The Cult of Indiscriminteness Caused The Crisis

To paraphrase Professor Allan Bloom, the Modern Liberal "has been raised to believe that indiscriminateness is a moral imperative because its opposite is (the evil of) discrimination." Not wanting to be an evil discriminator, the Modern Liberal then opts to be utterly indiscriminate. This indiscriminateness of thought leads the Modern Liberal not to indiscriminateness of policy but rather to side always with evil over good, wrong over right and the behaviors that lead to failure over those that lead to success. After all, if nothing is better than anything else, then success is, de facto, unjust and failure, de facto, the victim of one thing or another. To right this injustice, then, the Modern Liberal seeks to deny the successful the "ill-gotten" fruits of their success and to reward and compensate the failed who could have failed through no fault of their own, for to recognize fault would require the employment of the critical judgment the Modern Liberal believes to be discrimination. As one would expect, by siding always with evil, failure and wrong the Modern Liberals' policies end up in disaster.

It is this philosophy of indiscriminateness that is the cause of the financial crisis we now face.

In 1999, President Bill Clinton looked over the mortgage lending industry and noticed that there was discrimination taking place. The pattern was clear, banks were far more likely to lend money to people who were more likely to be able to pay back those loans than to those who weren't. The banks were using discriminating thought -- risk assessment -- which the Democrats took to be discrimination and therefore sought to put an end to that evil.

Under Clinton's orders, banks would no longer consider the "outdated" criterion of discrimination -- such as whether the borrower had a job or was on welfare -- and, instead, lend money indiscriminately to those who can pay back the loan and those who can't equally.

As with all other programs of indiscriminateness, the proof that the evil of discrimination had been eradicated would be its adherence to a quota system. After all, if there is no recognizable difference between things, than all things should be represented in exactly its proportion to the population. Since there is no difference between those who can pay back loans and those who cant', the ideal quota -- as stated by Andrew Cuomo,Clinton's secretary of Housing and Urban Development -- was fifty percent, with half the loans going to those who qualified and the other half to those who didn't.

The job of the banker, then, was no longer to employ discriminating thought in order to find as many QUALIFIED recipients for their loans as possible (after all, that's how banks make their money) but, instead, their job became to fulfill their government proscribed quota through "creative" banking.

Like the Christians and Jews in Barack Obama's dreams, the bankers would no longer "cling to" their bigoted, "outdated" policies of risk assessment and, instead, would simply seek ways to justify loaning money to those who, through the evil act of thinking, would not have been given the cash. As Ann Coulter noted, bankers would include unemployment benefits and welfare checks as sources of income to help justify the unjustifiable.

This house of cards stayed up for a few years because, with all of the unqualified now buying houses, housing prices rose (supply and demand and all that) and, so long as housing prices kept rising, the unqualified could simply refinance their mortgage based on the higher "value" of their house or, if need be, sell at a profit.

But -- and a lot of young Americans don't understand this -- not everything goes up forever. When housing prices reached a point where not even the folks Barack Obama calls "the rich" could afford a small house in Hollywood or San Francisco prices inched downward. This meant the folks who bought their house using unemployment checks and welfare stubs couldn't make the next months mortgage payment. With the goal having been half of all mortgages owned by Fannie Mae going to the unqualified, it's not hard to figure out why they went belly up.

By championing the unqualified, the Democrats may have had good intentions, but the reality is as it always is with the Modern Liberal, EVERYBODY has gotten hurt and, arguably, the poor worst of all. By eliminating the discriminating thought of risk assessment those who did not qualify are, today, no better off than they were before. In fact, it can be argued that they are WORSE off because the incentive to make themselves qualified by improving themselves and their efforts had been eliminated by their having received the rewards without qualifying for them.

Meanwhile, those who have done what is required to qualify for loans to buy a house or start a business find that there are no loans to be had. Obviously this is bad for them, but it is also bad for those receiving unemployment benefits and welfare checks as the jobs these loans would have helped create are now not being created.

And now we are ALL being burdened with a nearly one trillion dollar bail out for the banks who were doing just fine until the Clinton Administration recognized that they were engaging in the discriminating practices of not loaning money to people who do not have the means of paying them back.