"Beginning with the Democrats and President Clinton's push to force banks and mortgage companies to lend to low-income home buyers — coupled with the Democrats running Fannie Mae and Freddie Mac — the process that has placed us in the position of heading toward the current financial debacle was put into place. Then, with Clinton's signing of the American Home Ownership and Economic Opportunity Act of 2000, the dye was cast. Institutions that did not want to lend monies to those who could not afford to buy homes were advised that they would be investigated by the government. Thus, the ARM (adjustable rate mortgage) came into being in full force. Huge balloon payments were the norm for the ARM and when they came due — equally huge foreclosure numbers for those who couldn't pay them were the result.

As foreclosures increased, a domino effect began that took down mortgage companies and publicly exposed the corruptions inherent within the Democrats' personal slush funds — Fannie Mae and Freddie Mac. Then, the commercial banks — the ones who had initially been forced to carry the bad-paper mortgages "or else" began to fail. After that, other banks and lending institutions started to experience problems and then — as the world's banks are now connected — European and Asian financial institutions have begun to crash. What was put in place by US Democrats as at its best "good intentions" for poor folk and at its worst another way to scam the system has now caused world-wide panic in financial institutions. Note: Elected Congressional Republicans — including Sen. John McCain — have tried for years to pass legislation that would provide oversight on both Fannie and Freddie. Democrats blocked each and every attempt."

(Written by Sher Zieve; Read more at http://www.renewamerica.us/columns/zieve/081007 )