The Payson Roundup / Experience matters

Archive for Tuesday, September 30, 2008

September 30, 2008

Editor:

Let this be a lesson to all those who will recklessly vote for someone as inexperienced as Sarah Palin. We have no choice now but to rely on our experienced senators and representatives in Congress to save us from the impending financial collapse caused by their liberal mortgage schemes and lax oversight.

For some time Congress, in their sublime sensitivity to the poor and downtrodden, have required lending institutions to issue mortgages to all applicants. No more silly restrictions like requiring a down payment, savings, a job, or other repayment prospects. Even welfare payments and food stamps were counted as income.

Now comes the bailout. That same Congressional wisdom still insists that the foreclosed homeowners be again subsidized by us, so that they can regain their homes and continue to make no monthly payments.

Someone as inexperienced as Sarah Palin would only botch things up!

Joseph Pasulka

Southport N.C.

30 September 2008 at 9:23 p.m.

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Chief1942 (Ronald Hamric) says…

I'm really puzzled at the rationale behind Mr. Pasulka's view. It seems he wants to rely on the very people who are responsible for this financial crisis, to fix the problem they caused, because of all their experience. Excuse me! He is absolutely correct in pointing to the ludicrous lending practices that precipitated this mess. But he would do well to revist the Community Reinvestment Act passed by a Democratic Congress and signed by President Carter around I believe 1977.. That act pretty much laid dormant for 20 years but was revitalized by the Clinton administration during his terms. What the CRA did was force traditionally conservative banks and lending institutions to open branches in low income neighborhoods and make high risk loans to those who could not afford to pay them back.Failure to enhance their (banks) CRA rating could have disastoous effects on their ability to grow and expand. Fannie Mae and Freddie Mac were both allowed to accept and back/approve these high risk loans, bundle them into MBS's (Mortgage Backed Securities) and sell them to large banks and corporations at below face value prices. Then the housing bubble burst and the whole house of cards comes falling down, and Mr. Pasulka wants to blame it on “inexperience” . Excuse me, but it was those very “experienced” politicians that brought this all on, and it will only get worse until such time as they are ALL replaced by fiscal conservatives such as Gov. Palin. And while Mr. Obama was practicing law, he was a part of bringing a lawsuit against CitiBank for their not making enough of these high risk loans. His primary focus as a “Community Organizer” was to make home ownership available for people who literally could not afford to pay for it. And this is the “experience” Mr. Pasulka wants to trust to fix the problem. I am truly gobsmacked!!