« Clinton supporters sharing evidence for RICO case against Obama campaign? | Main | ACORN and Obama together making a joke out of the term 'non-partisan' »
October 11, 2008
WaPo Leftard Writer: Hoping For an End to American-Style Capitalism
Topics: Political News and commentariesAs this NewsBusters piece points out - contrary to the Obama camp's spin and leftard journalists like Anthony Faiola of the Washington Post - the real problem that caused the present financial crisis is that Washington used Fannie Mae and Freddie Mac as a political piggy bank, causing it dole out loans to people who had no business receiving them in the first place. And because Freddie and Fannie's obligations enjoyed the implicit guarantee of the federal government, they were able to obtain funds at lower rates and become by far the biggest dog on Mortgage Street. That in turn caused private-sector banks to lower their lending standards in order to be able to compete. Add in the Community Reinvestment Act - put on steroids by the Democrats during the Clinton years - that forced lenders to compromise underwriting standards--and you indeed had a recipe for the current financial disaster.
Lets recall (via the above link) that it was the Clinton administration and its obsession with multiculturalism that dictated where mortgage lenders could lend, and originally helped create the market for the high-risk sub-prime loans now infecting like a retrovirus the balance sheets of many of Wall Street's most revered institutions. Subsequently, tough new regulations forced lenders into high-risk areas where they had no choice but to lower lending standards to make the loans that sound business practices had previously guarded against making. It was either that or face stiff government penalties. However, nowhere in his WaPo piece does Anthony Faiola (who apparently favors Chinese-style "capitalism" and apparently thinks in the same Moaist-think of the Obama camp) lay any of the blame on "Fannie/Freddie's government-inspired freewheeling ways" and the truth about what caused the crisis is what the Obama campaign and leftard journalists like Anthony Faiola of the Washington Post choose to ignore:
Via NewsBusters:
Was the current economic situation caused by too little government intervention in the financial markets--or too much? I'd say the latter; Washington used Fannie/Freddie as a political piggy bank, causing it dole out loans to people who had no business receiving them. And because Freddie and Fannie's obligations enjoyed the implicit guarantee of the federal government, they were able to obtain funds at lower rates and become by far the biggest dog on Mortgage Street. That in turn caused private-sector banks to lower their lending standards in order to be able to compete. Throw in the Community Reinvestment Act--another major bit of government meddling that forced lenders to compromise underwriting standards--and you had a recipe for the current unpleasantness.
But the Washington Post, in the person of Anthony Faiola, sees too much capitalism, not too little, as the problem. According to his official WaPo bio, he "writes about the forces of globalization" for the paper. Faiola's article in today's WaPo is entitled The End Of American Capitalism?--and it seems clear he'd love someday soon to be able to remove the question mark.
More at NewsBusters
Posted by Abdul at October 11, 2008 7:12 AM
Articles Related to Political News and commentaries:
Trackback Pings
TrackBack URL for this entry:
