Blaming idiot

A natural reaction to the housing crisis was the questioning of many in the press and government as to whether our banking and financial sectors were properly regulated. Unfortunately, our banking and financial sectors represent the plutocracy and thus care more about making money than the welfare of ordinary Americans.

It comes as no surprise, then, when a media arm of the plutocracy-- the Oklahoman-- runs a letter sewing as much misinformation it can about the crisis. In it, Robert Bostick of Altus writes:

News that the U.S. Department of Justice is going after Standard & Poor's over pre-crisis mortgages is startling; it shows how far the Obama administration will go to take away focus on those really responsible for the home mortgage crash. U.S. Attorney General Eric Holder is seeking to prosecute S&P when he ought to be going after the real culprits: Barney Frank, Chris Dodd, Chuck Schumer and others involved in encouraging (forcing under pressure) Freddie Mac and Fannie Mae executives to provide mortgages to people who weren't eligible for them.

It is sad knowing that people as stupid and willfully uninformed as Mr. Bostick exist in this country. At issue is this: were the actions of Freddie Mac and Fannie Mae the culprits of the economic disaster of 2008 and beyond? The short answer is, well, no. The larger answer is that Freddie Mac and Fannie Mae accounted for less than a quarter of all "all subprime and alt-A mortgage loans," or "loans to financially fragile homeowners." The bulk of those loans went to private lenders. Indeed, by 2006-- the height of the housing boom-- the market share of Freddie Mac and Fannie Mae for loans had gone from 54% to 40%.

These are basic facts that anyone could check. However, the Oklahoman wants us to believe that the real culprit wasn't from predatory loans sought out largely by private banks and financial institutions. Rather, they want people to think that A) it was from government-backed agencies that gave out loans to "people who weren't eligible for them" (right wing code language for "brown people"), and B) that these agencies were cajoled by Democrats to do so (obviously pushing their anti-white agenda).

Pushing such lies lets the plutocrats off the hook, and pushes classic hot-button issues ("it's all the fault of do-gooders trying to help the coloreds!") that rally the base. It's pathetic and the editors should be ashamed that they run such drivel.