A Tantamount Admission

by: the Common Constitutionalist

It’s not often a government, any government, admits how incompetent it’s been for so many years, but the Consumer Financial Protection Bureau (CFPB) has done just that. They have also, unwittingly, laid out the argument against government interference and intervention in the engine of America, the private sector marketplace.

The AP recently reported, “Federal regulators for the first time are laying out rules aimed at ensuring that mortgage borrowers can afford to repay the loans they take out. The rules unveiled Thursday by the Consumer Financial Protection Bureau impose a range of reformobligations and restrictions on lenders, including bans on the risky ‘interest only’ and ‘no documentation’ loans that helped inflate the housing bubble.”

“Lenders will be required to verify and inspect borrowers financial records. The results discourage them from saddling borrowers with total debt payments totaling more than 43% of the persons annual income. That includes existing debts like credit cards and student loans.”

“CFPB director Richard Cordray, in remarks prepared for the event Thursday, called the rules, ‘the true essence of responsible lending’.”

So you may ask yourself; self, if this is the first time they (the government) have insisted on these “new” rules, what have they been doing all these years?

Have the feds simply had a “hands-off” approach regarding lenders? Is that the reason for the mortgage crisis and subsequent meltdown?

For all these years the federal government has stood by and allowed evil “big banks” to use predatory lending practices to prey on the innocent and unsuspecting homebuyer.

Well, that’s not exactly how things have been. As a matter of fact, it’s pretty much the polar opposite of what I just described.

CRAInterventionalist “Nanny” government policy always begins with progressive administrations. Thus it was with Jimmy Carter. Jimmy Carter’s is the administration that gave us the “Community Reinvestment Act” (CRA).

As progressives are always wanting, Carter’s plan was, through the force of government, to provide “affordable housing” to those he deemed less fortunate. According to progressives, the government is both arbiter of what is fair and can always fix any problem. And you see, it’s simply not fair to deny people the right to affordable housing. Progressives are all about fairness, ya know.

As one would expect, during the Reagan years, Carter’s grand plan just languished in the shadows. It wasn’t until the progressive Clinton administration that the CRA got legs. Actually, more like wings or a jet pack.

Clinton rediscovered Carter’s plan and pumped it full of steroids. Through the power of his Justice Department and his stooge Janet Reno, he forced banks to offer mortgages to those who could not afford to purchase a home, nor had a prayer of paying back the loan.

Reno threatened banks with regulations and stiff penalties, to make these loans, so the banks, in turn, were forced to come up with ways to make the mortgages more palatable, such as “interest only” and “no documentation” loans. If one were of a “preferred” class, one would not even have to prove he or she was employed.CRA1

All this, so the Clinton administration could show the voters how, under Bubba”s rule, the American dream of owning a home could be realized.

So where did that leave the banks? In a mighty tough spot!

The government forced them to make loans and thus they got stuck with a lot of worthless mortgages from people who couldn’t pay them.

Well, the banks could not just sit on this worthless investment. So with the aid of the corrupt quasi-government run Fannie Mae and Freddie Mac, the banks packaged the loans together and called them “Mortgage Backed Securities” (MBS).

The banks then sold these “investments” to unsuspecting buyers who thought they would have a nice steady and stable income stream. Of course the buyers were wrong and upon discovering they had been duped, they simply repackaged the MBS’s and resold them. Eventually the scheme ran its course and there were no dupes left for whom to sell.

During this time the George W Bush administration tried to clamp down on Freddie, Fannie and the banks, but were descended upon by powerful Democrats such as Barney Frank, Chris Dodd and Maxine Waters. The dems claimed that all was well and those chris dodd barney franktrying to solve the problem and stop the easy money practice just wanted to deny minorities the American dream, homeownership.

That, in a nutshell, was the cause of the housing crisis and subsequent financial meltdown that continues to plague us. All those hundreds of billions of dollars (if not more) in bank bailouts are due to an activist government playing favorites with our money.

As an aside, if you, like me, had to endure an anal exam to purchase a home during that same, easy money era, you can be sure you were not of the favored class. You were most likely employed, not on welfare or collecting food stamps, as many were who received these government mandated loans.

So now, as they always do, the government wizards of smart have stepped in to attempt to remedy a problem they themselves caused.

Although they most certainly don’t realize it, at least this time our government has admitted it was the cause of our country’s financial meltdown.

Iran Endorsement

Iran Endorses Obama Pick Hagel for U.S. Secretary of Defense

Iran’s Foreign Ministry dumped more fuel on the fire of former Senator Chuck Hagel’s (R–NE) nomination for Secretary of Defense by announcing its approval for President Obama’s pick.

It’s no secret that Hagel, an outspoken critic of sanctions on Iran, has preferred a policy of engagement and direct talks with the rogue state. In 2001, Hagel voted not to renew the Iran–Libya Sanctions Act, denying said countries money that would be spent on funding terrorism and/or acquiring weapons of mass destruction.

Then, in 2007, Hagel voted against designating Iran’s Revolutionary Guards Corps as a terrorist organization, despite the force’s role in orchestrating attacks against U.S. troops in Iraq. Hagel further opposed the Iran Counter–Proliferation Act and sent a letter to President George W. Bush, urging him to engage in “direct, unconditional, and comprehensive talks with the Government of Iran.”  Continue Reading at Heritage

Middle Class Tax…Increase

13 Tax Increases Just Went Into Effect – Obama: “I Won’t Raise Taxes on Middle Class America”

If I had $100 for every time I heard Barack Obama promise us that he would not raise taxes on middle class Americans, I could afford to take my family on a Hawaiian vacation.

Between the fiscal cliff resolution which wasn’t a resolution after all, and Obamacare, there are 13 new tax increases that will directly or indirectly impact everyone in America, including the middle and poverty class people.

Taxes with a direct impact on the middle and poverty class:

1.  Right off the bat, the fiscal cliff agreement that would only raise taxes on the wealthy, just raised EVERYONE’S payroll Social Security tax by 2%.  The old rate was 4.2%, but that was raised for everyone across the board to 6.2%.  A family making a combined gross of $50,000 will pay an additional $1,000 in Social Security taxes.  Right there Obama broke his promise and proved to the entire nation that he is a blatant liar and that his word can never be trusted.  Not exactly a trait you want in your national bleeder, I mean leader.  Continue Reading at GodFather Politics 

Destination Tyranny

by: the Common Constitutionalist

I have stated for years and still contend, socialism is not a destination. It is merely a direction on a compass or a stepping stone on the path toward an eventual destination. More often than not, that final destination is some form of despotism, such as fascism or communism; certainly tyrannical.

Well, it seems my once conservative state of New Hampshire appears to be leapfrogging socialism and is making a beeline to the despotic.

cynthia-chaseA New Hampshire state representative, Cynthia Chase, feels free state conservatives are the states, “single biggest threat” and assured her constituents she will attempt to, “pass measures that will restrict the freedoms of granite state conservatives”.

Evidently conservatives are more of a threat than is terrorism, the crumbling economy, lack of jobs or even, dare I say it, Global Warming.

She recently posted a blog on the lefty website Blue Hampshire.

In her December 21 blog post she wrote:

“In the opinion of this Democrat, Free Staters are the single biggest threat the state is facing today. There is, legally, nothing we can do to prevent them from moving here to take over the state, which is their openly stated goal. In this country you can move anywhere you choose and they have that same right. What we can do is to make the environment here so unwelcoming that some will choose not to come, and some may actually leave. One way is to pass measures that will restrict the ‘freedoms’ that they think they will find here. Another is to shine the bright light of publicity on who they are and why they are coming.”

For those unfamiliar, “Free Staters” are conservatives that, as part of the “Free State Project”, move to New Hampshire, as well as other states, and settle into Live-free-or-diecommunities. There they run for local office in an attempt to further the conservative cause. They, the Free Staters, claim New Hampshire’s “Live Free or Die” motto should actually mean something. What a novel idea!

Ms. Chase, on the other hand, would prefer to use the power of the state to target certain individuals. That’s the American Soviet way.

She has evidently learned a few things from the union thugs and “Occupy Wall Streeters” that no doubt support her, when Chase stated she would like to, “shine the bright light of publicity on who they are and why they are coming”.

What could she mean by the bright light of publicity? Might she wish to encourage fellow leftists to visit, picket and otherwise harass peaceful freedom loving citizens in their homes and places of business? You can bank on it. Richard Trumka would be proud.

Seriously folks, is this not the definition of tyranny?

Just imagine if after winning his recall election, Wisconsin Gov. Scott Walker posted a blog stating he would target blacks and homosexuals. The governor’s blog post would reflect his scott walkerdesire to make blacks and homosexuals so uncomfortable that they would pack up and leave Wisconsin.

The post would end up on the front page of every newspaper and be the lead story of all news outlets; Internet, television and radio four weeks, as well it should. Have you seen the Chase story anywhere?

Would the governor have every right to write the post? Absolutely, and I would defend his right just as I defend Ms. Chase’s right to say what she actually did say. Freedom of speech is a much different thing than the desire to bring the force of the state against its citizens.

We have a serious and growing problem in America. Supposed Constitutional law professors and Nobel Prize winners wish to scrap the very thing that made America different and better than all others in history; our Constitution.

With the reelection of a president by a country filled with citizens completely devoid of any understanding of history, we should expect more Cynthia Chases, or worse.

If a state becomes too oppressive, one can always move to a freer state.

What happens when a country becomes tyrannical?

Attribution: Breitbart, Rush Limbaugh

Scrap the Constitution

An Appeal for Dictatorship Comes Out of the Closet at the New York  Times

True  to form, the New York Times saw out 2012 by publishing another apology  for dictatorship. In his op-ed, Louis Michael Seidman — Professor  of Constitutional Law at Georgetown University – argues that the Constitution should be  abandoned.  The suggestion is so preposterous that it is tempting to  dismiss the article altogether, but to do so would be to miss some very  revealing implications.  The article is not so much a suggestion of  constitutional reform as an open call for dictatorship.

Seidman  begins by blaming the current governmental crisis, incredibly, on “obedience to  the Constitution,” which he describes as containing “archaic, idiosyncratic and  downright evil provisions.”  He does, however, lament that when some wise  government official reaches a decision on what will benefit the country, he is  likely to be stymied by this document.  Seidman expresses doubt about the  rationality of letting our wise official be dissuaded by the views of “a group  of white propertied men who have been dead for two centuries, knew nothing of  our present situation, acted illegally under existing law and thought it was  fine to own slaves.”  Continue Reading

Flush With Anti-Gun Bills

With the left looking for its next big cause, Congressional Democrats have latched onto the Sandy Hook massacre as an opportunity to push gun control. Yesterday alone, eight new bills were introduced relating to gun control. Two conservative bills were introduced relating to ending “gun free zones” under federal law.

Rep. Carolyn McCarthy (D-NY) led the way with four bills introduced. Her husband was shot to death in 1993 and her son was severely injured when Colin Ferguson, a mentally unstable black militant (he spent time in his apartment chanting, “all the black people killing all the white people”), shot up a Long Island commuter train.

She has been a longtime gun control advocate. In 1997, she tried to push a federal law that would have mandated trigger locks on all firearms. She introduced legislation that would have forced gun companies to produce firearms that were “child-resistant.” In 2007, she tried an “assault weapons” ban that would have targeted some 65 types of firearms.

The measures McCarthy introduced include:

  • Significant restrictions on gun show transactions, which would in effect end gun shows;
  • No online purchases of ammunition, and licensing of ammunition dealers, as well as reporting to the federal government all bulk ammunition purchases;
  • Prohibition on the transfer, sale, or possession of ammunition clips beyond a certain size.  Continue Reading