As soon as they gained power in the Clinton administration, the socialists who dominate the Democratic Party used every apparatus of the federal government to “close the housing gap” between “rich and poor” by pressuring, forcing, intimidating, bribing, and extorting mortgage lenders of all kinds (not just depository institutions) to make bad loans to unqualified borrowers who they comically labeled “sub-prime”. You know, people with credit ratings just a tiny, tiny bit below the “prime” credit rating of say, 850. 849 or maybe 848. Many of these aged socialists were leftovers from the Carter administration, as Hillary Clinton was (she was chairman of Carter’s Legal Services Corporation), and picked up where they left off some twenty years earlier.
Only an insane person would lend money to thousands of patently unqualified borrowers — unless he was either forced into it, or promised a bailout. This of course is what the Democratic socialists did. Now that they’ve been caught, and deserve to take a lot of the credit for the mess they helped to create, they are denying having anything at all to do with all that “sub-prime” lending. They claim that the Community Reinvestment Act, for example, only applies to “depository institutions” and most of the bad loans were made outside that arena. But ALL mortgage lenders were pressured, bribed or extorted to some degree by various OTHER arms of the federal Leviathan, icluding Fannie and Freddie, HUD’s “National Homeownership Strategy,” the Equal Credit Opportunity Act, Fair Housing Act, Home Mortgate Disclosuer Act, Comptroller of the Currency, FDIC, the Fed itself, and the Office of Thrift Supervision.
These people have financially ruined the lives of hundreds of thousands of their political mascots — “the poor and minorities” — because of their pursuit of the communistic ideology of housing market egalitarianism. And now they claim that anyone who points out how disastrous their policies have been must be anti-poor or anti-minority. This is the oldest socialist trick in the book — to argue that opposition to socialism in the name of “the poor” is motivated by hatred of the poor instead of diagreement with socialism. Frederic Bastiat pointed out this gambit in his 1850 book, The Law.
Good intentions my a**.7:23 am on October 20, 2008 Email Thomas DiLorenzo