The Real Story Behind the "Bail Out"

In 1977 President Jimmy Carter sold the "Community Reinvestment Act" to Congress. This bill would require, by law, lending institutions to make low interest, no down payment loans to people in their local communities who where not likely to be able to pay them back. This laid the foundation for the crisis that we are seeing today. Maybe I should say this was the beginning of the destruction of our financial foundation. Government, in doing this, would begin to impose itself in the business of our financial institution. This was the biggest move toward socialism in this country since the"New Deal".



During the Reagan and Bush 41 years, the CRA, in the interest of reducing government interference in free market lending, was loosely enforced by those administrations. A dramatically lower number of high risk loans were made. Enter "Slick Willie". The Clinton Administration stiffened regulation and began strict enforcement of the "CRA". New regulation would make lending institution compliance less subjective and more numerical. Banks could no longer score an A for effort. They had to produce loans. A quota was enforced. This encouraged the involvement of Socialist leaning, foundation-funded, community "Watch-Dog" complaint groups like the "National Community Reinvestment Coalition". To keep the "NCRC' happy, banks like, "The Bank of New York" Pledged hundreds of millions of dollars to left leaning radical community activist groups like ACORN Housing. Interestingly enough this group was largely organized by a community organizer named "Barak Hussein Obama". This amounted to a sort of lending market extortion. If lenders didn't make a quota of these high risk loans and payoffs "NCRC" would blow the whistle and they would be penalized by the administration or perhaps even prosecuted in certain instances by the United States Justice Department. Remember that recently Obama tried to slip ACORN a little more cash in the first version of the "Constitution Extermination Act of 2008" AKA the "bailout" bill.



The pressure put on by laws and regs enforced by the Clinton administration drove lending institutions to make BAD LOANS. That's not "Wall Street Greed" that's "Socialism".



During the latter part of the Clinton administration and the early part of the Bush administration some recognizable names had taken the helm of Freddie, Fannie, and Leahman Bros., names like Franklin Reigns, Jimmie Johnson, and Robert Rubin. Sound familiar? Yep! These guys are now economic advisers to Obama.



By early 2003 these companies had spent years engaged in irresponsible lending and pay off of special interest groups. It had become necessary to hide the damage that such abuse and mismanagement had caused. The Bush administration called for a Congressional investigation into allegations of "Cooking The Books". This was dismissed quite speedily by Congressional Democrats such as future "Finance Committee Leader", Bernie Frank , senator Chuck Shumar and others who said that these institutions were solid. Interesting that the activist group, "ACORN" that is being investigated for fraudulent registration of Democrat voters, was receiving millions from these companies.



In 2005 , as I wrote in a previous editorial, McCain sponsored a bill that would reform regulation on these lending institutions which would relieve demands on these Lenders to make "High Risk" loans and provide oversight as to interaction with special interest groups such as ACORN. The Democrat party killed this bill. Imagine that. They weren't going to surrender their cash cow until they had drained it dry, and taken every dime of political extortion money they could wring out of its dying corps. They'd blame it's death on the current Republican administration,(remember the one who asked for the investigation), and set their party up for the presidency. They could complete their scheme by removing the last traces of "Free Market Capitalism" from it through regulation, and slip a few more bucks to ACORN in the process. At least Barak tried to. Voila'! Socialism! Complete governmental control!



The Democrat Party is in this up-to-their-neck. Their government regulation of this industry has caused this catastrophe and NOT "WALL STREET GREED !" Nice deflection huh? They've blamed it on Bush. It is disgraceful that the Democrats did this right under the Republican's nose. The fault of the Republican party in this whole thing is that their ignorance allowed this to go on. This loan machine was building the Democrat Party by buying Democrat votes and funding Democrat activist groups. This is the same kind of machine Clinton built in Arkansas with the"Arkansas Finance Developement Authority". Look it up. It's Deja vu but on a larger scale. Bill just built the same machine in Washington. Obama is riding Bill's machine. Now with this "bailout" the machine is about to be funded by the American tax payer. The "Constitution Extermination Act of 2008" is the "Perfect Storm" for the Democrat Socialist Party.



McCain can't vote against it. It will look like he's against the little guy. He can't vote against government control. That's what they say we've lacked under Bush. In truth it is extreme Democratic policy and government control established by Carter and Clinton that created the problem.



Government needs to get out of the way with its capital gains and windfall profits tax, put money back into the consumers hands, and let the free market solve this thing! It will hurt but there must not be a "Bail Out". Free Markets left alone will work!

Enjoy the video below!