Tuesday, September 23, 2008

Our Democrat-Created Crisis: They blocked a Reform bill co-sponsored by John McCain

This financial crisis was preventable, but Democrats lead us into it by blocking a bill passed by the Senate Banking Committee that would have prevented it. From Nealz Nuze:

[...] Out of all of the stories I brought you yesterday, this one was the most requested. An article on Bloomberg.com called How the Democrats Created the Financial Crisis by Kevin Hassett. Here's the set up ... back in 2005, Alan Greenspan warned that Fannie and Freddie were on the path to putting our entire financial system at substantial risk. For the first time, a Fannie and Freddie reform bill was passed by the Senate Banking Committee. The bill was co-sponsored, by the way, by none other than John McCain. The bill would have required Fannie and Freddie to eliminate their investments in "risky assets" and it would have given a regulator the power to say "no way."

Here's the rest of the story from Bloomberg ...
"If that bill had become law, then the world today would be different. In 2005, 2006 and 2007, a blizzard of terrible mortgage paper fluttered out of the Fannie and Freddie clouds, burying many of our oldest and most venerable institutions. Without their checkbooks keeping the market liquid and buying up excess supply, the market would likely have not existed.

But the bill didn't become law, for a simple reason: Democrats opposed it on a party-line vote in the committee, signaling that this would be a partisan issue. Republicans, tied in knots by the tight Democratic opposition, couldn't even get the Senate to vote on the matter."

Now how does Barack Obama fit into this picture?
Do the words Community Reinvestment Act and ACORN come to mind
? How about the fact that Obama worked as a community organizer for ACORN. Yesterday I read you some quotes from leaders of so-called community groups bragging about their harassment tactics on banks aimed at getting them to make more loans to unqualified buyers. I'm sitting here waiting for some reporter to ask Obama is he was ever a part of any effort to force a bank to make loans to marginal homebuyers. I'm going to be waiting a long time ... 'cause it ain't gonna happen. Such a question would be clearly anti-Obama. Maybe even racist!

(bold emphasis mine) Once again, hindsight has proven Mac to be right in his judgments. More proof that we need John McCain as POTUS.

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