The current financial mess we find ourselves in was caused by the Democrats, starting in the Carter years, exacerbated in the Clinton years, and blocked from reform by Democrats in the Bush years.
THE seeds of today’s financial meltdown lie in the Community Reinvestment Act - a law passed in 1977 and made riskier by unwise amendments and regulatory rulings in later decades.
The abuse of this act by ACORN and officials like Janet Reno was a factor in causing the economic crisis. The harassment suits filed under this act were used to get banks to lower credit standards and hand out high risk loans.
The New York Post, has an article on the subject “Obama Sued Citibank Under CRA to Force it to Make Bad Loans,” in which the following appears: -
THE seeds of today's financial meltdown lie in the Community Reinvestment Act - a law passed in 1977 (Carter Administration) and made riskier by unwise amendments and regulatory rulings in later decades.Obama himself took part in a class action suit against Citibank in order to force them to make more bad loans; Buycks-Roberson v. Citibank Fed. Sav. Bank Fair Housing/Lending/Insurance.
CRA was meant to encourage banks to make loans to high-risk borrowers, often minorities living in unstable neighborhoods. That has provided an opening to radical groups like ACORN (the Association of Community Organizations for Reform Now) to abuse the law by forcing banks to make hundreds of millions of dollars in "subprime" loans to often uncreditworthy poor and minority customers.
Any bank that wants to expand or merge with another has to show it has complied with CRA - and approval can be held up by complaints filed by groups like ACORN.
In fact, intimidation tactics, public charges of racism and threats to use CRA to block business expansion have enabled ACORN to extract hundreds of millions of dollars in loans and contributions from America's financial institutions.
Clintons Attorney General Janet Reno, warned, “No loan is exempt, no bank is immune,” “For those who thumb their nose at us, I promise vigorous enforcement.”
In 2003 the Bush administration tried to regulate this Fannie May and Freddie Mac, warning that there needed to be action to increase their soundness.
This was strongly resisted by Barny Frank, who was rewarded with the chairmanship of the House Financial services committee, who insisted that there was no likelihood of a crisis, and wanted more bad loans.
Allan Greenapan also warned in 2005, that increases in size of these institutions could place the entire financial system at risk.
Democrat Charles Schumer leapt to their defense, saying they were doing an incredibly good job.
McCain sponsored legislation in 2006, trying to strengthen the regulatory structure over these companies, but was blocked by the Democrats.
The Democrats feel free to lie like pigs in shit because they know that with a compliant press having wet dreams about an Obama Presidency, there is no danger of being brought to account over it.