From The American Thinker blog:
If the great American middle class ever figures out the trillion dollar phony mortgage scam from Freddie and Fannie, they will finally rise up in wrath and throw the liberal bums out. Let it start hitting their pocket books, their ATM cards and credit cards, let their home prices fall like a rock — and Barack Obama will be out of politics, along with the Democrat majority in Congress.
For conservatives this is the opportunity of the century.
That is why the Democrats are screaming with fear about the abyss that has suddenly opened at their feet. Since the Carter Administration first threatened the banks with punishment if they didn’t allow themselves to be robbed by sub-prime borrowers, since the Clinton Administration made it all even worse in 1995, even the Democrats have known full well that the bills had to come due at some time.
There is a sane reason why bankers and trustees have to exercise “due diligence” over other people’s money. All the politicians are lawyers, and they know about money and theft. But “due diligence” was criminalized for bankers through Federal law. They were compelled, on penalty of law, to lend money at high-risk through Fannie and Freddie. It is the Great Stock Market Crash of 1929 all over again, where everybody bought stocks on margin until they could see the abyss opening up at their feet. Well, this time it was the Feds who created an insane lending scheme themselves. The US Government threatened to punish bankers for “redlining” — which in real life means giving money only to people who can pay it back.
Nothing like leftists in government that are happy to squander YOUR money on their ideas. Not to mention getting a nice bribe out of it.
Another good read at Investor’s Business Daily:
One of the most frequently asked questions about the subprime market meltdown and housing crisis is: How did the government get so deeply involved in the housing market?
The answer is: President Clinton wanted it that way.
Fannie Mae (FNM) and Freddie Mac, (FRE) even into the early 1990s, weren’t the juggernauts they’d later be.
While President Carter in 1977 signed the Community Reinvestment Act, which pushed Fannie and Freddie to aggressively lend to minority communities, it was Clinton who supercharged the process. After entering office in 1993, he extensively rewrote Fannie’s and Freddie’s rules.
Democratic fingerprints are all OVER this mess, and we have to pay for it. Somebody needs to be fired.