The Democrats and the rest of the Left have craftily turned around the blame for something disastrous they caused, via insidiously cunning ways. They, of course, couldn’t have done anything of that without the help of the "mainstream" media, who don't expose the true genesis of the monster that the current financial crisis is.
Every American should know the truth.
The whole thing started when the Democrats corrupted the original intention of the 1999 Gramm-Leach-Bliley Act that Bill Clinton signed rescinding the 1933 Glass-Steagall Act. The latter kept routine-business banks separate from big investment-banks. Specifically, the Glass-Steagall Act separated investment banking, commercial banking, and insurance services; thereafter, each of those three business activities could be offered only by separate institutions. The Gramm-Leach-Bliley Act brought down those barriers with the intention of stimulating capitalism, and then hell broke loose . . . when the Democrats put their hands on it:
1. Upon the enactment of Gramm-Leach-Bliley, the Democrats in Congress immediately started using Fanny Mae and Freddy Mac --two Democrat-controlled outfits-- to push routine-business banks into the piñata of “ninja” mortgage business; that is, mortgages issued to people with bad credit or no credit at all, employed or not, or with no creditworthy assets to support the loan, and even to people who had recently gone through bankruptcy or foreclosure.
2. The Democrats then encouraged Fanny and Freddy to buy those “ninjas” by the boxcar.
3. The big investment-banks then bought the “ninjas” from Fanny and Freddy by the ton. Some did it in the assumption that, if Fanny or Fred had anointed those mortgages, they were good. Others bought them out of unfettered greed, no matter what. And some others ---Democrat cesspools, such as, for example, Lehman Brother--- bought them moved by a combination of the motivations of the previous two types of “ninja” buyers, plus a touch of malice, knowing that the sandcastle would collapse making Gramm-Leach-Bliley, a pro-capitalism measure, fail miserably.
4. And collapse it did when “perfect-storm” conditions set in a confluent combination: the credit-card-debt bubble burst and the new-home market glut bulged. People had sunk themselves, up to their eyeballs, in credit-card debt, and couldn’t pay their mortgages. In parallel, a new-home market glut brought the hyper-inflated home market down, and then cash-strapped “ninja” home owners couldn’t get equity loans on their devaluated homes. Attempting to upset their losses, lenders responded to the whole thing by adjusting up mortgage loans, making the scenario spiralingly worse. Having used up their cash on “ninjas”, Fanny, Freddy, and the big investment-banks where left with nothing to address their other obligations. So, bankruptcy became the only option left . . . unless they would make the government (i.e., taxpayers) buy the bad paper, thus making the government (not taxpayers) the owner of the houses behind the “ninjas”. The Democrats, much to their delight, would have then moved us one step closer to socialism.
5. Notice that ---in the process of serving poison to the investment banks, and triggering a debacle that they could use also later as an argument against capitalism--- the Democrats facilitated at the same time an environment where Democrat insiders would line their pockets from the coffers of Fanny and Freddy, such as the infamous Jamie Garolick (the very one who built the walls between the national security agencies, which contributed heavily to 9/11), Franklin Raines, James Johnson, Penny Pritzker and others who, by the way, are very close to the Obama campaign.
6. Needless is to mention that Christopher Dodd and Barack Obama are the first and the second on the list of politicians who have received the largest political contributions from Fanny and Freddy.
7. The Democrats have proved that crime does pay. They generated the mess, made money out of it; then they blame capitalism, mortgages at large, conservatives, and Republicans for it; and, in the end, they are adding all sort of pork to the legislation aimed at alleviating the results of their malfeasance.
The previous seven paragraphs can be accurately encapsulated in the statement: “The Democrats performed jujitsu on capitalism with the Gramm-Leach-Bliley Act.”
“Jujitsu: a Japanese martial art mainly consisting of cleverly attacking an opponent by using his/her strength and weight to her/his disadvantage, rather than engaging in attacking him/her directly.”
The Democrats craftily used the momentum that Gramm-Leach-Bliley Act sought to give to American capitalism . . . against American capitalism itself. Jujitsu, that is.
The Democrats have, in the end, craftily driven the government to insert itself into societal activities reserved to the private enterprise sector ---a bailout that would make the government owner of the homes behind the “ninja” mortgages--- and that is but pure socialism, the antithesis of capitalism. Perfect jujitsu!
Although feigning consternation and preoccupation, the Democrats and the rest of the Left are enjoying it to the maximum, like Nero playing the lyre in rapturous joy . . . while the Rome he ordered torched burns to the ground.
And to complete their jujitsu on American capitalism the Democrats want the Republicans in the Congress to support the scam . . . . so that they, the Democrats, can splash it on the face of Republicans and conservatives, forever and ever, that “reality” made them betray their principles.
Free-entrepreneurialism supporters must understand that it would be disastrous to attempt to let the market fix itself, when the mess is well beyond self-repair. If left alone, the subprime mortgage crisis would ---like a spider-web crack on a car windshield--- spread all over, causing the complete collapse of the economy: DEPRESSION.
But any bailout is but socialism. What needs to be done is a workout as, Newt Gingrich and others supporters of free entrepreneurialism ( i.e. American capitalism) propose.
And the trick is that it has to be done in such a way that the Democrats don’t use it to apply jujitsu on capitalism a second time.
To start with, conservatives and Republicans should demand that paying for the “ninja” paper must be done by the lenders themselves via making the economy grow. NO governmental purchase of that paper can be accepted. At most, assistance should be given to those banks in the form of loans, as in the case of, for example, Chrysler in the 1980s. In return, the people should get immediate relief to help them replenish the money that would be lent to the “ninja” lenders, who by the way could end up not paying it back. Therefore, conservatives and Republicans must demand, AT LEAST, the following measures:
1. That the Bush tax cuts be made permanent.
2. That business taxes be lowered considerably, say, to no more than 10%.
3. That the death tax be abolished.
4. That no federal or state tax hikes be made for at least 10 years.
5. That earmarks be prohibited for at least 10 years.
6. That the president be given line-item veto powers.
7. That government spending be cut drastically.
8. That the size of government be reduced drastically.
), the Vice-President (Vice.President@WhiteHouse.gov), your two U.S. Senators (www.Senate.gov) and your House Representatives (www.House.gov) opposing vigorously the bailout, and supporting a loan program to the failing banks, ONLY IF at least the eight pro-economic-growth measures listed above are included in the package.
Then we would be inflicting jujitsu on the jujitsu that the Democrats inflicted on capitalism.
