Don’t Believe the Perriello Lies

Published October 22, 2010 in the Lynchburg Ledger

Don’t Believe the Perriello Lies

 by Bill Wheaton

Press Media Group, LLC

With the election only days away, we need to separate the lies from the truth when it comes to the economy.

If Tom Perriello was at all proud of what he has accomplished in Washington, you would expect him to campaign on all the things he did.  Rather he is engaging in revisionist history and attacking Robert Hurt, trying to place Hurt to his left.

Our economy is in the tank for one reason and one reason only – the collapse of the housing market.  In a recent book by noted economist and columnist Thomas Sowell, The Housing Boom and Bust, the author explains what led up to today’s economic woes.

The roots go back to 1977 during the Democrat Carter administration when Democrat majority Congress passed the Community Reinvestment Act.  The so-called problem they were addressing was that it was difficult to get financing in the inner city, and the Democrats attributed it to racial discrimination.  

The fact was that real estate values in those areas were declining and many applying for finance didn’t qualify.

Like many government programs this one started small, but did not stay that way.

When Democrat Clinton was President in the mid-90s, the Democrats worked hard to repeal the Glass Spiegel Act, legislation passed in the 1930s that regulated banks and security houses keeping their functions separate.  The repeal of Glatt Spiegel removed the regulations that have snowballed into the avalanche we have now - all these problems with the banks, which started with Fannie and Freddie.

It was the Democrats who began to put pressure on Fannie and Freddie to lower the bar for home loan requirements.  They initiated such products as “low doc” and “no doc” loans which, allowed people who would otherwise not qualify for a loan to apply and be qualified.

Under pressure by liberal Democrats, these requirements were continuously lowered to the point that a number of unqualified borrowers received loans.

As far back as 2004, there were indications that trouble in the mortgage market was on the horizon.  Republicans sponsored bills to reform the home loan system, and it was the Democrats who opposed them.

When you follow the money, you know why.  Fannie and Freddie donated heavily to Democrats.  Sen., Chris Dodd (D-CT) received the most and Barack Obama received the second largest amount in donations even though he had been in the Senate only two years. Former Fannie Mae chairman Jim Johnson was one of three advisors tapped by Obama to vet vice presidential candidates.

The Federal Housing Enterprise Regulatory Reform Act of 2005 (S. 190) would have established the Federal Housing Finance Agency as an independent agency. The legislation would give the new agency broad power to issue regulations and guidelines, strong authority to better define and enforce charter acts and flexible authority to set capital requirements over Fannie and Freddie and the Federal Home Loan banks.

The Republican-backed measure would require Fannie and Freddie to sell portfolio assets unrelated to their mortgage securities businesses. A Democratic alternative would have permitted the regulator to reduce their portfolio without requiring such cuts.

John McCain went to the Senate floor and said, “For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac--known as Government-sponsored entities or GSEs.

“I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.”

The American people were assured by Democrats such as Barney Frank, Maxine Waters and Chris Dodd that all was well at Freddie and Fannie.

In the fall of 2008, the bottom fell out of the housing market, and the Democrats blamed everyone but themselves.  They blamed Wall Street, mortgage lenders, insurance companies, banks and, of course, George W. Bush.

In 2010, we have the opportunity to begin to reverse what the Democrats have launched.  5^th Congressman Tom Perriello marches lock-step with the liberal Democrats.  He voted for the stimulus which has done nothing except increase the debt; Cap and Trade, which if enacted would cripple the economy; and, of course, ObamaCare, which cuts $500 billion from Medicare, eliminates Medicare Advantage, and increases the taxes on anyone who get employer-provided health care.

Perriello has perhaps two to three times the funding Robert Hurt does and he will be on an advertising blitz during the closing days.  Don’t be deceived by his lies and half-truths.  Remember, our economy tanked because of Democrat policies. Turn America back to the people and vote Robert Hurt for Congress on November 2^nd.