Dems due much blame for mortgage meltdown

November 01, 2008|By Nancy C. Boyer

Although they have never been known for being too shy to look at the camera and lie through their teeth, one cannot help but be awestruck at the unmitigated gall of the feckless, foppish Democrats who are trying to blame the Bush administration for this economic crisis!

Those rascally Democrats never seem to weary of their specious tales of imagined Republican chicanery and, of course, the unasinous (stupid) left-wing media revels in its phony charges and plays them for all they are worth, which in this vicious campaign climate, is unfortunately, worth plenty.

Take the issue of Fannie Mae and Freddie Mac, hereinafter known as the F&M's. Bill Clinton appointed Mr. Johnson and Mr. Raines to manage these two organizations and they proceeded to manage them right into the ground.

An enterprising young journalist, Sam Dealy, of U.S. News & World Report, hardly a conservative periodical, has uncovered countless videos of Rep. Barney Frank, Chris Dodd, Harry Reid, Nancy Pelosi, Charles Schumer and their ilk lauding the financial solvency of the F&Ms over the years.


Rep. Frank was the ranking member of the Financial Services Committee in Congress when Republicans tried to warm the committee of impending doom if more oversight of these two entities was not implemented.

For the past two years, Frank has been head of that committee. Rep. Frank accused foes of having a "sky is falling mentality." Right!

In his 2002 budget message, President Bush rang alarm bells about the "unsound and frivolous" practices of these lenders.

So did Senators Shelby, McCain, Lott and assorted others, including Treasury Secretary Snow. Many of those spoke before Republican Chris Shay's committee and, of course, the committee on which Rep. Frank served.

Even Alan Greenspan complained to the Senate about needed oversight, saying that without it, the consequences would be dire indeed.

The F&Ms used creative financing all too often because Congress pressured lenders to come up with ways to provide home mortgages for people who could not qualify for loans under normal circumstances because of debt load, low income, poor credit ratings, etc. It was disaster in the making.

Once the wobbly loans were written, the F&M's sold the "paper" to other financial institutions that assumed they were bona fide loans with sufficient collateral and now they have been left holding the bag. When rates went up, when the principal became due, when payments were required, the "homeowners" didn't have the money to honor their commitments. So the banks found themselves sitting there with billions in inflated mortgages and nobody to pay them off.

Every time regulatory legislation was proposed by Republicans, Democrats threatened a filibuster. Rep. Frank voted in committee in 2005 against bringing any such legislation to the floor, and as recently as July of 2008, he insisted the F&Ms were not facing any kind of crisis and both were on "sound footing."

The record of the Democrats' resistance to any meaningful changes in the policies of the F&Ms was clearly documented in 2002, 2003, 2004 and 2005.

Harry Reid, Nancy Pelosi, Rep. Frank and their ilk actually threatened a filibuster if any Republican tried to get the corrective legislation being proposed through the congress.

Rep. Christopher Dodd received a "sweetheart" loan from an F&M valued at about $75,000 and campaign contributions as well. Obama recieved the second highest amount of campaign contributions from an F&M.

As recently as this past July, Franks was trying to explain the videotapes, saying that these institutions had experienced some difficulty but "were a sound investment." So the unwary invested.

Anytime, folks, the Democrats say "there is enough blame to go around" for something untoward that has happened, you can rest assured they are 99 and 44/100 percent guilty.

Pure and simple, they own the crisis. They will never admit it and "big" media will never report it. Only little itty, bitty Fox News will clue you in. Keep your eyes peeled for info regarding Sallie Mae and ACORN; it will knock your socks off.

Nancy C. Boyer is a Hagerstown resident who writes for The Herald-Mail.

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