Rosh Hashanah with Paulie
The Financial Mess: How We Got Here
Paulies Uncle Abe tells the truth about the economic crisis
As I listened to House Speaker Nancy Pelosi (D-CA) continue her exploitation of the current financial mess for political gain, my stomach churned and my blood pressure began rising. Proponents of bigger government and Socialist economic policies such as Pelosi are responsible for the financial mess America faces. While there is no doubt that President Bush is a fiscal idiot and is part of the problem, it was the Clinton administration who shoved the Community Reinvestment Act down the throats of financial institutions, which is the main culprit of the current economic crisis.
To get a clear understanding of "How We Got Here," I urge everyone to read the article with the same name by Abraham Miller (Uncle Abe).
Paulie
posted by Paul Miller @ 12:00 AM
3 Comments
3 Comments:
I agree CRA encouraged this, however all blame cannot be laid at the feet of the poor. Look at the number of people who also took out second and third mortgages, easy equity lines of credit they used to be able to afford their houses then they got greedy and started living on easy credit. I don't want a bail out I want everyone to feel the pain of stupid choices. Also i'm hoping prices drop to more reasonable prices for those of us who saw this coming and continued to rent. People need to live within their means. Sure it will be hard for a while, but the market has to fix itself without government interference, the bailout only staves off the inevitable. Hi paul!!!
I agree with debi912. Its funny how everyone is just blaming the sale of new homes to underqualified buyers but it is also the people who thought they could bail themselves out by flipping their own homes over and over only to be back in debt again. I blame the societal (sp) pressure of keeping up with the neighbor..isnt that one of the deadly sins?
CRA did more than encourage, it created the problem that led to the economic downfall. Government meddling in the affairs of the financial industry is never a good thing. As you know, I saw this coming and timed my house purchase perfectly. I know people who bought homes, who had no business getting mortgages or took out amounts that were simply ridiculous. Today fear and second jobs are dominating their lives.
The poor, middle or upper classes don't deserve any blame. Government, Fannie/Freddy, Carter, Clinton, Bush, Hastert, Pelosi and people who behaved financially irresponsible are at fault.
A bailout will create a decade long recession, similar to the one we have in Japan. A workout with loans and mandated bank paybacks with 2% interest is the winning formula. Hi Deb!!
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