It IS Clinton's fault

Well kiddies,

this guy got it right, and had to put it in the form of a bedtime story for most "amuhruhcains" to understand.

http://campaignspot.nationalreview.com/post/?q=OTRmNTE2ZGMyY2UwOGVhZDczYTcxM2MxNDU1ZGNkNmE=

The mortgage meltdown is Clinton's fault.

Repeat after me:

It's Clinton's fault.

It's Clinton's fault.

It's CLINTON'S FAULT, FAULT, FAULT!!!.

This story is really so simple it is amazing.

1) Government (read - meddling) tells banks they must issue risky loans to create opportunitiy for poor people and minorities to own homes.

Now children, all this really says is: banks must provide mortgages to people that cannot hope to pay them back. If they fail to make payments, then the government promises to redistribute your and my wealth to pay off the loans.

2) Government (read - meddling) tells Fannie Mae and Freddie Mac that they must BUY the risky loans that the banks have made. Government (read - meddling) tells Fannie and Freddie that there will be PUNISHMENT if they do not buy the loans.

3) The banks are happy. The housing market is on a roll. Ever-growing home prices hide the risky loans, and allow banks to a) make more loans, and b) show more assets and accounts receivable on their books. This makes banks look fabulously wealthy.

4) Fannie and Freddie are happy. They buy more loans and list them as "assets".

5) George Bush and select Republicans begin warning congress that this has gotten out of hand. When? Oh, 2004. They begin shouting at congress in 2005. Congress could care less. In fact, House Financial Services Committee Chairman Barney Frank (D-MA) stated he "has no plans to hold even a single oversight hearing to look into special “VIP” housing perks that Countrywide gave powerful congressional Democrats [Chris Dodd and Kent Conrad] at the same time it was hiking mortgage rates on you and me. See:
http://sayanythingblog.com/entry/surprise_democrats_block_investigation_into_countrywide_mortgage_scandal/

6) Nobody does nothing, not noway, not nohow.

7) House prices plunge, poor people and minorities default on their loans, and all those "assets" turn into "liabilities".

Can you spell "liabilities"?

I knew you could.

8) Banks and Fannie and Freddie run out of money to make loans because first they have to write down the new debt, and then their market capitalization falls dramatically because of it (i.e. their stock prices become nearly worthless).

Finally - when did all this start? Hmmm, let's see. Jamie Gorelick, Frank Raines, James Johnson, all Fannie execs. were advisors to Bill Clinton in the 90's, and basically drove Clinton's policy mentioned in item 1.

All of these, by the way, are now advising Barak Obama on economics. Holy Mother of God.

All of these, by the way, got fabulously wealthy from pay and bonuses as the mortgage giants racked (wrecked) up the books.

See: http://www.worldnetdaily.com/index.php?pageId=75586

Oh, and guess who was shouting loudest that we needed more oversight - especially with Fannie and Freddie? John McCain.

Who?

John McCain. 2005. He was calling for 'change' in 2005. He was ignored by: Barak Obama.

See: http://news.aol.com/political-machine/2008/09/17/obama-mccain-and-fnma-reform/

Who started the mess?

Well, all evidence points to Bill Clinton and the Democrats.

I always knew that scallywag was up to something! And we all thought it was just sex :)


James Jones