The NEW Reagan Revolution Bring Conservatism BACK! From the Desk of Michael Reagan
Dear Conservative Friend, It's official: America has its first truly Socialist president... and it's the Republican Party's fault. No, scratch that -- it's the so-called "leaders" of the GOP who are at fault for this humiliating defeat -- and I say it's time to name names and make heads roll in our party. Because, my fellow conservatives, we have been BETRAYED by the very people who promised that, if we would just elect them, they would get into office and vote OUR conservative values.
THEY LIED... THE GOP DIED. But we CAN resurrect it -- IF we start TODAY to take action, by both booting out our failed fake-conservative "leadership" AND vowing to FIGHT tooth and nail against the coming tidal wave of destructive, anti-American legislation that's now heading our way... thanks to Obama, Pelosi and Reid. We CAN fight back -- Join me now in the NEW Reagan Revolution, to bring Conservatism BACK!
As I sit here looking at yesterday's election results -- maps, vote tallies, exit polls, state and national results, and much more -- I have to say that, like many of you, I'm in a state of shock. Not because I'm surprised, mind you -- I warned you that this would happen if the Republican Party nominated John McCain for president.
Yes, I was right... but believe me, that doesn't make me happy. What it makes me... is angry. Angry at the Democrats, of course. Once again, they ran a campaign full of lies and hate-filled attacks, from Obama's claims that he had "never heard" his racist pastor's anti-American rhetoric over a 20-year period of time, to his claims that his terrorist friend Bill Ayers was "just a guy in the neighborhood," to outright slanderous speech against Governor Sarah Palin... but hey, I expect the Democrats to act that way. It's their nature.
Angry at the "moderate" (meaning liberal) Rockefeller-wing of the Republican Party, who tried to kill the idea of grassroots involvement of hardworking, patriotic, conservative Americans in our party. There's NO grassroots activism when the Rockefeller wing's philosophy prevails; that wing of the party consists of "kingmakers" operating from behind the throne, while the Reagan wing of the party has always lived and thrived at the grassroots, where the real Americans live. When the Rockefeller-wing philosophy prevails, the GOP loses. When the Reagan wing is in control, we win.
Angry with President Bush because he was unwilling to stop Republican Congressional leaders from overspending and because his administration failed to lay the blame for the financial crisis at the feet of Rep. Barney Frank and Senator Chris Dodd that protected Fannie Mae and Freddie Mac from reform. Angry at the so-called "leaders" of our party, who promised us that if we'd just vote for who they put up for election, we'd finally get what we wanted: smaller government, lower taxes, dramatically lower spending, pro-life laws, pro-marriage constitutional amendments, pro-American economics... well, YOU AND I put them in power, and they gave us nothing but BIG GOVERNMENT, BIG DEFICITS, and LIBERAL COMPROMISES. I say, NO MORE! Join me now in the NEW Reagan Revolution, to bring Conservatism BACK!
As bad as yesterday's election results were, I believe there IS "light at the end of the tunnel" -- I believe we now have the opportunity to finally turn out these fake "leaders" that have betrayed conservatism and given us Barack Obama. We have the opportunity to bring back the Reagan wing of the Republican Party, to slow down the socialist legislation from Pelosi and Reid, and to restore this great Republic to its original ideals of basic self-evident truths: our right to life, liberty, and the pursuit of happiness. This is our chance, friend. It may be our ONLY chance to save our Party -- and it may be our LAST chance to save our country.
Here's what I'm doing to help make that happen: Today, I'm officially launching a new website, ReaganAction.com. This is no wimpy little website with some news articles and a bunch of editorial writers griping about how bad things are. The time for "just talking" is OVER -- now is the time for ACTION!
Every day, we'll give the members of this site -- our own "Reagan Activists" -- the information they need in order to take real grassroots action to counter the greatest political threat we've ever faced within our own government. It won't take a lot of time -- usually only a few minutes a day -- but the political payout will be HUGE! Here are some of the things that YOU AND I will be able to do at ReaganAction.com: STOP LIBERAL BILLS -- We can expect an immediate onslaught of extreme liberal bills to be "fast-tracked" through Congress and signed by Obama. We will constantly be on the watch for these bills -- and every time they get introduced, we'll alert our Activists to literally FLOOD Capitol Hill with millions of phone calls, faxes, emails and even hand-delivered letters and petitions, DEMANDING that our elected legislators do what WE say, or else face our wrath at the next election!
FIGHT LIBERAL EXECUTIVE ORDERS -- You can be sure that President Obama (oh, how that phrase terrifies me!) will get right to work on Day One, issuing Executive Orders that will make your skin crawl: repealing pro-life presidential directives, ordering agencies to fund far-left groups like ACORN and the ACLU, signing over American sovereignty to the United Nations and the European Union... he's got a long list! But for every liberal (and usually unconstitutional) Executive Order that Barack Obama issues, we'll alert our Activists to BARRAGE the White House with even MORE phone calls, faxes, emails and even hand-delivered letters and petitions, DEMANDING that he "reverse course" on those Orders or face a Republican Congress in 2010! EXPOSE LIBERAL CORRUPTION -- With the Democrats back in power in both Congress and the White House, you KNOW that they'll be falling right back into their habits of taking lobbyists' money under the table, trading votes for campaign contributions, spying on and sabotaging Republican legislative plans, covering up their leaders' sexual "flings," and spending taxpayer money on personal expenses like never before. But this time, YOU AND I will be there every step of the way, making sure that no stone is left unturned, every dark corner is filled with light, and every illegal act is paid for with censure, impeachment, recalls, investigations, and jail time for every criminal we expose in Washington, D.C.
COUNTER THE LIBERAL MEDIA -- Whenever any of these things take place, we'll be directing our "Reagan Activists" to constantly fill the news media with letters to the editor, guest editorials, and news articles detailing the socialistic and corrupt policies of the new liberal regime, and offering America a better way -- the way of freedom... the CONSERVATIVE way. Together, we CAN save America from the new liberal regime! Join me now in the NEW Reagan Revolution, to bring Conservatism BACK!
And don't forget -- I'll also be spreading the word the same way I do already: by writing nationally-syndicated columns each week, and by speaking to over five million listeners each and every weekday on my nationwide radio show! We MUST do this. Really -- what choice do we have, except to fight back and WIN? As my father, President Ronald Reagan, once said, "We must act today in order to preserve tomorrow." My father wasn't afraid to call evil what it was -- and neither am I. He defeated the "Evil Empire" called the Soviet Union -- but now we face a new "Evil Empire." It's called Socialism, and it's taken over our once-free nation through the victories of Obama, Pelosi and Reid. We do NOT have to give up. We do NOT have to slink into some dark corner and lick our wounds. This is OUR MOMENT TO SHINE -- and that's why I'm launching ReaganAction.com! Like I said before, when the Reagan wing is in control, we win. We don't need kingmakers; we need workers, and until we get them we'll stay the minority party. We don't need to keep the toady liberals who call themselves the "leaders" of the Republican Party; we need conservatives to TAKE BACK the Republican Party, and GET RID OF those losers! WILL YOU JOIN ME, and hundreds of thousands of your fellow conservative activists nationwide? Let's show these liberals what real REAGAN Republicans can do, when WE'RE in charge of the GOP! Join me now in the NEW Reagan Revolution, to bring Conservatism BACK!
P.S. Already, the new radical regime in Washington, D.C. is planning their first legislative attacks on America: Huge increases in payroll and income taxes; Redistributionist "share the wealth" policies; Repeal of the Defense of Marriage Act; Forcing faith-based groups to hire gays; Repeal all state regulations on abortion through FOCA; Require taxpayer funding of abortion through Medicaid; Block all efforts to "Drill Here, Drill Now" in America; Impose universal health care through job-killing employer mandates; Appoint activists liberal Supreme Court judges; Kill conservative talk radio by re-instituting the "Fairness Doctrine"; Require comprehensive sex education from the earliest grades in public schools; Enforce bilingual education in the public schools; Allow convicted felons to vote; Take secret ballot voting away from workers deciding on whether to unionize... The list goes on and on and on... And it's up to YOU AND I to stop them! Don't let the door slam shut on this opportunity to make a difference... Join me now in the NEW Reagan Revolution, to bring Conservatism BACK!
Thank you! Please make your check payable to: Policy Issues Institute 30011 Ivy Glen, Ste. 223 Dept Code 1881 Laguna Niguel, CA 92677
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Ockham
November 12, 2008, 7:23pm
Guest User
This of course is offered by a non-biased moderate mind. Let us all get back to Reaganomics ASAP! It stands up to tax-and-spend liberalism with no-tax-and-spend conservative values - err..., which is how we got here in the first place.
Wrong, we got here because the Dems lifted the rules for getting loans and mortgages and the Repubs didn't do anything about it when they had the chance.
THEY ALL RUB ELBOWS,,,,THEY ALL KNOW EACHOTHER.....AND THEY ARE ALL VERY AWARE OF HOW THEY GOT THEIR MONIES AND WHO THEY KNOW.... THESE FOLKS HAVE NOTHING LEFT TO HIDE BEHIND......THERE IS A MONKEY ON OUR BACK AND WE CAN ALMOST SEE IT AND NAME IT........ HOW DO WE KILL IT????????
In the end this will be their tactic----
"everyone must have a RealID card that will also serve as the money exchange. This will prevent shady practices and promote transparency and prevent those immigrants from taking your money(well all know they actually mean organized crime)."
wait---my mouth is full of BullshMMMMMMit!!!!!!!
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
Wrong, we got here because the Dems lifted the rules for getting loans and mortgages and the Repubs didn't do anything about it when they had the chance.
Actually, that's incorrect. Alan Greenspan, the driving force towards 'self-regulation,' was appointed head of the Federal Reserve by Ron Reagan back in 1987, and quietly set about the task of allowing banks to move towards that end. Greenspan's fundamental belief was that, as almost nowhere else, the banking industry would always seek to protect their customers; their depositors and investors. While this has, for the most part, proven true for individual banks, it has not been the case universally, and there was the flaw in the Greenspan model. Until 2005 Alan held to his belief and ran the Fed accordingly. However, by the middle of that year, with two years of contravening data on hand and more arriving, Greenspan advised the President and the cabinet that, "Capitalism has been compromised," and that things were headed in a bad direction. At this point, he was simply ignored. In his book, "The age of turbulence," Greenspan rates the presidents that he served under on their fiscal integrity. It should come as no surprise that the current administration got the underwhelmingly lowest grade.
While Greenspan's overall rating should be considered extremely good, his belief self-regulation carried the fatal flaw.
It's worth noting that he chaired the Fed for eighteen and a half years. For twelve of those years congress was under GOP control, and for thirteen of them the GOP controlled the White House. Given those numbers it seems a shallow accusation to say that the 'damn dems did it all.' Also, it is worth noting that that damn-Dem-Clinton left as a legacy the largest federal surplus in our history, mostly due to his work during the first two years of his administration. (For the rest of his six years he was continuously rebuffed by congress and almost constantly under siege, eventually being found guilty of, and impeached for, the treasonous high crime of lying about fellation.)
In the article produced by National Public Radio in collaboration with Chicago Public Radio, William Longdrake, a long-time key individual at the first major bank to collapse, Washington Mutual, points out that the signs of looming disaster were clearly there in 2003, and no one wanted to hear that.
Ockham, this one's for you and everybody else. This article was too long so I put some of it here, but then you'll have to click on the link to see the rest......
The Myth of the Clinton Surplus October 31st, 2007 The U.S. Treasury website that tracks the U.S. National Debt proves there was never a surplus because the national debt went up every single year, and Democrat Senator Ernest Hollings said the same thing in the Senate on October 28, 1999 . This article simply explains why/how people claim otherwise for political reasons.
Time and time again, anyone reading the mainstream news or reading articles on the Internet will read the claim that President Clinton not only balanced the budget, but had a surplus. This is then used as an argument to further highlight the fiscal irresponsibility of the federal government under the Bush administration.
The claim is generally made that Clinton had a surplus of $69 billion in FY1998, $123 billion in FY1999 and $230 billion in FY2000 . In that same link, Clinton claimed that the national debt had been reduced by $360 billion in the last three years, presumably FY1998, FY1999, and FY2000--though, interestingly, $360 billion is not the sum of the alleged surpluses of the three years in question ($69B + $123B + $230B = $422B, not $360B).
While not defending the increase of the federal debt under President Bush, it is aggravating seeing Clinton's record promoted as having generated a surplus. It never happened. There was never a surplus and the cold hard facts support that position. In fact, far from a $360 billion reduction in the national debt in FY1998-FY2000, there was an increase of $281 billion.
Verifying this is as simple as accessing the U.S. Treasury (see note about this link below) website where the national debt is updated daily and a history of the debt since January 1993 can be obtained. Considering the government's fiscal year ends on the last day of September each year, and considering Clinton's budget proposal in 1993 took effect in October 1993 and concluded September 1994 (FY1994), here's the national debt at the end of each year of Clinton Budgets:
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Oct.-Nov. 1999 Congress passes Financial Services Modernization Act
After 12 attempts in 25 years, Congress finally repeals Glass-Steagall, rewarding financial companies for more than 20 years and $300 million worth of lobbying efforts. Supporters hail the change as the long-overdue demise of a Depression-era relic.
On Oct. 21, with the House-Senate conference committee deadlocked after marathon negotiations, the main sticking point is partisan bickering over the bill's effect on the Community Reinvestment Act, which sets rules for lending to poor communities. Sandy Weill calls President Clinton in the evening to try to break the deadlock after Senator Phil Gramm, chairman of the Banking Committee, warned Citigroup lobbyist Roger Levy that Weill has to get White House moving on the bill or he would shut down the House-Senate conference. Serious negotiations resume, and a deal is announced at 2:45 a.m. on Oct. 22. Whether Weill made any difference in precipitating a deal is unclear.
On Oct. 22, Weill and John Reed issue a statement congratulating Congress and President Clinton, including 19 administration officials and lawmakers by name. The House and Senate approve a final version of the bill on Nov. 4, and Clinton signs it into law later that month.
Just days after the administration (including the Treasury Department) agrees to support the repeal, Treasury Secretary Robert Rubin, the former co-chairman of a major Wall Street investment bank, Goldman Sachs, raises eyebrows by accepting a top job at Citigroup as Weill's chief lieutenant. The previous year, Weill had called Secretary Rubin to give him advance notice of the upcoming merger announcement. When Weill told Rubin he had some important news, the secretary reportedly quipped, "You're buying the government?"
Oct.-Nov. 1999 Congress passes Financial Services Modernization Act
After 12 attempts in 25 years, Congress finally repeals Glass-Steagall, rewarding financial companies for more than 20 years and $300 million worth of lobbying efforts. Supporters hail the change as the long-overdue demise of a Depression-era relic.
On Oct. 21, with the House-Senate conference committee deadlocked after marathon negotiations, the main sticking point is partisan bickering over the bill's effect on the Community Reinvestment Act, which sets rules for lending to poor communities. Sandy Weill calls President Clinton in the evening to try to break the deadlock after Senator Phil Gramm, chairman of the Banking Committee, warned Citigroup lobbyist Roger Levy that Weill has to get White House moving on the bill or he would shut down the House-Senate conference. Serious negotiations resume, and a deal is announced at 2:45 a.m. on Oct. 22. Whether Weill made any difference in precipitating a deal is unclear.
On Oct. 22, Weill and John Reed issue a statement congratulating Congress and President Clinton, including 19 administration officials and lawmakers by name. The House and Senate approve a final version of the bill on Nov. 4, and Clinton signs it into law later that month.
Just days after the administration (including the Treasury Department) agrees to support the repeal, Treasury Secretary Robert Rubin, the former co-chairman of a major Wall Street investment bank, Goldman Sachs, raises eyebrows by accepting a top job at Citigroup as Weill's chief lieutenant. The previous year, Weill had called Secretary Rubin to give him advance notice of the upcoming merger announcement. When Weill told Rubin he had some important news, the secretary reportedly quipped, "You're buying the government?"
Ockham, this one's for you and everybody else. This article was too long so I put some of it here, but then you'll have to click on the link to see the rest......
The Myth of the Clinton Surplus October 31st, 2007 The U.S. Treasury website that tracks the U.S. National Debt proves there was never a surplus because the national debt went up every single year, and Democrat Senator Ernest Hollings said the same thing in the Senate on October 28, 1999 . This article simply explains why/how people claim otherwise for political reasons.
Time and time again, anyone reading the mainstream news or reading articles on the Internet will read the claim that President Clinton not only balanced the budget, but had a surplus. This is then used as an argument to further highlight the fiscal irresponsibility of the federal government under the Bush administration.
The claim is generally made that Clinton had a surplus of $69 billion in FY1998, $123 billion in FY1999 and $230 billion in FY2000 . In that same link, Clinton claimed that the national debt had been reduced by $360 billion in the last three years, presumably FY1998, FY1999, and FY2000--though, interestingly, $360 billion is not the sum of the alleged surpluses of the three years in question ($69B + $123B + $230B = $422B, not $360B).
While not defending the increase of the federal debt under President Bush, it is aggravating seeing Clinton's record promoted as having generated a surplus. It never happened. There was never a surplus and the cold hard facts support that position. In fact, far from a $360 billion reduction in the national debt in FY1998-FY2000, there was an increase of $281 billion.
Verifying this is as simple as accessing the U.S. Treasury (see note about this link below) website where the national debt is updated daily and a history of the debt since January 1993 can be obtained. Considering the government's fiscal year ends on the last day of September each year, and considering Clinton's budget proposal in 1993 took effect in October 1993 and concluded September 1994 (FY1994), here's the national debt at the end of each year of Clinton Budgets:
You didn't write that, and your sources are deeply flawed. However, like a lot of upchuck it's easy to toss out and requires hours of research to reduce to nonsense. There was a huge surplus according to every valid source (including Greenspan) and to simply say it wasn't there ia a lie, but one that will take time to expose. Tell me something - why did all the people who say there never was one wait until there wasn't one? Maybe I'll have the time go get the headlines, but to say it never happened is the same genre as being a German and disclaiming the holocaust - pure nonsense. The publicity of the numbers was overwhelming, unless of course Pearl Harbor was part of FDR's conspiracy - in which case, I won't trouble you with fact.
(everyone - please insert 10 minute research dead air here)
I just did some actual 'research' and frankly, your source sucks better than a 747 intake. Craig Steiner is regarded as one of the most right-wing conservative liars in the nation. If he lacks facts, he makes them up - that's what I dug up, and if he has facts, he rearranges them. "Common Sense American Conservatism" is about the same stuff as the "Holy Roman Empire;" - wasn't Holy, wasn't Roman, wasn't an empire. There's no 'common sense' available on that site, mostly because there's scant truth there. Go read some and get back to me. If that's the source you're willing to defend with your sword, you're doomed - we'll miss you at the campfires.
Rene is right. Ockham's avitar does seem like it is moving. But not when I look right at it. While I'm reading the text, that blue thing seems to be moving. So you are correct Rene.
Main Entry: surplus value Function: noun Date: 1887 : the difference in Marxist theory between the value of work done or of commodities produced by labor and the usually subsistence wages paid by the employer
Quoted Text
Main Entry: sur·plus Pronunciation: \ˈsər-(ˌ)pləs\ Function: noun Etymology: Middle English, from Anglo-French, from Medieval Latin superplus, from Latin super- + plus more — more at plus Date: 14th century 1 a: the amount that remains when use or need is satisfied b: an excess of receipts over disbursements 2: the excess of a corporation's net worth over the par or stated value of its stock — surplus adjective
there is my research short as it is.....value value value .......we have no clue......
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
The Government-Created Subprime Mortgage Meltdown by Thomas J. DiLorenzo by Thomas J. DiLorenzo
DIGG THIS
The thousands of mortgage defaults and foreclosures in the "subprime" housing market (i.e., mortgage holders with poor credit ratings) is the direct result of thirty years of government policy that has forced banks to make bad loans to un-creditworthy borrowers. The policy in question is the 1977 Community Reinvestment Act (CRA), which compels banks to make loans to low-income borrowers and in what the supporters of the Act call "communities of color" that they might not otherwise make based on purely economic criteria.
The original lobbyists for the CRA were the hardcore leftists who supported the Carter administration and were often rewarded for their support with government grants and programs like the CRA that they benefited from. These included various "neighborhood organizations," as they like to call themselves, such as "ACORN" (Association of Community Organizations for Reform Now). These organizations claim that over $1 trillion in CRA loans have been made, although no one seems to know the magnitude with much certainty. A U.S. Senate Banking Committee staffer told me about ten years ago that at least $100 billion in such loans had been made in the first twenty years of the Act.
So-called "community groups" like ACORN benefit themselves from the CRA through a process that sounds like legalized extortion. The CRA is enforced by four federal government bureaucracies: the Fed, the Comptroller of the Currency, the Office of Thrift Supervision, and the Federal Deposit Insurance Corporation. The law is set up so that any bank merger, branch expansion, or new branch creation can be postponed or prohibited by any of these four bureaucracies if a CRA "protest" is issued by a "community group." This can cost banks great sums of money, and the "community groups" understand this perfectly well. It is their leverage. They use this leverage to get the banks to give them millions of dollars as well as promising to make a certain amount of bad loans in their communities.
A man named Bruce Marks became quite notorious during the last decade for pressuring banks to earmark literally billions of dollars to his organization, the "Neighborhood Assistance Corporation of America." He once boasted to the New York Times that he had "won" loan commitments totaling $3.8 billion from Bank of America, First Union Corporation, and the Fleet Financial Group. And that is just one "community group" operating in one city – Boston.
Banks have been placed in a Catch 22 situation by the CRA: If they comply, they know they will have to suffer from more loan defaults. If they don’t comply, they face financial penalties and, worse yet, their business plans for mergers, branch expansions, etc. can be blocked by CRA protesters, which can cost a large corporation like Bank of America billions of dollars. Like most businesses, they have largely buckled under and have surrendered to their bureaucratic masters.
Consequently, banks in every community in America have been forced to hold a portfolio of bad loans, euphemistically referred to as "subprime" loans. In order to compensate themselves for the added risk of extending these loans, many lenders have increased the lending fees associated with mortgage loans. This is simply an indirect way of doing what banks always do – and what they must do to remain solvent: charging effectively higher rates of interest on riskier loans.
But this is discriminatory!, complained the "community organizations." Thus, if one browses the ACORN web site, one can read of their boasts of having "predatory lending laws" passed in numerous states which outlaw such fees, prohibiting banks from protecting themselves from the added risk involved in making forced loans to "subprime" borrowers.
These are price control laws, and price controls always cause shortages. Normally, banks would respond to such laws by extending fewer riskier loans. But in this case the banks are forced to continue making the marginal loans by their bureaucratic masters at the Fed and the other three federal bureaucracies mentioned above. So-called predatory lending laws therefore force the banks to "eat" the losses. This is undoubtedly a contributing factor to the bankruptcy of dozens of mortgage lenders over the past year.
Then of course there is the issue of the Fed’s monetary policy having created the housing bubble, characterized by a spectacular escalation of real estate values in every American city over the past decade or so. This created a further problem for the financial institutions that are victimized by the CRA. They are forced to make a certain amount of bad loans, but because of the Fed-created explosion in housing prices, many thousands of subprime borrowers no longer qualified, by a long stretch, for conventional mortgages based on their incomes.
The only way these borrowers could qualify for their mortgage loans (even ignoring their bad credit ratings) was to take out adjustable rate mortgages, some of which had astonishingly low first-year rates in the 3 percent range, and sometimes lower. This is what has largely fueled the subprime mortgage meltdown – the inability of thousands of subprime borrowers to afford their mortgages now that their rates have adjusted upward. Thus, the combination of the Fed’s enforcement of the CRA (with the help of political pressure groups like ACORN) and its post 9/11 monetary policy in general are the reasons for the bursting real estate bubble and the "subprime" mortgage meltdown.
Don’t expect to read about this in the "mainstream media," however, which generally views groups like ACORN as heroic champions of the poor, laws like the CRA as anti-discrimination laws, and places all of the blame for the subprime mortgage meltdown on greedy capitalists, especially mortgage brokers. Encouraged by such reporting, the odious Senator Charles Schumer of New York has promised federal legislation that will reign in these miscreants, while the Bush administration is proposing an indirect bank bailout by having the Federal Housing Administration cover many of the bad "subprime" loans. This will create what economists call a "moral hazard" by encouraging even more bad loans to be extended in the future. Every banker in America will be glad to extend loans (at high rates of interest) to the most uncreditworthy borrowers if he thinks there is no possibility of default with the FHA effectively guaranteeing the loan.
September 6, 2007
Thomas J. DiLorenzo [send him mail] professor of economics at Loyola College in Maryland and the author of The Real Lincoln: A New Look at Abraham Lincoln, His Agenda, and an Unnecessary War, (Three Rivers Press/Random House). His latest book is Lincoln Unmasked: What You’re Not Supposed To Know about Dishonest Abe (Crown Forum/Random House).
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