Fact Check: President Glosses Over Complex Realities

Discussion in 'Politics' started by Revmitchell, Feb 24, 2009.

  1. Revmitchell

    Revmitchell
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    WASHINGTON -- President Barack Obama's assurance Tuesday that his mortgage-relief plan will only benefit deserving homeowners appears to be a stretch.

    Even officials in his administration, many supporters of the plan in Congress and the Federal Reserve chairman expect some of that money will go to people who should have known better than to buy that huge house.

    The president glossed over a number of complex realities in delivering his speech to Congress and a nation hungry for economic salvation.

    More False Assertions Here
     
  2. LeBuick

    LeBuick
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    The meat of their argument is this statement;

    The truth is banks always should have been doing a forensic analysis before making any loan. The fact that they relaxed some of these rules contributed to us being in this mess. I certainly hope the banks do a much better job of assuring the people who receive these loans not only deserve them but show they can pay them back.

    Looking down through a lot of these assertions you can clearly see the Republican talking points but they simply aren't true. To say the presidents plan to save $2 trillion over 10 years is to defer huge tax increases out for 8 years is the most ridiculous statement I've seen the right make to date. I am sure with all the vulchers watching Obama he'd never get away with that.

    Nice non-biased article from the only non-biased news source... :thumbsup:
     
  3. targus

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    "I think it's just simply impractical to try to do a forensic analysis of each and every one of these delinquent loans,"

    I don't get this.

    If they are going to hand someone thousands or even tens of thousands of your and my tax dollars... why is it not practical to look at their original mortgage application to see if they LIED!! ???

    If someone falsified their income or understated their other financial obligations why should we now bail them out ??
     
  4. Revmitchell

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    Because libbies do not want anything to stand in the way of their extreme left socialism. And once again we see Obama is a liar.
     
    #4 Revmitchell, Feb 25, 2009
    Last edited by a moderator: Feb 25, 2009
  5. LeBuick

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    I don't think they have to look at the original application, checking into their current financial eligibility should be sufficient. Who cares if they lied before, if they are able to pay now then why not give them terms they can afford?
     
  6. LeBuick

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    Not sure if you noticed but it was the far from liberal Foxnews that said it was impractical to try to do a forensic analysis of each and every one of these delinquent loans. You know, the deregulation give the money to anyone people who got us into this mess...
     
  7. OldRegular

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    A reality check LeBuick. I realize revealing the truth to you about the mortgage is as useless as shoveling sand against the tide but here it is!

    Who Really Laid the Egg This Time?
    by Tom Parsons, Oct 5, 2008

    It is popular to lay the blame for the current financial crisis at the feet of the Bush Administration, but it is not accurate. The roots go back much further.

    Wall Street has done more than lay an egg, as the historic headline from the depression era stated. The egg is broken and it stinks.

    Mortgages are going into foreclosure, banks are dropping like flies, and the taxpayer is now slapped with the bill to rescue our financial system from certain collapse. Socialists and communists, and, yes, there are both of these in the United States, watch with glee as, from their viewpoint, capitalism fails.

    Liberal politicians are using the current financial crisis to put the blame for the mess on the administration of President George Bush. Speaker of the House Nancy Pelosi referred to what she called "the failed economic policies" of the current president in a speech preceding a vote on the bail out plan before the House of Representatives.

    Although blaming President Bush is popular, it is far from accurate. The roots of the current financial mess in the United States actually reach to the administration of President Jimmy Carter. In the Carter era, there was tremendous pressure from socialist activists to provide housing for the poor and for minorities living in depressed areas of the nation’s large cities. These families could not qualify for home mortgages under the policies of banks because, quite frankly, they had no resources to pay the loans. Banks were rightfully reluctant to loan money to people who lacked incomes adequate to provide for monthly payments.
    President Carter and the Congress responded to the pressures by slapping fines on banks that they accused of being "racist" because they were not making home loans available to minorities. They called it the Community Reinvestment Act, but what it did was send chills through the banking industry. Refusing to loan money to a family with no income and no credit history became a federal crime. Banks had little choice but to begin the practice of making subprime loans, a practice that had 100% chance of financial disaster at some point in the future.

    Additionally, Fannie Mae and Freddie Mac, the government-controlled agencies that purchase risky loans from banks in an attempt to allow families to stay in their homes even though they cannot afford them, increased their portfolios of mortgage loans that had practically no chance whatever to be paid off successfully. But the poor had homes, and the liberals had their votes.

    This practice was enlarged in the administration of President Bill Clinton. Policies regarding significant down payments and adequate incomes were abandoned in favor of expanding home ownership into depressed neighborhoods. It is a noble idea to want to help families of any income level finance a home. It is a stupid idea to expect that subprime loans can be made indefinitely without paying the price of a failed economy at some point. We are now at that point.

    But Peter Wellison, who was at the time a resident fellow at the American Enterprise Institute, and who was quoted in an article published in the New York Times on September 30, 1999, warned that the practice of making subprime loans would eventually backfire on the government. The practice might appear successfull in a strong economy, but if the economy experienced a downturn, which it inevitably does sooner or later, then "the government will have to step in and bail them out." Now, nine years after Mr. Wellison made that statement, it has come true.

    The current crisis is not the result of failed policies in the Bush administration. It is not the result of a failed free market system. It may have originally been prompted by humanitarian concerns. But it is the result of liberal politicians, bankers and Wall Street traders who ignored sound fiscal principles in order to provide housing for those who had no means of paying for it. The failure comes from the liberal left. They are the ones who laid the egg this time.

    http://www.newsflavor.com/Politics/US-Politics/Who-Really-Laid-the-Egg-This-Time.284875
     
    #7 OldRegular, Feb 25, 2009
    Last edited by a moderator: Feb 25, 2009

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