In the most recent round of political Jeopardy: I’ll take “Bailouts” for $700 million, Alex. The answer is “No” and the question (raised by economist Thomas Sowell) is: “Do facts matter?”
For the last several weeks, we have been constantly bombarded by the media first, and then Joe Biden in the debate, telling us that the cause of the current economic meltdown is “deregulation” championed by Republicans. It makes a nice, convenient story line for the Obama campaign and its sycophants in the media, but there is just one problem: it is completely false!!
The roots of this housing meltdown and the current credit crisis are to be found in the Community Redevelopment Act, passed during the Carter administration and then ruthlessly pressed forward by the Clinton adminstration and its holdovers into the current administration. It forced banks (under threat of Federal intervention and hefty penalties) to loan to “underserved” communities… which basically meant giving home loans to people who had no reasonable chance of paying them back! It led to “no document” loans (where an applicant didn’t have to provide any proof of income or even of having a job) and to the counting of welfare payments and unemployment benefits as qualifying income for home loans.
Now the same people who pushed this and stonewalled any attempt to rein it in (read Barney Frank and Chris Dodd) are telling us that they are the ones to be trusted to fix it. And that it “is all the Republican’s fault” anyway. What absolute gall!
Update: For more on this. see Who Is In Charge: Karl Marx or the Marx Brothers?