Newt and Michelle Lay It On The Line

Discussion in 'Politics' started by PoliticalChic, Oct 12, 2011.

  1. PoliticalChic

    PoliticalChic Diamond Member

    Oct 6, 2008
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    Brooklyn, NY
    so, Charlie Rose Debate starts off asking Newt about why Wall Streeter's aren't in jail for the housing market!

    And he looks shocked when Newt informs him that the [Democrat] government policies caused it!!

    Ditto Michelle Bachmann with the same question!!

    And here it is from today's WSJ:

    "There is no mystery where the Occupy Wall Street movement came from: It is an offspring of the same false narrative about the causes of the financial crisis that exculpated the government and brought us the Dodd-Frank Act. According to this story, the financial crisis and ensuing deep recession was caused by a reckless private sector driven by greed and insufficiently regulated. It is no wonder that people who hear this tale repeated endlessly in the media turn on Wall Street to express their frustration with the current conditions in the economy.

    Their anger should be directed at those who developed and supported the federal government's housing policies that were responsible for the financial crisis.
    Beginning in 1992, the government required Fannie Mae and Freddie Mac to direct a substantial portion of their mortgage financing to borrowers who were at or below the median income in their communities. The original legislative quota was 30%. But the Department of Housing and Urban Development was given authority to adjust it, and through the Bill Clinton and George W. Bush administrations HUD raised the quota to 50% by 2000 and 55% by 2007.

    Research by Edward Pinto, a former chief credit officer of Fannie Mae (now a colleague of mine at the American Enterprise Institute) has shown that 27 million loans—half of all mortgages in the U.S.—were subprime or otherwise weak by 2008. That is, the loans were made to borrowers with blemished credit, or were loans with no or low down payments, no documentation, or required only interest payments.

    Of these, over 70% were held or guaranteed by Fannie and Freddie or some other government agency or government-regulated institution. Thus it is clear where the demand for these deficient mortgages came from."
    Peter Wallison: Wall Street's Gullible Occupiers -

    So....ya' think the organizers of this Pee Party don't know this, as well?

    Or is this is some sort of deus ex machina designed by the Obama administration...?

    Oh, is!

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