Wednesday, September 24, 2008

Pointing the Finger

Well, everyone's doing it these days, so I thought I'd dig into some facts and see who really is to blame for this mess in the financial world. CNN is out with a poll showing that most people (a 2-to-1 margin) are blaming Republicans for the current crisis. That doesn't surprise me in the least, as most people don't bother to look for facts when it comes to this kind of thing. It's much easier to look at who's been in charge over the last few years, and lazily assume it's their fault.

And to a certain degree, a great deal of blame can be laid at the feet of the GOP for not working harder to make changes to a system that was sending out clear signs of warning for quite some time. But what exactly is at the heart of this current crisis? What is the underlying cause for so much bloodshed on Wall Street?

Blackhedd, at Redstate, has been a source of reliable inside information on this issue for the last few weeks, and thanks to him I think I've gotten a pretty good idea of what's happened. I'm no financial wizard by any means, but I do know that most people will agree that mortgage back securities are at the root of the current mess. When lots of people default on their mortgages, the companies who have invested in the associated securities lose their arses. So who's fault is it that these mortgage companies gave loans to people who couldn't afford them?

It was Democrat policy that started pressuring banks into "providing affordable housing" to any and everyone. It was Democrat policy that implemented Fannie Mae, Freddie Mac, and the CRA. It was left-wing special interest groups like ACORN who threatened mortgage companies and banks with shutting down their operations if they refused to give risky loans. And it was Democrats in congress who blocked a bill, sponsored by John McCain, that would have reformed Fannie and Freddie back in 2005.

So, considering that the average person is either too apathetic or dimwitted to understand these facts, and the news media is all too willing to ignore them in pursuit of their own agenda, I suppose it makes perfect sense that the GOP is getting the blame. After all, we are all evil rich white guys who care about nothing but making money at the expense of poor people, right?

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