Jul 11 2009
DemoKrats Don’t Want You to See This Report of The Causes of Financial Mess
On July 9th, the Republican members of the House Committee on Oversight and Government Reform published this Report. it traces the causes of the Housing back to the Community Reinvestment Act (Jimmy Carter), the Clinton Administration’s enforcement of it, along with ACORN rampage in enforcing it, resulting in the creation huge amounts of defaulted mortgages that led to this mess. Of course, we know that our Community Organizer-In-chief taught ACORN the agitating tactics to harass banks and bank officers in their homes into making the NINJA (no money, no jobs) loans.
Basically, the risky loans promoted by Freddie Mac and Fannie Mae led to this tsunami, we are now in. “One paper co-authored by now-Director of the Office of Management and Budget Peter Orszag, concluded that the chance was minimal that the GSEs were not holding sufficient capital to cover their losses in the event of a severe economic shock.” The other thing we know about Peter Orszag is that his consultancy to the Central Bank of Iceland led to the complete bankruptcy of that country. Fannie and Freddie were responsible for 54% of the sub-prime mortgages, or 1.9 trillion dollars worth of mortgages. Unfortunately these two publicly traded corporations that were “exempt from SEC oversight.”
Basically, this is just an example of a wild liberal idea, that had no basis in reality, and the consequences are now that those families that they were designed to help are now without their homes, and have sustained terrible family tragedies.
