“Here in America, we know the free market is the greatest force for economic progress the world has ever known. But we also know the free market works best for everyone when we have smart, commonsense rules in place to prevent irresponsible behavior,”
That is an amazing statement. First of all, anyone who has children understands that putting rules in place to prevent irresponsible behavior does not always work–allowing people to suffer the consequences of their irresponsible behavior eventually works–sometimes it takes a while. Unfortunately our society has padded the floor too many times and has helped people avoid the consequences of their irresponsible behavior. Controlling the free market is not the answer–allowing the free market to work properly is.
Meanwhile, speaking of irresponsible behavior–what about irresponsible behavior that was encouraged by the government?
In June of 2012, Free Republic reported the following:
Remember the outrage over the exposure of ACORN travesties including voter fraud and offering advice on tax evasion that led to Congress overwhelmingly voting to defund the scandal plagued organization (345-71 in the House, 85-11 in the Senate)?
Less salacious, but far more economically disastrous was the “starring role” that ACORN played in precipitating the financial meltdown of 2008 initiated by the sub-prime mortgage market meltdown. According to acclaimed investigative journalist Matthew Vadum, ACORN’s “wanton disregard for the economic wellbeing of America” through the very direct involvement for decades in federal housing policy and programs at Fannie Mae and Freddie Mac, perpetually weakening underwriting standards, and ignoring or even falsifying loan documentation put ACORN squarely at the center of the collapse of the sub-prime mortgage house of cards.
Huge numbers of loans that eventually became the problem trace to ACORN originations. Vadum discovered that ACORN housing brochures openly bragged about how they undermined mortgage loan underwriting standards.
Joe McGavin used to be the director of counseling for ACORN housing in Chicago and operations manager for an ACORN offshoot, Affordable Housing Centers of America (ACHOA). After the scandal-ridden collapse of ACORN, McGavin resurfaced in 2011 as the new director of the Illinois Hardest Hit Program. The Hardest Hit Fund (HHF) is one of many programs established by the Obama Administration to “assist homeowners who have experienced an income reduction due to unemployment or substantial underemployment” during the economic recession.
Mr. President, clean your own house first.