Tuesday, September 30, 2008

Democrats to blame for Wall Street woes

I was listening to Newstalk ZB today and a couple of time, a commentator would largely blame the Republicans for the failure of the trillion dollar bailout, because the bulk of the Republican senators voted against the bill.
However, while Barack Obama seems to be making the most political capital from the crisis, we must still remember that the Democrats are largely to blame for the current crisis.
First, their ideas encouraged the banks to lend easy money for politically correct affirmative action reasons, when such loans were to people who could not afford them.
A few years back, the Republicans tried to regulate Fannie and Freddie, but were thwarted by the Democrats, many of whom, including Barack Obama receive kickbacks from Fannie and Freddie.
Economist Stan Leobowitz explains how Liberals created the Wall Street woes of today.
Newsbusters highlights a New York Times story from 1999, rvealing how in the Clinton era, Fannie and Freddie eased their lending criteria.
Fox News sums up how it happened in just a few minutes.

Here are some congressional hearings a few years back and look how the Republicans are demanding tighter regulation of Fannie and Freddie but the Democrats kept saying no, and they won.

Look here to see who was in the pay of Fannie and Freddie- leading Democrats including Barry Obama , John Kerry , Hillary Clinton and Nancy Pelosi. I wonder if these two facts are in anyway connected?

Here we have the Fannie Mae CEO praising the Congressional Black Caucus and the Democrats, with more footage highlighting how Obama and other Democrats took fannie and Freddie money while blocking sifficient regulation of Fannie and Freddie and blaming the Republicans today.

Finally, watch this comprehensive 10 minute You Tube offering looking at 'affordable' mortgage policies, a housing bubble, the Democrats and Barry Obama all playing a role in the current crisis.


Ackers said...

Thankfully Americans aren't so easily conned.


It gets uglier for McCain by the hour.

If you are only capable of seeing the world in black and white FFM you know the answer before you even ask the question.

It's the Democrats fault.

Barnsley Bill said...

You have put a lot of effort into this post FFM. There is a lot of blame to share around but the problem did start in the Clinton era.
Neither side has covered itself in glory since..

Has anybody else noticed the irony in many of us capitalists hoping the Americans will adopt a socialist policy to save us all from a massive econimic meltdown?


Indeed BB, especially when it seems to be government intervention in pushing the banks to make unsafe loans in the first place that caused the trouble.

What I have learnt today is that in the US at least, such policies helped fuel the housing bubble which has now burst.
Easier credit only became self-defeating in the end.

Only the Libertarians and the Republican far right are being ideologically pure on the issue.
The issue is, what is worse, allowing the financial crisis to spread further by doing nothing, or do you cobble together a deal like we have seen, which may even prolong the agony.
I have been reading Peter Creswell today.
Certainly if governments bail out the banks for their bad loans, the banks will continue to lend to risky people, when common sense should tell them not to.

Ackers, I will have a look at RCP.
It is an irony that when Obama is implicated in the Fannie Mae mess and the Democrats too in the wider housing bubble that they are benefitting the most.
But having the media licking your bottom does help.