Posted by: chronicler55 | September 27, 2008

Market collapse caused by Democrat affirmative mortgage program

Democrats, when in charge of both the legislative and executive branches, begin their social engineering. It was their opinion that everyone deserved a house, regardless of whether you have a job, are on welfare, are a citizen, legal aliens or illegal aliens, take welfare money or are on unemployment benifits.

Anne Coulter has the line of the week in “When Democrats controlled both the executive and legislative branches, political correctness was given a veto over sound business practices.”

Threatening lawsuits, Clinton’s Federal Reserve demanded that banks treat welfare payments and unemployment benefits as valid income sources to qualify for a mortgage.

economists were screaming from the rooftops that the Democrats were forcing mortgage lenders to issue loans that would fail the moment the housing market slowed and deadbeat borrowers couldn’t get out of their loans by selling their houses.A decade later, the housing bubble burst and, as predicted, food-stamp-backed mortgages collapsed. Democrats set an affirmative action time-bomb and now it’s gone off.
In Bush’s first year in office, the White House chief economist, N. Gregory Mankiw, warned that the government’s “implicit subsidy” of Fannie Mae and Freddie Mac, combined with loans to unqualified borrowers, was creating a huge risk for the entire financial system.

Rep. Barney Frank denounced Mankiw, saying he had no “concern about housing.” How dare you oppose suicidal loans to people who can’t repay them! The New York Times reported that Fannie Mae and Freddie Mac were “under heavy assault by the Republicans,” but these entities still had “important political allies” in the Democrats.

Now, at a cost of hundreds of billions of dollars, middle-class taxpayers are going to be forced to bail out the Democrats’ two most important constituent groups: rich Wall Street bankers and welfare recipients.

 

In spite of, or because of, his being one of the main architects of this disaster, Barney Frank loudly proclaims the lack of regulation (naturally a Republican fault) as the reason for this mortgage melt down.  In fact, the opposite is true. It was the Democrats demands that Fanny and Freddie encourage mortgages to illegal aliens and minorities without regard to their ability to pay that led to this crash.

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