Can liberals actually defend their position when challenged?

Here is a little exchange fostered by my post of Friday, 27 February 2009.

Dina:

never forget your best girl is a democrat.....
where's our house drawing?


I countered:

For which I have repeatedly forgiven her since Reagan was president.

This does, however, beg the question. How can anyone believe this ‘Indian rope trick’ PrezBO is trying with the economy and social order will work? The sheer intellectual dishonesty coming from the White House is mind numbing. The man sat on O’Reilly’s set and verified that he knew how you make the economy expand: you cut taxes on the people that have the money to invest. It was the first thing Kennedy did, for Christ’s sake! (And it worked!) All of Obama’s policies are a repeat of the disastrous Roosevelt administration. And FDR’s own treasury secretary said, “We tried spending our way out of the depression and it did not work.”

Would you care to comment my dear Dina? You are the only bleeding heart I know that will stand her ground and defend it. Bring it on girl!

D

Ps. For the last 16 months I’ve been scrambling to keep my house. I’m afraid gratis work will have to wait for a real conservative administration to fix the screw-ups of the last 16 years. I’ll be glad to do it, I just haven’t the time now. - See ya!


Her response:

Oh honey I am sorry about the house. If you are facing foreclosure and you mortgage has been sold since you signed the papers, tell the foreclosing body to “produce the note”. It will buy you time.
Obama has been in office a month. The fubar of the economy was not his fault. Give it a chance. And we do spend our way out of a recession. Save out of a depression.


Well, I couldn't resist:

Dearest Dina,

Not to worry! We are not in foreclosure, but we had to restructure just about everything when my income fell to half of what it was. I thought the GASP at Six Flags could take my breath! It was, and remains, scary!

Just a few thoughts on what has happened the industry I’ve been in for 25 years. And yes, I am venting, why do you ask?

I know PrezBO’s share in this fucked-up economy is small, but he had a hand in creating this fiasco.

Barack Obama, and many other community organizers, noticed that the banks were refusing to lend to people who lived in certain areas (read poor and black) and dubbed the practice ‘Red-lining.’ (You may remember the headlines from the very early 1990’s) They assumed, incorrectly, that they were seeing evidence of racial prejudice and went to Capitol Hill to wail and moan at the injustice of it all. Barney Frank (D) and Chris Dodd (D), the heads of the banking committees in the House and Senate respectively, bullied the banks into making loans that they all knew were to people that had no record of ever successfully paying money back. The banks told them it was stupid to lend money when you had no expectation of repayment, but the legislature literally gave Acorn and other community organizations the power to veto bank expansions and branch-building projects.

In order to continue to grow and stay in business the banks had to agree to make bad loans.

In short order the loans began to fail and the banks went back to Capitol Hill and told the politicians that they were being driven out of business from the levels of bad debt they were being forced to take on. So, the legislature repealed the Glass-Seagal Act and allowed the banks, for the first time since the Depression, to create securities based on mortgages. And to top that off, they ordered Freddie Mac and Fannie Mae to buy these securities, thus creating a market. They would bundle three types together: excellent, good and bad. This way they created a package that had some risk, but on the whole seamed a good investment. Many millions were made until the housing market became saturated.

A bank’s sole job is to make money for its investors, and here was a market for worthless paper that they were being forced to write. And write they did. And for twelve years all was well within the construction industry with two exceptions:

1. Too many houses were built too quickly to serve the newly created customer base among the lower classes. Waitresses were buying $750k McMansions using stated income mortgages. In short, they lied. They committed fraud. And the mortgage brokers helped them to do it. And the banking committees had changed the rules to allow them to do it with impunity.

2. Freddie Mac and Fannie Mae were literally drowning in bad debt while they were telling Congress what Congress wanted to hear. Trillions of dollars in bad debt was covered up by a simpering bunch of lickspittles that you have the honor to call members of your party. Barney and Chris were the leaders, but Maxine Waters had a hand in it too. Barney was covering the ass (literally) of his boyfriend, who was the guy that came up with the whole idea for sub-prime mortgages in the first place and was a noted high-roller at Fannie Mae. Obama’s principal financial advisor during his campaign was Franklin Raines who headed Fannie Mae for six years and walked away with $90 megabucks in compensation! And they have the gall to talk about compensation caps. And to me personally, the most disgusting thing about the entire affair is that they have successfully foisted all of this blame onto the backs of the republicans and business.

Like it or not, here is what has happened:
The democrats made the demands.
The democrats then created a false-market to make their demands work.
The democrats refuse to acknowledge their fuck-ups even when McCain (2005) and Bush (2002) were both pointing at the obvious mess they had created.
The democrats got away with it until the market became saturated and home sales collapsed.
The democrats jumped on their high-horses, pointed to the republicans, and shouted, “Look at what you did!”

And finally, the democrat’s followers, even smart ones like you, have fallen for their bullshit.

*the ball has now been lobbed back into your court.
____________________________________

I try to be open minded and I like proof of everything. Please cite for me one example of any American government spending its way out of recession. I can’t find a recession or a depression or a panic that wasn’t cured by the private sector beginning to spend again on big-ticket items like cars and washing machines.

Hope you and the mister and the puppy are well!

Luv ya anyway!

Demosthenes

Ps. The ‘Produce the note’ thing only works if the judge allows it. The constructionists on the bench tend to laugh at the dodge. Their logic being, “Well, the bank may or may not own this house, but you certainly don’t! Now, get out!” - d