Three Democrats stand out as responsible for costing Americans much of their life savings in the name of putting more people into affordable housing that turned out to be not affordable at all.
The three Democratic politicians who, not accidentally but deliberately, undermined the American financial system and caused this global catastrophe are Barack Obama, Massachusetts Congressman Barney Frank and Connecticut Senator Christopher Dodd.
What is driving the world collapse of the stock markets? What is causing the savings of Americans to shrivel up? Democratic policies.
Yes, it's the world financial credit freeze-up. But what triggered the freeze-up? Democratic policies.
It was the defaults of subprime mortgages packaged and sold by Fannie Mae and Freddie Mac around the world. But what caused the defaults? Democratic policies.
Who made banks make unsafe mortgage loans? Well-intentioned Democrats who thought it would be "fair" for people who couldn't afford houses to get them.
Who made Fannie Mae and Freddie Mac buy up those bad loans and palm them off on the world? Democrats in Congress pressured by interest groups such as Obama's ally ACORN.
The cost to investors so far has been hundreds of billions of dollars. American workers who have invested in mutual funds and 401(k)s have suffered badly. People are losing their jobs because of this crisis.
The following account is the story the mainstream media will not tell the American people because they fear it would jeopardize an Obama victory. It will be a travesty and a tragedy for Americans if Democrats capture the White House and Congress after their policies brought on this worldwide catastrophe.
It will be too late after the election to document the involvement of Obama and his Democratic colleagues, whose zeal to change America into a socialist state brought disaster to the world. You know what will happen: Democrats will convene hearings with their favorite witnesses to blame anybody but themselves. Democrats don't like the free enterprise system they meddle with and in this case brought crashing down.
Democratic policies brought on the housing bubble and its collapse, the default of U.S. backed obligations all around the world and panic everywhere. Democrats are pointing the finger at Wall Street, but that doesn't wash. Wall Street was packaging and selling Fannie and Freddie mortgage loans for years. What happened was Fannie and Freddie started buying up so many subprime loans that the packages they were now sending around the world were junk, but still backed by the implicit guaranty of the U.S. government so people, banks and governments bought.
Fannie and Freddie abandoned their obligation to protect the taxpayers of the United States to please the Democratic congressman who were pressing them to expand the subprime mortgage loan market by buying risky loans and giving banks and mortgage companies more money to make more risky loans.
President Bush and Senate Republicans including Senator McCain pleaded with Congress in 2005 and 2006 to pass legislation to get Fannie and Freddie under control. Senate Republicans even got a bill to do just that out of the Senate Banking Committee (S. 190), but Senate Democrats led by Senator Harry Reid and Christopher Dodd, with the vocal backing of Massachusetts Congressman Barney Frank, said there was no crisis and blocked a vote on the Senate floor. As a Democratic U.S. Senator Obama supported their action.
How key was Obama's role? Obama helped train ACORN operatives in the early 1990s how to bully and intimidate banks and bankers into making risky mortgage loans to those who couldn't afford them, shouting cries of "discrimination" and "racism." Obama was one of the very first pushing for such unsafe loans to be made. Those cries kept building through the '90s and into this decade. As a result, riskier and riskier mortgage loans were made and Fannie and Freddie was pressured more and more by Democrats in Congress to buy the unsafe mortgage loans and send them off in packages to the world as if they were of the same quality they had been in the past. They weren't. Obama lived to see the colossal damage done by his policy of intimidation of banks and indeed to help give the final push to disaster by opposing reform of Fannie Mae and Freddie Mac as a senator in 2005 and 2006. Despite the world chaos and massive losses to American investors, Obama as late as 2007 was still insisting subprime mortgages were a "good idea."
To read about the roles of the other two principal destroyers of savings, click here. Also, look for the heading Categories on the right side of this website and click on Democratic Financial Crisis.
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