Donald Hank
The manufactured crisis
By Donald Hank
A good friend of Laigle's Forum, writes:
You need to know the facts and draw the conclusion. To put it plainly, numerous activists on the Left have been orchestrating this crisis and others yet to come in order to introduce full-blown socialism in the US. Once they perpetrate a crisis and impoverish us, for example, as they did with welfare, they immediately blame free-market capitalism. If enough Americans believe this lie, the American experiment is finished and it will have failed! It is as simple as that. If you are not sure whether we need the Obama Kool-Aid or not, please read all the links above and listen to the Sandy Rios program linked there. Take notes. There is nothing more important on your agenda today than this.
Meanwhile, I just received an email from Sen. Arlen Specter in response to an email of mine regarding his vote in favor of the bailout.
According to this email, one of the details of the bill was as follows:
A first-time homebuyer tax credit of up to $7,500 is included in the Act, which serves as the equivalent to an interest-free loan to be paid back over 15 years.
For those wondering what a tax credit is, it is much more than a deduction. It is a give-away. It is free money — at taxpayer expense.
My email in response:
Lenders learned centuries ago that when they lent people money for housing without requiring a down payment, this is what often happened when economic conditions worsened:
1-The home prices in that area fell.
2-At the same time, the lender lost his job and couldn't pay
3-When the lender foreclosed and tried to resell the house to recoup some of his cash, he lost money, often as much as 20%, because the house sold at a loss in the softer market.
That is the reason for the down payment. The reason lenders stopped requiring down payments in the last part of the 20th century was a series of Democrat-supported enactments, including the Community Reinvestment Act (under Carter), which was strengthened under Clinton and Bush, whose HUDs required Fanny Mae to drop or weaken all the safeguards enumerated above (down payment requirements, documentation of employment, etc). To pass this dangerous legislation, the Democrats claimed that minorities were being denied mortgages on the basis of race, when in fact, the minority communities statistically simply did not have enough people with good credit, good jobs and jobs to justify as many mortgages as the Democrats called for. It was — and is — politically incorrect to mention these inconvenient truths. People who now demand fairness in lending are called racists. Community organizers like ACORN, a group that worked hand-in-hand with Barack Obama, used strong-arm tactics to shake down banks and force them to give mortgages to people who could not afford them and then when the loans were, inevitably, foreclosed, the same people who caused the crisis blamed the banks. That way, they could blame the free market and make gullible people believe that America needs socialism, when in fact what we desperately need is less socialism.
Leftist activists are coming out of the shadows and openly gloating that America is now a socialist country. Many naïve people actually believe that socialism will lead to prosperity, even though this system destroyed the Soviet Union, China (under Mao), North Korea and many others and impoverished Europe, where families, even professionals, can hardly scrape by any more.
If you want to salvage even a remnant of the free market system that made America great, you need to widely forward the above links and talk to as many people as you can between now and the election and tell them what you have learned.
And pray that God will spare us from what appears to be an impending disaster manufactured by the Left.
© Donald Hank
A good friend of Laigle's Forum, writes:
-
James Simpson, a former White House economist, has just published "Barack Obama & the Strategy of Manufactured Crisis" — on AmericanThinker.com at http://www.americanthinker.com/ 2008/09/barack_obama_and_the_strategy.html
Listen to this Interview of James Simpson, by Sandy Rios, Tuesday 9/30 — WYLL 1160AM, Chicago, IL
From http://www.culturecampaign.com/culturecorner.aspx
Further documentation connecting the dots of all the neo-Marxists who have invested in the development of Barack Obama may be found on discoverthenetworks.org
You need to know the facts and draw the conclusion. To put it plainly, numerous activists on the Left have been orchestrating this crisis and others yet to come in order to introduce full-blown socialism in the US. Once they perpetrate a crisis and impoverish us, for example, as they did with welfare, they immediately blame free-market capitalism. If enough Americans believe this lie, the American experiment is finished and it will have failed! It is as simple as that. If you are not sure whether we need the Obama Kool-Aid or not, please read all the links above and listen to the Sandy Rios program linked there. Take notes. There is nothing more important on your agenda today than this.
Meanwhile, I just received an email from Sen. Arlen Specter in response to an email of mine regarding his vote in favor of the bailout.
According to this email, one of the details of the bill was as follows:
A first-time homebuyer tax credit of up to $7,500 is included in the Act, which serves as the equivalent to an interest-free loan to be paid back over 15 years.
For those wondering what a tax credit is, it is much more than a deduction. It is a give-away. It is free money — at taxpayer expense.
My email in response:
-
Hello Senator,
With all due respect, it is the kind of give-away scheme you describe that got us into the mess in the first place. How could you support such a scam? You write, in all seriousness:
A first-time homebuyer tax credit of up to $7,500 is included in the Act, which serves as the equivalent to an interest-free loan to be paid back over 15 years.
First, most of the bailout package rewards Fanny Mae and other lenders for bad decisions and rewards the government for forcing lenders to give out loans at subprime rates, with no documentation required (no job needed!), no down payment, etc.
I understand that the entire bailout package will cost every American $10,000. So to save some people $7,500, we honest people who do NOT default on mortgages or buy things we can't afford, must now give up $10,000? Even the person who gets the $7,500 will have to pay $10,000. AND home prices will rise accordingly, as they did during the last scam under the Community Reinvestment Act.
With all due respect for your office sir, have you ever stopped to think that this will only exacerbate the current crisis?
Sincerely,
Don Hank
Lenders learned centuries ago that when they lent people money for housing without requiring a down payment, this is what often happened when economic conditions worsened:
1-The home prices in that area fell.
2-At the same time, the lender lost his job and couldn't pay
3-When the lender foreclosed and tried to resell the house to recoup some of his cash, he lost money, often as much as 20%, because the house sold at a loss in the softer market.
That is the reason for the down payment. The reason lenders stopped requiring down payments in the last part of the 20th century was a series of Democrat-supported enactments, including the Community Reinvestment Act (under Carter), which was strengthened under Clinton and Bush, whose HUDs required Fanny Mae to drop or weaken all the safeguards enumerated above (down payment requirements, documentation of employment, etc). To pass this dangerous legislation, the Democrats claimed that minorities were being denied mortgages on the basis of race, when in fact, the minority communities statistically simply did not have enough people with good credit, good jobs and jobs to justify as many mortgages as the Democrats called for. It was — and is — politically incorrect to mention these inconvenient truths. People who now demand fairness in lending are called racists. Community organizers like ACORN, a group that worked hand-in-hand with Barack Obama, used strong-arm tactics to shake down banks and force them to give mortgages to people who could not afford them and then when the loans were, inevitably, foreclosed, the same people who caused the crisis blamed the banks. That way, they could blame the free market and make gullible people believe that America needs socialism, when in fact what we desperately need is less socialism.
Leftist activists are coming out of the shadows and openly gloating that America is now a socialist country. Many naïve people actually believe that socialism will lead to prosperity, even though this system destroyed the Soviet Union, China (under Mao), North Korea and many others and impoverished Europe, where families, even professionals, can hardly scrape by any more.
If you want to salvage even a remnant of the free market system that made America great, you need to widely forward the above links and talk to as many people as you can between now and the election and tell them what you have learned.
And pray that God will spare us from what appears to be an impending disaster manufactured by the Left.
© Donald Hank
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