October 28, 2011
1977 Community Reinvestment Act
The 1977 Community Reinvestment Act required banks to sign off on mortgages they knew would never be repaid. The bankers followed the law, knowing that someday it would blow up in all our faces. They used credit default swaps to preserve their positions as best they could and forestall the collapse as long as they could, but the law itself made the crash of 2008 inevitable. When the smart bankers saw the system about to implode, they did was any rational person would do, cashed out and retired in luxury.
And gee, whaddaya know, the 1977 Community Reinvestment Act is still on the books, has never been repealed or amended, and is just sitting there waiting for the economy to recover enough to do the same damn thing all over again! Congress knows this, the bankers know this, the talking heads at all the major networks know this, and NOBODY IS TELLING YOU!!!!!
The Tea Party brought the issue up, but then immediately shelved it. I still don't know why they shelved it. The Occupy Wall Street movement does not know it exists, does not undertand it's connection to the mess we are in now, and could really care less because fixing the problem is not what they are concerned with.
In 1977 Democrats controlled both the House of Representatives and the Senate. Jimmy Carter, a Democrat, was the President. This whole bloody house of cards, which is still sitting there waiting to strike again and again and again, is the product of the Democratic Party and their constant showering of YOUR tax dollars into the hands of people who will not work for a living, don't love our nation, and spend their entire lives with their hands out palm up waiting for someone to give them their daily bread. I grew up in that subculture. My parents are still in that subculture. Most of my childhood friends are still deep believers in raiding the "bottomless" pockets of Uncle Sam. Governor Mitt Romney, Governor Rick Perry, and Senator Rick Santorum are all deep believers in big government doing its best to help the little guy by offering them cheap credit, research grants, agricultural subsidies, and industrial subsidies.
Nothing is going to change until you and I stop expecting Uncle Sam to be our sugar daddy, stop expecting the government to solve our problems, and stop electing people who promise us access to the city, state, and federal treasuries.
It ain't pretty, but it's real, and if we don't get real this country will not last another decade, let alone another generation.
(Update: Oct. 30, 2011, 6:51 a.m. JST)
At least one economist at Bloomberg agrees with me:
Bloomberg: Americans are Addicted to Entitlements
I hope the American people themselves figure it out before our way of life and our Constitutional Republic both implode in a massive, global economic collapse. And yes, I know, we're already in the begining stages of one.