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Friday, February 5, 2010

Back in a rhythm.


Jeffrey said...

It seems to me that the cause of the financial crisis was a result of a more twisted attempt at redistribution by our wonderful government. I may be wrong, but here is how I see it. The Community Reinvestment Act (CRA) put pressure on banks to make loans to people that would not normally be made. Few were made because bad loans are bad for banks. In 1996 underwriting laws were changed which had a small effect. Then in 1999 Glass Steagall was repealed so banks could hide bad assets in large securities and get them off their balance sheets. This made it just a tiny bit easier to comply with the pressure from the axis of evil (Pelosi, Frank, Dodd, and Reid -notice they have all been in DC since the early 80s) who were using the CRA as a way to be "fair" to all those "underprivileged souls" with bad credit. The really big kicker was in 2005 when our Government approved $440 billion for Fannie and Freddie to buy mortgage backed securities. Frank says something about Fannie and Freddie fulfilling their "patriotic duty" so no extra oversight was needed. That $440 billion created a market for securities that had not been there. Not only were nearly half a trillion going to be bought with tax payer money, but now banks could sell them all over the world as good investments because there are laws about what Fannie and Freddie can purchase, it must be safe! Now the flood gates were open for banks, investment banks, and mortgage brokers. Everyone could make good money off of bad loans. Sound reasonable? I dont think they knew that any of this would happen, I truly believe the people behind all of this are just morons. After the fact, our government even forced good banks to take TARP money (BB&T) so that the American people would think that ALL big banks were affected. The CEO of BB&T said that in the process of being forced to take TARP money and pay it back, his bank was essentially taxed $250 million. In the words of Ayn Rand, "It is a conspiracy without leader or direction, and the random little thugs of the moment who cash in on the agony of one land or another are chance scum riding the torrent from the broken dam of the sewer of centuries, from the reservoir of hatred for reason, for logic, for ability, for achievement, for joy, stored by every whining anti-human who ever preached the superiority of the ‘heart’ over the mind." ~ Atlas Shrugged

Jeffrey said...

Just found these
Bush approved the $440 Billion, and gave a speech about helping people achieve the American dream, thats how he got involved. He just didn't know that bipartisanship is really an evil thing.
There are some more great Thomas Sowell videos on Youtube!