Cost of the bailout–an Obama Presidency?
Posted by americandust on September 25, 2008
Ugh… I hate this bailout, but I know we have to have it. And before you repeat the liberal media’s mantra that John McCain is playing politics with it, you should know that only 4 House Republicans plan on voting for it. As the leader of the Republican Party (and soon the nation) he has to get those guys on-board or this is going to look real messed up. To be honest, Obama doesn’t need to be there (the Dems are already on-board and Reid/Pelosi don’t like to share leadership with anyone anyway)… so I don’t fault his resistence (although I think Reid’s telling him to stay away was a bad move for Dems). But only McCain can keep those House Republicans in line… Bush can’t do it anymore, truth be told, pre-primaries McCain couldn’t either (House Rep’s are much more conservative and don’t like moderate McCain). But as the leader of the Party now, McCain is the one they ultimately have to answer to.
As for how we got in this mess it’s simple: we tried to manipulate capitalism out of the goodness of our heart. We created the phony populist mantra that every American deserved to own a house. That is a socialist idea. Fannie Mae (which is the largest supporter of the Congressional Black Caucus and the largest non-racial interest group that gets votes in return) wrote lots of large checks mainly to Dems (Harry Reid got the most money, then Obama got the second most which is odd since he’s been there only 2 years and racked in $105,000 before he announced his run for the presidency) was told by lawmakers to ignore their own formulas and ignore their normal proceedures in the name of “fairness.” “But Americans forgot that historically nearly four in 10 of us aren’t ever ready, or able, to sacrifice for a down payment, monthly mortgage bills, home maintenance and yearly taxes — and so should stick to renting.” But no, the government said give more loans to minorities, to women, and to single people. People who by the banks own formula could not pay it back. However, Fannie and Freddy (with AIG’s financial standing tied so deeply to theirs) knew, absolutely knew, they could take stupid risks because the government had put them up to it and they knew they’d get bailed out… afterall, it was the government’s idea to make loans availible to people who couldn’t pay them back in the name of “fairness.”
You know what’s not fair, the fact that you and I are going to be on the line for ten grand each because that first year teacher in the room next to me (who’s married to a lawschool graduate with $200,000 in student loans and a $50,000 a year job) bought a damn $200,000 house they couldn’t afford, got a shakey loan the bank knew they couldn’t afford, then the local bank sold the loan to a nationwide bank who packaged it with 300 other bad loans and sold it to Fannie Mae. Then all of a sudden the value of homes dropped once people realized that you can’t keep making a fortune buying a house, putting in new closet doors and a new kitchen then selling it for twice what you paid, and then Fannie knew they’d never get back what they were owed… so they come running to the people who encouraged banks to loan more money to people who can’t afford the loan… the Government.
And now the only cure to the problem with messing with the economy is to mess with it even greater. Ugh…
Meanwhile the media tells us this is John McCain’s fault. The fact that three years ago he co-sponsored a bill to oversee Fannie and Freddy is meaningless to them. The fact that that bill died because every single Democrat in the committee voted against it and promised a bitter partisan floor fight where Republicans would be labeled racists for opposing an institution that gives special loans to minorities and the fact that the Dems promised retribution against funding for the Iraq war if they took this reform to the floor will never be mentioned by the press. I partially blame Republicans for not willing to fight the good fight (specifically Mitch McConnell as leader of the Senate Republicans)… because afterall, that was an election year when Republicans were running scared. Because they tried to watch their back at the polls by bending over at the demand of the Dems, they have given the media a free press to tell the biggest lie of all: This whole mess is John McCain’s fault.