Thanks to Sen. Christopher Dodd, Rep. Barney Frank and others, the lending industry spent years issuing mortgages to millions of Americans who had no hope of repaying. Sen. Dodd and Rep. Frank believe homeownership is a right unfettered by income or credit history, and over time, they were instrumental in forcing the industry to lend to some of the least creditworthy Americans.
As everyone knows, the results were disastrous….
Lesson learned? Don’t be silly. In December, GMAC got $5 billion from the government’s $17.9 billion bailout of the domestic auto industry, which Sen. Dodd supported, and immediately lowered its lending standards. No longer would buyers need a credit rating of 700 or higher. Now, people qualify with scores as low as 621, which is 2 points above “poor” and 102 points below America’s median. As columnist George Will put it, GMAC is using taxpayers’ dollars (more accurately, money borrowed against tax receipts far into the future) to issue subprime loans.
Those states where once the industrial dynamo for the entire Earth, yet they destroyed that enormous economic dominance by political policies hostile to economic creativity. Likewise, California had a golden era as an economic and cultural dynamo. Well up until the late 1980s California was the place to go to make it big. People moved from other states to California. Now, internal migration has reversed. California looks less like a dreamland and more like basket case waiting to happen.
It seems that in post-New Deal America, economic and civil success sow their own seeds of destruction. When things are going good, socialist experimentation seems harmless. A booming economy can pay for increased government spending and an ever-increasing scope of government power. Eventually, however, socialism strangles the economic engine and destroys civil society.
It’s … striking that Greenwald and his fellow travelers would use words like terrorist and thug to describe me while defending the rights of Hamas, an organization comprised of genuine terrorists and thugs. It’s become common for the left to describe its ideological opponents as thugs, and the result, apparently, is the inability to recognize real thuggery when it’s staring them in the face.
Liberals show tremendous compassion in pushing for generous government spending to help the neediest people at home and abroad. Yet when it comes to individual contributions to charitable causes, liberals are cheapskates.
Arthur Brooks, the author of a book on donors to charity, “Who Really Cares,” cites data that households headed by conservatives give 30 percent more to charity than households headed by liberals. A study by Google found an even greater disproportion: average annual contributions reported by conservatives were almost double those of liberals.
Makes perfect sense. Conservatives know that charity begins at home, and that the Christian call to charity is first and foremost personal. “Liberals” view it as a governmental responsibility: i.e., somebody else’s problem.
… throw the cook out of the kitchen. It’s the “liberal” (and Elfling) way….
New year, new administration, renewed blog. Here we go.