Democrats (and Hank Paulsen) promised to buy at risk mortgages – Almost 2 Trillion spent and it didn’t happen.
Posted by iusbvision on February 3, 2009
UPDATE II – Senate Republicans are pounding this issue and are trying to get some housing fixes in the bill. This is a good thing, but why does it seem that Republicans in Congress only want to do the right thing with domestic policy when they are out of power?
UPDATE – Obama Administration talks about buying up troubled mortgages, but still no action. It’s almost like this is an afterthought.
Obama’s Biggest Broken Promise
Editorial by Chuck Norton
This may prove to be one of the greatest political blunders of all time and president Obama’s approval numbers are falling fast. While Obama has reversed himself on lobbyist reform, CIA prisons, coerced interrogation and warrantless wiretapping, no broken promise seems to have the potential energy as this.
Peggy really believed what the campaign told her as you can see:
Democrats have controlled Congress since 2006. They have been in power there for two years. Congress wrote the first $700 Billion bailout on the promise that the government would buy at risk loans and take the time to renegotiate the loans with citizens who were impacted by the mortgage scandal. The money was spent and while Wall Street exec’s are taking vacations and handing out billions in bonuses to themselves with our money, the people with the bad mortgages did not get the promised relief.
The plan to buy up bad mortgages might have worked. The government can afford to buy the time needed to get this money back once the economy recovers whereas most private banks can’t. It seems that now we will never know if this plan can work because it doesn’t look like it has even been seriously tried. I am beginning to suspect that the primary goal of the bailout and mortgage plan is NOT toxic asset relief.
Congress is about to spend another trillion in a so-called stimulus package, which has ended up being nothing more than a payoff for the constituent groups who helped the Democrats get elected and no one is even talking about getting this done in the Senate version of the bill. The average voter and homeowner who was promised relief or at least some time to recover got fooled again. They got elected, are spending two trillion of our money, and we have nothing to show for it.
This brings us to the sad reality of racial politics. Many people voted for the Democrats because they wanted to see the first man of color in the White House. Due to destructive legislation such as the Community Reinvestment Act (pushed by Democrats) that targeted black Americans for these reckless loans (sub primes etc) the black community has been disproportionately affected by this crisis. Like Peggy, they believed the promises and have nothing to show for it.
I hope that the American people remember this come election day and Republicans better be watching this mindfully. If Republicans in Congress don’t start delivering on their promises of less intrusive, smaller and smarter government as they did in the 90’s it will leave an opening for a third-party that this country hasn’t seen in 100 years.
My fellow Americans, we need to stop behaving like this: