Admin

Overhaul the Regulatory System???

By
Real Estate Broker/Owner with Kelley Graves Realty, LLC

Without going into partisan politics, one has to wonder about Obama's comment to Katie Couric on the 9/16/08 nightly news.  She inquired, in wake of the massive current financial problems, such as with Merrill Lynch and AIG, what he would do to "fix the problem."  Obama's response was "I would overhaul the regulatory system."  Though I don't always agree with John Stossel on 20-20, this has to fall in the category of "Gimme a break!"  Everyone knows that the current financial crisis is the result of liberal lending in the housing sector.  Much of this lending was the direct result of subprime lending.  Much of subprime lending was instigated by politicians, such as Obama, under the delusion of that "subprime borrowers" can be magically converted responsible borrowers, "if they only have a chance."

If anyone thinks that a liberal Democrat in office will ever do anything to sharply restrict lending to marginally qualified borrowers, which are coincidentally oftentimes minority borrowers....come see me about some property out in West Texas.  The policy of "every American deserves to own a home" is the very policy that leads down this road of ruin.  No, every American does not "deserve" a home.  They deserve what they earn, not what they are given.  One way is socialism, and the other is capitalism.  Yes, the regulatory system does need overhaul.  But, do not expect that to be part of the "change" Obama will bring.  This trend began with Clinton, when he successfully lowered the emphasis on the income of a married couple to apply equally to "any two persons acting as co-borrowers." (Don't believe me, ask a government housing program person when the definition changed).  The Republicans never had the strength or resolve to stop a train that was already in motion, and one that the financial community was happily feeding on.

Who will actually fix the problem?  Good question.  Maybe it will take a pitbull with lipstick.

 

Comments(5)

Show All Comments Sort:
Ann-Marie Clements
Candidate for an Ed.D. in Educational Leadership - Saint John, NB
Ed.D. candidate, Innovative Proactive Principa

Hi Steve,

DEREGULATION began with the REPUBLICAN CONGRESS, look back at your history!!!  The same people that voted "THE BUSHES", daddy and son, are the same people that tend to revote the same dysfunctional leaders again.  The more I look back at my country, now that I'm living outside of it, the more I realize that "WE ARE A GLUTTON FOR PUNISHMENT!!!"

We, as a country, haven't learned our lessons, and in this case, we will probably repeat history again.  Where will our country be then??

                                              ;>)

Sep 16, 2008 11:16 AM
Tim and Pam Cash
Crye-Leike (Sango) - Clarksville, TN
Real Estate Professionals - Clarksville TN

Steve, good post.  I have one argument to your comments.  I believe that EVERY politician shares blame for this.  While it is understood that the Democrats rule the roost right now - the Republicans are at fault in that they did not speak out loud enough (if that was their opinion) to get changes.

There has to be a control on lobbiest in Washington and the State Houses. 

Watching the political speechs of the day made me laugh - many on the left are quick to blame the President for all our woes - Last I checked, he has power, but he does not have wholesale approval to pass laws and bills. 

Gotta love it how every politician in Washington is pointing the finger at each other.  Time for change in America for sure, but it needs to be across the board.  Term limits are certainly looking good.  That and do away with the plush retirement plan - make the policians count on Social Security like the rest of us.  I could go on..

Sep 16, 2008 11:17 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Evening Steve,  You certainly have a right to free speech but it does come with an obligation to be based on facts.  The Republican administration took us down this road.  And if you want a more significant connection - McCain's chief financial ad visor is the number two man in control of the banking mess !   Who will he turn to for advice - after all he thinks the economy is fundamentally sound - the guys who helped create this disaster.

Sep 16, 2008 11:26 AM
Kerry Jenkins
Prime Properties - Crestline, CA

So does the general feeling out here in active rain land think that obama is the answer to our problems?  Hasn't he only had 143 days of actual Senate time?

Sep 16, 2008 11:53 AM
Steve Kelley
Kelley Graves Realty, LLC - Georgetown, TX

It is interesting how some people seem so sure of "the facts" that are mostly skewed one way or another.  ACTUALLY, the facts are, the "Institutions Dregulation and Monetary Control Act of 1980", which unless MY history is skewed, was passed by a Democratic Congress and signed into law by a Democratic President (Carter), was actually the biggest part of deregulation.  This law lowered the depository requirements for lending institutions.

I  don't let the Bush Administration off the hook, and I believe my original posted stated that the Republicans were also to blame for continuing a bad trend. 

My point is, Senator Obama WILL NOT promote more responsible lending which will result in fewer loans to those with bad credit and/or minorities.  You can take that to a deregulated bank and count on it.  If you believe that is what is best for your business, and that is what determines your vote, by all means, that is what you should do. 

It is a free country.

Sep 16, 2008 12:25 PM