Housing, Nat'l Debt, & Inflation

This is from Mon's WSJ. I apologize for the blurriness, but it's easy to read if you can save & use a program to zoom in. The gist is that a number of factors threaten the weak housing recovery, from the removal of the housing stimulus to 1.1 million foreclosures & 4.8 million delinquents (over 60 days late on payments). If many of these head into foreclosure, that threatens banks' balances & causes them to tighten lending to small businesses (who can't get credit to hire new employees or keep current employees). This is the last month for the housing stimulus, & the rest of the stimulus package ends at year's end. That will pull the rug out from under a fragile recovery not long before the massive hammer of rising tax rates required to pay for Obama's gradual nationalization of the economy start to take effect. Plus many cities are facing bankruptcy -- and the nat'l gov't will to varying degrees bail them out (it already is partly by covering the excessive interest they must pay on new bonds). As seen below, the inflation rate is already rising, which will push up the interest on the national debt. The Treasury will then have to print more money to pay that rising interest rate, causing inflation to spiral out of control (and some are worried about deflation?).

The State Turns State's Witness

The typical story is that when a crime is unveiled, one of the perps turns state's witness to reduce his sentence. This time, the state is that one of the perps. Clinton's Gorelick (the same one who established the wall betw. FBI & CIA so they couldn't connect the dots before the WTC & Pentagon attacks) helped put teeth into Carter's Community Reinvestment Act so banks were forced to make loans to risky individuals (ostensibly in the name of removing racism from the financial industry). These banks normally have to turn around and sell loans to continue their business. But how can you possibly sell a bad loan to anyone? By mixing it in w/ good loans -- hence the morass of derivatives which came unglued in late '08. The CRA ultimately had a racist result, in that it forced many minorities into foreclosures and bankruptcies by encouraging them to buy homes beyond their means in the first place. Now the Senate has the gall to point their fingers everywhere in the private sector but at themselves. Fannie Mae & Freddie Mac were two of the biggest culprits in hawking these derivatives & made massive donations to the likes of (then) Sens. Dodd & Obama. Goldman Sachs was also greatly guilty (the transit of GS exec's back & forth betw. the co. & fed. gov't goes back a long way). However, now the Senate has the convenience of being able to grill current & recent GS exec's & try to pin all of the blame on them w/out acknowledging the gov't's own efforts in the '90s to create this whole mess. But this is surely according to plan, since the Marxist Democrats now get to take over ever greater swaths of the American economy, sweeping it bit by bit under the thumb of the feds.

I remember guys standing up on the floor of the Senate during impeachment hearings saying, "Judge not lest ye be judged," and "Let he who is without sin cast the first stone." Where are those guys when we need them to stand up again in the Senate?