When the topic of the economy is discussed at conservative websites like FreeRepublic.com, there is always a voice waiting to interject ‘Yeah, the Republican administration did this to our economy and it’s time for change.’ Well, that’s not exactly truthful, though Republican pork-barrel spending has increased our long-range national debt, the democrats actually own the fundamental reason for the current financial crisis and all the ramifications thereof … like jobs lost as economy slides into deep recession, and the subsequent hits to the economy the loss of household income cause.
At the foundation of the financial crisis is the democrat secular socialist plan for America, a plan so close to socialism that it may as well be called exactly that. It may sound warm and loving to say all Americans should have a house of their own, but in a free market such ownership in the ‘middle class’ must come with work and savings, income dedicated to a home provided by honorable labor. If the homes are ‘donated’ by coercion, it isn’t a free market, it’s wealth redistribution.
Wealth redistribution under coercion in the mortgage markets is exactly what occurred on a monstrous scale, blossomed into crisis by democrat cash cow institutions called Fannie Mae and Freddie Mac … law suits were used to coerce lending institutions to extend sub-prime mortgages to people who had not saved for such a home and who could not afford to pay for such homes unless the cost of everything else in their budget stayed the same or declined to free up income for house payments.
Why did ACORN’s housing operation bring lawsuits, how could suits to force bad loans have any credence? … Democrat originated legislation, hooked to the political correctness mantra of ‘discrimination’ accomplished it. It’s time to shove political correctness down the throat of any con artist trying to use it, at this juncture, but that’s grist for another, later stone.
The Democrat party has arranged for their economic philosophy to infuse its poison in the broadest sense, undermining the Republic at the very basis of our freedom, mutating the tissues of capitalism. The method Democrats have used is hardly ‘compassionate‘ toward the very minorities they used to accomplish the undermining! … It‘s not compassionate or caring to hook families with house payments that are beyond the income of the household, yet that is precisely what the Democrat plan for redistribution has done. It does have one Democrat benefit however, it amplifies class warfare. And Obama is all about exploiting class warfare.
Here is a simple explanation of how the current economic crisis was generated over decades. The idea of mortgages for just below middle class workers was floated in the Carter administration. Legislation allowed the formation of government sponsored funding to purchase and guarantee mortgages which were to be made to wage earners just under the traditional optimal income-to-payment ratios. Limits were set for these government backed funding agencies and the race began, slowly at first, because for the mortgages to be funded they had to first be written by a neighborhood lending institution, then bundled with other more sound mortgages, and sold to larger banking entities who were then encouraged to place these bundles with Fannie Mae and Freddie Mac.
So long as the very close to marginal procedures were maintained, and some local restraint maintained at the start of the lending process, the idea was working, though squeezing the larger banking entities thus tying up some capital in this ‘investment in the working class’ --a sound byte phrase for ‘giving a hand up, to bring more into the middle class‘, a popular modern socialist concept based not on earning a hand up but on being given, as in donated by the ‘richer people in the nation’ under the direction of a political ruling class.
Where the system of marginal mortgages broke down was not that hard to engineer. It appears that the Democrats purposely engineered the failure, planning for it to come under a Republican administration, by blocking the Bush administration and Republican authored congressional regulation of Freddie and Fannie … Democrat congressional operatives (Frank, Waters, Watts, Meeks, Dodd, Schumer, Reid, etc) now at the heart of passing the trillion dollar bailout were the very ones blocking regulatory oversight during the Republican majority (majority but not control of; remember that point, it’s crucial to the lie at the heart of the current Democrat presidential campaign ads against McCain/Palin).
Legislation is written in the House and must pass through the Senate before going to the president for passage into law. The Senate can be stonewalled (filibustered) if there is not a sixty-one vote number out of the 100 senator count to force a bill through … democrats threatened filibuster every one of the sixteen times the Republican administration or Republican majority House and Senate tried to write regulatory change at Fannie Mae and Freddie Mac. Republicans tried to regulate, to stop the socialist bleeding, but Democrats blocked the efforts every time.
The Democrats had reasons to block tightened oversight. Their Democrat operatives at Fannie and Freddie (Johnson, Raines, Gorelick, etc.) were illegally cooking accounting books at Freddie and Fannie, to funnel to themselves hundreds of millions in bonuses, special loans to Democrat legislators, and campaign cash to legislators--with the lion’s share to top Democrat legislators named Dodd and Obama--for achieving funding goals the government sponsored entities funding the risky mortgages had not actually reached. This exponentially increased the risk of collapse on the under collateralized properties lending institutions were being sued into extending mortgages for, beyond the house-buying ratio restraints!
[Here’s an aside to this essay, a morsel of clarifying information: The price of housing in California is a prime example of inflation run amok due to greed and poor income-to-payment ratios. Just as previous bubbles cause inflation across the spectrum of the economy, inflation of housing costs seeps into every aspect of the California economy, bringing that state to the brink of financial collapse, unless the Federal Treasury bails them out, also! The housing bubble was getting too large too fast, inflated in large measure by mortgage backing that was far from safe lending ratios.
We will see in the coming days many diversionary tactics, to try and disconnect the Democrats from the economic crisis their societal engineering has brought about. Don’t be fooled by Democrat spin machines and falsehoods from the Obama campaign. The economic crisis is the result of Democrat economic philosophy, which is socialist and wholly founded in wealth redistribution based on class warfare, not merit of individual accomplishment.
A simple way of describing one difference in socialism and communism is related to redistribution: in socialism, some are allowed to accumulate wealth, but the central authority forces most of the wealth to be collected and redistributed, whereas in communism, all is collected by the central authority and distributed … in communism, it isn’t redistribution because there are no wealthy from whom to take it.]
Democrats are socialist at heart, and they’ve engineered our financial system to function that way in the area of mortgage backed securities now reaching into the trillions of dollars at risk of collapse. If the Democrats take control of the Presidency and retain the House and Senate, the slide into socialism will accelerate, becoming a plummet from which the Republic may never, and in fact could never recover … the very survival of this Republic depends upon changing the current leadership and the current direction of the engine which drives America.
Both candidates for president this cycle offer change. We may be discern quite easily which way change will go under an Obama administration because Barack Obama actually was one of the ACORN lawyers in an extortion lawsuit threatening action against a lender who questioned the risky mortgages. Coerced, the lender buckled under to ACORN demands. Obama, as an extreme liberal in the Democrat party, will take the extreme direction of Democrat philosophy, socialist philosophy of wealth redistribution. A significant number of voters don‘t see a problem with that, sadly.
We may also discern which way reform under a McCain administration will go, since the only capitalist way out of the current engineered financial crisis is to work our way out by opening up the use of our natural resources … and probably our greatest natural resource is the genius of our economic system of capitalism and the abilities to bring to market technologies we can sell to the world as we become energy independent.
Remind yourself that Governor Sarah Palin has been involved in building a natural gas pipeline, to bring vital resource to bear on the energy problem, while Democrats have--because of special interests they depend upon for empowerment--blocked all measures which could lead to energy independence, except the most ‘green’ of all options, which frankly cannot fuel the massive economic engine of our nation, but can cripple the Republic if forced upon the nation--just as risky mortgage business has been forced upon the nation’s lending institutions via Democrat legislation.
The Republican ticket will bring reform to a stagnant economic system because the McCain/Palin ticket plans to work our way out of the economic crisis and energy crisis through wise development of resources, not further credit mismanagement. The trillion dollar credit rescue may have been necessary in the short run, to stave off massive recession and the resulting massive job losses, but in the long run, socialist engineering like the Democrats use will only kill the freedom of America.
We already see where Democrat opposition to using OUR natural resources gets us. Dependence upon foreign energy sources is a recipe for world socialism, but it is also a recipe for disaster, leading to energy wars. You would think Democrats could see this, since they imagined America went to overthrow Saddam Hussein only for Iraqi oil.
It is as if Democrats see what their socialist philosophies will achieve yet they cannot see they are causing the result they claim to abhor! Massive ballooning debt is the ally of Democrat future socialism for America. McCain/Palin planned energy independence is the workout solution to our current economic crisis and the energy crisis stretching out before US.