Time to bail on the bailout

Most of you who know me know I'm a less-government kind of guy. I'm actually more Libertarian when it comes to matters of the federal government's size and scope where domestic policy is concerned.

And I say hell no to taxpayers forking over however many hundreds of billions of dollars to fix our financial mess. Because that's who's going to pay for it. You and me. That's the case any time you see "government" when a cost in monetary terms is involved. Our tax dollars pay for everything the government does.

So the government wants to bail us out of this financial "crisis"? And then more or less take over? C'mon people! If a builder constructs a house for you, and it collapses, do you want the same guy rebuilding it? Wake up already!

No matter what the lying libs say to their bretheran in the media, the government got us into this mess. It's in black and white, yet no one will report it. OK, almost no one. These worthless hack politicians, many of whom got richer while all of this was happening, are saying it's Bush's fault. Or McCain's fault. Or private enterprise's fault.

"See? It's capitalism! We need the government to be in charge of everything!"

And the sheep happily wag their tails and follow along.

When Bill Clinton took office in 1992, with a Democrat-controlled Congress, lending practices changed within the government-backed and unregulated entities known as Fannie Mae and Freddie Mack. A manual was put together entitled "Closing The Gap: A Guide To Equal Opportunity Lending".

The idea, if you are having trouble connecting the "equal-opportunity" dots, was to bring political correctness and inclusiveness and whatever else you want to call this touchy-feely B.S. into lending practices. People with no credit, bad credit, no job HAD TO, by government decree, be included on the HomeownerShipToNirvana.

Now, I know my Lib friends will say I'm biased or generalizing or misleading (without offering specifics, naturally ... that's the Lib way, after all), so here, direct from that manual, are a few examples of what the Fed put in place in terms of considering loan applicants:

Credit History: Lack of credit history should not be seen as a negative factor.... In reviewing past credit problems, lenders should be willing to consider extenuating circumstances. For lower–income applicants in particular, unforeseen expenses can have a disproportionate effect on an otherwise positive credit record. In these instances, paying off past bad debts or establishing a regular repayment schedule with creditors may demonstrate a willingness and ability to resolve debts....

Down Payment and Closing Costs: Accumulating enough savings to cover the various costs associated with a mortgage loan is often a significant barrier to homeownership by lower-income applicants. Lenders may wish to allow gifts, grants, or loans from relatives, nonprofit organizations, or municipal agencies to cover part of these costs. . . .

Sources of Income: In addition to primary employment income, Fannie Mae and Freddie Mac will accept the following as valid income sources: overtime and part–time work, second jobs (including seasonal work), retirement and Social Security income, alimony, child support, Veterans Administration (VA) benefits, welfare payments, and unemployment benefits.

Accepting these new criteria was not limited to Fannie and Freddie, either, and it wasn't voluntary in the private sector. The Fed warned private banks:

"Did You Know? Failure to comply with the Equal Credit Opportunity Act or Regulation B can subject a financial institution to civil liability for actual and punitive damages in individual or class actions. Liability for punitive damages can be as much as $10,000 in individual actions and the lesser of $500,000 or 1 percent of the creditor’s net worth in class actions."

Of course, all we've heard for the last three or four years that "PREDATORY LENDERS" have been responsible for the collapse of the housing market and, now, that those same PREDATORY LENDERS are responsible for the mess we're in.

Funny, considering the FACT that nine years ago, Democrats, including Slick Willie himself before he left the White House, bragged that "affirmative action lending policies are one of the hidden success stories of the Clinton administration," touting the fact that "black and Latino homeownership has surged to the highest level ever recorded."

Those are their words, not mine. And I should point out that bad loans certainly were not and are not limited to minorities, lest I be labeled a racist.

But folks, the bottom line is that Fannie and Freddie, with these new lending practices, took on more than $1 TRILLION in bad loans. Can anyone reading this even comprehend that? I can't! When you add Countrywide, and Bear Stearns and all these other failing lending institutions to the mix ... well, I'm not sure we've ever invented a number for as high as this pricetag goes.

And I've seen in the relatively few instances any of this has been mentioned, let alone asked of the power-broker Democrats, the answer is "Well, who's been president the last eight years?" or "Hey! Republicans who controlled Congress for 10 years could have fixed it!"

I'll grant you that Republicans didn't do enough. Too many got on board the gravy train in terms of ridiculous spending and everything else.

Those who stood up and warned us were shot down, from Bush himself to McCain and to appointees put in charge of overseeing various sectors of this country. For example, in 2003, Greg Mankiw (chairman of Bush's Council of Economic Advisors) reported that Fannie and Freddie, as well as a number of key private financial institutions, were well on their way to insolvency.

One of the men behind this mess, Congressman Barney Frank (a longtime ranking member of and now the chairman of the House Banking Committee) blasted him for "being worried about the tiny little matter of safety and soundness rather than concern about housing."

I've already detailed the number of Democrat politicians, their handlers and their advisors, from Franklin Raines to Jamie Gorelick to Chris Dodd (the Democrat chair of the Senate Banking Committee) to Barack Obama himself who have gotten rich and/or benefitted in various ways throughout this economic meltdown.

And I've also detailed how the government has mismanaged social security and medicare to the precipice of insolvency.

We know they want to nationalize health care. And the oil industry. And now the banking industry.

And we trust them to do right by us why?

No way in hell, I say. The markets will correct themselves. They always have. We just need the government to get the hell out of the way.

As usual.

(Imported from Sept. 26, 2008)

Adendum:

Just heard/read about one provision in this bailout package that no doubt is one of the reasons for the holdup.

A large chunk of money in the Democrat plan is earmarked for ACORN. That's the organization that fueled Barack Obama's original run for state senate and has contributed mightily toward his ascension in the political world.

It's also the organization ... a community organization, if you will ... that for years and years and years has been charged with widespread voter fraud ... EVERYWHERE. That they dabble in public housing is the reason they're on the dole here.

There's no telling what else is in this bill. I'm frankly ashamed of any Republican who's on board with simply "getting something done." And that includes President Bush.

And it's time for Senate and House Republicans to start screaming and not stop until SOMEBODY listens.

(Imported from Sept. 27, 2008)