Friday, October 10, 2008

The Birth of the Sub-Prime Meltdown

Great video here from 1998 of Andrew Cuomo, Bill Clinton’s Secretary of Housing and Urban Development, explaining how the federal government was going to be enforcing a legal settlement requiring banks to make loans to people that they know can't afford them.

Listen to him explain, in plain and simple terms, how these loans were inherently riskier than traditional home loans, normally issued according to the applicant's ability to repay the loan, and that there was inevitably going to be a higher default rate associated with these loans.

But, remember, it's all Bush's fault.

This is exactly the same kind of settlement that Barack Obama was looking for while working as an attorney in Chicago. It's nothing more than a feel-good house of cards, based entirely on the feft's socialistic vision of "economic justice", and brought about with zero regard to any detrimental effect to the economy that might ensue.

It's all Bush's fault.

This extortion racket, and that's precisely what it was, was defended in much the same way that Obama's record (or lack thereof) is being defended today. Anyone who speaks out against it labeled a racist and publicly shamed in the press.

Now, go back to the last two presidential debates, where it takes Obama all of two minutes or so before he launches into his predictable bullshit talking point about how the current economic crisis and the meltdown of the mortgage industry is the direct result of the failure of the policies of the Bush Administration.

In the late 90's, George W. Bush was the governor of Texas, while Barack Obama was busy taking mortgage lenders to court to coerce them into making risky loans to under-qualified applicants in the name of political correctness and the wide-scale advancement of his leftist ideology.

It's all Bush's fault.

If the roles were reversed, and we were to learn that John McCain had been directly involved in using our country's legal system to manipulate the mortgage market in this manner, how long would it have taken (please round up to the nearest second) for that story to be on the front page of every major newspaper in the country?

If Barack Obama is elected President in November, it will be OUR fault as a nation for not waking up in time to see what a serious mistake we just made.

(YouTube link via Hot Air)