Conservative Politics Today

Today I am writing to everyone from one end of the political spectrum to the other – and all those in between. Our country is facing serious economic problems. These problems are now global.

Senate Majority Leader, Nancy Pelosi, has called for a congressional investigation of Wall Street. The Hill reports, “House Speaker Nancy Pelosi, when asked Tuesday whether Democrats bear some of the responsibility regarding the current crisis on Wall Street, had a one-word answer: ‘No.’” Pelosi “ripped President Bush’s ‘mismanagement’ of the economy and a lack of regulation that led to the current situation.”

The Politico, meanwhile, reports Pelosi “has ordered a broad, swift investigation of Wall Street and will demand testimony from Bush administration officials and captains of finance.”

The Drudge Report headlines read “Democratic Congress may adjourn, leave crisis to fed, treasury” “Harry Reid, “No one knows what to do.” From a paper in Germany, Der Spiegel, “the foundations of US capitalism have shattered.”

This is not the result of capitalism. This is the result of government regulated enterprises, and government institutions themselves, that are struggling and bringing down the economy. Fannie Mae and Freddie Mac, who was the catalyst for this current situation, are government owned and operated. This is not a pure free market.

Yesterday Walter Williams, a professor of economics at George Mason University, laid it out clearly in an article titled “Stubborn Ignorance.”  He wrote:

“Here’s what the U.S. Constitution says: “All bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.” How many times have we heard politicians, pundits and guardians of our news media say that President Bush cut taxes, or Obama is going to raise taxes? The fact of the matter is that presidents have no power to raise or lower taxes. They can propose tax measures or veto them but it is Congress that has the ultimate power to raise or lower taxes since they can, with a two-thirds vote, override a presidential veto. The same principle applies to spending. Presidents cannot be held responsible for budget deficits or surpluses. A president cannot spend a dime that Congress does not first appropriate. Given these plain facts, are politicians, pundits and media people — who persist in talking about a president cutting or raising taxes, or creating a budget deficit — ignorant, stupid or deceptive?

Many politicians and pundits claim that the credit crunch and high mortgage foreclosure rate is an example of market failure and want government to step in to bail out creditors and borrowers at the expense of taxpayers who prudently managed their affairs. These financial problems are not market failures but government failure. The Community Reinvestment Act of 1977 is a federal law that intimidated lenders into offering credit throughout their entire market and discouraged them from restricting their credit services to low-risk markets, a practice sometimes called redlining.

The credit crunch and foreclosure problems are failures of government policy. In fact, what we see now is a market correction to foolhardy government policy. Congress’ move to bailout lenders and borrowers who made poor decisions will simply create incentives for people to make unwise decisions in the future. English philosopher Herbert Spencer said, “The ultimate result of shielding men from the effects of folly is to fill the world with fools.

Ladies and Gentlemen what we have here is a government laden with fools. Corrupt fools who readily and regularly rob us blind, corrupt our government, who innocently cry “I didn’t do it. He did,” as they stand there pointing to another with one hand, while their other hand is steadily shoveling our money into their already over-flowing pockets. And when all of their bad decision making and absolute corruption lead to situations like we are currently in they leave it to someone else, because like Harry Reid said, “they don’t know what to do.”

You know what? I am no economist. I don’t know how to resolve this issue either, but I do know what we as a country can do.  We can rid ourselves of these corrupt politicians, and those leading these companies. We can be certain this does not happen again.

As I mentioned earlier, Nancy Pelosi, claiming Democrat innocence while attempting to cover their own rears, and score a few political points as well, has called on an investigation of Wall Street and she will be calling members of the Bush Administration to testify.

Here’s the problem with the brilliant idea. The chairman of the senate committee that would oversee this dog and pony show is Democrat Senator Chris Dodd. Chris Dodd is the number one recipient in donations from Fannie Mae and Freddie Mac – these donations did not come from individuals. They came from the government run corporation. Why a government run corporation is donating to politicians I will save for another day.

Who received the second largest amount? Barack Obama.

In 2005 John McCain co-sponsored a bill that would have subjected Fannie Mae and Freddie Mac to stricter accounting standards. The democrats killed it in committee down a party line vote.

McCain knew there was a crash coming. In a speech delivered on the house floor in 2006 he said

“Fannie Mae employees deliberately and intentional manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives….Fannie Mae used its political power to lobby congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million dollar fine in a settlement with the Federal Election Comission and restated lobbying disclosure reports from 2004 to 2005.  These are entities that have demonstrated over and over again that they are deeply in need of reform. For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac-known as Government-sponsorsed entities or GSE’s-and the sheer magnitude of these companies and the role they play in the housing market…GSE’s need to be reformed without delay…If congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.”

Again, that was John McCain, on the house floor in 2006.

In 2005 who was it fighting against reform of Freddie Mac and Fannie? It was none other than Democrats Chris Dodd, John Kerry, Hillary Clinton and Barack Obama. According to the Washington Post, they all happen to be the top recipients of campaign donations from Fannie Mae and Freddie Mac from  1988 to 2008.

Obama even chose former Fannie Mae CEO James Johnson to lead his vice presidential vetting team, in the search for his running mate.  Johnson had to resign when it was revealed he received a secret discount mortgage from  Country Wide. Chris Dodd, who will be charged with leading the investigation also received a sweetheart mortgage from the same guy.

In 4 years Obama has become the second largest recipient of political campaign contributions, only behind John Kerry, who has been in the Senate for decades.

Obama is claiming to have co-sponsored a bill to reform Freddie and Fannie- which for the record is a lie. Not only did Obama not co-sponsor a bill, he did not even show up to vote on the bill that McCain co-sponsored, A bill that was voted down along party lines.

Now a video has surfaced that features Fannie Mae CEO, Daniel Mudd, addressing the Congressional Black Caucus, including Barack Obama, at their swearing in ceremony in 2005. Mudd discusses the problems facing Fannie Mae, yet Obama and other democrats and some republicans- took large contributions from that organization while preventing it’s oversight and reform.

In part, Mudd said

“So many of you have been good friends to Fannie Mae and our mission. You’ve been friends through thick and thin. We have indeed come upon a difficult time for Fannie Mae. There is much to be done inside my company and I humbly ask you to help us and to help me. If there are areas where we are missing. If there are areas where we could do better, we’d like to hear it from our friends and I’d be so bold as to say our family first.

He went on …

”In many ways I want to tell you today you are also the conscience of Fannie Mae.”

Obama was there. He heard the speech. Yet knowing they were in trouble he has accepted over $125,000 from Fannie Mae.

These are the same politicians claiming innocence. These are the very politicians who will be in charge of the alleged investigation of  exactly what transpired.

These are criminal offenses. People go to jail for what is happening now.  A congressional investigation? I say no. There are republican names on that list also. However, it does appear that democrats blocked any and all reform Republicans, such as John McCain, attempted to push through.

No, no congressional dog and pony show this time. Every member of the house whose name shows up as recipients of campaign contributions from Fannie Mae and Freddie Mac, and who voted against reform for whatever reason, should be removed from office and be subjected to an intensive criminal investigation.

Certainly there was an abundant greed on Wall Street. However, for decades politicians in the pocket of Fannie Mae and Freddie Mac not only ignored the warnings, but they would not permit preventative measures, because they were making too much money from it. Don’t you ever wonder how politicians with not much of anything when elected to office, is suddenly catapulted into millionaire status when their salary is about $150,000 a year? It is corruption!

Ladies and gentlemen, we have got to clean house. It makes no matter your party affiliation. Look at what is happening now. This is the direct result of political favors and flat out corruption. It has to end. It has to end today. But this will not happen if we, the people, do not stand together, vote everyone of them out of office and force criminal investigations. Many politicians need a one way ticket to the pen. Do not pass go. Do not collect $200. Go directly to jail.

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