Commentary
How smart we voters are! We believed the misinformation and in some cases outright lies from the media supporting the Democratic ticket in the recent general election. We have just hired the fox who stole the hens to investigate the theft.
The present crisis began when President Carter implemented the Community Reinvestment Act (1977). The purpose of this act, admirable as it seemed, was to allow more lower and middle income families to buy homes.
Using provisions of this same Community Reinvestment Act (CRA), The Association of Community Organizations for Reform (ACORN) intimidated banks into making high-risk loans to low-credit customers. ACORN is a group that Sen. Barack Obama worked with and gave money to.
This process resulted in the creation of thousands of bad loans, which were re-processed into securities which were sold to investers. When the loans began to default, Lehman brothers and other banking systems began to collapse under the weight of the losses. This created a credit crunch reverberating throughout the financial world. Loss of confidence has resulted in the stock market crashing and continuing to go lower day after day. The Democrats, before, during, and even now after the election continue to blame the Republicans. This is hypocrisy on a grand scale.
For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted. Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems. (http://www.whitehouse.gov/news/releases/2008/09/20080919-15.html).
But, it was easy for the Democrats to blame Bush and the Republicans. During the past two years, who do we think was in charge of the senate and house oversight in financial matters?
1.The United States Senate Banking Committee : Committee Chairman,
Christopher Dodd, (D), Subcommittees of the U.S. Senate Committee on Banking, Housing, and Urban Affairs and Subcommittee Chair;
2.Securities, Insurance, and Investment - Jack Reed (D-RI);
3.Financial Institutions - Tim Johnson (D-SD);
4.Housing, Transportation, and Community Development - Chuck Schumer (D-NY);
5.Economic Policy - Tom Carper (D-DE);
6.Security and International Trade and Finance - Evan Bayh (D-IN)
7.The House Financial Services Committee: Chairman Barney Frank (D-MA);
8.The United States House Committee on Financial Services (or House Banking
Committee) oversees the entire financial services industry, including the
securities, insurance, banking, and housing industries. The Committee
also oversees the work of the Federal Reserve, the United States
Department of the Treasury, the U.S. Securities and Exchange Commission,
and other financial services regulators.
Subcommittees and Subcommittee Chair: Capital Markets, Insurance - Paul
Kanjorski (D-PA);
9.Financial Institutions and Consumer Credit - Carolyn Maloney (D-NY);
10.Housing and Community Opportunity - Maxine Waters (D-CA);
11.Domestic and International Monetary Policy - Luis Gutierrez (D-IL);
12.Oversight and Investigations - Mel Watt (D-NC).
Democrats all!
We’ve been lied to time and time again. So, what do we do? We elect them. Now, depending upon the senate election, which outcomes are not yet determined, we may have a super majority of the “foxes” to ensure that the henhouse will belong to them for years to come. Those who voted for them were too lazy to check the facts, and deserve what will happen, but it will also affect those who did not.
God help us!