Artur Davis Blames Fellow Democrats for Financial Market Meltdown

Alabama congressman Artur Davis issued a statement yesterday to "Hannity & Colmes," in response to last night’s airing of clips from the 2004 Congressional oversight hearing of Fannie Mae and Freddie Mac.

“Like a lot of my Democratic colleagues, I was too slow to appreciate the recklessness of Fannie Mae and Freddie Mac. I defended their efforts to encourage affordable homeownership, when in retrospect I should have heeded the concerns raised by their regulator in 2004. Frankly, I wish my Democratic colleagues would admit that when it comes to Fannie and Freddie, we were wrong. By the way, I wish my Republican colleagues would admit that they missed the early warning signs that Wall Street deregulation was overheating the securities market and promoting dangerously lax lending practices. When it comes to the debacle in our capital markets, there is much blame to go around for both sides.”

(WATCH THE VIDEO BELOW TO THE END. OUR COUNTRY DEPENDS ON YOUR VOTE IN NOVEMBER.)

The root cause of our financial market meltdown is the housing foreclosure crisis, caused by Fannie Mae and Freddie Mac giving bad loans to people who couldn’t afford them. The crash is now called the Housing Bubble bursting. Remember when Bill Clinton was President he had what was called then the Dot Com, or Technology Bubble burst, and that caused our markets to crash as well. Every time the democrats gain control of our government they crash our financial markets. Not only did Bill Clinton, a democrat, cause the Dot Com Bubble to burst, and cause a stock market crash, we can thank Clinton, Jimmy Carter, and the democratic majority congress, for the Housing Bubble that caused our current stock market crash that is rippling into global markets.

The current market crash was set in motion when Jimmy Carter and the democratic majority Congress passed the Community Reinvestment Act. The act actually gave INCENTIVES to low income borrowers to get home mortgages they couldn’t afford. In 1995 Bill Clinton revised the Community Reinvestment Act forcing banks to approve subprime mortgages even though it might result in defaulting on the loan, because borrowers couldn’t afford to keep up with the payments. The risk of defaulting on those loans was huge, but it was okay after Clinton’s revisions because he made it law that the government would back up the loans, like a co-signer. Banks then were FORCED to give out $1 Trillion in new SUBPRIME loans. Does that number sound familiar? It should. That is the exact amount being proposed to bailout the banks and financial markets today.

Artur Davis admits the democrats were at fault. The republicans, especially John McCain, warned in 2004 that tax payers would be stuck with the bill if something wasn’t done to correct the accounting fraud, and bad loans stemming from the Community Reinvestment Act. Republicans also warned in 2004 that Fannie Mae and Freddie Mac were at the center of the problem, and both agaencies were owned by the Federal government, so they had the power to stop the train before it crashed the stock market today. Democrats got angry, as seen the video above, and said there was no problem, so they blocked any effort to reform the lending practices, and now we have the stock market, and mortgage market crash that could cause another 1929 depression. The bailout will cost tax payers more than $4,000 each. Thank you democrat party for creating the worst financial disaster in our country’s history. To make things worse, Barack Obama says he’ll raise taxes if he is elected.

Don’t forget, when those same low income home owners default on their home mortgage a second time, our democrat congress, will once again try to blame someone else, while again demanding the tax payers bailout the home mortgage market again.

Watch the video below and learn what you need to know to make an informed choice in the November election.