Not With My Paycheck You Don't

"We want to spread around the wealth." - Barrack Obama, the Socialist

$700 million or even $700 billion will not fix the financial crisis if we don't understand what caused it. The meltdown of our economy was not a natural result of the failure of Capitalism. It did not happen because greed came home to roost. It occurred because the first law of Capitalism was broken and then ignored while the greedy cashed in.

The basic rule of Capitalism, never loan money to someone who can't pay it back.

The Democratically controlled Congress of 1992, forced into law the Socialistic concept that every person, regardless of income, had the right to own a home. Ann Coulter, in her column on September 24, 2008, reported the following:

Before the Democrats' affirmative action lending policies became an embarrassment, the Los Angeles Times reported that, starting in 1992, a majority-Democratic Congress "mandated that Fannie and Freddie increase their purchases of mortgages for low-income and medium-income borrowers. Operating under that requirement, Fannie Mae, in particular, has been aggressive and creative in stimulating minority gains."

Under Clinton, the entire federal government put massive pressure on banks to grant more mortgages to the poor and minorities. Clinton's secretary of Housing and Urban Development, Andrew Cuomo, investigated Fannie Mae for racial discrimination and proposed that 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low- to moderate-income borrowers by the year 2001.

She goes on to state:

Threatening lawsuits, Clinton's Federal Reserve demanded that banks treat welfare payments and unemployment benefits as valid income sources to qualify for a mortgage. That isn't a joke -- it's a fact.

When Democrats controlled both the executive and legislative branches, political correctness was given a veto over sound business practices.

These loans were known as "sub-prime mortgages" because the standards for qualification were below the prime or normal requirements. Adjustable rates, interest only and other anomaly instruments of lending were invented to satisfy the need. The rational used was that because of inflating prices in the housing market, an owner could hold on to the house at the reduced payment rate, sell it before the terms changed and cash in on the appreciation. It was nothing more than a government sponsored pyramid scheme.

What was the basic rule? Never loan money to someone who can't pay it back. If you do, you are just giving the money away. Reality is coming back to bite us in the behind. Over the past 16 years we have given away millions of houses, now they are giving them back.

The Democratic (Socialist) Party created this mess by tinkering with the universal laws of economics. Now Obama is suggesting that he wants to take my paycheck, spread it around and fix the problem. Has he talked with Matt Damon, Barbara Streisand, Whoopi Goldberg, Sean Penn and the Dixie Chicks about spreading their money around? I'm sure he would leave them with about $50,000 each, like the rest of middle America.

I think not.

Fool me once, shame on you, fool me twice and I must be a Democrat.