Posted by
On the Right on Friday, September 12, 2008 3:08:36 PM
Jimmy Carter became our 39th president at the young age of 52. He was a one-term governor from Plains, Ga., where he managed the family peanut farm and taught Sunday school. He was also a graduate of the Naval Academy and served seven years in the Navy, leaving as a lieutenant.
Many people felt Carter was a good man who worked hard and meant
well. But he was naive and incompetent in handling the enormous burdens
and complex challenges of being president.
He wrongly believed Americans had an "inordinate fear of communism,"
so he lifted travel bans to Cuba, North Vietnam and Cambodia and
pardoned draft evaders. He also stopped B-1 bomber production and gave
away our strategically located Panama Canal.
His most damaging miscalculation was the withdrawal of U.S. support
for the Shah of Iran, a strong and longtime military ally. Carter
objected to the Shah's alleged mistreatment of imprisoned Soviet spies
who were working to overthrow Iran's government. He thought the exiled
Ayatollah Khomeini, being a religious man, would make a fairer leader.
On the domestic side, Carter gave us inflation of 15%, the highest
in 34 years; interest rates of 21%, the highest in 115 years; and a
severe energy crisis with lines around the block at gas stations
nationwide.
In 1977, Carter, along with a Democrat Congress, created a worthy
project with noble intentions — the Community Reinvestment Act. Over
strong industry objections, it mandated that all banks meet the credit
needs of their entire communities.
In 1995, President Clinton imposed even stronger regulations and
performance tests that coerced banks to substantially increase loans to
low-income, poverty-area borrowers or face fines or possible
restrictions on expansion. These revisions allowed for securitization
of CRA loans containing subprime mortgages.
By 1997, good loans were bundled with poor ones and sold as prime
packages to institutions here and abroad. That shifted risk from the
loan originators, freeing banks to begin pyramiding and make more of
these profitable subprime products.
Under two young, well-intended presidents, therefore, big-government
plans and mandates played a significant role in the current subprime
mortgage mess and its catastrophic consequences for the U.S. and
international economies.
Hardest-hit by the mortgage foreclosures have been the citizens that
Democrats always claim to help most — inner-city residents who fell
victim to low or no down payment schemes, unexpected adjustable rates,
deceptive loan applications and commission-hungry salespeople.
Now we're having to bail out at huge cost Fannie Mae and Freddie
Mac, the very agencies that were supposed to stabilize the system. In
time, this should improve the situation. But the party of Carter and
Clinton that midwifed our mortgage mess now wants to be trusted to take
over and have the government run our entire system of health care!