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Saturday, September 27, 2008

The Answer is Carter, Clinton, and Obama

If you support Barack Obama for President and believe that you can do so with facts and logic driving your emotions, then I challenge you to get through this post, to watch the video, and to prove it wrong.

Who's to blame for the economic crisis we face today?

Here is a quick synopsis of the mess we are in:

  • President Carter got the ball rolling with the Community Reinvestment Act to give mortgages to those who otherwise couldn't afford them.

  • President Clinton dramatically strengthened CRA to make it easier for those with bad credit, no credit, and no money to get loans. These changes mandated that free market lenders give more loans to more people who are more likely to default.

  • Democrat Senator Chris Dodd and Democrat Representative Barney Frank have been long-time promoters of government mandated and taxpayer backed high risk loans.

  • Lawyer Barack Obama sued lenders to give even more high risk loans.

  • In 2003, President Bush foresaw the pending crisis and tried to thwart it with legislation to slow the growth of risky mortgages mandated or sponsored by the government.

  • In 2005, Senator McCain offered and fought for legislation that would have prevent this mess.
  • Democrats, led by Dodd and Frank blocked any attempt to reign in Fannie Mae and Freddie Mac. Senators Clinton and Obama supported blocking the legislation.

  • Fannie Mae and Freddie Mac made prominent Democrat aids extremely wealthy – aids who now work for Obama's campaign. They also gave over $100,000 in contributions to Senator Dodd and Senator Obama. These government managed lenders did NOT want any changes to the practices that bankrupted them while making their executives "filthy" rich.
The video below is does a fine job explaining how we got into this fine mess:

[UPDATE: Time-Warner, who contributed $338,527 to Obama, claimed copyright infringement for us of music within the video originally posted here. The video maker has made a new version now posted below.]

[H.T. Powerline]

During Friday's debate, Senator Obama stressed that we must understand how we got here. Sadly, he was more interested in blaming President Bush then exploring the truth. So what is the truth?

  • This is not a failure to regulate the private sector, but rather a failure of over-mandating free market lenders.

  • Contrary to the popular mantra of the day, President Bush and Senator John McCain (with support of other Republicans) saw the pending doom and took appropriate measures to stop it by scaling back government's intervention into free market lending.

  • Democrats are trying to use this crisis as an excuse to grab even more control over private enterprise, but doing so is sure to lead us to an even bigger mess down the road. In doing so, they continue their politics of envy to steer public disgust toward the corporate executive. But, their own policies have made executives of government backed agencies rich and promise to make them even richer.

  • When government meddles in a free market industry, it destroys it. It does so by destroying your buying power – the power to choose the enterprises that you like with the full strength of the dollars that you earn. As a result of meddling in the mortgage industry, millions of Americans who can afford new mortgages are now unable to benefit from the true value of their existing home.

  • Government has already meddled into the free markets of health insurance and health care providers. If allowed to extend it's reach, government will surely do to the health care industry what it has done to the mortgage industry.


Blogger Right Hook said...

Great post! The video is devastating!

McCain needs to have his surrogates driving this information home through all media outlets and challenging Obummer for answers on a daily basis.

9/27/2008 8:21 AM  
Anonymous Anonymous said...

Too many of the Republicans are elbow deep in the wealth made by leveraging debt, and too many of the Republican politicians have benefited both directly and through political contributions, and worst of all, the current Republican in Chief is busy working as apologist for all the greedy bankers and CEOs who think taxpayers should pay for the clean up of their mess. The Democrats may be largely to blame, but they won the PR battle for "who loves the poor more?" a long time ago. It will be the Republicans who pay politically for this, unless--and this is only a possibility, not a prediction--the few left with a spine in the House manage to defeat any bailout at all. Time for Atlas to Shrug.
--John Galt

9/28/2008 9:35 PM  
Blogger G-Man said...

Welcome back John,

You appear to be feeding on the Party of The Rich myth. Politics has indeed made many politicians and their aids filthy rich, but the treasure chest of political gold tilts most heavily on the left side of scale. The Clinton's have made over $100 million since Bill left office. Algore has made an estimated $50+ million by reinventing Chicken Little. Many former Clinton aids, including a few helping Obama, have become mega-millionaires since arriving in Washington D.C. And, of course, Obama himself has turned politics into a get rich quick endeavor.

The underlying problem is that we, as a collective body of voters, have allowed Congress to delve too far into matters best left to the private sector. The expanse of government programs and government intervention in the free market invites, even demands that dollars flow to Washington to influence congressional action.

For some, it is a necessary self defense of their business interests. For others, government intervention is an opportunity to bypass the competition. Then there are the multitude of special interest groups from unions to citizen groups to enviro wackos who see the need to influence law makers to protect or advance their varied interests.

It's an ugly cycle. The more law makers do to legislate the free market, the more money flows to Washington to influence lawmakers. For the politician, this cycle equates to power and eventually wealth – legitimate or otherwise. The only way to reduce the money flow is to reduce the law makers' reach into private sector matters – a rather tall order to say the least. Until then, the lobby efforts by business and special interest groups are a necessary means for private citizens to be heard in Washington.

The problem with Republicans in Washington is not that too many are elbow deep in wealth leveraged by debt. The problem is that we have too many who listen to the media and accept the premise that they have lost the PR battle (on any issue). Too many of these Republicans refuse to fight the PR battle.

9/29/2008 10:28 PM  

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