Media Matters gave an adequate response to the video, but McClatchy - as opposed to Fox, an actual news organization - investigated the claims and gives a more definite rebuttal.
As the economy worsens and Election Day approaches, a conservative campaign that blames the global financial crisis on a government push to make housing more affordable to lower-class Americans has taken off on talk radio and e-mail.You can read on at the link to see the figures and explanation of why Fox News and the AM dial are full of it. But I must say I'm impressed - along with being disturbed - at how quickly a meta-narrative has developed in right-wing fanstasy world that our current economic troubles are the fault of Liberals using the government to force risky loans to welfare "parasites" and Mexicans (i.e. "illegal immigrants" - in Michelle Malkin world there's hardly a difference).
Commentators say that's what triggered the stock market meltdown and the freeze on credit. They've specifically targeted the mortgage finance giants Fannie Mae and Freddie Mac, which the federal government seized on Sept. 6, contending that lending to poor and minority Americans caused Fannie's and Freddie's financial problems.
Federal housing data reveal that the charges aren't true, and that the private sector, not the government or government-backed companies, was behind the soaring subprime lending at the core of the crisis.
As Digby put it
[T]his is one of the crudest racist attacks we've seen in a while. The liberals who ran Fannie Mae and Freddie Mac gave mortgages to blacks and Mexicans who everybody knows can't be trusted to manage their money and they ruined the economy for hardworking Real Americans.Which is probably why we're seeing video footage of people at McCain rallies sounding like Klan members (e.g. Obama is a terrorist because of his "bloodlines") and part of why we're going to have a resurgence of proto-fascism, with extremists going off into the woods, stockpiling weapons, and preparing to wage war against the liberal fascist socialist black Muslim supramacist anti-Christ New World Order regime of Obama which staged a coup with fraudulent minority votes via ACORN so that he can take money from hard working Americans (read: white fundamentalist Christians) and give it to an army of invading Marxist Mexicans, welfare "parasites" (read: black people), and terrorists.
Imperative towards minimizing the extent to which the level of insanity generated by the Republican Noise Machine inhibits our ability to function rationally as a society over the next few years is puncturing the mythology of Republicans and fiscal responsibilty. Which is why you should take a moment and look at Alan's summary of postings at Angry Bear about Republicans, Democrats and the economy.
And for a rational, non-insane understanding of America's financialization driven finacial woes, see Bad Money by Kevin Phillips. You can watch a video or read a transcript of his discussion of the subject with Bill Moyers, here.