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Posted by Larry Wilson on October 25, 2008

The Crux of the Crisis…from a different perspective.

Posted in: Uncategorized

Because of the hours I work, I don’t get to see other members of the Rock 101 team as often as I would like. Pros like Chuck “the weekend guy” Hamilton along with  Ann Robards work the weekends and also fill in for me from time to time. A week ago Chuck covered some time for me so I could deal with a family issue and I appreciate him coming in and doing a fine job.
Others on the team like Blades and Anitra don’t come in until my day is over.  Oddly enough I got to see both today. During a few minutes with Brian we discussed the financial problems the national, as well as the global economy presents. 
After he left I pulled up an article written by a reporter / commentator from North Carolina.He is a lifelong Democrat with very strong opinions about the war, the current administration. 
I admire his ability to look at a situation and develop an opinion. 
He is able to explain why he feels a certain way without spewing venom to those he disagrees with. 
Many who share his position, don’t seem able to articulate THEIR position without wishing death on whomever disagrees with them.
The genesis of the article is the roots of our troubled economy can be traced back to the housing industry, the associated credit process and how we got to where we are. 
I am not a fan of the bailout.
I think congress sold us out and when the final chapter is written a number of surprising names will be on the ledger of guilt. 
Take a minute and read what a hardcore, life long democrat thinks is the cause of all this.“This housing crisis didn’t come out of nowhere.  It was not a vague emanation of the evil Bush administration.   It was a direct result of the political decision, back in the late 1990s, to loosen the rules of lending so that home loans would be more accessible to poor people.  Fannie Mae and Freddie Mac were authorized to approve risky loans.   What is a risky loan?  It’s a loan that the recipient is likely not to be able to repay.”   “The goal of this rule change was to help the poor — which especially would help members of minority groups.  But how does it help these people to give them a loan that they can’t repay?  They get into a house, yes, but when they can’t make the payments, they lose the house — along with their credit rating.   They end up worse off than before.   This was completely foreseeable and in fact many people did foresee it.  One political party, in Congress and in the executive branch, tried repeatedly to tighten up the rules.  The other party blocked every such attempt and tried to loosen them.   Furthermore, Freddie Mac and Fannie Mae were making political contributions to the very members of Congress who were allowing them to make irresponsible loans.  “It was Senator Christopher Dodd and Congressman Barney Frank, both Democrats, who denied that there were any problems, who refused Bush administration requests to set up a regulatory agency to watch over Fannie Mae and Freddie Mac, and who were still pushing for these agencies to go even further in promoting sub-prime mortgage loans almost up to the minute they failed.  As Thomas Sowell points out in a TownHall.com essay … ‘Alan Greenspan warned them four years ago.  So did the Chairman of the Council of Economic Advisers to the President.  So did Bush’s Secretary of the Treasury.’   These are facts.  This financial crisis was completely preventable. The party that blocked any attempt to prevent it was the Democratic Party.  “The party that tried to prevent it was the Republican Party.   Yet when Nancy Pelosi accused the Bush administration and Republican deregulation of causing the crisis, the press did not hold her to account for her lie.  Instead, it criticized Republicans who took offense at this lie and refused to vote for the bailout!   What?  It’s not the liar, but the victims of the lie who are to blame?   Now let’s follow the money.   Freddie Raines, the CEO of Fannie Mae who made $90 million while running it into the ground, was fired for his incompetence; and one presidential candidate’s campaign actually consulted him for advice on housing.    When the McCain campaign dared to call Raines an ‘adviser’ to the Obama campaign — because that campaign had sought his advice – the press actually let Obama’s people get away with accusing McCain of lying, merely because Raines wasn’t listed as an official adviser to the Obama campaign.   It would never tolerate such weasely nit-picking from a Republican.  The prosperity of all Americans was put at risk by the foolish, short-sighted, politically selfish, and possibly corrupt actions of leading Democrats.That’s Orson Scott Card, a card-carrying Democrat writing in the Rhinoceros Times in Greensboro, North Carolina.  
The financial problems we see today were born out of efforts by those with political agenda years ago.  .  .Now on to something else. 
My mom passed away a few days ago.  I haven’t felt much like writing but thought I would give it a try.  Its not time yet. I’ll throw a few words together about her and the end, when I can.

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