creditors came to believe that their loans to unsound financial institutions would be made good by the Fed — as long as the collapse of those institutions would threaten the global credit system. Bolstered by this sense of security, bad loans mushroomed.
Of course any crisis is multicausal. I have been blaming affirmative action loans. But instead of pushing back against government pressure to make bad loans to protected minorities, lenders eagerly embraced bad loans – because of an entirely correct expectation that they would be bailed out
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Tags: affirmative action, bad loans, bailout, crisis
THE REAL CONSERVATIVES WERE RIGHT ABOUT MLK AFTER ALL:
In the Congressional Record, published by the United States Government Printing Office, Proceedings of the House, 1957, page 8559 you can read the following:
“Israel Cohen, a leading Communist in England, in his A Racial Program For the Twentieth Century, wrote [in 1912]:
‘We must realize that our Party’s most powerful weapon is racial tension. By propounding into consciousness of the dark races that for centuries they have have been oppressed by the whites, we can mould them to the program of the Communist Party. In America, we will aim for subtle victory. While inflaming the Negro minority against the whites , we will instill into the whites a guilt complex for their exploitation of the Negroes. We will aid the Negroes to rise to prominence in every walk of life, in the professions and in the world of sports and entertainment. With this prestige, the Negro will be able to intermarry with the whites and begin a process which will deliver America into our hands’.”
http://tinyurl.com/JewsFoundedCommunismPeriod