Two of the Democrats’ most prominent and celebrated members, Maxine Waters and Gregory Meeks, are actually financial war criminals who were never prosecuted despite being chief architects of the United States’ devastating 2008 economic collapse.
Given cover by the Democrats’ most dangerous and divisive propaganda arm — the mainstream US media — Meeks and Waters have hidden in plain sight for ten years.
In fact, hard as it is to believe and thanks to the media, many Americans actually think that tax cuts were somehow to blame for banks giving out loans that people would never be able to pay back! In reality, the banks gave those loans because the government forced them to.
The Democrats for decades thought that poor people should be able to buy houses, and so they forced banks to create lending instruments to accommodate that short-sighted and socialistic endeavor.
Eager mortgage brokers then took those weakened lending instruments and used them to exploit vulnerable and uninformed consumers.
In the end, millions of consumers agreed to honor home loans that they didn’t understand and couldn’t afford. And because there were so many of them being sold, the banks that were financing them put them in bundles and treated them as assets that represented real value in the stock market. So when people stopped paying their mortgages, those bundles became “toxic assets.” As the problem grew, the reckoning was imminent. And that’s when the housing bubble burst, the banks lost tons of value including peoples’ 401Ks and other investments…and the government ended up bailing the banks out.
The media at first helped sell the idea that “both sides” were to blame for the collapse. But former President Bill Clinton didn’t get the memo, and was a little more honest…
I think the responsibility that the Democrats have may rest more in resisting any efforts by Republicans in the Congress, or by me when I was President, to put some standards and tighten up a little on Fannie Mae and Freddie Mac.
It didn’t take long however before the Democrats and media simply blamed “the wealthy.” And they used the bailouts as proof that rich people are terrible and the cause of everyone’s woes. And if anyone ever asked for more specific information (though few ever did), they simply blamed “the Bush tax cuts,” which was laughable.
If Bush was responsible at all for the housing collapse, then he was responsible for not sounding the alarm forcefully enough on the Democrats’ meddling in our housing sector.
But the actual cause of the collapse was banks being forced to create lending instruments that fell far below their normal standards. And then aggressive brokers — who get paid commission for each loan they sell — pushed those loans on uninformed consumers who were eager to move out of 2 bedroom apartments and in to 5 bedroom homes. And when their loans matured and their payments went up and they could no longer afford to make those payments, they gave up and stopped trying. That scenario snowballed as more and more people found themselves beholden to loans they couldn’t honor, culminating eventually in the massive collapse and correction that hurt us all.
Bill Clinton was right, however. Republicans were sounding the alarm, and Democrats in Congress resisted those efforts. Specifically, Democrats like Maxine Waters and Gregory Meeks forcefully argued that everything was great…
The driving force for Waters and Meeks — who proudly segregate themselves in “the Congressional Black Caucus” — was that banks, they claimed, were racist. And therefore those banks must find ways to lend to more minorities. In order to comply, the banks had no choice but to just lower their standards across the board. Their standards were never racist. The banks want to make loans. (They charge interest and fees on those loans, which is one of the ways they make money.) But they had to make loans that were viable, and could be paid back. And because, thanks to Democrats, minorities endure disproportionate disparity including disparity with respect to income and finances — they were (and, sadly, still are) less often financially qualified to get loans.
So to Waters, Meeks and other Democrats, any efforts to change those standards back to something more financially sound, was just a function of racism. Any effort to rein in the brokers who were given the legal authority to exploit unwitting buyers, just meant you didn’t want black people to own homes.
And the accused did what most people do when they’re called “racist:” They just shut down, and gave up.
But they were right. The watered-down lending standards, forced on banks by Democrats who wanted to let poor people become home owners, proved to be an enormous liability. And left unchecked ended up creating the worst recession since the great depression.
And Republicans were ultimately blamed, and Barack Obama — who actually worked closely with ACORN, one of the loudest groups accusing the banks of racism — was actually credited with saving our nation from total ruin.
It was pretty tough to watch for anyone who knew what actually happened.
Meanwhile, feckless Republicans and their useless swamp “strategists” never even tried to prosecute the Democrats in the court of public opinion. The recreationally-engaged electorate was left believing that, somehow, rich people paying less in taxes resulted in poor people not paying their mortgages. The two aren’t related in any way, even peripherally, but that’s the media/Democrat narrative that emerged and stuck.
And then we all forgot about it and moved on.
And financial war criminals like Maxine Waters and Gregory Meeks, who were among the most ferocious enablers and defenders of the broken system that led to the collapse, got off without a scratch and have never once had to answer for their role in creating the collapse.
Waters and Meeks, consistent with their bigoted Democrat brethren, think that black people and other minorities need to be treated differently. They think they need bars lowered. That’s why they say it’s racist to expect black people to get ID, and it’s racist if you think Hispanics should immigrate to our country legally. They proudly promote literal segregation by race, and metaphoric slavery by dependence on the government. They shackle Americans with manufactured grievance, and destroy peoples’ individual liberty. They are just as bigoted as their Democrat forefathers, and it appears that they will never held accountable for it. Unless, possibly, by some miracle: #WalkAway. But I’m not holding my breath.
Democrats Create 2008 Financial Crisis — WATCH (10 minutes):
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