Let's Never Find Out: Part 1 -- Part of the Problem

Note: This is the first of what will be 13 posts on why Barack Obama is a dangerous, objectionable, and objectively unfit candidate to be president of the United States (while many of the other candidates are not).

The daily videos involved will be from NeverFindOut.org, a project of Let Freedom Ring (donation link is here).

This post is part of the fledgling HOPE ON Project (Help Ohio Prevent Electing Obama Now). Other SOB participants today include these (will update as time allows) Maggie Thurber, Buckeye RINO, NixGuy, Freedom's Right.

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Video -- "Part of the Problem":

Transcript:

Part of the Problem

WOMAN: Senator Obama, the papers say that you are benefiting politically from the financial crisis.

MAN: But if America knew the facts, I don’t know how they could vote for you.

WOMAN: John McCain tried to blow the whistle on Fannie Mae and Freddie Mac over two years ago. In 2006, he told the Senate, “For years, I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac…. The GSEs (government-sponsored enterprises) need to be reformed without delay.”

MAN: No wonder he didn’t get their political contributions. And who opposed the reforms John McCain was calling for? Barack Obama, Christopher Dodd, and John Kerry.

WOMAN: Wait, it gets better. Guess who received campaign contributions from the people who drove Freddie Mac and Fannie Mae into the ground? Barack Obama, Christopher Dodd and John Kerry.

MAN: John McCain saw this coming. You, Senator Obama, have been part of the problem.

ANNOUNCER: What happens when we elect a Senator who’s part of the biggest financial crisis in U.S. history? Please, America, let’s never find out.

Additional Commentary by Tom Blumer:

This could be a book (and should be), but here is a chronology of what happened:

The Jimmy Carter- "inspired," Bill Clinton- "enhanced" Community Reinvestment Act (CRA) intimidated banks and the GSE into lending money to people who were unreasonable credit risks.

The GSEs facilitated the extension of risky credit by buying risky mortgage loans the banks originated. They did so by reducing the credit-score approval thresholds built into their credit analysis software programs (Desktop Underwriter at Fannie Mae, Loan Prospector at Freddie Mac) for both conventional and subprime (i.e., very risky) loans.

GSE executive management was heavily populated by Democrats who had been in government service (e.g., Franklin Raines, who is, incredibly, a current Obama adviser). Managements at both companies cooked the books and let accounting chaos reign. Both companies paid out wildly excessive bonuses based on fictitious earnings.

Attempts like McCain's to reform the two GSEs were met with cries of "racism" by Democrats in Congress who thought lending money to people who had a high likelihood of not paying it back, thereby ruining their credit, was a good idea.

The high default rates on loans purchased by the two GSEs led both companies into receivership, and shook the mortgage lending industry to its foundations, and lead to the most serious declines in real estate values in generations.

The collapses at the two GSEs created contributed to problems that were so far-reaching that the government felt compelled to formulate a "bailout" plan that could very cost future generations hundreds of billions of dollars.

The financial-sector problems that can be laid at the feet of the GSEs are negatively affecting the rest of the economy. After 6 years of virtually uninterrupted growth, a recession could occur.

Barack Obama's role in all of this was one of contributing to the problem as a young lawyer/"activist" (suing a banking giant to intimidate it into making irresponsible loans), and failure to act to prevent the GSE train wreck while a US senator.

This is not "Judgment to Lead." Electing someone so beholden to so many who are so corrupt is more like a recipe for calamity.

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