Obama Peace Prize Reaction | Main | Obama Statement. DNC Reaction: If You Aren't Thrilled, You Love Terrorists
October 09, 2009

Lessons Unlearned: Obama and Dem leadership double down on stupid. [krakatoa]

(Pulled from the ArthurK's headline.)

It is beginning to look less like ignorance, and more like willful malice towards our economy. Forbes puts us some knowledge on the issue, and the future of CRA.

Brief recap: CRA forced banks to make concessions to "community activists", like ACORN of late scandal, in the form of committing to huge numbers of loans to those who are least able to afford them.

Forbes pegs the dollar amount of total commitments as of 2007 at 2.7 trillion dollars. Trillion.


Washington Mutual, for example, pledged $1 trillion in mortgages to those with credit histories that "fall outside typical credit, income or debt constraints,"... Four years later it was taken over by the Office of Thrift Supervision. In 2004 Bank of America agreed to provide $750 billion in CRA loans to applicants with poor credit ... By 2008 Bank of America was reporting that CRA loans represented only 7% of its portfolio but 29% of its losses... J.P. Morgan Chase agreed to provide $800 billion of such loans over the course of 10 years.

Democrats in congress and the President are now looking to expand the program to include Credit Unions and Insurance Companies. And instead of increasing regulation of the program, they want to remove what little enforcement of it there is from the Federal Reserve, and create a new oversight bureaucracy, the Consumer Financial Protection Agency.

This agency's core concerns would not be safety and soundness but, in the words of the Obama administration, "promoting access to financial services," which is really code for forcing banks to lend to those who would not ordinarily qualify.

In other words, their goal will not be sound economics, but instead will be to expand the concept of the common mortgage as a welfare device to dizzying new levels.

2.7 trillion? It is to laugh.

If this goes through, at some point in the not-so-far future we will look at the most recent crash and ongoing recession and unemployment numbers with fond memories.

This to me is one of the crucial issues in the next election cycle. Of course, anyone who runs on the plank of killing CRA will be crucified by the MSM and the race-baiters. But I need to know that my candidates will not vote for what is an obviously suicidal economic policy wrapped in a mantle of "social justice".

This will require candidates who are able to reduce the issue into its base components, and stick to them. It's not a complicated issue, and explaining it simply to the people while the Left tries to convince the voters that they are just too stupid to understand it would be a winning strategy in my opinion.

Our politicians on the Right just cannot allow the Left to continue framing these debates. The new media must encourage and defend rational discourse over populism and hysteria.

digg this
posted by xgenghisx at 10:50 AM

| Access Comments




Recent Comments
Skip: "And just remember this, A kiss is still a kiss, ..."

Deplorable Jay Guevara [/i][/b][/s]: "[i]374 Fox News has confirmed that the Washington ..."

redc1c4 [/b] [/i] [/s] [/u]: "IIRC, what he said was that he had either heard a ..."

Jen the original: "No more Amazon Prime for you! Posted by: Jeff Bez ..."

Anon a mouse: "That was the best part until The Mummy climbed the ..."

Anonymous 7: "I tried to listen to "Louder With Crowder" once, b ..."

buzzion: "[i]410 404 It's a ripping good yarn, though. ..."

George, not my first rodeo: "Getting ready for rotator cuff surgery at Columbia ..."

Matt Lauer's Executive Chair: "All I know is that a remote door lock and fixer re ..."

wth: "The 13th foot to wash ashore since 2007 was found ..."

Jeff Bezos: "415 Fox News has confirmed that the Washington Po ..."

H. Solo: "440 Police Man in Pittsburgh found dead under van ..."

Recent Entries
Search


MuNuvians
Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
News/Chat
Archives
Powered by
Movable Type 2.64