritzker, Jim Johnson, and of course Barack Hussein Obama who actually built the bomb.
Fox deserves a little publicity for being willing to challenge the narrative. Especially now that we’re about to be told it’s McCain’s campaign manager and his lobbyist pals, not the Democrats they lobbied who actually cast the votes, who are the real culprits in all this.
September 23, 2008 - 07:00 PM on September 23rd, 2008
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October 8, 2008 - 08:17 PM on October 8th, 2008
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