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Tuesday, November 29, 2011

Barney Franks, Maxine Waters, and the Useful Idiots

Barney Franks will not be running for re-election to a 17th term as a US Representative from Massachusetts. If you have ever heard him or know anything about his history, you must agree that this is a good development. The bad news is that Representative Maxine Waters will replace him as head Democrat on the House Banking Committee. If Democrats should take the house in the 2012 election, she will head that committee.

This is bad news because she has disdain for the free market. She loves government control and, for all intents and purposes, is a communist. In one of her most famous sound bites, she states something to the effect that “this liberal” would socialize, that is, have the government take over and run all businesses.

She hates business and loves big government projects. At various times over the last few years, she joined in the opinion of other banking committee Democrats and praised the success of the Community Reinvestment Act and of Fannie May and Freddie Mac. She took the lead of Barney Franks responding to concerns of President Bush, Senator McCain, and others, by stating before congress that Fannie May and Freddie Mac were totally sound, that there was no problem with the housing market, and that the government would never have to take them over. (Which of course it did, when they collapsed because the housing market was far from sound.) Maxine Waters stated that The Community Reinvestment Act was quite successful in doing exactly what it was designed to do, which was to force banks to make mortgage loans to poor credit risks to increase home ownership among lower income people. 1

Now Maxine Waters is saying that the crash of the housing market was caused by “greedy Wall Street bankers.” [That is, GWSB’s for short.] Now GWSB’s may indeed be greedy but they did not have the power to create the housing market meltdown of 2008. [See the book, Meltdown.] Democrat talking points were that there was “plenty of blame to go around.” At the time, Rush Limbaugh pointed out when a Democrat says that, you can be sure that the Democrats own about 95% of the blame.

But now, to listen to Democrats,the media, and the Occupy Wall Street movement, it was the GWSB’s and not the Democrats and big government policies at all that caused the housing and all other economic woes. The Occupiers believe this sort of mush because they are 99% mush brains. They are useful to the 1% of the occupiers who are communist agitators who want to bring down the financial system because they have a Marxist replacement all ready to go.


Note 1, Activist ACORN lawyer, Barak Obama, won a Chicago court case obliging banks to lend billions under the Community Reinvestment Act to borrowers who probably could not repay. Housing Secretary Cuomo admitted that this was what banks were forced to do and he thought it was great. Maxine Waters now says that the banks and the GWSB’s tricked the intercity poor into these loans by "predatory lending."