Subprime Suspects
The right blames the credit crisis on poor minority homeowners.
This is not merely offensive, but entirely wrong.The subtext: if only Congress
didn't force banks to lend money to poorminorities, the Dow would be well on its
way to 36,000.At Monday's hearing, Republican Rep. John Mica of Florida
gamelytried to pin Lehman's demise on Fannie and Freddie. After comparing
Lehman's small political contributions to Fannie and Freddie's much larger ones,
Mica asked Fuld what role Fannie and Freddie's failure played in Lehman's
demise.Fuld's response: "de minimis."
Lending money to poor people doesn't make you poor. Lending money poorly to rich people does.
Shame on you Mica, trying to cover up your own lack of oversight in the Government Reform and Oversight committee!
Here is another blogger's astute comments:
Oft-Repeated GOP Lie Exposed by ex-Lehman CEO
So there you have it folks. The former CEO of Lehman Brothers telling you
under oath, that Fannie and Freddie had absolutely ZERO to do with the Wall
Street meltdown.Indeed, as a column in today's Newsweek points out, the Community Reinvestment Act, which GOPers from John McCain to Ron Paul have fingered as root cause of the meltdown, only applies to depository banks. In case you haven't noticed, it is depository banks like Bank of America and JPMorgan Chase that are still standing, and purchasing up failed investment banks like Bear Stearns and Merrill Lynch.
In other words, this whole nonsense is misdirection intended to distract attention from the root cause of the meltdown, the deregulation of the financial markets by the GOP buddies of the Wall Street fat cats.
