Smoking gun: The Affirmative Action Financial Crisis

It’s really sickening how big-government liberals can create a problem, and then demand a big-government solution like the Bush-Pelosi bailout:

Half Sigma: Smoking gun article: liberals, Democrats, poor people and non-Asian minorities caused financial crisis
A conservative warns of the problem, but he is ignored by Democrats because Democrats and liberals know that the conservative is motivated by racism.

The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.

It’s all clear…

Banks should have been smart enough to recognize that pro-“diversity” laws, rules, regulations, Congressional hearings, and the like were going to lead to the liquidity crisis, and tried to lobby against it as hard as they could.

9 thoughts on “Smoking gun: The Affirmative Action Financial Crisis”

  1. My liberal banker friend didn’t believe when I tried to point that out. He now works doing “diversity development” for a large municipality in the south west…forcing those things on other businesses.

    We don’t talk to much anymore. Not since 9/11/2001. He stood with the left and their view of “we have no enemies; we must hug our enemies; we had it coming anyways), whereas my view was “death and destruction to our enemies”

    The left controls the default narrative (think “orientation”) in America. That is a big on-going problem.

  2. The main thing we must learn from this crisis is that giving loans to people who have bad credit will not make life better for them, nor will this make life better for the country as a whole. Owning a house is NOT a RIGHT! The same way that being a scientist is not a right, or being a corner-back in the NFL is not a right, owning a home is NOT a RIGHT!

    If politicians are going to guarantee homes to people due to their demographic being “underrepresented,” then they must also guarantee me a job in the NBA becuase my demographic is underrepresented. Of course, the only way I could ever get a spot on an NBA team would be to practice until I was good enough.

    The same thing goes for home ownership. If someone wants to own a home, then the route to doing so is to practice (build your credit) until you’re good enough (have a high enough credit score) to do so.

    Its important to remember however, that minorities are NOT to blame for this. The policy makers, and other politicians who stood up and claimed with glee that they “raised the level of minority home ownership” are the one’s we must blame. Or, we must blame ourselves, for voting for people too weak to stand up to political correctness.

  3. The Community Reinvestment Act is a red herring. I don’t know whether it was originally attached to this meme by small-government idiots or big-government manipulators, but as I tend to feel that people on average aren’t that smart, I’d imagine it’s the first.

    Likewise, Half Sigma habitually oversimplifies discussions into race.

    The structural problem here was Fannie Mae and Freddie Mac, which engaged in the laundry-list of affirmative action preferences (for those with the politically correct race, socio-economic status,intelligence, etc.)

    Crooked politicians, such as Chris Dodd and Barack Obama [1], created laws that allowed foolish bankers to lend money to foolish people. Of these three categories, only the politicians were sworn to uphold the Constitution.

    [1] http://www.tdaxp.com/archive/2008/10/02/political-corruption-the-bush-pelosi-bailout-and-the-soros-plan.html.

  4. “I set an ambitious goal. It’s one that I believe we can achieve. It’s a clear goal, that by the end of this decade we’ll increase the number of minority homeowners by at least 5.5 million families. (Applause.)

    Some may think that’s a stretch. I don’t think it is. I think it is realistic. I know we’re going to have to work together to achieve it. But when we do our communities will be stronger and so will our economy. Achieving the goal is going to require some good policies out of Washington. And it’s going to require a strong commitment from those of you involved in the housing industry. …” – President George Bush

  5. EXCELLENT find by sonofsamphm1c on right-wing social engineering!

    I brought this up before [1], but I think sonofsamphm1c’s comment really brings home the GOP’s culpability in the financial crisis.

    The quote comes from 2002, when the Administration was only 13 months old [2].

    [1] http://www.tdaxp.com/archive/2008/10/22/impressed-with-obamas-adjustment.html#comment-154225
    [2] http://chdems.blogspot.com/2008/10/name-that-president-who-said-its-clear.html

  6. The sad thing, the authority to regulate exotic/predatory subprime had existed at The Federal Reserve since 1994. No act of congress was required. No word from the White House was required. The authority to regulate sat unused, and it wasn’t because people were not screaming for it to be implemented. They were. When all the studies are completed, I have little doubt that exotic/predatory subrpime will be found to be the culprit.

    Greed was not the motive.

  7. You’ll also notice, for all the hue and cry from the Democratic Party when the bankruptcy reform bill initially passed, very little effort now to repeal it.

    There are real advantages to our system of managed democracy [1,2], but it can be frustrating as well.

    [1] http://www.tdaxp.com/archive/2007/07/05/the-importance-of-5gw.html
    [2] http://www.tdaxp.com/archive/2007/07/07/describing-the-military-industrial-sysadmin-complex-how-we-will-win-the-5gw-to-shrink-the-gap.html

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