” For years, home ownership was a big “good thing” among both liberal Democrats like Congressman Barney Frank and Senator Christopher Dodd, on the one hand, and moderate Republicans like President George W. Bush on the other hand.
Raising the rate of home ownership was the big red bouncing ball that they pursued out into the street, in utter disregard of the dangers.
A political myth has been created that no one warned of those dangers. But among the many who did warn were yours truly in 2005, Fortune and Barron’s magazines in 2004 and Britain’s The Economist magazine in 2003. Warnings specifically about the dangerous roles of Fannie Mae and Freddie Mac were made by Federal Reserve Chairman Alan Greenspan in 2005 and by Secretary of the Treasury John W. Snow in 2003.
In pursuit of those higher home ownership rates, especially among low-income people and minorities, the many vast powers of the federal government — from the Federal Reserve to bank regulatory agencies and even the Department of Justice, which issued threats of anti-discrimination lawsuits — were used to force banks and other lenders to lower their standards for making mortgage loans.
What makes all this painfully ironic is that the latest data show that the rate of home ownership today is lower than it has been in 18 years. There was a rise of a few percentage points during the housing boom, but that was completely erased during the housing bust. Housing has been just one area where the bouncing ball approach to political decision-making has led the country into one disaster after another.”
Tag Archive: Thomas Sowell
Thomas Sowell Dismantles Feminism and Racialism in under 5 Minutes
” What is ominous is the ease with which some people go from saying that they don’t like something to saying that the government should forbid it. When you go down that road, don’t expect freedom to survive very long.”
” After going back and forth, the government of Cyprus ultimately decided, under international pressure, to go ahead with its plan to raid people’s bank accounts. But could similar policies be imposed in other countries, including the United States?
One of the big differences between the United States and Cyprus is that the U.S. government can simply print more money to get out of a financial crisis. But Cyprus cannot print more euros, which are controlled by international institutions.
Does that mean that Americans’ money is safe in banks? Yes and no. The U.S. government is very unlikely to just seize money wholesale from people’s bank accounts, as is being done in Cyprus. But does that mean that your life savings are safe? No. There are more sophisticated ways for governments to take what you have put aside for yourself and use it for whatever politicians feel like using it for. If they do it slowly but steadily, they can take a big chunk of what you have sacrificed for years to save before you are even aware, much less alarmed.”
- Thomas Sowell: Cyprus crisis offers cautionary tale (omaha.com)
- Cyprus Bank Grab Happening in US, Slowly (libertycrier.com)
- Cyprus bank deal wipes out some large depositors, will confiscate up to 40% from others (humanevents.com)
- Cyprus Bank Grab Happening in US, Slowly (newser.com)
- The Global Elite Are Very Clearly Telling Us That They Plan To Raid Our Bank Accounts (thedailysheeple.com)
” Back in my teaching days, many years ago, one of the things I liked to ask the class to consider was this: Imagine a government agency with only two tasks: (1) building statues of Benedict Arnold and (2) providing life-saving medications to children. If this agency’s budget were cut, what would it do?
The answer, of course, is that it would cut back on the medications for children. Why? Because that would be what was most likely to get the budget cuts restored. If they cut back on building statues of Benedict Arnold, people might ask why they were building statues of Benedict Arnold in the first place.The example was deliberately extreme as an illustration. But, in the real world, the same general pattern can be seen in local, state and national government responses to budget cuts.”
” The annual outbursts of intolerance toward any display of traditional Christmas scenes, or even daring to call a Christmas tree by its name, show that today’s liberals are by no means liberal. Behind the mist of their lofty words, the totalitarian mindset shows through.
If you don’t want to have a gun in your home or in your school, that’s your choice. But don’t be such a damn fool as to advertise to the whole world that you are in “a gun-free environment” where you are a helpless target for any homicidal fiend who is armed. Is it worth a human life to be a politically correct moral exhibitionist?
The more I study the history of intellectuals, the more they seem like a wrecking crew, dismantling civilization bit by bit — replacing what works with what sounds good.”
” The fatal attraction of government is that it allows busybodies to impose decisions on others without paying any price themselves. That enables them to act as if there were no price, even when there are ruinous prices — paid by others. “
” The most successful Republican presidential candidate of the past half century– Ronald Reagan, who was elected and reelected with landslide victories– bore little resemblance to the moderate candidates that Republican conventional wisdom depicts as the key to victory, even though most of these moderate candidates have in fact gone down to defeat.
One of the biggest differences between Reagan and these latter-day losers was that Reagan paid great attention to explaining his policies and values. He was called “the great communicator,” but much more than a gift for words was involved. The issues that defined Reagan’s vision were things he had thought about, written about and debated for years before he reached the White House.
Reagan was like a veteran quarterback who comes up to the line of scrimmage, takes a glance at how the other team is deployed against him, and knows automatically what he needs to do. There is not enough time to figure it out from scratch, while waiting for the ball to be snapped. You have to have figured out such things long before the game began, and now just need to execute.”
- Experience Matters (ourdinnertable.wordpress.com)
- The End Of The Karl Rove Death Grip Signals A Reagan Renaissance (republicmainstreet.wordpress.com)
- Michael Reagan Slams GOP: They Talk About Ronald Reagan, But They Haven’t Really Embraced Him (mediaite.com)
- Is Ronald Reagan Actually a Hero of The Tea Party? (batribune.wordpress.com)
- GOP Turns Sure Victory into Defeat (Guest Voice) (themoderatevoice.com)
- Ronald Reagan Never Surrendered in the War For Freedom – Even in Defeat (tarpon.wordpress.com)
“One of the sad signs of our times is that we have demonized those who produce, subsidized those who refuse to produce, and canonized those who complain.”
“Never before have right-leaning readers been able to enjoy such a
surplus of excellence in political
commentary. Every day, on sites like this one and countless others, über-talented wordsmiths stir conservative passion and shape the national debate. In honor of our country’s Olympic basketball legacy, selecting our own literary Dream Team is in order, in recognition of ten authors atop our political pyramid. “
“What is ominous is the ease with which some people go from saying that they don’t like something to saying that the government should forbid it. When you go down that road, don’t expect freedom to survive very long.”
“The fatal attraction of government is that it allows busybodies to impose decisions on others without paying any price themselves. That enables them to act as if there were no price, even when there are ruinous prices — paid by others.”