FROM THE BARREL OF MY PEN
By Gonzalo “Jun” Policarpio
ORIGIN OF A FINANCIAL SIN IN AMERICA
In the United States, two names are synonymous with the 2008 financial crisis, the largest and global Great Recession since the Great Depression of the 1930s: Fannie Mae(Federal National Mortgage Association) and Freddie Mac(Federal Home Mortgage Corporation).
In 1999, former democratic president Bill Clinton and the Democrat-controlled Congress turned these two big government-sponsored enterprises created to sell federally secured mortgages to homebuyers into a run away financial institutions lending mortgage money to jobless, credit less, and mendicant Americans who were mostly welfare recipients.
In 2002, Republican President George Bush tried to regulate the activities of Fannie Mae and Freddie Mac but the Democratic-controlled Congress under Sen. Christopher Dodd and Congressman Barney Frank stopped him by saying the two agencies were doing a great job that did not warrant a regulating agency under the Treasury Department.
Then Illinois Senator Barack Obama organized a community-based pressure group called ACORN(Association of Community Organizations for Reform Now) among the nation’s jobless and low-income families and launched a massive campaign to apply for low-interest sub-prime mortgages(no income and no credit check) from Fannie Mae and Freddie Mac. These on welfare and low-income constituency became Obama’s majority voters.
Like a person eating a rotting food, the private banks and other foreign investors who bought those federally secured low interest mortgages bundled as securities went bankrupt when the jobless and low income homeowners failed to pay their monthly amortizations. It was reported that some unscrupulous financial crooks presumably allied with the democrats artificially caused a meteoric rise in home prices. During the peak between 2005 and 2007, those jobless and low income homebuyers even obtained large amount of cash by applying for home equity and second mortgage loans. Those people became Obama’s voters.
When Obama became president, he bailed out the banks going bankrupt and other related financial institutions that fell victims to the mortgage racket such as the AIG. Obama used the American taxpayers’ money notably coming from the middle income and wealthy Americans. He can be said to be none other than a modern-day Robin Hood who stole the money of the middle income and rich Americans and gave it to the lazy, jobless and welfare dependent Americans.
Last year, Democratic Senator Dodd and Democratic Congressman Frank, the supposed to be principal culprits of the 2008 financial crisis in America, designed a legislation in 2010 called the Dodd-Frank Act that was signed by President Obama naturally. This terrible piece of legislation provides the largest conglomeration of financial regulations, rules, and procedures specifically aimed to prevent another 2008 financial debacle.
Here’s the moral of this story: If you cause it, fix it.
Here’s what actually has happened: President Obama and his Democratic minions incurred trillions of public debt in trying to cure the financial cancer they themselves caused. And so, we the American people, will suffer the consequences for several years to come unless the culprits surrender to justice.
Consider this report from the Congressional Budget Office: the highest spending level in 40 years occurred in 2009. In 2008 presidential elections, the American voters chose “a fox to guard the hen.” Let us not commit the same mistake next year, my countrymen.
Gonzalo “Jun” Policarpio
2008 Republican candidate for 5th District of Congress nominated by the Conservative Party