Congress Tries To Fix What It Broke

IBD Editorials ^ | September 18, 2008

[Kaslin]

Regulation: As the financial crisis spreads, denials on Capitol Hill grow more shrill. Blame an aloof President Bush, greedy Wall Street, risky capitalism — anybody but those in Congress who wrote the banking rules.

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Such denials won't hold against the angry facts banging on their doors. The only question is whether the guilty party can keep up the barricade until Election Day.

A visibly annoyed House Speaker Nancy Pelosi rejected suggestions that Democrats share blame for the meltdown. "No," she snapped at reporters who dared ask.

Stick to our narrative, she scolded: The bursting of the housing bubble was another story of market failure and deregulation.

"The American people are not protected from the risk-taking and the greed of these financial institutions," she said, while calling for investigations of the industry.

Only, the risk-taking was her idea — and the idea of all the other Democrats, along with a handful of Republicans, who over the past 30 years have demonized lenders as racist and passed regulation after regulation pressuring them to make more loans to unqualified borrowers in the name of diversity.

They were the ones who screamed — "REDLINING!" — and sent banks scurrying for cover in low-income neighborhoods, where they have been forced to lower long-held industry standards for judging creditworthiness to make the subprime loans.

If they don't comply, they are threatened with stiff penalties under the Community Reinvestment Act, or CRA, a law that forces banks to make home loans to people with poor credit risks.

No fewer than four federal banking regulatory agencies are responsible for enforcing the law. They subject lenders to racial litmus tests and issue regular report cards, the industry's dreaded "CRA rating."

[VRWC For Truth]

THROW THE BUMS OUT!

[FlingWingFlyer]

May 26, 2006

“If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole. I urge my colleagues to support swift action on this GSE reform legislation.”

Senator John McCain

Nazi Pelosi doesn't have a clue what she's talkin' about. The whole Fonie Mae and Fraudy Mac thing was a 'RAT fiasco. Just ask the very, very rich, Franklin Raines. Obammie's Econonic "advisor."

[JoanneSD]

9% Nancy, does not want any attacks on the democrats for their role..

[rockinqsranch]

Two very pertinent links. The first written in 1993. Urge all to read these if you haven’t already.

http://findarticles.com/p/articles/mi_m1282/is_n25_v45/ai_14779796

http://www.freerepublic.com/focus/f-news/1965239/posts

[rvoitier]

she said, while calling for investigations of the industry.

Well, we know the verdict already, Nancy, just give us the details.

[Bertram3]

The bailout of Fannie Mae and Freddy Mac is (in large part) the price we have to pay for bogus affirmative action lending. Racism is wrong, and affirmative action is racism.

[NormsRevenge]

RedLining! lol

The Dems engine is set to blow, talk about redlining.

Will that be Bush’s Fault as well, Madame Speaker?

The Deny, Delay, Stall and Divert Gang

that can’t shoot straight reloads

and gets ready to blast the other foot.

[Texas Songwriter]

save

[popdonnelly]

If you trust the self-serving clowns in Washington to solve the crisis which they created, then you must believe in the Easter Bunny and the Tooth Fairy.