Finally it comes out – after the election, of course – The primary cause of our current economic demise

New study confirms economy was destroyed by relentless policies of Democratic Party

http://israel-commentary.org/?p=5513

ECONOMY
DECEMBER 21, 2012
BY: ROBERT MOONS

A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left’s race-baiting attacks on the housing market (the Community Reinvestment Act–enacted under Carter, made shockingly more aggressive under Clinton) is directly responsible for imploding the housing market and destroying the economy.

The study painstakingly sorted through failed home loans that caused the housing market collapse and identified an overwhelming connection between them and CRA mortgages.

(And is the main reason Barney Frank and Chris Dodd conveniently disappeared from the political scene. How about a genuine in-depth, independent prosecutor review to put these crooks in jail – hardly adequate punishment for the immense trouble they have caused us and in which Obama relishes and his father’s dreams are fulfilled) jsk

Let’s review:

-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.

John McCain also co-sponsored urgently critical reforms that would have prevented the housing market collapse, but Democrats shut that down as well, along party lines, and even openly ridiculed anyone who suggested reforms were necessary…to protect their taxpayer-funded campaign contributions as the economy raced uncontrollably toward the cliff.

No one was making bad loans to unqualified people until Democrats came along and threatened to drag banks into court and have them fined and branded as racists if they didn’t go along with the left’s Affirmative Action lending policies…all while federally insuring their losses. Even the New York Times warned in the late 1990s that Democrats continuing to force banks into lowering their standards would lead to this exact catastrophe.

Obama himself is even on the record personally helping sue one lender (Citibank) into lowering its lending standards to include people from extremely poor and unstable areas, which even one of the left’s favorite blatantly partisan “fact-checkers,” Snopes, admits (while pretending to ‘set the record straight’).

-Even The New York Times admitted that there is “little evidence” of any connection between the “Republican” deregulation measures Obama blames, like the Gramm-Bleach-Liley Act (signed into law by a Democrat), and the collapse of the housing market.

But now the media have spent years deliberately and relentlessly inoculating people against the facts, training them to mindlessly blame Bush for being in charge when Democrat policies destroyed the economy. So here we sit, to this day, still watching Obama excuse and shrug off endless economic failures, illegal government takeovers and utter national bankruptcy with zero accountability.

Reader comment Dec.25, 2012

Report is so accurate. Frank Ranes, Pres. of Fannie May was a big abuser of dumbing the system down.

It was like Christmas Cheer for so many that really could not afford their homes, only here there were consequences.

Best Regards,
Bob

Why our economy and ability to compete are in the tank

Obama’s team has job, economy and liberty destroyers at every position

Video below article: Analysis of US economic crisis
By Mort Zuckerman, Chairman and editor in chief of US News & World Report and publisher of the New York Daily News

Chief destroyer, Obama aided and abetted by:
Ken Salazar, Kathleen Sebelius, Barney Frank, Carl Levin

By Richard W. Rahn
The Washington Times
April 25, 2011

Which two have done more to improve your life – Thomas Edison and Steve Jobs, or Barack Obama and Nancy Pelosi? Some people, in their pursuit of profit, benefit their fellow humans by creating new or better goods and services, and then by employing others. We call such people entrepreneurs and productive workers. Others are parasites who suck the blood and energy away from the productive. Such people are most often found in government.

Perhaps the most vivid description of what happens to a society where the parasites become so numerous and powerful that they destroy their productive hosts is Ayn Rand’s classic novel “Atlas Shrugged.” The just-released movie version is an entertaining, tension-filled struggle between the productive and the parasites who ally themselves with the envious and evil. Go see it.

When wages are rising faster than inflation (i.e., real wages), and the number of adults, as a percentage of the population at work, is rising, times are good; but when real wages fall, misery results.

For the past several months, real wages have been falling, and despite the small improvement in the unemployment rate, the adult population/worker ratio continues to fall. Declines in prosperity most often are a result of bad policies rather than natural forces, with the rare exception of an event like the Japanese earthquake and tsunami.

Bad policies come about from the actions of specific people – individuals in Congress and government agencies – not the Congress or the administration as a whole. Washington is filled with people who are more destructive than constructive. It is useful to name some of the most destructive people in the hope that they will either reform or leave.

One of Washington’s most aggressive destroyers of jobs has been Rep. Barney Frank, the Massachusetts Democrat who is a former head of the House Financial Services Committee and principal author of the now-notorious Dodd-Frank Act. He was one of main protectors and enablers of Fannie Mae and Freddie Mac as they went on their ruinous, subprime mortgage buying binge.

Peter Wallison, former general counsel of the U.S. Treasury and member of the Financial Crisis Inquiry Commission, has produced a lengthy report showing how the actions of Fannie and Freddie were the most important causes of the financial crisis. If Mr. Frank and his Senate counterpart, disgraced former Sen. Christopher J. Dodd, Connecticut Democrat, had acted responsibly, millions of Americans might not have lost their jobs and homes over the past few years.

Interior Secretary Kenneth L. Salazar, a former senator, has done more to destroy and curtail American oil, gas and coal production than any other single human. Soon after taking office, he prohibited oil and gas production in huge areas of the American West. He has held up the permitting of both offshore and onshore oil production well beyond what was necessary to ensure safety. He has ignored sound science and the rule of law. His actions, even according to Democrat senators and others, have cost hundreds of thousands of American jobs.

Health and Human Services Secretary Kathleen Sebelius was caught in a half-trillion-dollar lie last month, when, before a House Committee, she was finally forced to admit that the administration had been double-counting Medicare savings as critics had been claiming. If Ms. Sebelius and others in the administration had told the truth, Obamacare would never have passed. The costs associated with this piece of legislation, not even considering the costs of all of the legal challenges, will result in millions of job losses and a loss of personal and economic freedom – unless the Supreme Court upholds the legal challenges.

President Obama claimed last week in his budget speech that hundreds of billions of dollars can be saved in the Medicare program by eliminating waste, fraud and abuse. If that is true, why has he tolerated Ms. Sebelius’ mismanagement?

Sen. Carl Levin, Michigan Democrat, has done much to drive foreign investment and jobs out of America. He has done this by leading a headline-grabbing, but economically illiterate, crusade against legal tax avoiders, tax evaders and low-tax jurisdictions.

His destructive “solution” has been to put costly and punitive restrictions on domestic and foreign financial institutions. These restrictions have caused some foreign financial institutions to cease investing in the United States and to refuse opening accounts for Americans. It has been explained to Mr. Levin that his previous and newly proposed legislation is driving upwards of $1 trillion of foreign investment out of the country, which will cause Treasury to lose, in the real world, many times the tax revenue Mr. Levin and his gang of know-nothings claim.

But Mr. Levin carries on, leaving America with far less foreign investment and the jobs it would create – all in a selfish attempt to curry favor with the witless media.

Finally, we have the job-destroyer-in-chief, Mr. Obama. Even though the empirical evidence shows that both job creation and liberty increase with reductions in the size of government and tax rates, the president has done just the opposite.

Last week, without offering an alternative budget plan of his own, the president had the unmitigated gall to attack House Budget Committee Chairman, Paul Ryan, who has a serious plan to deal with the budget crisis. However, Mr. Obama did call for a big tax increase on those who create jobs. If that happens, prepare for double-digit unemployment.

Richard W. Rahn is a senior fellow at the Cato Institute and Chairman of the Institute for Global Economic Growth.

Click to view the Mort Zuckerman video.

And watch as interviewer desperately tries to put words in Mort’s mouth. We must have been watching MSNBC or CNN or TBS or any number of the other of the Left wing press. I am sure they were sorry that asked him for his point of view. jsk