''With this transgression against the Constitution, the government will be firmly in control of every aspect of the lives of American citizens. We no longer have a government of the people, by the people and for the people. It has become a government of the government, by the government, for the government. And, if we do not reverse course, our country will surely perish from the earth.''
As we count down to the final Senate vote on a government-mandated health plan that will cripple and then bankrupt the American health-care system, we must reacquaint ourselves with the results of past government intervention in the health-care system and in other areas, such as the financial meltdown.
Recently, the president met with bank executives in an attempt to increase their lending to small and mid-sized businesses, the very businesses that will suffer the most under the proposed health plan. Mr. Obama is demonstrating very clearly that he does not understand the constitutional role of the presidency. Additionally, he either misunderstands the way government has attempted to drive the United States into third world status, or else he desires this result.
Our Dear Leader still seems oblivious to the fact that the government was the cause of the financial meltdown in the first place. How can we more easily understand the process by which the government caused the financial crisis? I explained in an earlier article that undesired consequences result when the government gets into the game as opposed to restricting itself to its intended role as referee.
Let us suppose a family had just finished preparing a Thanksgiving turkey. They then left it out on the table to cool down while taking a short walk outdoors, leaving their 90-lb. German shepherd at home. Upon returning, they find the remnants of their meal scattered around a very satisfied dog. Whose fault is it that the dinner is ruined?
The government, specifically Barney Frank and Chris Dodd, promoted policies to ensure mortgages for all. Banks were encouraged to lend money to people who had no proof of income and no down payment. The government guaranteed that Fannie Mae and Freddie Mac would buy the mortgages that were issued. These mortgages can be looked at as the Thanksgiving turkey.
Financial German shepherds could not resist such a tasty treat. They purchased subprime mortgages, repackaging and reselling them for a huge profit. Of course, housing prices skyrocketed, and people who could not afford a 10 percent down payment found themselves in houses worth several hundred thousand dollars with mortgages they could not afford. John Paulson, founder of a New York hedge fund, made $15 billion in 2007 betting on the real estate bust. He tried to warn the government and Wall Street that it was going to happen, but they would not listen. http://www.wnd.com/index.php?fa=PAGE.view&pageId=119433