With only 29 days left until the “big day” it looks like Obama is pulling a big lead. The boost from Palin has slowly dwindled down and Americans are refocused on the crisis of the economy. An attempt at redirecting voters attention from the economy by the McCain camp has made it evident that when it comes to the economy, more Americans trust Obama over McCain. My question is why? My guess is that if you asked the average Joe about what has caused our financial meltdown he wouldn’t have a clue.
What the average American doesn’t know may be shocking. If we look back into the history of our political decisions over the years, it is fair to say that both parties have played a role, but what get’s me is that the Democrats refuse to take any responsibility for this disaster. Democrats refuse to acknowledge that the Community Reinvestment Act may be partly to blame. The Community Reinvestment Act (CRA) was first put into effect by Carter in 1977. This bill had good intentions of allowing lower income households to qualify for loans, but expansion of the act allowed a vast amount of people to acquire loans that couldn’t afford them.
In 1995, Clinton strongly reinforced the CRA. In affect, banks were mandated to give loans to lower income communities, enforced by the Fed, the Comptroller of the Currency, the Office of Thrift Supervision, and the Federal Deposit Insurance Corporation. Non compliance to give out loans to lower income communities, resulted in prohibited bank mergers, branch expansions, or new branch installments, all regulated by these agencies. Consequently, banks were pushed to increasingly lend out more subprime loans.
What’s even more interesting is that left-wing non profit organizations, such as ACORN, with whom Obama has been affiliated with, were receiving billions of dollars from these banks so they could shell out more subprime loans. In turn, CRA allowed these non profit organizations to collect a fee for marketing these loans to low income families. Barack Obama has received $126,349 from Fannie Mae over a four year period. While Fannie lent out more and more loans that couldn’t be paid for, Obama looked the other way. Meanwhile, McCain co sponsored a bill that would regulate mortgages.Democrats denied this bill. Maybe because fellow Democrats Chris Dodd and John Kerry also received thousands from Fannie Mae. It doesn’t seem right that the Republicans should take all the criticism for the economy taking a fall, but with election day right around the corner you can bet they will continue to take this position.