Issue Position: Bailout
I DO NOT SUPPORT THE BAILOUT! I WOULD NOT HAVE VOTED FOR IT!
We just bailed out our central bank and I want to throw up. That should never happen! It is beyond comprehension that it has come to this. We are rewarding incompetence and punishing virtue. This madness must come to an end. The federal government through Fannie Mae and Freddie Mac created and enhanced the secondary mortgage market, a market which allowed banks to unload loans, many bad, and continue to lend money at an astounding rate.
Congress passed the Community Reinvestment Act (CRA) in 1977 and gave it more teeth under the Clinton administration. The CRA has one purpose, coerce banks to give loans to unqualified borrowers. They converted the financial system into a social welfare program. It is unforgivable.
The Congress failed to keep the Federal Reserve in check and it created a tremendous amount of credit, inflating our currency in the process.
Our federal government created this crisis by making each of the critical failure points of this mess. They forced banks to make bad loans, allowed banks to dump the worthless paper and let the Fed run loose. If, any of these pieces would have been eliminated the crisis would have been averted. Banks would not have made bad loans, the banks would have run out of reserves to keep lending to fools or the Fed would have withheld credit. Finally, this huge, stinky pile of excrement was dumped upon the taxpayers by our Congress.
Only the free market would have prevented this fiasco. Only the free market could have punished those who profited by this insane system. Fortunately, for those who profited by this disaster, Congress does not believe in the free market.