The Clinton / Obama blame game goes on blaming Bush for the financial collapse, while the drive-by's suddenly forget recent American history.
It was mainly these two Democrats, one nationally representing his party and one representing a socialist ideology on the south side of Chicago, that pushed bank CEO's to make bad mortgage loans in the 1990s, causing the crises we have today. It was not based on finances. It was based on politics . . . the creation of a new voting block for the Democrat Party by giving homes to those who couldn't afford them. How soon you forget or weren't told what went on just over a decade ago.
Let's revisit those days of corruption to fundamentally change America.
Obama, as an attorney for ACORN in Chicago, taught ACORN to use back-door radical power tactics to go stand still for hours in bank lobbies, meeting rooms, and at CEO homes to harass bankers into giving loans to people who couldn't afford them without causing police interference. ACORN had referred to the banks as"Racists."
Then Clinton, as president had his Attorney General, Janet Reno, go in the front door and accuse the banks of "Redlining" poor neighborhoods, threatening regulation if the loans weren't given out. When the banks finally caved into national pressure from the Democrats and localized pressure from the a Marxist-like ACORN membership, they had to ask, "Where do we place these loans because we know the people you want them given to can't afford them?"
Clinton had the answer ready in his pocket. "You can sell them to the government. You can sell them to Freddie and Fannie."
Suddenly all these unqualified people who were given the mortgage loans would be thought to be indebted forever to the Democrat Party, hopefully changing votes by a few points in up coming elections that had almost been 50/50 for many years. Through its efforts, the party created another entitlement that would burden taxpayers even more. . . a guaranteed new voting block for the so-called Party of Hope. With Freddie and Fannie under control of the Democrats taking over these bad loans, millions of these mortgages would later find their way to be packaged by Wall Street as great investment opportunities for investors around the world.
The new home mortgages rules were an affront to previous good financial practices that had always been the foundation of American business for buying homes, 10% - 20% down with 30 years to pay. Suddenly, after Clinton and ACORN forced the banks to make the bad loans and sell them to Freddie and Fannie, the new borrowing norm became nothing down, a 40-year payment plans, with the first ten years allowing interest only payments. Because of the poor credit, the loans given out also had ARMs, with low 3% interest that wouldn't increase for five years. But the poor are the poor, and many didn't see their fortunes increase and in five years suddenly the interest payment went up. Then five years later it went up again and became unaffordable.
This period of time of corrupting what made a good credit risk became the age of "Flipping," creative entrepreneurs seeing the opportunity of buying homes at a cheap level with virtually no risk, meaning no investment and minimum monthly payment. They in turn created teams of construction crews, fixing up these homes and reselling them, making tens of thousands of dollars of profits usually in just a few weeks. They were able to continue until the bubble broke in 2008 when millions of Freddie and Fannie loans were discovered to be underwater, the house worth less than the paper it was written on.
In the meantime Wall Street had picked up the subtle message from the Democrats in Washington that bad business practices in the name of self-benefit would now be tolerated with a wink of approval from Washington politicians.
At least the mainstream media admits it's in the tank for those progressives in power, never being a watch dog for what Clinton and the Democrats were doing over all these years to home values for votes, giving millions of homes to those who couldn't afford them. Rush Limbaugh has correctly labeled them as the drive-by's, resembling the Chicago mobsters who bullet-riddled their enemies then quickly driving away after doing the damage.
In 2004 the Republicans tried to force Congress to rein in Freddie and Fannie, but the Democrats screamed, "No!" Then over a dozen Republicans with McCain's encouragement on May 5, 2006, wrote the famous letter to Congress saying if these government financial institutions weren't brought under control, America could have a financial meltdown.
Now that that letter has been proven as a landmark document, Clinton and Obama still insist on playing the same blame game again. And they know the mainstream media will not bring them to task . . . a slobbering dog lying in their laps with tongues hanging out and tail wagging, "Give us our talking points."
Sadly it would be the Democrat Party, now called the Party of Hope, that would strangle millions of poor Americans with added bad credit they didn't need as homes went into foreclosure they couldn't afford. Bankers had known this since the beginning when Clinton accused them of Redliners or being Racists in the mid 1990's. Yet in Canada, there is NO crises because by law, not politics, homeowners are responsible for not paying their mortgage, not the banks.
In the end Democrats also knew of the ACORN voter fraud, yet still tried to fund ACORN billions (with a "b") of taxpayer dollars through the first failed Stimulus Package pushed through by President Obama in 2009.
Now you can't say you didn't know the truth why your house has being dropping in value, in 2011 the bottom still now known.