The Housing Bust; who to blame?

The Housing Bust, Socialist caused?

With the entire economy failing all around us it is easy to point the finger and place ‘blame’ wherever we can without actually taking in what happened leading up to this that is the real and true cause of our current problem! With all the e-mails and MIS-information circulating the internet these you can find ‘evidence’ to support whatever you want to think! But, do you really believe that 1 man (George Bush) who only has the power to approve or deny what has already passed through the House and Senate is to ‘Blame’ for all of our ails? No, that can’t be it. If not Bush, then it must be the ‘Democratically controlled’ House! Oh, no, wait; that statement isn’t exactly true either! Yes, the House of Representatives currently has 233 Democrats to the 198 Republicans (4 seats vacant); but any bill must also pass the through the Senate which is currently dead even with 49D to 49R and 2 ‘other’ (http://www.infoplease.com/ipa/A0774721.html). That is the basis of our ‘Checks and Balances’ system! No one individual or entity can be ‘blamed’ for any legislation. So, just who is to ‘blame’ for our current state of affairs? Lots of people! Ourselves included! There have been lots of bad decisions made, and many of those were based on mis-information and phantom beliefs structured on ‘sand’. Once again we are proving the ‘Cycle of Democracy’ and how socialist thinking can destroy a nation!

I think that we all can agree that what has happened is that too many ‘sub-prime’ loans were issued to individuals and entities that were not ‘qualified’ or otherwise ‘capable’ of re-payment! Well, why on earth would we lend something to someone who has no viable/provable means or history of re-payment? It is simply complicated… Everybody today seems to have a sense of ‘entitlement’. They seem to have forgotten that our constitution grants us the right to the ‘pursuit’ of happiness and seem to think that we are ‘entitled’ to be happy; That by being ‘Americans’ that we are ‘entitled’ to the ‘American Dream’. That ‘entitlement’ philosophy is in it’s most basic, socialism! ‘You have extra, and I have none, so you give me your extra, then we will both have some’! Everybody thought that they had the ‘Right to Home Ownership’ and the less fortunate and LAZY complained! The bleeding hearts said, “it’s ok, we will find you a way to have a house” instead of: “if you want a house, then lets work on getting you better trained for a better job so that someday you may be able to afford one!” And the pressure was applied to the Government by lobbying groups such as ACORN. These groups coddle low income families and lobby government for ‘social justice’.

Now, let me step back for a minute and explain the difference between a ‘right’ and a ‘priveledge’. I remember as a young teen going to visit the local Justice of the Peace with my sister, who had received a speeding ticket, for a Boy Scout or School report of some sort. Once the JP was done with my sister, he talked to me. He explained to me that driving was a ‘priveledge’ that, if not taken responsibly, could be taken away! A ‘right’ on the other hand is something that no one can take away from us! If my sister were to get too many tickets she would have proven irresponsible and her driving ‘priveledge’ would be taken away. That obviously would not make my sister ‘happy’ but nowhere is she ‘guaranteed’ happiness. She only has the right to the ‘pursuit’ of happiness, her own actions are what determines if she actually achieves it or not!

Sho what is ‘social justice’? According to ‘Webster's New Millennium™ Dictionary of English’ Social Justice is: the distribution of advantages and disadvantages within a society. I don’t know about you, but that clears it up for me! Ok, maybe not. Let’s break it down. ‘Social’ is a way of relating to a group or community of people. ‘Justice’ is basically ‘fairness’ or ‘equitableness’. So ‘Social Justice’ is ‘fairness and equity for a group or community’. The last line of the Pledge of Allegiance is “and Justice for All.” No where does it say that we will all achieve equal status! It just guarantees equal treatment under the law! The ‘right’ to pursue a higher status, way of life, the American Dream is Capitolism! The demanding of equal status without having worked for and achieved for yourself, is socialism!

Ok, now that we are all on the same page, back to the issue at hand. These groups that are lobying for ‘Social Justice’ are claiming that everybody ‘deserves’ an equal standing or status. They feel that it isn’t ‘fair’ that some own their own homes and others rent while others still rely on handouts and government programs for housing. So, due to the immense pressure applied by these lobbying groups the government, who doesn’t want to offend anyone and must be ‘Politically Correct’, started to apply ‘affirmative action’ to the lending industry. They told the lenders to no longer worry about the statistical, on paper, doesn’t even take into account race, sex, creed, etc factors that they have used for decades to determine if someone is capable of re-payment and told them that they have to lend to a certain number of people of X race or in Y neighborhood. This is part of the Community Reinvestment Act, or CRA. The CRA is a federal law that evaluates weather or not a banking institution is meeting the credit needs of the ENTIRE community and prohibits them from only lending to ‘prime’ financial candidates, a practice termed ‘Redlining’. The baking industry obviously didn’t like this, but under the act, if they are determined not to be meeting the needs of the ‘entire’ community, the penalties are very very stiff! So, the banks started lending, knowing full well that they would just ‘sell off’ these ‘sub prime’ loans to larger Lending Agencies’ such as Fanny Mae and Freddy Mac. Then the big investment banks and firms started touting these loans as Guaranteed or Secured, because they are after all required by the government so they continued to make these loans. This became big business! All over the TV and Radio you constantly see advertisements that ‘even you can get into your own home’ reguardless of credit history and whatever other ‘standard’ credit requirements. These loans are often high interest, due to the high risk, but that’s ok because the banks are making money and can sell the loans off to bigger firms and the bigger firms will buy them because they are going to make money and there isn’t any risk because the government is guaranteeing them! All of this is great, until these individuals and entities who couldn’t qualify for these loans before, couldn’t pay them back! Surprise, surprise! Well, the banks aren’t making that interest money if no payments are being made. Well, the government guaranteed these loans, so let’s sell them up again to them! Oh, what do you mean you didn’t guarantee them; You forced us to write them…. Now there is lots of land foreclosed on and no one to buy it because the banks all got burned and don’t have any money to lend out anymore!

So who should we blame? The president who finally signs the bill after it has already been argued, hacked and hashed by the 535 members of congress? That doesn’t seem fair, just, and equitable…. So let’s blame the ‘democratically controlled’ Congress! Ok, I can go with that somewhat. The democrats do basically control the House which is where laws are written, but how do explain it passing the Senate? If it was purely a Democratic ticket item, it would have died there! So it must have passed on by popular support! Where did that support come from? The very vocal bleeding heart socialists! AND the unwillingness to tell someone NO! You didn’t earn it! Everybody is so caught up with being ‘Politically Correct’ and unwilling to offend anyone that we have PC’d our way to an absolute economic mess! Should the government ‘bail out’ Fannie Mae and the like? Possibly, it is their fault, and our lack of outrage that caused this mess! It needs to be handled very very carefully and I don’t want to foot the bill for it, but if we can wake up and quit coddling people and hold people responsible for their own actions then it will be worth it! Unfortunately, I don’t see that happening.

WAKE UP AMERICANS! AMERICA IS FALLING APART DUE TO YOUR APATHY!

In GOD we trust. All others PAY CASH!