- Special Sections
- Public Notices
To the editor:
It concerns me that recent letter writers have so forgotten history they believe president Bush and Republicans are responsible for the financial crisis.
This mess began when President Carter decided low-income Americans had to own their own homes, but he should have stuck to Habitat for Humanity homes for them. Unfortunately, he convinced his Congress to enact the first Affirmative
Action Housing Law urging lenders to give loans to people who could not qualify to pay them.
When President Clinton decided this wasn’t accomplishing the task, he bulldozed through Congress the Community Reinvestment Act, which forced builders to sell a percentage of new homes to low-income buyers whose mortgage loans would be guaranteed by Fannie Mae. That same law forced lenders to give credit to minority buyers who couldn’t qualify, calling it Affirmative Action.
Lobbyists for Fannie Mae and Freddie Mac gave congressmen and senators millions in contributions to get the legislation passed. Most of the money went to Democrats.
Clinton’s Attorney General Janet Reno threatened legal action against lenders whose statistics on who was getting loans were not acceptable to the Clinton administration.
Additionally, what is apparently the Democrat’s favorite political action group, ACORN, threatened to put banks out of business that didn’t comply.
ACORN had Barack Obama lead annual seminars on “power tactics” as far back as 2002 or 2003. I read he also donated $80,000 from his campaign funds to that organization.
In 2005, Democrats were fierce in their opposition to legislation that would have imposed some sane controls over Fannie Mae and Freddie Mac. That legislation was written by three senators, one of which was John McCain.
The senators who blocked it were Obama, Hilary Clinton and Chris Dodd. This trio took over a quarter of a million dollars in campaign contributions from employees and executives of Fannie Mae and Freddie Mac.
Among other things, this was a criminal disservice to investors in the two agencies. It was Dodd and Frank who for years refused requests from the Bush Administration to set up an agency to regulate Fannie Mae and Freddie Mac, even though Alan Greenspan also warned them of the coming debacle four years ago, as did the chairman of the president’s economic advisers. So did Bush’s treasury secretary, five years ago. In the face of all this, liberal Democrats on the Hill defended the head of Fannie Mae.
So this is the real down and dirty story about our current financial mess: Democrat-controlled all the way.