Earlier today, President Barack Obama once again tried to lay the problems of the Democrats upon former President George W. Bush. Once again, however, Obama got it wrong. The linchpin to what went wrong with the economy, primarily with the real estate, banks and Wall St. areas, actually lies around 33 years in the past. The blame rightly belongs with then-President Jimmy Carter.
It was under President Carter that the program of SubPrime loans began. I, for one, would like to know the name of the person who came up with the idea of letting people who couldn’t afford to buy a house, suddenly be allowed to take out loans in order to do so. There is just no way that such an idea makes any kind of economic sense, though I suppose it makes all kind of political sense where the Democrats are concerned.
The program continued to make its merry way along during the next two presidents, all the while sinking its unseen claws deeper and deeper in the financial and real estate markets. It may even have caused, though I have no actual basis for this belief, the more recent trend to “flipping” houses. It then got some loosening of its restrictions during the Clinton Administration. And then came George Bush.
Bush, who had his hands already full with the aftermath of 9/11 and conducting a war on terror, saw some signs that things were not as good as believed in the financial markets. He repeatedly asked an ever-increasingly hostile and Democratic-controlled congress to make changes in banking regulations with more oversight, especially of Fannie Mae and Freddie Mac. Yet Barney Frank’s message to the President was “There’s nothing wrong with Fannie or Freddie.”
Roll further to 2008 and the last year of President George W. Bush. That’s when, in the middle of the Presidential election campaign, the economy collapsed. The cause of a good chunk of it was from the SubPrime market’s collapse, which led to banks holding suddenly worthless and toxic paper assets. This led to the collapse of some of the major players on Wall Street, which in turn affected nearly every other part of the economy.
President-elect Obama then asked his predecessor to help the businesses being destroyed. For worse, that’s what caused TARP to come about. It was not a wise decision by Bush to listen to his successor, but listen he did with results that we still are feeling 2 years later.
Remember this: Although Bush signed TARP, it was only at Obama’s insistence. and it was the end result of nearly 33 years of a Democratic program that has nearly casued the ruin of our great country. So next time, Mr. President, if you want to preach to your worshippers of the One, do so with facts and not easily refuted demagoguery. Don’t blame a minority that you have shown to be outfought during each major piece of legislation you have passed. You only make yourself and the Democrats look stupid when you blame someone else for the problems that your own party caused.