Re: Financial crisis is government's fault | Nov. 10 guest column by Jack McPherson
Crisis grew from many root causes
Our recent election symbolized a lot of things for this country. Using fear tactics, Rovian and Atwater-style conquering and dividing, scapegoating and finger-pointing were at last rendered obsolete. But as this column clearly demonstrated, the divisiveness that has become entrenched in so many is alive and well.
The writer states: "The cause of this crisis in the first place was the social engineering by the federal government in its re-enactment of the Community Reinvestment Act, which compelled banks to grant mortgage loans to applicants irrespective of their financial inability to repay those loans in an orderly manner." To accept this premise would be to ignore the complex nature of our current financial crisis. Here is what was left out in this guest column:
• Most objective analysts agree that the percentage of mortgage defaults under Fannie's and Freddie's auspices was not disproportionate to any other institution's.
• The role of the repeal of the Glass-Steagall Act in 1999, which was enacted in the 1930s as a response to the market collapse during the Great Depression. Historians almost universally agree that the lack of a barrier between commercial banks and investment firms (which this legislation addressed) was directly related to that disastrous time in our history, and to our current crisis. The wall that was created by this legislation served us well until it was dismantled by Wall Street lobbyists (led by McCain's, economic adviser, and then-U.S. Sen. Phil Gramm).
• The role the SEC and the Federal Reserve played in looking the other way. They became cheerleaders, and enablers, instead of protectors of the common good.
• The role that people of all economic classes played in taking advantage of the easy credit during those heady days. There is no evidence that poor people were disproportionately involved, and targeting social programs that help lift all boats is unfortunate.
Some feel that the true measure of a society is how they treat the sick and the poor, and not by how many advantages that are given to the wealthy. We can debate the effectiveness of various programs like Fannie and Freddie, and improvements should always be on the table, but somehow we need to get beyond the class warfare that divides our nation.
Laura Smith, Weeki Wachee
Campaign trail full of fine people
Now that the campaign is over, I can finally sleep. After days and weeks on the road, we can relax and appreciate that our hard work paid off.
Over the past month, I was able to meet every type of voter possible. All the demographics of Hernando County were amazing to see and meet. These people are truly the backbone of America and Hernando County.
I don't believe I'll ever be able to say that I had more fun on a campaign trail. So through all the yard signs, coffee, bottles of water, bags of Combos, and pure laughter, I must say I had a "bully" of a time. So thank you Commissioner Jeff Stabins for the time of my life.
Samuel A. Wagoner, Spring Hill
Where will water come from?
When I read the Sunrise development story, the first thing that I thought of was, where the heck is all the additional drinking water going to come from to supply up to 4,200 single-family homes, 600 multifamily units, etc.?
How do projects like this get passed by Southwest Florida Water Management District? I have been on water restrictions here in Spring Hill since, I believe, 2002. I think the developer should be forced to provide this gross over-development with its own water source, and not tied into the aquifer. Can't do it? Oh well, then they should not be allowed to continue.
It's really getting farcical here in Hernando.
Slade Harmon, Spring Hill
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