Howard County Maryland Blog

Local Politics and Current Events

The Roots of Sub-Prime

Posted by David Keelan on Sunday, October 5, 2008

What are the roots of the sub-prime mortgage mess?  While the democratic party and Barak Obama love to blame the GOP and Bush policies the fact is that the mess is built upon the manipulation of markets in order to promote affordable housing policies.  This was led by a few leading democrats who are today blaming the GOP for political gain.  They are hypocrites.  Create easy credit and easy money to promote an agenda this is what we get.

Affordable housing is a laudible goal.  Getting more families into homes that they own is worthwhile. Creating a market for artificially cheap mortgages for people that can’t afford them, watching them be foreclosed on and then demonizing everyone else for the problem you helped to create.  That is just BS.

Yet when challenged and as the truth emerges about these facts people go nuts (on both sides).

Republicans began warning about Fannie Mae and Freddie Mac a decade ago.   The Bush administration raised red flags as early as 2001 and even asked for more regulation and oversight in 2003.  Yet Barney and Nancy were raking in cash from Franny and Freddie

John McCain sponsored a bill warning about banking crisis in 2005… and every time the DEMOCRATS said there was no threat and shot down the bill.

Here is actual video footage of Barney Frank and other Dems during those years… showing they are lying now about who is to blame.

 

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10 Responses to “The Roots of Sub-Prime”

  1. Sarah said

    Say it ain’t so, David, there you go again pointing backwards again … Now doggone it, let’s look ahead and tell Americans what we have to plan to do for them in the future. …

    … No, in fact, when we talk about the financial crisis, there’s a time, too, when Americans are going to say, “Enough is enough with your party,” on constantly looking backwards, and pointing fingers, and doing the blame game. …

    … But for a party that wants to talk about change and looking into the future, there’s just too much finger-pointing backwards to ever make us believe that that’s where you’re going.

  2. rodney said

    I’m sorry, but your argument loses much of its luster when you consider that Republicans were in charge of both the Executive and Legislative branches of the federal government from 2001 through 2007. I am sure that Democrats had a stake in keeping these organizations in the business of dealing improper loans, but claiming that they, the minority party, had control of these matters is ludicrous. There may have been individuals in both parties that advocated regulation, but apparently the majority did not. In the end, public opinion tends to weigh on the side of Democrats because the Republican philosophy tends toward less regulation.

  3. cindy vaillancourt said

    The kernel of truth here is that it was most recently a democratic president supported by democratic legislators who worked to make the realization of home-ownership possible for more people.

    However, in the same way republican led efforts are not solely responsible for all the ills facing the financial markets —- legislation which was well intended and initially effective took its dangerous turn when FRAUD, CORRUPTION, GREED and lack of reasonable OVERSIGHT and ENFORCEMENT was allowed to run wild.

    The sub-prime mess is not entirely a function of having made loans to “iffy” borrowers. “Most” of those people kept current on their loans until excessive rate increases took effect.

    The downward spiral started for these individuals and the rest of us when the banks/lenders abandoned all logic and reason and continued to push these borrowers into bankruptcy — and it is not just home loans… the inscrutable policy of implementing default rates and enormous fees when folks v=begin to have difficulties guarantees a total loss. To what end? I don;t see the upside to raising the interest rate on a struggling borrower to 30% on a credit card or 12% on a mortgage.

    Cindy V

  4. PZGURU said

    Rodney,

    Just because one party is the “majority” party in the House or the Senate, does not gurantee that party the ability to pass any proposal they desire. Maybe you forgot about that lovely tool of gridlock called a fillibuster, which is very often used by the minority party, especially when the minority party is the democrats.

    You and Cindy both seem to condemn the republican party for de-regulation, but didn’t they try to re-regulate the system when they realized, 7 years ago, that there was the serious potential for a crisis? You’re chastising them on both sides of the fence for cryin’ out loud.

    But, to get back to David’s point, which is 1000% valid and correct, the last time that Republican John McCain proposed legislation, it WAS the democrats who were in charge of the committees, and they squashed the proposal. They said there was no reason to toughen the laws and everything was just fine. There are plenty of videotaped testimonials from Schumer, Franks, Dodd, Maxine Waters, and a few other democrats, as well as former leaders of Fannie Mae and Freddie Mac who testified that all was well. IT WAS ALL LIES!!!

    On top of that, the fact that F-Mae and F-Mac were setting aside billions of dollars for “minority” applicants reeks of discrimination. And who pushed for this? Those same aforementioned democrats, as well ACORN, which has extensive ties to Obama.

    John McCain tried to avert this disaster 3 years ago, and yet somehow the media and Obama have twisted the situation, lied, and manipulated the American people into thinking that he caused it not Obama. Thank God that Fox News is running documentary reports chronologing the whole rotten history and the events that really led us to where we are now in this financial mess.

  5. General Zod said

    “Thank God that Fox News is running documentary reports chronologing the whole rotten history and the events that really led us to where we are now in this financial mess.”

    The day someone uses Fox News to prove a point they must be desperate.

  6. cindy vaillancourt said

    how do you get “condemning the republican party for deregulation” from “republican led efforts are not solely responsible for all the ills facing the financial markets”???

    Don’t let the facts get in the way.

    I watched the Cavuto piece. I always enjoy watching the source material – and am frequently stunned by the interpretations and how they “twist/lie/manipulate” …. but then, that is not limited to Fox news…or CNN — or the comments on this blog.

    Ignorance, bias, and BS are bi-partisan, nondenominational, equal opportunity afflictions.

    cindy v
    anti bush administration – not anti historically republican principles.

  7. pzguru said

    Yes Cindy, you were condemning the republicans. You said they (the republicans) were not SOLELY to blame. So, you were heaping the majority of the blame on them, were you not? I’m not twisting your words, just reading them exactly as you wrote them.

    As for FOX news – they are the most fair-reporting news agency out there, contrary to Gen Zods opinion. The fact that they report on items critical of Obama, Biden, or other democrats only serves to level the playing field when you look at the complete bias portrayed by the mainstream media. Where’s Katie Couric to ask Obama pointed questions about his past or play “gotcha” with trick questions or “loaded” questions?

    AND, I’d point out that Fox is critical of republicans too.

    You let your hatred for Bush spill over to most/all republicans, and that’s a shame. I’m not happy about Bush’s performance either, but I’m not going to discard the whole republican party because of it.

  8. General Zod said

    LOL! What are you mixing in your koolaide? Fox, MSNBC, and CNN are probably the most biased news outlets on the TV.

    Obama spent the past year and a half being drilled by the media and campaigning in a long primary so give me a break.

    Katie Couric asking gotcha questions? If you are referring to the Palin interview Couric threw her softballs. Lets be honest, Couric asked Palin about what newspapers she reads, what supreme court decisions she disagrees with, and Couric asked about the $700 billion government bailout and whether Palin supports it. These are just a few examples of the softball questions. They might be tough questions for you or the average joe but not for someone who is running as a VP selection. I expect my leaders to answer softball questions with ease in addition to difficult and gotcha questions. If Palin cannot handle Katie Couric how is she going to handle dictators or foreign nationals?

    Are we electing a class president or leaders of our nation?

  9. cindy vaillancourt said

    The problem with the Katie Couric interview was that she asked a question… and when she did not get an answer to it she did not just give up and move on. She said, politely,… you have not answered the question … please answer the question… and persisted until the candidate made it clear that she could not or would not give an answer.

    Her questions were not tricky in any way. The only thing that made them “gotcha” moments was when the candidate could not answer them. Simply answering the questions would have eliminated any “gotcha”.

    Now, for the rest of those out there who are “not happy with Bush’s performance…but not going to discard the whole republican party because of it…”

    Are you content to let this illogical and hatred spewing spokesperson set the tone for discussion? Do you want to be painted by this despicable brush? Are there not folks who subscribe to the notions of small government and fiscal responsibility who have not chosen to check their reasoning ability, fairness and logic at the party door?

    cindy v

    cindy v

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