"Socialism is the only route to the salvation of the world.". This is according to Venezuelan dictator Hugo Chavez.
This is a bunch of BULL. The economic crisis we face today was largely created by government intervention into the way mortgages are handled. Starting with Jimmy Carter and then put on steroids with William Jefferson Clinton - mortgage brokers were told to create sub prime mortgages to sell to those that would otherwise be unable to afford housing.
Read this article in its entirety to better understand - I will be quoting it heavily below as well.
From the opening of the Investor's Business Daily article we read:
One of the most frequently asked questions about the subprime market meltdown and housing crisis is: How did the government get so deeply involved in the housing market?
The answer is: President Clinton wanted it that way.
Fannie Mae (FNM) and Freddie Mac, (FRE) even into the early 1990s, weren't the juggernauts they'd later be.
While President Carter in 1977 signed the Community Reinvestment Act, which pushed Fannie and Freddie to aggressively lend to minority communities, it was Clinton who supercharged the process. After entering office in 1993, he extensively rewrote Fannie's and Freddie's rules.
In so doing, he turned the two quasi-private, mortgage-funding firms into a semi-nationalized monopoly that dispensed cash to markets, made loans to large Democratic voting blocs and handed favors, jobs and money to political allies. This potent mix led inevitably to corruption and the Fannie-Freddie collapse.
Clinton went further to protect his actions to give minorities easy access to housing as Congress was switching from Democratic to Republican control and he wanted to ensure things remained as he wanted.
Clinton got the Department of Housing and Urban Development to double-team the issue. That would later prove disastrous.
Clinton's HUD secretary, Andrew Cuomo, "made a series of decisions between 1997 and 2001 that gave birth to the country's current crisis," the liberal Village Voice noted. Among those decisions were changes that let Fannie and Freddie get into subprime loan markets in a big way.
Other rule changes gave Fannie and Freddie extraordinary leverage, allowing them to hold just 2.5% of capital to back their investments, vs. 10% for banks.
Since they could borrow at lower rates than banks due to implicit government guarantees for their debt, the government-sponsored enterprises boomed.
With incentives in place, banks poured billions of dollars of loans into poor communities, often "no doc" and "no income" loans that required no money down and no verification of income.
By 2007, Fannie and Freddie owned or guaranteed nearly half of the $12 trillion U.S. mortgage market — a staggering exposure.
Fannie and Freddie became a home for out of work democrat politicians and 384 politicians got donations for campaigns from Fannie and Freddie. Banks were given incentives to lend to sub prime homebuyers. Minorities made up 49% of new home buyers between 1995-2005. Many of them have now lost their homes.
The ripple effect of these bad loans - caused by SOCIALISTIC intervention - is that our capitalistic economy world wide is suffering. They want to fix this problem with more intervention and more government aid. Fannie and Freddie are now completely government controlled. Even institutions that didn't make sub prime loans are hurting.
From the president of Arizona Federal Credit Union:
At Arizona Federal, we choose to not directly participate in these mortgage products, and thus we aren’t facing the same type of risks as other financial institutions. Our loan portfolio is a solid mix of traditional equity products, vehicle loans and personal/credit card loans. However, that doesn’t mean that we are not facing challenges in today’s economy. A small percentage of our members are facing financial difficulties brought on by mortgage loans they obtained elsewhere. Combine this with rising fuel prices, wage or job loss, falling home values and/or other economic forces, and this same group of members have been unable to fulfill their financial obligations related to car loans, credit card balances and equity loans. As a result, Arizona Federal has incurred increased loan losses which have caused short-term losses for the first half of 2008.
I wish to quote from Ezra Taft Benson from his talk "The American Heritage of Freedom" given in the October 1961 Conference:
When socialism is understood, we will realize that many of the programs advocated, and some of those already adopted in the United States, fall clearly within the category of socialism. What is socialism? It is simply the governmental ownership and management of the essential means for the production and distribution of goods.
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No true Latter-day Sainf and no true American can be a socialist or a communist or support programs leading in that direction. These evil philosophies are incompatible with Americanism, with Mormonism, and the true gospel of Jesus Christ.
What can priesthood holders do?
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First, we should become informed about communism, about socialism, and about Americanism.
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Second, we should accept the command of the Lord and treat socialistic-communism as the tool of Satan.
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Third, we should help those who have been deceived or who are misinformed to find the truth.
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He [each priesthood holder] should see that his party is working to preserve freedom, not destroy it. He should join responsible local groups interested in promoting freedom and free competitive enterprise, in studying political issues, appraising the voting records and proposed programs, and writing to members of Congress, promoting good men in public office and scrutinizing local, state, and federal agencies to see that the will of the people is carried out.
I am no great economist, but there has to be another way to fix this crisis without yoking the taxpayer into bondage and having the government take over more control of the free market or creating another government agency.
Mr Chavez you are a liar and a tool of Satan. May we all fight for freedom. Benson ended his talk by saying "May God give us the wisdom to recognize the threat to our freedom and strength to meet this danger courageously."
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