Democrats Equally to Blame for Financial Collapse
pushing mortgages to those who could not afford them are just as much
to blame as those who flooded the economy with cheap cash.
By Charlotte Iserbyt
- In 1999, liberals were bragging about extending affirmative
action to the financial sector. Los Angeles Times reporter Ron Brownstein
hailed the Clinton administration's affirmative action lending policies
as one of the "hidden success stories" of the Clinton administration,
saying that "black and Latino homeownership has surged to the highest
level ever recorded."
- Meanwhile, economists were screaming from the rooftops
that the Democrats were forcing mortgage lenders to issue loans that would
fail the moment the housing market slowed and deadbeat borrowers couldn't
get out of their loans by selling their houses.
- A decade later, the housing bubble burst and, as predicted,
food-stamp-backed mortgages collapsed. Democrats set an affirmative action
time-bomb and now it's gone off.
- In Bush's first year in office, the White House chief
economist, N. Gregory Mankiw, warned that the government's "implicit
subsidy" of Fannie Mae and Freddie Mac, combined with loans to unqualified
borrowers, was creating a huge risk for the entire financial system.
- Rep. Barney Frank denounced Mankiw, saying he had no
"concern about housing." How dare you oppose suicidal loans to
people who can't repay them! The New York Times reported that Fannie Mae
and Freddie Mac were "under heavy assault by the Republicans,"
but these entities still had "important political allies" in
- Now, at a cost of hundreds of billions of dollars, middle-class
taxpayers are going to be forced to bail out the Democrats' two most important
constituent groups: rich Wall Street bankers and welfare recipients.
- Political correctness had already ruined education, sports,
science and entertainment. But it took a Democratic president with a Democratic
congress for political correctness to wreck the financial industry
- Democrat Libs caused the financial collapse
- Charlotte Thomson Iserbyt
- Former Senior Policy Advisor
- U.S. Department of Education