hopperbach


Another fine mess

The fallout from our current mortgage crisis has been chilling to watch. The names appearing in our headlines are big ones. Bear Stearns, Merrill Lynch, AIG, Lehman Brothers… longstanding giants that we had assumed to be permanent fixtures in the financial industry are suddenly falling like so many colossal dominoes. Still more are expected to in the near future.

So just where and when did this all start? The answers are actually quite simple but some of you might not like them:

Washington. 90s.

Talk show host and “equal opportunity offender” Neal Boortz sums up the situation on his website:

1. Almost all of the financial problems we see today are based on bad mortgage lending. That would be lending money to people to buy homes who didn’t qualify for a loan.

2. The Democrats, under Clinton, strengthened a government-created monster called the “Community Reinvestment Act.” This law was then used by “activists” and “community organizers” (like Obama?) to coerce lending institutions to make these bad loans … millions of them.

3. Now we see what happens when political “wisdom” supplants good loan underwriting. When private financial institutions are virtually forced to make loans to people with a bad credit and job history .. this is what you get. Enjoy it.

That’s what it comes down to folks… the current chaos in the mortgage industry is the direct result of the policies of Democrats and our former Do-gooder-in-Chief.  These are the fruits of government-sponsored liberalism.

For those who may be bothered at that pronouncement, here’s a deep dark secret… I was once a liberal myself. We’re talking 20 years ago when I was just a young hare. In fact, a lot of us conservatives were liberals when we were young. We saw suffering and injustice in the world, we got passionate about it and we wanted it fixed. Nothing wrong with that. The problem occurs when we naively look to our government to fix it.

That’s when the real fun begins… when you first utter those six magic words “There ought to be a law…” Once you say that, 500+ lawyers in Washington perk up. That can never end well.

And that’s exactly what has happened here. Activists got fired up over what they viewed as unfair standards for home loans. Washington got involved. Laws were passed. Banks were pressured or sometomes forced into making loans to people who couldn’t pay them back. Banks went belly-up when those people didn’t pay them back.

The world doesn’t run on good intentions.  Leaving your problems in the hands of politicians and bureaucrats will always ultimately make matters worse.  Every single time.  Washington will only become more powerful and you more helpless to forces beyond your control. You can learn that now and stop voting for candidates who promise to right all the wrongs in your life or you can learn it later. But trust me, you will learn it… if you are paying attention.

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