LEGISLATORS, REGULATORS and GREED

I've done a little searching around about this "financial crisis" and found something called the Community Reinvestment Act of 1977.

This act (PL 95-128) by Congress and its subsequent implementation and political tinkering over the past several years created an environment in which banks were forced to make no down payment loans to un-credit worthy consumers with no verification of income, assets, or consideration of the applicant's ability to make payments.  Regulatory changes in 2005 ruled that lending institutions were subjected to new lending tests which included a new combined community development test to meet lending requirements for moderate and low income households.  Racial inequities in mortgage acceptance rates as reported by the National Community Reinvestment Coalition , ACORN, and others were cited as the primary reasons to increase the scope of the Community Reinvestment Act.  Congressman Barney Frank and Senator Cris Dodd have their finger prints all over this.

If that isn't a train wreck fixing to happen then I'll jump over the Empire State Building.  Any moron with an iota of sense would know this is not a good situation.  Federal Reserve chairman Ben Bernanke admitted that, "The underlying assumption of the Community Reinvestment Act that more lending is always better for local communities is questionable."  The problem is our elected legislators passed this legislation and over the years revised the regulations that focused financial regulators attention on the lending institutions performance to "help meet community credit needs."  Thus, lenders using the subprime authorization did not mitigate loan risks with savings deposits as was traditionally done.  These revisions allowed securitization of loans containing subprime mortgages.  The first securitization of these loans was started in 1997 by Bear Stearns.

Other rules changes by regulators gave Fannie and Freddie extraordinary leverage allowing them to hold just 2.5% of capital to back their investments.  By 2007 Fannie and Freddie owned or guaranteed half of the $12 trillion U.S. mortgage market.  Another train wreck any moron could see coming.

Now we have an impending train wreck about to happen any moment if the taxpayers don't pony-up $700 billion with no strings attached.  Many high ranking individuals are walking away from the wreck with millions of dollars in their pockets.  I fail to see the equity in paying someone millions of dollars after they ran an institution into the ground.  Its our legislators, government regulators and greed that has brought us to this point.  And, I'm sick of it.  I can't help but think there has been collusion to entrench and empower certain legislators and enrich a few individuals that aided and abetted the demise of the financial institutions and created  this crisis we all have to pay for.

Few of us, the ordinary folks, knew anything about all this.  We entrusted our erstwhile legislators to be good and honest stewards of our tax dollars without accountability.  They got us into this mess and now they have the audacity to point fingers of blame elsewhere.  They find that political posturing is more important than seeking an equitable solution.

Its partly our fault.  We keep re-electing these morons to Congress year after year.  Think about it.  We have the likes of Barney Frank, Cris Dodd, Nancy Pelosi, Joe Biden, Chuck Hagel, Harry Reid, etc. running our country.  I'm not exactly proud of President Bush on this matter either.  He should have known long ago what was coming and been out front in the bully-pulpit warning us all about it.

Tighten your belts and hold on.  We may be in for a rough ride before its over.   

Our President

I just sat through the first presidential debate.  One big yawn.

As a conservative I shudder to believe one of these men is going to be the president of the United States of  America.  

I want a presidential candidate that will espouse a conservative vision of less government and lower taxes for the country and will hammer the liberal Democrats unmercifully at every opportunity.  It is impossible to "reach across the aisle" to the Democrats and achieve anything worthwhile.  The liberals' idea of reaching across the aisle is for the opposition to acquiesce to their position.

DEALS

The government's financial crisis deal reminds me that the last time I heard:  "That's the deal, take it now or leave it" was on a used car lot.

After Ike

Ike has come and gone.  Lots of damage in the Galveston-Houston area mostly from the sea surge, however the wind was 100-mph in downtown Houston and blew out glass panes in high rise buildings.  Over two million people are without electrical power.  Many evacuated before the storm, others did not.  Those that stayed behind are now without electricity, water, food, and utility services.  Many are having to be rescued.  Damage on Galveston Island is extensive. There has been very little looting.  Only two have been arrested so far as reported by the local TV stations.  Their bail is set at $100,000.  I hope the world notes that Texas during a disaster did not have rampant unlawfulness and looting as occurred in New Orleans during Katrina.

Ike did very little damage here though the storm was over 200 miles wide.  We are 90 miles (as the crow flies) from where the eye came ashore on Galveston Island.  We had sustained north winds of 30-35 mph with gusts to 45-50 late that evening and well into the next day.  The wind gradually subsided and came around to the northwest as the storm bumped against a cold front as it moved inland and was turned onto a northward path.  We were on the dry side.  We had only 0.9 inch of rain from the hurricane effect.  We had partial clearing and a little sunshine at sunset.

Ike mostly left a big mess for me to clean up.  Lots of what I call tree trash (leaves, twigs, small branches, etc.) are scattered everywhere.  Only one large tree limb fell onto the circle drive in front of the house.  The slow moving cold front that moved through about midnight to early morning the next day dumped 2.51 inches of rain.  It was accompanied by lots of thunder with several close strikes.  The morning dawned peacefully with partial clouds and as though nothing happened.  Mother Nature can be fickle.

Sarah Palin

They will try to destroy her.

They will not succeed.

A lady that can field dress a moose is not easily intimidated.

Her faith is strong.

Her resolve is resolute

And, her knife is sharp.

Watch out, you liberals!