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Credit is not a "civil right"
Posted by: McQ on Tuesday, September 23, 2008

Mark Krikorian gets down to one of the primary reasons for the financial problems we have right now - forcing financial markets to enable social policy:
I have no way of judging whether the Wall Street bailout is a necessary evil or an impending disaster. But we're in this mess, ultimately, because our political elites thought it was good social policy to encourage banks to give mortgages to uncreditworthy people, resulting in what Sailer months ago called the "Diversity Recession" (if this doesn't work, make that the Diversity Depression). In other words, if poor people in general, or blacks or Hispanics in particular, were less likely to be approved for a mortgage, the only possible reason was racism or classism or whatever. Thus "creditworthiness" was an illegitimate, dead-white-male concept, like middleclassness. Because, after all, isn't everyone entitled to credit? Therefore, I propose any bailout bill start with these words: "It is the sense of Congress that credit is not a civil right."
Tax policies aren't much different. Instead of limiting taxes to the fundamental reason for having them - funding legitimate governmental functions - taxation has become an instrument of social policy. Thus the promise to cut taxes for 95% of Americans while raising them on the 5% who most likely hire the other 95% and own the businesses as well.
 
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Thus the promise to cut taxes for 95% of Americans while raising them on the 5% who most likely hire the other 95% and own the businesses as well.


That’s all right, if the 5% fail to hire us, or fire us, our brothers on the Indian subcontinent have led the way of enlightment - if we’re laid off, we beat the CEO to death.
 
Written By: looker
URL: http://
McQ - why are you such a hater?
 
Written By: Grimshaw
URL: http://
Next he’ll be saying that my house, my kids college education, my health insurance and my happiness aren’t Constitutional rights!

Oh, I forgot my right not to be offended by things.
 
Written By: looker
URL: http://
I heard that the Democrats are trying to put mortgage relief as part of this bailout.

Basically they want to reward the deadbeats who shouldn’t have been seeking these mortgages in the first place by helping buy them a house.

And I’m suppose to fund this crap?
 
Written By: jpm100
URL: http://
Senate Majority Leader Harry Reid, (D-NV) in 2005, in response to an effort by the GOP to trim Fanny & Freddy’s portfolios: “The legislation from the Senate banking committee, passed today on a party line vote by the Republican majority, includes measures that could cripple the ability of Fannie Mae and Freddie Mac to carry out their mission of expanding homeownership,” said Sen. Harry Reid, D-Nev., the Senate Minority Leader Thursday…”While I favor improving oversight by our federal housing regulators to ensure safety and soundness, we cannot pass legislation that could limit Americans from owning homes and potentially harm our economy in the process,” Reid said.
Will no one rid me of this troublesome twit ?
 
Written By: Neo
URL: http://
Yglesias has been addressing this idea, and it is a red herring. Certainly one might argue that such market enabled social policy initiatives are wrong, but they are not particularly related to this crisis.
 
Written By: Retief
URL: http://
but they are not particularly related to this crisis
I do not think ’related’ means what you think it means.
 
Written By: jpm100
URL: http://
Retief: Yglesias has been addressing this idea, and it is a red herring.
Yglesias:
For one thing, the timeline is ludicrous. The Community Reinvestment Act was passed in 1977. Are we supposed to believe that CRA was working smoothly throughout the Carter, Reagan, Bush I, and Clinton years and then only under Bush II did overzealous anti-”redlining” enforcement come into play, perhaps a result of Dubya’s legendarily close relationship with ACORN? Or maybe overzealous enforcement back in the late 1970s is somehow responsible for a real estate blowout that only materialized 30 years later? It doesn’t even come close to making sense.
As far as Yglesias and the "time line" aspect, he’s full of sh*t. Under Carter, it was a small, if stupid, program. It was Clinton who put it on steroids, leading directly to the problems we have faced.
 
Written By: Don
URL: http://
While I would guess some of these laws had an effect, I think that financial markets by themselves can do a lot of damage. Booms and Busts have happened for centuries without too much assistance from government.
 
Written By: Harun
URL: http://
Don’t forget that housing prices increasing 20% per year is guaranteed by the Constitution. It’s one of those penumbras or whatever, just ask Ovomit the Constitutional scholar.
 
Written By: The Old Man
URL: http://
Yglesias has been addressing this idea, and it is a red herring.
As usual, Yglesias is full of herring.
 
Written By: McQ
URL: http://www.QandO.net
The nitwit that said it was working fine until bush, fails to understand a very simple point. When the gse’s (fnm and fre) started to buy this stuff, it gave the banks the ability to lay off the risk and simply make money originating loans. That’s all it took to make the banks play ball and the loan portfolios to skyrocket. It’s exceedingly simple for anyone with more than an ounce of brains to understand. It also showed what a huge lie liberals were telling when they said that banks weren’t making the loans because they were racist. As soon as someone else would take the risk of this toxic stuff, they made the loans in abundance.

Secondly, how is obama going to give a tax break to 95 percent of tax filers when almost 40 percent of them currently pay NO federal income tax. The answer, once again, to people with more than an ounce of intelligence, is that he can’t. It’s a huge LIE. But the msm can’t see fit to look into it. They’re still busy trying to persuade everyone that obama didn’t call palin a pig, even though it’s on video tape.
 
Written By: yo
URL: http://
The Politicians in Wash. DC are responsible for this mess and should be held accountable throw all of the bums out! Unless we have an Major housecleaning in Wash. DC of both parties things like this will continue to happen both parties are inbred, corrupt and need to be rode out of office on an rail!

The Republicans with their deregulation set the tax payers up for rape by Wall Street. When the Democrats decided, while Clinton was President to appeal economics 101 and common sense by forcing lending institutions to make home loans to people without the ability to pay, the eventual seeds of failure was assured.

It took this long for it to reach critical mass, the permissive attitude and encouragement from our Politicians about the invasion of millions of uneducated peons and Criminals also allowed and encouraged them to buy homes way beyond their ability to pay. The millions of Illegal Aliens supplied the numbers and defaults that caused this house of cards to come tumbling down!

When you consume more than you produce, spend more than you make, borrow more than you can repay, & ignore our Constitution and rule of law then mix in greed, stupidly and corruption, bad things are going to happen. But the bad things are happening to the wrong people the Criminals, Stupid, Corrupt and Greedy are being rewarded and the innocent citizens punished!
 
Written By: black saint
URL: http://
Oh please give me a break with this nonsense. Sure, Credit is not a right, but I don’t think there’s anything in our Constitution that requires the United States to bail out corrupt non-government institutions who have squandered their own viability by means of extremely poor business practices.

Pretty much cancels out this drivel...
 
Written By: Reality Cheque
URL: http://
Pretty much cancels out this drivel...
You really don’t understand the issue being discussed in the post, do you?
 
Written By: McQ
URL: http://www.QandO.net
Yep sure all these deadbeats walked into Countrywide and forced Mozilo to give them a mortgage on silly terms because otherwise they’d report him to Barney Frank. This seems to be an emerging conservative storyline to get them off the hook for the biggest economic failure since the depression, but it isn’t going to fly. I’m a Republican but it’s this sort of nonsense along with lipstick stories and a vice presidential pick verging on the absurd that is going to lose us this election and is turning us into a laughing stock as serious party. Most of my frieds are Republicans also and we know why this has happened and it wasn’t because Mozilo was frightened of Barney Frank. I can’t vote for McCain and the Republicans this election because they’ve run the ship onto the rocks and now they are trying to avoid the responsibility.
 
Written By: john
URL: http://
Oh please give me a break with this nonsense. Sure, Credit is not a right, but I don’t think there’s anything in our Constitution that requires the United States to bail out corrupt non-government institutions who have squandered their own viability by means of extremely poor business practices.
Unless it’s Fannie Mae and Freddie Mac that is.
I’m a Republican but it’s this sort of nonsense along with lipstick stories and a vice presidential pick verging on the absurd that is going to lose us this election and is turning us into a laughing stock as serious party. Most of my frieds are Republicans also and we know why this has happened and it wasn’t because Mozilo was frightened of Barney Frank. I can’t vote for McCain and the Republicans this election because they’ve run the ship onto the rocks and now they are trying to avoid the responsibility.
Uh-huh, a Republican with all kinds of Republican friends. I myself am an astronaut...we’re planning a launch using a big cannon and we’re going to fire the shell to the moon. You sound qualified to go along. The fantasies about what we are starts at midnight tonight, in your case, you’re a bit early, but we’ll over look it.
 
Written By: looker
URL: http://
Yep sure all these deadbeats walked into Countrywide and forced Mozilo to give them a mortgage on silly terms because otherwise they’d report him to Barney Frank
No, the deadbeats walked in and were given loans because the bank could turn around and sell it to Freddie/Fannie at no risk.

And yes, the Donkey Party carries at least 90% of the blame. Sorry about that, lying Democrat.
 
Written By: Don
URL: http://
Next he’ll be saying that my house, my kids college education, my health insurance and my happiness aren’t Constitutional rights!

Oh, I forgot my right not to be offended by things.
You can’t be serious? If you think these things are constitutional rights, maybe you should dust off that old thing and give it a read.

I assume you were just being "flip" and the depth of this conversation is "above your pay grade."
 
Written By: Rick
URL: http://
Banks were required by congress to make more loans more available to those with higher risk - meaning low or no income.
I have a car for sale, I want 1,000 but the government says that would be leaving out someone who wants to buy it but can’t afford it.
So I’ve got to lower my price, or even GIVE them the car on a promise, no matter how bad their credit or income?
Put yourself in THE BANKS place for a change.
Would YOU loan money to them? Not on your life. But institutions were forced to, that welfare, entitlement thing, ya know........
 
Written By: BillD
URL: http://
Secondly, how is obama going to give a tax break to 95 percent of tax filers when almost 40 percent of them currently pay NO federal income tax. The answer, once again, to people with more than an ounce of intelligence, is that he can’t. It’s a huge LIE. But the msm can’t see fit to look into it. They’re still busy trying to persuade everyone that obama didn’t call palin a pig, even though it’s on video tape.
It is really an income redistribution plan; he just can be honest about what it is. He would give that 40% a refundable tax credit even though they have no tax liability. It’s the same stunt he’s pulling with the proposed increase in corporate taxes. Anybody with an ounce of intelligence should realize that corporations do not pay taxes. They pass all their tax burden and the costs of compliance on to the consumer. Corporations, and those that run them, are responsible to the shareholders and there is only one acceptable result — profits. The more the government takes, the higher they raise the prices to achieve that result. Higher corporate tax rates are simply a politician’s way of taxing the middle class and laundering it through corporate check books so they can appeal to the populist feeling that big corporations are somehow evil.
 
Written By: Rick
URL: http://
Witness the liberal agenda in action:

http://www.whitehouse.gov/news/releases/2003/06/20030613.html

"By a significant margin, minority families are less likely to own their own homes. Therefore, I have called upon the entire housing industry to join with my Administration to expand minority homeownership across the Nation. Our goal is to help at least 5.5 million minority families become homeowners by the end of this decade, and our Blueprint for the American Dream Partnership is taking bold steps to make this a reality." - George Bush, 2003

Clearly, liberal Democrats like George W. Bush should have gotten out of the way and allowed conservatives and the Republican Party to set the agenda regarding minority homeownership. Look at his "Blueprint for the American Dream":

http://www.glensold.com/blueprint.html

The last two priorities of the Blueprint?

* giving families new options for upfront funds like the downpayment; and
* improving mortgage lending by increasing funds for affordable loans and redoubling efforts to root out illegal discrimination.

Absolutely unbelievable what the liberals have done with their power in the last 8 years. Unbelievable.
 
Written By: TheSim
URL: http://
"Booms and Busts have happened for centuries without too much assistance from government"

Yes, but government is the boogieman du jour. Taking personal responsibility for your own decisions is a topic for another time.
 
Written By: timactual
URL: http://
You can’t be serious?
- true
I assume you were just being "flip" and the depth of this conversation is "above your pay grade."
Correct - however as to above my pay grade - Oh, no I get it.

The problem is there are millions of other Americans who do not. And several hundred of them gather in Washington and make our laws. And as time passes fewer and fewer of THEM seem to get it. However most of them don’t come here to read regrettably and saying ’hallelujah’ from the choir just ain’t my thing.

I have a dark sense of humor and lately I’ve been getting entertainment beyond reason from Washington and New York.
 
Written By: looker
URL: http://
improving mortgage lending by increasing funds for affordable loans
An affordable loan is one that...the borrower can afford, not one the lender can afford to give away and expect to cover (or have Fannie and Freddie cover) when it fails.

People buying property frequently over purchase. But hey, where’s the fun in owning a 1000 sq ft property when regardless of crappy or nonexistent borrower credit history the bank will lend on a 3400 sq ft property that the borrower can’t ’afford’.

So the goal of making loans to people that they can actually afford to pay back, while it ought not to be the government’s job (because it ain’t they’re money that is being lent, or in this case being used to back the people who lent the money) at least has a reasonable goal in mind.
 
Written By: looker
URL: http://

 
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