Who’s to blame?
Pundits and politicians have been pointing a lot of fingers the past week or so, blaming ‘greed,’ ‘the free market,’ and lack of regulation for the financial meltdown. Unfortunately, most of these fingers are pointing at the wrong causes, confusing Americans at a time when clarity is paramount.
In fact, most of the blame for the collapse of the sub-prime market should be laid squarely at the steps of Democrats, with their love of socialist principles and regulation.
The Community Reinvestment Act, which encouraged lending to low-income borrowers, became law during Jimmy Carter’s administration amidst a clamor for ‘affordable housing’. This clamor is a symptom of socialist/communist ideology that says everyone deserves equal goods and services, regardless of their ability to pay.
Under the Clinton administration, CRA was tweaked in a way that increased risky lending. The Bush administration warned several years ago about the house of cards these policies created, but their efforts to correct it were thwarted by corrupt Democrats whose pockets were being lined by entrenched interests.
So when talking heads on TV and slobbering fools like Barney Frank start blabbering about greed and under-regulation, ignore them. They are trying to deflect attention away from their own fault and stir anti-market, populist rage against a system that is not at fault: capitalism and the free market. In fact, government intervention and regulation are to blame for this mess, and it is abhorrent that the socialists who created the problem are now trying to get off scot-free.
Barack Obama and Barney Frank are lying to the American people about the cause of the economic meltdown. At such a precarious time in our nation’s history, we must reject their demagoguery, politicking and socialistic solutions and demand a return to free-market principles and less regulation. Let the institutions fail, or (gasp) suspend the capital gains tax to create new flows of cash into the market. That will never happen, because while politicians show no hesitation to dip into your bank account to pay for $700 billion corporate welfare packages, they would never do anything that reduces their own income.