The truth about the Treasury bail-out of mortgage lenders and why it will happen again
Because the left-wing American media considers it “news” to simply amplify the talking points of the Democrat party, the public is not likely to learn the truth about what happened to Fannie Mae, Freddie Mac, and the nations biggest mortgage banks.And without an understanding of how this abortion of sensibility occurred, it’s likely to be repeated some time in the near future.The next time, however, we may not recover from it.
Despite her promise to Treasury Secretary Paulson to pass a bill quickly, House Speaker Nancy Pelosi is now balking.She says that the House will not give treasury, “a blank check” and that there needs to be more oversight.We agree.But the oversight needs to come from the public or the executive branch, NOT the Congress.After all, it is Congress that created the problem in the first place. “How is that?” You may ask.
During the Clinton administration, Attorney General Janet Reno’s Justice Department began pressuring banks to lend more money to people in “minority neighborhoods,” with any regard for the applicants’ ability to repay them, in another policy of result-based equality.Those lenders who resisted were often threatened with lawsuits from Justice.Most banks and mortgage institutions submitted because these loans were guaranteed by Fannie Mae and Freddie Mac.
Realizing the potential for future trouble, President Bush tried to fix Freddie and Fannie, but his efforts were thwarted by Massachusetts Congressman and pervert, Barney Frank, and Connecticut Senator Chris Dodd.As long as the real estate market was booming, the impending disaster remained hidden.Fannie and Freddie became sources of funding for Democrat-favored non-profit groups, and for Democrat and Republican campaign contributions.The leaders in campaign cash were Barack Obama and Chris Dodd, chairman of the Senate Banking Committee.
Democrat Senators Chris Dodd and Kent Conrad enriched themselves by securing home loans well below the rates available to the public.Once discovered, Dodd and Conrad agreed to give an equivalent amount of money to charity, and Congress undertook no action against them.
Since criminal activity and untruth are always uncovered eventually, so it was with this mess. Once the real estate market cooled and then began to correct, Fannie, Freddie and the countries largest lenders broke apart under the pressure of the enormous numbers of bad debts.Treasury Secretary Paulson estimates that it will cost $700 billion to get the economy growing again, but given the federal government’s propensity to incorrectly estimate costs, the ultimate price tag will probably be much, much higher.To this, add Pelosi’s calls for “helping the little guy,” or keeping people in homes they should never have been given mortgages for, in their homes at the expense of the taxpayers.
Just today, Tuesday, September 24, Pelosi, Frank, and Dodd are claiming that what’s needed is more Congressional oversight.It’s insane—Congress created and exasperated the mortgage crisis by contaminating the lending industry with their failed liberal policies.The very last thing we need is to give Congress any control over the industry at all.
What should happen.In order to prevent this kind of incestuous relationship and gross conflict of interest, Senators Chris Dodd and Kent Conrad should be fired and charged with embezzlement.Next, Congressman Barney Frank and Speaker Pelosi should be fired and charged with criminal neglect.To these should be added any and all Congressmen and Senators of either party who had any part in creating this crisis which we will be paying for many years in the future.
Unfortunately, these things will not happen because most people will not take it upon themselves to learn the truth, and the left-wing media will do all they can to cover of their Democrat friends.Secondly, the people of Connecticut and Massachusetts will not give the boot to senior legislators, and since Congress investigates itself, nothing is likely to be done to bring them up on charges.Therefore, expect much higher taxes in the future.Even if Obama is not elected, the cost of fixing Social Security and Medicare--other pots of money robbed by Congress—will be staggering.
To those who complain and do nothing to correct the problems they complain about, I say, “go ahead, keep your heads in the sand—convincing yourselves that everything will be fine.But don’t you dare ask me next year what can be done—it will be too late by then.”