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News & Politics News & Politics

The Economy Was Destroyed by the Dems...New Study Confirms.

Posted by on Dec. 30, 2012 at 6:24 AM
  • 107 Replies
5 moms liked this

America, designed by geniuses to be run by idiots. 

New study confirms economy was destroyed by Democrat policies

A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left's race-baiting attacks on the housing market (the Community Reinvestment Act--enacted under Carter, made shockingly more aggressive under Clinton) is directly responsible for imploding the housing market and destroying the economy.

The study painstakingly sorted through failed home loans that caused the housing market collapse and identified an overwhelming connection between them and CRA mortgages.

Again, let's review:

-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.

-John McCain also co-sponsored urgently critical reforms that would have prevented the housing market collapse, but Democrats shut that down as well, along party lines, and even openly ridiculed anyone who suggested reforms were necessary...to protect their taxpayer-funded campaign contributions as the economy raced uncontrollably toward the cliff.

-No one was making bad loans to unqualified people until Democrats came along and threatened to drag banks into court and have them fined and branded as racists if they didn't go along with the left's Affirmative Action lending policies...all while federally insuring their losses. Even the New York Times warned in the late 1990s that Democrats continuing to force banks into lowering their standards would lead to this exact catastrophe.

-Obama himself is even on the record personally helping sue one lender (Citibank) into lowering its lending standards to include people from extremely poor and unstable areas, which even one of the left's favorite blatantly partisan "fact-checkers," Snopes, admits (while pretending to 'set the record straight').

-Even The New York Times admitted that there is "little evidence" of any connection between the "Republican" deregulation measures Obama blames, like the Gramm-Bleach-Liley Act (signed into law by a Democrat), and the collapse of the housing market.

But non-Fox media have spent years deliberately and relentlessly inoculating people against the facts, training them to mindlessly blame Bush for being in charge when Democrat policies destroyed the economy. So here we sit, to this day, still watching Obama excuse and shrug off endless economic failures, illegal government takeovers and utter national bankruptcy with zero accountability.

Hope everyone has an inoffensive politically
correct seasonal period of celebratory behaviour with variations of
traditions & significance!

by on Dec. 30, 2012 at 6:24 AM
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Replies (1-10):
_Kissy_
by on Dec. 30, 2012 at 6:38 AM
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Housing didn't declare war, give out unpaid taxcuts, bail out wallstreet, drive up gas prices, outsource jobs, lay people off...

And 20 years of Republican presidents in the last 30 and they did nothing but seek and destroy.
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gsprofval
by Gold Member on Dec. 30, 2012 at 6:41 AM
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I worked for a mortgage company and obama was instrumental in forcing mortgage companies to give loans to anyone regardless of income. This was while he was a senator and can easily be researched.

Files came through that gave $500,000 loans to people with a $70,000 income and monthly payments of $4,000 a month. No way could those loans be paid, but obummer forced it to be and then the forclosures started. 

The mortgage company went bankrupt, go figure.

blondekosmic15
by Blonde on Dec. 30, 2012 at 6:51 AM
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President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down

I am not surprised. I have read extensively about the housing market fiasco, good ol' Barney Frank, Chris Dodd, the warnings from Pres. Bush and Senator McCain. The Dems ignored the warnings, causing tremendous damage economically to this Country.

In 2003, Bush, McCain tried to tell Congress, let's reform Fannie before they go under, but Barney Frank said there is not crisis, you're exxagerating Bush and McCain.

Bush, McCain Tried To Reform Freddie Mac

http://ireport.cnn.com/docs/DOC-90601

Blame Fannie Mae and Congress For the Credit Mess

In light of the collapse of Fannie and Freddie, both John McCain and Barack Obama now criticize the risk-tolerant regulatory regime that produced the current crisis. But Sen. McCain's criticisms are at least credible, since he has been pointing to systemic risks in the mortgage market and trying to do something about them for years. In contrast, Sen. Obama's conversion as a financial reformer marks a reversal from his actions in previous years, when he did nothing to disturb the status quo. The first head of Mr. Obama's vice-presidential search committee, Jim Johnson, a former chairman of Fannie Mae, was the one who announced Fannie's original affordable-housing program in 1991 -- just as Congress was taking up the first GSE regulatory legislation.

In 2005, the Senate Banking Committee, then under Republican control, adopted a strong reform bill, introduced by Republican Sens. Elizabeth Dole, John Sununu and Chuck Hagel, and supported by then chairman Richard Shelby. The bill prohibited the GSEs from holding portfolios, and gave their regulator prudential authority (such as setting capital requirements) roughly equivalent to a bank regulator. In light of the current financial crisis, this bill was probably the most important piece of financial regulation before Congress in 2005 and 2006. All the Republicans on the Committee supported the bill, and all the Democrats voted against it. Mr. McCain endorsed the legislation in a speech on the Senate floor. Mr. Obama, like all other Democrats, remained silent.

http://online.wsj.com/article/SB122212948811465427.html

Clairwil
by Platinum Member on Dec. 30, 2012 at 9:28 AM
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Quoting JustCJ:

-Obama himself is even on the record personally helping sue one lender (Citibank) into lowering its lending standards to include people from extremely poor and unstable areas, which even one of the left's favorite blatantly partisan "fact-checkers," Snopes, admits (while pretending to 'set the record straight').

Here's what snopes 'admits':

The 1994 case of Buycks-Roberson v. Citibank Fed. Sav. Bank had nothing to do with requiring lenders to do business with people "who could not show proof that they could pay the money back."

The case was a class-action lawsuit against Citibank Federal Savings initiated by a black Chicago woman, Selma Buycks-Roberson, who claimed she was unfairly denied a mortgage based on her race. The lawsuit sought to end the practice of redlining, a discriminatory practice by which banks, insurance companies, and other business institutions refuse or limit loans, mortgages, insurance, etc., based solely on the geographic area in which the applicant lives (a practice that commonly excludes minorities in inner-city neighborhoods, regardless of their income or ability to pay).

Specifically, the lawsuit charged that Citibank "rejected loan applications of minority applicants while approving loan applications filed by white applicants with similar financial characteristics and credit histories." The case was eventually settled out of court, with some class members receiving cash payments and Citibank agreeing to help ease the way for low- and moderate-income people to apply for mortgages.


In other words, it doesn't stop the refusing of loans on the grounds that the person can't repay the loan.   It just stops them deciding whether or not the person can repay SOLELY on the basis of where they live.

Clairwil
by Platinum Member on Dec. 30, 2012 at 9:30 AM
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Quoting JustCJ:

-No one was making bad loans to unqualified people until Democrats

Correlation is not the same as causation.

A different factor, not taken into account, is the rise of Collateralized debt obligations.   In other words, they sold more bad loans once they had the capability of passing the risk on to others rather than assuming it themselves.

shimamab
by on Dec. 30, 2012 at 9:37 AM
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Even IF this article was completely true and unbiased (which I doubt esp after reading Clair's responses), the housing market tanking wasn't the sole reason behind the economic collapse. Real estate has bubbled/burst before w/o taking the whole country with it. Both parties have made decisions in their own short term best interests (to win election or donors) that contributed to this mess and they'll both need to contribute to the solution, as well.
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Aivlys_
by Bronze Member on Dec. 30, 2012 at 9:38 AM
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They sure did!, they made sure everyone and their mom can get a loan, regardless of income or credit worthiness!
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imamomzilla
by on Dec. 30, 2012 at 9:43 AM
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 No doubt about it.

                                                             nativity


gsprofval
by Gold Member on Dec. 30, 2012 at 10:47 AM
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You are so correct! I witnessed it firsthand and it was very sad.

Quoting Aivlys_:

They sure did!, they made sure everyone and their mom can get a loan, regardless of income or credit worthiness!


JustCJ
by on Dec. 30, 2012 at 10:48 AM

I don't doubt the banks had their own little part in it as well.

Quoting Clairwil:

Quoting JustCJ:

-No one was making bad loans to unqualified people until Democrats

Correlation is not the same as causation.

A different factor, not taken into account, is the rise of Collateralized debt obligations.   In other words, they sold more bad loans once they had the capability of passing the risk on to others rather than assuming it themselves.


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