From: Gregg Macklin
Received: Nov. 14
Mr. Donald Walker has a fundamental misunderstanding of income taxes versus all other taxes and the relationship to the 47 percent. I have written about the 47 percent and I am sure he can if he wishes look it up.
As for the banks not being punished for the damage they caused — how can they? Those banks were forced into those lending practices by the Community Reinvestment Act, signed into law by President Carter, and doubled down upon by President Clinton. The banks had no choice but to make loans to those that they knew could not afford them, and at rates that cost more than the loans were worth.
President Bush and the Republican congress attempted to warn the electorate about the problem but were shouted down by Reid, Pelosi, Frank and others, saying President Bush was attempting to weaken the housing market by starting a scare.
Mr. Walker, let me explain how subprime loans caused our current problems:
You drive to work and home every day. You have a vehicle dedicated to that drive and no other. This vehicle, when driven at exact speeds and meticulously maintained will get 50 MPG without fail. You drive 10 miles round-trip to work and back. On your first day, you fill the tank full to 15 gallons.
The first week you use 1 gallon of fuel. That means you have 15 weeks between fill ups. You, being one that is always prepared for times when the price is too high, or shortages, decide that you are going to buy gas at the corner station each day after work. However, to save even more money you are only going to buy, .9 gallons at each ‘fill up.’
Why not, the tank holds 15 weeks of fuel? After the first week you cannot even see the change in the fuel level needle on the gauge as it is only a half-gallon from full.
The second week? “Is that gauge not showing full?” “No matter if it is only 1 gallon from full, right, so how bad could that be?”
Skip to week 30, you go to start your car and kill the battery as you crank the engine and wonder why it will not start.
You give up, go into the house, call your boss, and rant about the evils of gas stations and not having enough fuel in your tank to start the car, let alone drive to work.
Somehow, though, I am betting you still do not get it.