The Mortgage Crisis, Community Reinvestment Act and More of the Same!
Bill Falzett III
September 30, 2008
Democrats and Republicans share the responsibility for the Mortgage crisis. Democrats will do anything to support unchecked entitlements, and the Republicans cannot say No. The Progressive Democrats believe the U.S Government has an obligation to provide home ownership to all at taxpayer expense, regardless of an ability to pay. The resultant programs like the Community Reinvestment Act (CRA) instituted by the Carter administration and Democrat Congress, expanded and forced on lenders by the Clinton administration, and abused by groups like the Association of Community Organizations for Reform Now (ACORN), are directly responsible for the glut of foreclosures. With loan guarantees from Fannie Mae and Freddi Mac, it was simply a matter of time before this bubble popped, as many warned along the way.
The bailout plan amounts to the taxpayer buying up all the bad mortgages so the lenders can free up capital make more loans. There is no assurance of an abatement of the CRA programs, and the Democrats are still trying to direct the proceeds of the bailout into more programs of this sort. The bottom line is that there is no reason to believe lenders will not go out and push for more entitlement low-income (BAD) mortgages we all have to bail out again?
Like most of you, I am ambivalent about this plan. On the one hand we have the the scare tactics warning of the collapse of the credit market. On the other hand, I know credit is still available to the credit worthy. Just yesterday I locked an excellent interest rate on my home mortgage. I hear eminent economists telling us that a correction is needed, and NO plan we can put in place will avert this correction, only postpone it at best. I don't have the answer, but I know more of the same is not an answer.
We must send the message to Washington that we have had enough of the massive entitlement agenda, enough of a government that refuses to live within its means, and enough of legislation that delivers more of the same. We need a plan that accounts for this; not a blank check to CYA.
I hope you will take some time to review the links below and consider contacting your representatives to let them know your thoughts.
Dave Ramsey's Common Sense Fix
Ron Paul on the Bailout
Harvard Economist Jeffrey A. Miron, one of 166 eminent economists who have come out against the Bailout in its present form
Video 1
Video 2
The bailout plan amounts to the taxpayer buying up all the bad mortgages so the lenders can free up capital make more loans. There is no assurance of an abatement of the CRA programs, and the Democrats are still trying to direct the proceeds of the bailout into more programs of this sort. The bottom line is that there is no reason to believe lenders will not go out and push for more entitlement low-income (BAD) mortgages we all have to bail out again?
Like most of you, I am ambivalent about this plan. On the one hand we have the the scare tactics warning of the collapse of the credit market. On the other hand, I know credit is still available to the credit worthy. Just yesterday I locked an excellent interest rate on my home mortgage. I hear eminent economists telling us that a correction is needed, and NO plan we can put in place will avert this correction, only postpone it at best. I don't have the answer, but I know more of the same is not an answer.
We must send the message to Washington that we have had enough of the massive entitlement agenda, enough of a government that refuses to live within its means, and enough of legislation that delivers more of the same. We need a plan that accounts for this; not a blank check to CYA.
I hope you will take some time to review the links below and consider contacting your representatives to let them know your thoughts.
Dave Ramsey's Common Sense Fix
Ron Paul on the Bailout
Harvard Economist Jeffrey A. Miron, one of 166 eminent economists who have come out against the Bailout in its present form
Video 1
Video 2