Simple Man Politics

Good day to all of my friends out there in the real world as well as on the internet. I was trying to figure out what to write today and frankly the only thing that is still on my mind is this mortgage problem we have right now. I know I wrote about it already this week so I’m not going to write about it again today. However a friend of mine sent me this excerpt from an article that was published in Investors Business Daily September 10th, 2008. I have done some fact checking and find the information in the article to be 100% factual and I think it is worth reading so I’m posting it here for all of you to check out.



the domestic side, Carter gave us inflation of 15%, the highest in 34 years; interest rates of 21%, the highest in 115 years; and a severe energy crisis with lines around the block at gas stations nationwide.

In 1977, Carter, along with a Democrat Congress, created a worthy project with noble intentions—the Community Reinvestment Act. Over strong industry objections, it mandated that all banks meet the credit needs of their entire communities.

In 1995, President Clinton imposed even stronger regulations and performance tests that coerced banks to substantially increase loans to low-income, poverty-area borrowers or face fines or possible restrictions on expansion. These revisions allowed for securitization of CRA loans containing subprime mortgages.

By 1997, good loans were bundled with poor ones and sold as prime packages to institutions here and abroad. That shifted risk from the loan originators, freeing banks to begin pyramiding and make more of these profitable subprime products.

Under two young, well-intended presidents, therefore, big-government plans and mandates played a significant role in the current subprime mortgage mess and its catastrophic consequences for the U.S. and international economies.

Hardest-hit by the mortgage foreclosures have been the citizens that Democrats always claim to help most—inner-city residents who fell victim to low or no down payment schemes, unexpected adjustable rates, deceptive loan applications and commission-hungry salespeople.

Now we're having to bail out at huge cost Fannie Mae and Freddie Mac, the very agencies that were supposed to stabilize the system. In time, this should improve the situation. But the party of Carter and Clinton that midwifed our mortgage mess now wants to be trusted to take over and have the government run our entire system of health care!


It really is quite interesting isn’t it? These Presidents represent the party that says they will fix the problems we are having with the mortgage business right now. What do they think we want? 4 more years of the same 12 years that gave us this trouble, I don’t think so. Now we have to bail out AIG for more than 80 billion dollars because their trouble is related to the current crisis as well. What was the government thinking when they got involved in the business of business instead of the business of the people? See all of you guys tomorrow, CIAO4NOW!!!!!