Ladies and Gentlemen: Our current financial distress was caused by a large number of sub-prime mortgages growing sour all together. Our two federal government sponsored financial institutions, Fannie Mae and Freddie Mae, were ordered, by acts of congress to encourage mortgage lending to many who would not have qualified under older banking conventions and rules. That encouragement along with subsequent loose lending and looser financial practices by other financial institutions created a bubble, which has burst, huge monies now lost, a Ponzi scheme writ large.
There have been other such financial bubbles in the history of mankind, the British had their “South-Sea” bubble collapse, the Dutch had their tulip debacle, others have had similar experiences. In some instances, those who caused the bubble paid a severe price for that. Others, like some current members of our congress have paid no price and perhaps have even profited from what others would define as misdeeds or even as crimes.
These same members of congress today tell us to repent from our complaints and to reinforce our repentance by allowing these Congress people more freedom to enact more such extravagant acts of what some call human folly.
These bubbles have caused much sorrow and pain whenever they have occurred. The British were devastated by their South-Seas bubble. The Dutch were equally hurt when their tulip speculation bubble burst, many losing their wealth and fortune.
It has never been just the wealthy who have been hurt by these burst bubbles. Businesses have been lost, along with jobs they provided. Economies have been severely damaged when people no longer have the ability to provide for themselves and their families. People find they have lost their job, their livelihood, their ability to remain an active participant in their community.
Those in Congress who in the recent past have facilitated those acts resulting in our current financial bubble are up for re-election this November 2, 2010, unless they retire from their congressional seat. While these persons have generally been able to gain re-election in the past, several times in fact, there could be quite spirited political opposition this year. I hope so, in fact.
Several of the most outspoken Congressional gentlemen have protested that they are blameless for our current recession, a nascent depression. They complain that it was the previous presidential administration that is at fault, not them. And, they might be correct that they had assistance from their opposition in creating conditions for our current woes.
Yet, Senator Dodd and Representative Frank each demanded that those without much means acquire houses with goodly sized mortgages and without the previously required goodly percentage of equity in those newly acquired homes. Representatives Waxman and Conyers have been similarly demanding in their own way and influential too on that same form of financial waging.
Hanging these individuals is not considered to be in good form, or even fair, or legal either, given our present day modern society yet are these gentlemen to be given a free pass, to live out a life of ease and comfort while so many are in the throes of poverty? That doesn’t seem either fair or humane compared to our ancestors who fought a revolution and who doused evil doers in the village pond, strapped to a chair. Now that was cruel and would be unusual in today’s world.
So, what to do? Nothing? No! Exile? Perhaps? What? Don’t know!