Wednesday, September 24, 2008



"For years, liberal Democrats in Congress and some Republicans pushed for banks and other institutions to make home loans to unqualified borrowers, and suddenly we find many of these people cannot repay their loans."
"The reaction from members of Congress, like the "surprised" Speaker Nancy Pelosi, is to demand investigation of "greedy bankers," while ignoring the fact that it was her left-wing colleagues who created the Community Reinvestment Act (CRA) that required the banks to lend to people who were poor credit risks in the name of "housing rights." A Chicago "public interest" lawyer named Barack Obama was active in this movement."

Richard W. Rahn makes some great points in his commentary which many in the media and "LeftSide" blogs seem to leave out...

"Most members of Congress seemed surprised that voters think the huge campaign contributions many of them received from Fannie and Freddie might have something to do with the now all too apparent lack of congressional oversight of the two mortgage giants. The endlessly surprised Mrs. Pelosi ranted against the "privatization of profits and the socialization of costs" in Fannie and Freddie. She must have forgotten that Fannie and Freddie was created and overseen by Congress, and staffed by political appointees (former Fannie CEO Franklin Raines was Bill Clinton's budget chief), and had an implicit (and now explicit) guarantee from the federal government."

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