Thursday, December 22, 2011

The Truth about the President’s Economic Policy Part 4

So, if none of our leaders will tell the truth about the President’s speech in Kansas, someone else will have to do it.

In his speech, the President said:

“Now, for many years, credit cards and home equity loans papered over this harsh reality. But in 2008, the house of cards collapsed. We all know the story by now: mortgages sold to people who couldn't afford them, or even sometimes understand them. Banks and investors allowed to keep packaging the risk and selling it off. Huge bets – and huge bonuses – made with other people's money on the line. Regulators who were supposed to warn us about the dangers of all this, but looked the other way or didn't have the authority to look at all.

It was wrong. It combined the breathtaking greed of a few with irresponsibility all across the system. And it plunged our economy and the world into a crisis from which we're still fighting to recover. It claimed the jobs and the homes and the basic security of millions of people – innocent, hardworking Americans who had met their responsibilities but were still left holding the bag.”

The implication here is that the house of cards collapsed because of…wait for it…irresponsible greed. It was because people wanted to make money that the house collapsed, and, the President thinks, it was wrong. But let’s look a little deeper. The President talks about the fact that mortgages were sold to people who couldn’t afford them. Who was responsible for that? Issuing these bad mortgages was caused by a regulatory scheme set up to re-distribute bank loans from credit-worthy borrowers to non-credit-worthy borrowers. Certainly, these bad mortgages would not have been given by a rational bank manager seeking to make money; he would have known that the loans were questionable and that issuing so many of them could potentially destroy his bank. Why did "rational" bank managers seeking to make money issue so many bad loans? Dig deeper and you find that this was done because of government regulations that forced banks to issue and solicit these bad loans.

Which group of people created and favored these programs? The answer is progressives of the “New Deal” variety. In fact, the Community Reinvestment Act (CRA), which was passed in the ‘70s, was strengthened in 1994 after a law suit that claimed banks were guilty of racial discrimination when deciding who got home loans. The goal of these lawsuits was to force the banks to issue more loans to poor people. The strengthened CRA demanded that banks prove they were not discriminating against blacks under threat of prosecution by the Clinton Justice Department. And it was a willing ACORN that encouraged poor people to take these loans and they had a working scheme in place to take advantage of the CRA regulations. In addition, Fannie Mae and Freddie Mac bought these loans and bundled” them into investment packages to be sold to financial institutions as top-rated securities. Certainly, there was some fraud involved here.

It was a failed re-distribution scheme fostered by progressives that caused the stock market to collapse, TARP to be created and the literal theft of almost one half of the savings of many middle class Americans. Yet, not one government official has been charged with a crime. It was the government, not capitalism, that was responsible for the collapse and it was progressives, including President Obama, who lobbied and sued the government to create this entire scheme. So now, one of the architects of the fiasco (the President), tells us that it was not caused by the people who forced the banks to issue the mortgages (the Clinton administration), or the people who shook down the banks (ACORN), forced banks to prove they weren’t racist (ACORN) and solicited (pressured) poor people to apply for the loans (again ACORN). And, in spite of this, we are supposed to believe that the real problem was “greed”. Is the President fingering his own greed or that of his employer ACORN? I don't think so.

Understand what I am saying: all of these bad decisions that the President criticizes were decisions made by people who share the President’s philosophy of re-distribution and they were undertaken by institutions created to effect that re-distribution. These include Fannie Mae, Freddie Mac, government appointed heads of those companies, Countrywide, a Democratic Congress, Barney Frank, Chris Dodd, ACORN; all of whom claimed to be working on behalf of the “poor”. Yet, this sounds like altruism to me, not greed.

Why isn't the altruism inherent in these programs blamed for the economic collapse? It was not greed but socialist principles that sacrificed the savings of the middle class in order to give homes to the lower class. The actors whose philosophy caused the collapse were involved in socialist irresponsibility, not capitalism. Why didn't the media pick up on this?

The answer is pretty simple: socialism doesn’t work and they are invested in socialism. The cold, hard truth is that socialism is the means through which a smart criminal can cover up the fact that he is stealing money. All he has to do is say he is doing it for the poor. And rather than expose the charlatan scam that caused the financial collapse of the most powerful economy in history, the media looks the other way. And they allow the President to blame the fiasco on an institution, capitalism, that was raped and violated by the scam.

It should be no surprise that one of the lawyers involved in changing the CRA back in 1994, President Obama, is the one person who benefited most from the economic collapse. Not only was he able to skim some of the stolen money for his Presidential campaigns (he is one of the largest recipients of Fannie and Freddie campaign contributions), but when the economy collapsed, it paved the way for his election as President. Although he and his progressive friends caused the collapse, the Republicans got blaimed. In fact, Obama may have lost the election were it not for the collapse made possible by the failed policies he advocated. Is it a coincidence or a plot? I’ll let you decide.

Needless to say, the President won’t blame himself for the financial collapse, nor does he want to blame his own philosophy. But his denials don’t change the truth. And this is a time when honesty and truth are required (as if there is ever a time when they are not). Rather than tell you the brutal honest truth, the President would rather play politics and continue to assert in a major economic speech that capitalism is the cause of the problems that he created.

The truth is that the philosophy destroying our economy is altruism, the philosophy of the President. Does he care that re-distributing money violates the rights of hard working Americans? Does he care that it makes virtual slaves of the very people he claims to be defending? Apparently not, since he is not willing to admit that he is the real destroyer of the middle class. It is not his fault, he says. He inherited the situation, feigning innocence.

Are you now beginning to see why the President does not want to think in terms of essentials and why it is not possible for him to tell you the truth? If he were truly an honest man, he’d admit that his philosophy is bankrupt and that socialism has failed.

Apparently, judging from the President's words and actions, this is not the time for the truth. According to the President, it is the time for posturing, for pretending to be an honest critic. It is a time for telling lies and for accusing his political enemies of doing the very things that he is doing, and, if that isn’t enough, he now intends to spend $1 billion dollars (that he got from someone) to convince the American people that the real culprit is the greed of “fat cats”.

On the contrary, I think it is the time for telling the truth. We cannot survive without it.

-to be continued

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