Setting The Record Straight Four Years Later

It has long been leftist dogma that "the failed policies of the Bush administration" caused our economic meltdown.  That statement was usually followed by vague references to "deregulation" and Wall St. greed. It has been the single most destructive lie of my lifetime. And because of it, we now have another four years of Obama

I pointed out over four years ago that the left's social engineering with the Community Reinvestment Act (CRA) caused both the housing bubble and the destruction of credit standards - all leading directly to our economic meltdown. Recently, the IBD published a concurence:

Democrats and the media insist the Community Reinvestment Act, the anti-redlining law beefed up by President Clinton, had nothing to do with the subprime mortgage crisis and recession.

But a new study by the respected National Bureau of Economic Research finds, "Yes, it did. We find that adherence to that act led to riskier lending by banks."

Added NBER: "There is a clear pattern of increased defaults for loans made by these banks in quarters around the (CRA) exam. Moreover, the effects are larger for loans made within CRA tracts," or predominantly low-income and minority areas.

To satisfy CRA examiners, "flexible" lending by large banks rose an average 5% and those loans defaulted about 15% more often, the 43-page study found.

The strongest link between CRA lending and defaults took place in the runup to the crisis — 2004 to 2006 — when banks rapidly sold CRA mortgages for securitization by Fannie Mae and Freddie Mac and Wall Street.

CRA regulations are at the core of Fannie's and Freddie's so-called affordable housing mission. In the early 1990s, a Democrat Congress gave HUD the authority to set and enforce (through fines) CRA-grade loan quotas at Fannie and Freddie.

It passed a law requiring the government-backed agencies to "assist insured depository institutions to meet their obligations under the (CRA)." The goal was to help banks meet lending quotas by buying their CRA loans.

But they had to loosen underwriting standards to do it. And that's what they did. . . .

Read the entire article here. Expect this to get zero play outside of the IBD.

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IBD's Guide To Debunking Obama's Economic Myths

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IBD, in a recent editorial, explores the five myths on which Obama rests his reelection bid. The thumbnail:

1. The Bush tax cuts and deregulation caused the recession. IBD and I are in agreement on that one - it was almost two decades of left wing social engineering of our credit market that caused the massive housing bubble - and with it, the but for cause of our great recession.

2. Obama stopped a second depression. Not quite. The recession bottomed out before Obama took office. Obama's contribution has been in preventing recovery.

3. Obama's economic policies are working. If by that Obama means his policies have lowered median income, replaced jobs lost in the recession with low wage entry level jobs, caused record long term unemployment, and increased the numbers of Americans in poverty, then yes, Obama's policies have been an epic success.

4. A slow recovery was inevitable. This is an excuse Obama only trotted out after his economic policies failed.

5. Nobody could have done any better. History teaches that deep recessions are followed by faster recoveries - at least until Obama. As IBD notes:

Since World War II, there have been 10 recoveries before Obama's. Had Obama's merely performed as well the average of all those recoveries, the nation's GDP would be a staggering $1.2 trillion bigger than it is today, and 7.9 million more people would have jobs.

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The House Anti-Terrorism/Jihad Caucus

Rep. Sue Myrick, R-N.C., founded the House Anti-Terrorism/Jihad Caucus out of concern with the national threat growing out of Islam. It is now a bi-partisan group boasting 118 members. She was interviewed in Investor's Business Daily approximately two weeks ago. She shared her concern with the threat and her belief that the U.S. government is still not adequately adressing the problem.

IBD: What persuaded you to start the Anti-Terrorism/Jihad Caucus, and what do you hope to accomplish?

Myrick: I decided to start the caucus out of a deep frustration, because President Bush does not talk to the American people about the long-term threat of radical Islamofascism infiltration in America. Since 9/11, I've tried to get the president and several members of his administration to talk to the American people about the dangerous enemy that we're facing. . . We hope to start a dialogue with America. Until, and unless, we understand what we are fighting, we have no chance. We must inform the people, since it is evident they will have to protect their national sovereignty, because the government is not doing it. . .

IBD: Should Americans be concerned about recently declassified documents detailing a secret plot by Islamist groups in this country, tied to the dangerous Muslim Brotherhood, to take over America from within, to Islamize our society?

Myrick: Americans must be concerned — alarmed. That is what I am referring to when I say that the administration has not explained who we are fighting and (where we are fighting them). "We're fighting them over there so we don't have to fight them over here" is not the whole story. It is amazing that we actually have the enemy's playbook, yet for some reason we don't want to seriously confront the threat we are facing.

The radical Islamofascists have told us how they intend to infiltrate all areas of our society and use the freedoms that are guaranteed under our Constitution to eventually Islamize our country, eliminate our Constitution and enact Shariah law. I know that it sounds a bit fanatical, but it's true. . .

IBD: Are there any Muslim groups with which federal or other government officials — as well as businesses and nonprofits — should think twice about doing outreach or interfaith activities?

Myrick: I know of some Muslim nongovernmental organizations that are doing good things, such as the Islamic Supreme Council of America, the American Islamic Congress and the American Islamic Forum for Democracy.

However, groups such as Council on American-Islamic Relations (CAIR), the Islamic Society of North America (ISNA) and others have a proven record of senior officials being indicted and either imprisoned or deported from the U.S. Just to name a few: Ghassan Elashi, a founding board member of CAIR, is serving 80 months in prison; Randall "Ismail" Royer, the communications director for CAIR, is serving 20 years in prison; and Bassam Khafagi, the director of CAIR's community relations, has been arrested and deported.

There was a lot of evidence presented at the recent Holy Land Foundation trial, which exposed CAIR, ISNA and others as front groups for the Muslim Brotherhood. . .

IBD: We often hear that Islam is a "religion of peace" and "tolerance," and that jihadists have "hijacked" or "perverted" a "great religion." Is this accurate, that nothing in Islam promotes or condones violent jihad against infidels? Or does such rhetoric simply play into the Islamists' hands in their attempts to sugarcoat the threat, and confuse Americans?

Myrick: There are definitely passages in the Quran that promote or condone violent jihad. However, you can also find passages in the Bible which promote violence. I think that the president is failing the American people by sugarcoating the problem we are facing and only making things worse for the future.

We should explore every means of encouraging moderate Muslims to speak out against the radicals. There are many who want to, and do — such as Sheikh (Muhammad Hisham) Kabbani (of the Islamic Supreme Council of America) and Zainab al-Suwaij (of the American Islamic Congress) and Dr. Zuhdi Jasser (of the American Islamic Forum for Democracy). But they do not get the media attention.

IBD: Many Islamists are well-spoken, and seem skilled at manipulating not only our media but our laws. If they can use our constitutional freedoms against us to block due scrutiny, what chance do we have of marginalizing them?

Myrick: Over the last 25 years, there has been a concerted effort on the part of radical Islamists to infiltrate our major institutions in America. They have done that by funding professors' projects in our colleges and universities. Then, they influence what is taught by making the program dependent on their yearly donations. Several classes have graduated and are now in the media, the judicial system, teaching in our schools and colleges, various branches of our government, even in our military. They are masterful at manipulating minds to fit their purposes.

IBD: How can they be exposed?

Myrick: We need to shed the veil of political correctness that shields government officials from speaking out against them. Until we do that, we do not have a chance of marginalizing them. As soon as someone broaches the idea that the Quran has violent passages, they get shot down as Islamophobes and racists.

Rather than debate these points, groups like CAIR seek to silence the debate. The American people deserve to see and hear the debate, but most people in positions of influence are afraid to say anything.

IBD: Jihad watchers have warned about "Shariah creep" in schools and local governments. We see Shariah being practiced in some parts of Europe; could it happen here?

Myrick: I believe Shariah could easily be practiced here. If a local community becomes infiltrated by extremists who run the town or village operations, then it could easily be implemented in this country. Unchallenged, it will happen. . .

IBD: Christian prison chaplains warn that Muslim chaplains are converting inmates to Islam by the cellblock. Are the Justice Department and the Federal Bureau of Prisons doing enough to monitor this situation?

Myrick: They are aware of it and are supposedly monitoring it. Also, I have read that Abdurahman Alamoudi, founder of the American Muslim Council, placed Muslim chaplains throughout our military. He is now in jail on charges of terrorism. The chaplains, to my knowledge, are still in their current positions. Go figure.

Read the entire interview here.

(Hattip AIFD)

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