Tuesday, January 13, 2009

Good Intentions Pave the Road to Hell

I'm not quite through with Jimmy Carter....here are some more of my thoughts on this former President....

It's all very well to wish for a perfect world where everyone has exactly everything everyone else has...if you look at that as perfect. I don't ascribe to that theory, which brings to mind Mao pajamas and Communist gulags. If I were to give Jimmy Carter any benefit of the doubt, I could say that because he came from the South and wanted to compensate for injustices of the past, he decided to make reparations to the poor by manipulating the banking industry in favor of the poor and blacks (African Americans). That sounds so Christian and noble, doesn't it?? I suspect he thought he was climbing the stairway to heaven and the Community Reinvestment Act was a big step on that stairway.

Ironically, Mr. Carter can now be known as the father of the banking crisis that has taken down the mortgage industry, the banking industry, the middle class, businesses all over the country, and....most ironic of all...causing people to lose their homes all over the country. One man's convoluted sense of good intentions has paved the road to hell for a whole lot of Americans.

If I don't give him the benefit of the doubt, I go to another possibility..that it was merely a political scheme to get votes from minorities of the day. If I were guessing, I'd say it was a combination of both, 10% nobility, 90% political motivation.

Below are some quotes grabbed from other internet sources on the subject. You can research this yourself by doing a google search on Jimmy Carter Community Reinvestment Act. There is so much more to it...adding in Bill Clinton who walked in and strengthened the government's force on the banking industry, which put the pedal to the metal and sped up the process to hell. You can also find out how Acorn...Obama's favorite Community Organization Group is tied to this diabolical scheme that has bankrupted our country.

from: Jeffrey Kempe
"Born under Jimmy Carter in 1977, [Wikipedia here]< the intent was to end the practice of redlining, in which banks allegedly were not lending in certain neighborhoods. It was revised in 1995 under Bill Clinton, with provisions added that would force banks to meet certain goals of low-income lending. Fannie Mae and Freddie Mac were required to meet goals of their own in buying the high risk paper – less of a risk to the executives of those companies since their bonus was predicated on the profit that high risk brings - while the burden of any loss would be borne by the: taxpayer.

In 2004/2005 Republicans in the Congress saw red flags, and tried to apply stricter oversight to both Fannie and Freddie. Democrats objected, and nothing was ever done.

from:Yaron Brook at Forbes.com: (tried to create a link, but couldn't)

"There has been no free market in housing or finance. Government has long exercised massive control over the housing and financial markets--including its creation of Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ) (which have now amassed $5 trillion in liabilities)--leading to many of the problems being blamed on the free market today.

Consider the low lending standards that were a significant component of the mortgage crisis. Lenders made millions of loans to borrowers who, under normal market conditions, weren't able to pay them off. These decisions have cost lenders, especially leading financial institutions, tens of billions of dollars.

The government has promoted bad loans not just through the stick of the CRA but through the carrot of Fannie Mae and Freddie Mac, which purchase, securitize and guarantee loans made by lenders and whose debt is itself implicitly guaranteed by the federal government.

That's you and me, folks....the government...us...our money guaranteeing Jimmy Carter's road to hell....or was it heaven....or was it his heaven and our hell?? As I write this today, Jimmy Carter is in Communist China. Wonder what he's doing there.....hmmmmm..

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