Bailouts and more bailouts
I haven’t been following the bailout deal as well as probably should be. What I do know is I’m tired of it. If the company is going bust, let it, a new one will take its place, and I won’t have to pay for it.
It is important to realize the real origins behind all of this, which was mortgages being given to people that didn’t deserve them. “Why were they given out?” you might ask. I’ll give you a little insight into this. Many politicians, and probably people you know, will try to put the blame for this on the “greeeeedy mortgage brokers”. If they do, that blame will be misplaced. I’ve already stated previously that it had to do with governmental pressures to give loans to more low income families. Since then I have learned the origins of these pressures.
About twenty years ago, there were certain politically correct activist groups that were claiming that people were being racially discriminated against when it came to being given a mortgage. The true fact was the people didn’t qualify for the loans, however Washington caved to the pressure from these activist groups. They told the banks that they had to give more loans to minorities and low-income families, or else basically. Congress then created methods for said activists group to pressure banks to make bad loans by threatening their growth if they did not. The banks had to weigh the consequences, not grow because of political activist groups, or take a risk on sub-prime mortgages. They opted for the sub-prime side.
The really bad news coming out of this is the the American public is being sold the falsehood that this is the fault of the free-market. No-one in the mainstream media is reporting the truth. Only people in talk radio and the conservative blogosphere are exposing the real facts. At least one side of the political aisle, the left, is using this as an opportunity to talk about how we need MORE government involvement in the economy, even though they know darn well that LESS government involvement would have prevented this problem from ever happening.
Its also important to note, one of said activist groups that created this whole mess was the group ACORN, that one Barrack Obama was involved with in his Community Organizer days.