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October 17, 2008

The Democrats 'had' to know that the subprime regulations would bring down the American economy

As we now know, the ongoing financial crash was caused by over-leveraging at all levels of society - from Wall Street to Main Street to the slums, however, the initial cause was the popping of the sub-prime mortgage bubble. This clearly brings up the proverbial question of "what did they (the Democrats that forced through the legislation pushing home ownership to minorities) know and when did they know it?" - along with another, perhaps more important, question - "why did they do it?". And the answer has to be that they, the "socialist" Democrats (after all, aren't they in fact - "socialist" Democrats?), intended to bring down the American economy in order to force the adoption of a socialist agenda with a goal of replacing capitalism and freedoms that go with it - with, of course, the support of a Republican president that, as did the Democrats, looked upon the minorities as potential voters to attract into voting for the politicians that supported the sham.

There's simply no other way to explain what the Democrats did in forcing banks, with the help of "Barack Obama-trained" ACORN and their affiliates, to loan money to homebuyers who had no chance in hell of ever paying the mortgages back: Either their real goal was the destruction of the American economy or the "socialist" Democrats (might I say "Marxst?) are far too stupid to be legislators. So, which one is it?

The evidence is - sobering:

[...] At the bottom of an unknown but frightening number of convoluted new-fangled debt instruments were homebuyers who had no chance in hell of paying the mortgages back when the music stopped and the price of houses in California (and a few similar states) stopped heading toward infinity.

Federal Home Mortgage Disclosure Act data dug up by reader Tino suggests that the recent American Housing Bubble was, more than anything else, a Hispanic Housing bubble, as total mortgage dollars handed out to to Hispanics more than septupled from 1999 to 2006! (Is "septupled" even a word?)

[...] a half million dollar loan for a house in a slummy California neighborhood handed out to a drywaller from Chiapas who obviously must have added an extra zero to his undocumented annual income on his mortgage application is considered an "obligation" and the presumption is that it will be paid back.

[...] Underneath too many of these market insurance schemes that would take a 300 IQ to understand was the assumption that out in the slums of California, laborers with fifth grade educations would pay back $4000 per month for most of the rest of their lives. Maybe they would quit their day jobs, learn to read English, go to medical school, and become doctors. (We wouldn't want to be guilty of the "soft bigotry of low expectations," now would we?) Either that, or they would find a Greater Fool who would pay even more for the privilege of living in the barrio.

Over the last year, the world's financial institutions started to wake up to the reality that underlying some uncountable but possibly terrifying fraction of all the baroque financial instruments they had been selling each other were pieces of paper "obligating" drywallers to pay each month more than their monthly income for their cruddy California houses.

Today, nobody in the financial world has much of a clue who is solvent and who will crumble tomorrow, so nobody wants to lend to anybody.

More evidence? Hear the Democrats' own words - watch this shocking video:

At a 2004 hearing see Democrat after Democrat covering up and attacking the regulations to protect Fannie Mae and Freddie Mac (their Cash Cows) that are now destroying our economy because the Democrats let them cheat.