Okay McCain; Let’s Stow the Bipartisanship
So McCain has voted on the Senate bailout bill. And, we have Obama and Biden on record as well; all three voted “aye.”
Now, it’s time to stop preening as Mr. Bipartisan and start running for president. And, as the titular head of the GOP, McCain, win or lose, has a duty and responsibility to run as hard as possible to keep the election close so the GOP can maintain a viable opposition in the House and deny the Democrats a filibuster-proof majority in the Senate.
The only reason for McCain for reaching across the aisle is with both to strangle the opposition. He’s got three remaining debates and thirty days to make sure that Democratic Party corruption in protecting their favor honey pots at Fannie Mae and Freddie Mac are the origins of this financial crisis. Attempts, primarily by the GOP and in particular McCain, to reform Fannie and Freddie were rebuffed on a party line votes on numerous occasions. No matter what the occasion, no matter what the question, the mantra is always: Democrats, corruption, Fannie Mae.
Nor, was this a failure of free market economics. This was a political decision to give certain favored voter blocks cheap housing regardless of ability to really afford that housing.
Time was that you got a 30 year, fixed-rate mortgage with 20 percent down and a mortgage payment no larger than 25 percent of your net monthly income. These were not unreasonable conditions that worked and, since WW II, created a middle class by giving them the means to develop equity in the form of home ownership. And, governmental invention in this original situation reflected market conditions that would realistically allow stable maintenance of a mortgage with a low default rate.
The political decision implicit in the Community Reinvestment Act was to make home ownership available to persons who had no realistic ability to do the same. A political decision reinforced by Obama’s former employer, ACORN. It was a political decision to proceed even though free market conditions would have not proceeded with such loans, sans a federal guarantee, since a high default rate would result. And did.
So, the real cause of this crisis is corrupt governmental intrusion into the free market. There was never an unsoundness of free market economics. Rather, it was the unsoundness of the decision, by governmental fiat, to essentially legislate that water will flow uphill. And, after linking the corruption to the Democrats, this is the other point McCain needs to drive home.
The Democrats might want to learn from this as well. Because the econmic hard times will be associated with the party that dominates as of January 20, 2009. Remember, it was Hoover’s depression since he was saddled with the 1929 crash from 1929 to 1932. This crisis is hitting with Bush already a past memory.