Democrat Politics Wins Over Sound Economics
The stock market plunged around 3,000 points from September 8 to October 10. The entire U.S. economy suffered as a result of trouble in the financial sector. Big investment companies and insurance companies could no longer hide the fact that they had become insolvent as a result of bad investments when they purchased so-called Mortgage-backed securities promoted by Fannie Mae and Freddie Mac. Fannie and Freddie, supported by Democrat senators and congressmen and an egalitarian vision of providing housing for all, ignored borrowers' ability to pay and pushed mortgages like commodities, counting on ever-increasing home values to cover up the lowered lending standards. These mortgages came to be known as sub-prime mortgages.
The investment bankers, intoxicated by the promise of "safe" investments with double-digit gains and insured by companies like AIG, snapped up the Securities backed up by sub-prime mortgages "betting the farm" on them. When property values would no longer increase, the demand for homes started to drop, and so did home prices and home equities. Many borrowers now owed more than their homes were worth, and started defaulting on their loans. Billions of dollars worth of Mortgage-backed securities, like a ticking time bomb embedded deep in the net worth of Merryl Lynch and Lehman Brothers, for example, "exploded," becoming illiquid as their value became suspect. This has set up a chain reaction throughout the world economy. The stock market plummeted, taking people's retirement accounts and hopes with it. The crisis has aroused anger, and the present administration wrongly became the target of people's ire.
It looks like the Democrat politics of promoting egalitarianism in housing, implemented through radical organizations like Acorn which forced banks to provide housing to low income people regardless of their ability to pay, has yielded political dividends to the Democrat Party beyond its wildest dreams. Not only has it caused the Democrats and Acorn to win more political power with low income people, but it has incited more hatred for the incumbent administration. The economic crisis has dragged down John McCain who was leading in the polls before the sub-prime mortgage mess metastasized, and has placed Barack Obama in a favorable position to win the presidency and implement more Democrat politics.
"Do not pervert justice; do not show partiality to the poor or favoritism to the great, but judge your neighbor fairly."
Leviticus 19:15
The investment bankers, intoxicated by the promise of "safe" investments with double-digit gains and insured by companies like AIG, snapped up the Securities backed up by sub-prime mortgages "betting the farm" on them. When property values would no longer increase, the demand for homes started to drop, and so did home prices and home equities. Many borrowers now owed more than their homes were worth, and started defaulting on their loans. Billions of dollars worth of Mortgage-backed securities, like a ticking time bomb embedded deep in the net worth of Merryl Lynch and Lehman Brothers, for example, "exploded," becoming illiquid as their value became suspect. This has set up a chain reaction throughout the world economy. The stock market plummeted, taking people's retirement accounts and hopes with it. The crisis has aroused anger, and the present administration wrongly became the target of people's ire.
It looks like the Democrat politics of promoting egalitarianism in housing, implemented through radical organizations like Acorn which forced banks to provide housing to low income people regardless of their ability to pay, has yielded political dividends to the Democrat Party beyond its wildest dreams. Not only has it caused the Democrats and Acorn to win more political power with low income people, but it has incited more hatred for the incumbent administration. The economic crisis has dragged down John McCain who was leading in the polls before the sub-prime mortgage mess metastasized, and has placed Barack Obama in a favorable position to win the presidency and implement more Democrat politics.
"Do not pervert justice; do not show partiality to the poor or favoritism to the great, but judge your neighbor fairly."
Leviticus 19:15
posted at 4:07 PM PermaLink
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