My mind is truly blown. I dont want to seem like i've had a Truther insight into the huge conspiracy behind the current crisis. But that's just what happened. I haven't researched this independently myself but it's on a few US blogs. Read it. Please read it.
Basically Republicans Bush and McCain have been trying to regulate the huge mortguage brokers in the states Fannie Mae and Freddie Mac for years, and the Democrats in congress blocked the legislation that requires. More that this current economic Advisors to Obama were behind the creation of the ticking time bomb that has now exploded, at huge expense to the taxpayer.
The Left in the US, denied a semi-socialist taxation system, has maintained a policy of income redistribution by stealth, legally known as theft.
Fannie Mae and Freddie Mac are government-sponsored banks the make home loans, often to "poor" people with poor credit, basically people who cant pay it back. The famous sub-prime mortguage is a variation on this theme. The problem of bad debts, huge in complexity and scale (trillions of dollars worth today) has been growing for some time. In 2003 Bush tried to stop it and in 2005 McCain did. The Democrats blocked the formation of a new regulatory body in congress.
The Democrats deliberately held these institutions in limbo as they kept lending money to people who could never pay it back, without as much as a house deposit in many cases. This inflated house prices, but they just kept lending more so people could buy houses they couldn't afford. The bankers pocketed huge wads in exec bonuses as the interest payments came in. And the tax-payer (that is YOU!) was left to pick up the bill when the whole thing went tits up.
Guess who are big donors to the Democratic Party? That's right. Execs at Fannie Mae and Freddie Mac. (see source)
Now these Democrats have the nerve to say it was all fault of the Republicans as part of their election campaign.
Dont fall for it. And dont let it happen here. And dont think the Left wont try. They are already working on it. the whole New Labor ethos is to take the tools of the free-market, eg Banks, and try and make them do something against the market to make things more "fair". I've spoken about the UNFREE MARKET at length before. The areas it will be tried here are schools and health amongst others.
Whether bankers or bureaucrats it is typical of the Left to take money from the working people, give a bit to the non-working people (a bribe so they will vote for their party again), and cream of a good chuck from the top and keep if for themselves.
On top of this, when the business-sector is involved all the usual assumptions about business get fucked up. US credit crisis has corrupted the notion of credit by taking away the repayment part of the contract. Who could be surprised now that banks are loathe to lend, except at high interest rates?
So was the US experiment with home-loan redistribution fairer than the free market?
In the end the poor ended up getting it in the neck worse that anyone, as their houses were repossessed.
Dont forget, the tax payers who just paid off the bad debt.
Dont forget the builders for whom its not worth building since the collapse of prices. Fewer houses for all.
The lesson is clear. When you fuck with the free-market nobody gains, except the corrupt officials who mastermind it all.
We're onto you, Ruddyboy.
