Glass/Steagall (aka:Glass/Steigal [sic]), the CRA – Community Redevelopment Act, Democrats, and the Mortgage Meltdown that ultimately made this Recession far worse than a natural down-cycle. Shh, don’t mention “Reverse Mortgage.”
We’ve all heard it and we keep hearing it out of Barney Frank, Chris Dodd, and other Democrats that are really responsible for pushing the Lending Institutions, via the CRA and private Democrat pressure groups threatening lawsuits, into making loans that created the conditions that finally collapsed as the Mortgages Meltdown and Housing Crisis. We still keep hearing it today with Obamanomics calling for yet more bad loans to be made to cover existing bad loans.
None of this even going to touch on the NEXT Housing Crises that will drop a decade or two from now from the “Reverse Mortgage” creation.
That deregulation the Democrats keep harping about, to suggest Republicans are always deregulating everything and allowing Capitalism to “unsafely” run unfettered, happened under Clinton! It was to make changes to the Glass/Steagall (aka:Steigal [sic]) Act that was put in place in 1933. Banks had been lobbying both Democrats (whom receive the bulk of the Campaign contributions from the Banking industry) and Republicans for many, many, many, years to lower some of the barriers put in place – but NOT all of the protections. The Banks wanted to have additional earning opportunities while leaving the protections that required a certain “Reserve” to guard against the need for the FDIC (created under Glass/Steagall) to take over a Bank should there be a partial run on any Bank.
These partial repeals of Bank limitations/separation of Standard Banking regulated/limited (Commercial) operations versus being allowed to also engage in other “Investment” Banking operations/opportunities… was signed by BILL CLINTON (in 1999) and supported by Democrats as yet another HAMMER (trade-off, forced deal, EXTORTION angle) to lend yet more and more under the CRA (Community Redevelopment Act) fiasco to those who would not otherwise qualify…. Again, deregulation support by DEMOCRATS was agreed to as a quid-pro-quo that Banks gaining new authorities/opportunities they were previously restricted/regulated from engaging in was yet more of the Democrat boondoggle that led us to the Mortgage Meltdown they are now misrepresenting as all REPUBLICAN deregulation as the blame/cause….
Senate Democrats (38 of the 45) voted to over-turn these aspects of the Glass/Steagall Act. Those Liberal champions of Regulation voting to deregulate included some of those perpetuating the lies today like Dodd, Kennedy, Kerry, Reid, Biden (aka: Senator MBNA), and Schumer (the Indy-Mac Bank run initiator [see LA Times here]).
While Democrats liked to try and saddle Republican Presidential nominee John McCain with the deregulator label, John McCain DID NOT VOTE on the repeal measure! Later, of course, Phil Gramm (as a follow up, having been an original sponsor [that over-sight thing], after reviewing results of the 1999 repeal) and McCain were the ones that called for better over-sight and examination of the Freddie Mac and Fannie Mae GSE’s that most promoted and led to the collapse. You’ll recall the soundbite of Barney Frank (and the MSM covering for, after the fact and ever since and an ongoing basis) insisting nothing was a problem at those entities and NO NEW REGULATIONS were needed or need for further over-sight (they purposefully wanted no-one to see what was going on). The Democrats in the House of Reprehensibles… er… Representatives were just as anxious, voting 3 to 1 for the measure, including Pelosi, and still today claim to be champions of Regulation and Over-sight despite their votes and out-right attempts to shield GSE’s from being scrutinized.
These FACTS are easy to find the various Votes here – though you have to remember there are several different votes that occur all through-out a process, and these clowns will vote NO one place to cover their YES vote another while insuring its passage! Voting duplicity, covering for each other in votes while moving the agenda forward (classic Liberal Incremental-ism tactics)! Some people still haven’t learned how their Representatives can distort (LIE) to them, it is because they set-up a vote they can point to in order to be able to tell one constituent they voted FOR something when convenient and tell another person they voted AGAINST something (the same topic), that was/is all part of the same Legislative process.
Many Americans (especially the DEMOCRATS) buy into the complete and purposeful distortion of the truth/facts and are too lazy to go review the facts for themselves…. stay asleep… and that is often the catalyst that keeps many pulling the Donkey logo voting lever every-time! Hoodwinked, bamboozled, by out-right lies and sometimes (they back off to just) subtle distortions.
Regards from NoMoTown 😉