(If you would like to know the answer to this question without reading this rather lengthy article, I would recommend that you simply go here. It is, YouTube – Burning Down The House: What Caused Our Economic Crisis?The things I will be stating here are from that article/video. I just do a much worse job of it and cover only highlights.Also check this one out.It is, YouTube – Time Line Shows Bush and McCainWarning Dems of financial mess.)
Chris Dodd has recently said that this economic problem is due to the housing foreclosure crisis. Wrong! The foreclosure crisis is a result of the problem, not the cause. The real cause for this problem is subprime lending caused by mandates put on lending institutions to lend housing money to people who cannot afford it. It began back in 1977, during the Carter administration when the Democrats pushed through the “Community Reinvestment Act” (CRA). This bill helped lower income families buy houses they otherwise could not get into. This was a good thing, or so it seemed, and for a while it did exactly what it was intended to do.
Enter the Clinton administration. With the help of other Democrats such as Barney Frank and Chris Dodd, CRA was revisited. Changes were made mandating that banks must lend at low interest rates through Fannie Mae and Freddy Mac, under the penalty of massive fines. This was passed against opposition by Republicans.
Did this crisis need to happen? No. Someone tried to stop it. Who? Well just guess. If you guessed any Democrat, you are wrong. It was none other than President George W. Bush beginning in 2001, when he first warned of an economic crisis stemming from the housing market. The Democrats made light of it and laughed at him, stating that the markets are just fine. They said that Bush was exaggerating. Then, in 2003, Bush wanted to create a new agency within the Treasury Department to better regulate Fannie Mae and Freddy Mac. Was he successful? NO! Of course not. The Democrats blocked it. Why? Because, they said, it might affect lenders ability to lend money to lower-income families.
Barney Frank said, “The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.” How “affordable” is it now, Mr. Frank? So nothing was done. Bush’s warnings went unheeded.
Someone else stepped up to try to fix this before it became the crisis it is today. It happened in 2005 with the “Housing Enterprise Regulatory Act” submitted by four Republicans, Charles Hagel, Elizabeth Dole, John Sununu and none other than John McCain. That’s right JOHN MCCAIN. But, guess what? The Democrats blocked it. It came up again in 2007, and again the Democrats blocked it.
Why were all these efforts by Republicans blocked by Democrats? Because Fanny and Freddy had good friends in the Senate, people like Chris Dodd (D-CT), Barney Frank (D-MA) and guess who else covered for Fannie and Freddie – Barack Obama (D-Il). Who did Sen. Obama chose to select his Vice President? His close adviser, Jim Johnson. You know him, he and Barack received sweetheart loans from Countywide Mortgage. He just happened to be CEO of Fannie Mae when CRA was expanded by the Clinton administration, opening the door for record profits. Well, did it surprise anyone really when it turned out that Jim Johnson was corrupt? He improperly handled $200 million in expenses, under-reporting his compensation from Fannie Mae. He reported earnings of between $6 - $7 million but really received $21 million. He gave Barack Obama the maximum donation of $4,600. Now, Johnson is a wealthy private banker and on the board of Goldman Sachs, which has given another $700,000 to the Obama campaign and has raised yet another $500,000 through bundling. It is therefore, not surprising when the headlines of the Las Angeles Times, June 12, 2008 read: Barack Obama advisor Jim Johnson quits under fire.
Barack Obama receives more Fannie Mae and Freddie Mac campaign contributions than any other candidate except Chris Dodd. Obama received $126,349, which is $15,000 more than John Kerry, who has been in office 17 years longer than he has.
I have written this, because I am hearing some Democrats actually blaming this problem on Republicans. They at least continue, especially through their lackeys in the press, to say that both parties are to blame. This is not so. It is a Democrat party debacle that got us here. They are trying to blame anybody and everybody but themselves. Pelosi said: the Democrats bear no responsibility for the economic crisis. Now why doesn’t that surprise me? So who is responsible? Anybody and everybody, but not them.
Poor people did not cause this, free markets did not cause this and deregulation did not cause this. A bad government regulation caused this. Democrats caused this and fought off any opposition by Republicans to stop it. The Democrats caused bankers to become predatory lenders; and greed, self-interested lawyers and plain stupidity on Wall Street lent a hand.
No, I don’t believe that Republicans are completely innocent. I have a couple of issues with them also. Like: 1) Why were you so weak that your fights fell so short? 2) Why didn’t Bush and McCain and other Republicans take their case to the people? 3) Why wasn’t this taken up when Republicans controlled things? I’m pretty sure it is because they never had enough of a majority to get it done. But the people wanted lots of Democrats in the Senate and the House so that Republicans couldn’t get much done without a major fight. Not so for Democrats in the last few years, so they are not able to site this reason.
Well, in closing, let me just say that in light of what has occurred in the past, it is no wonder that the candidates are acting like their real selves. McCain is working on it, and Obama is…well…he’s talking about it. McCain is doing his job as a Senator and Obama is out campaigning. Quite a vivid image.
(I have added this portion because before I could get this article posted, (had to renew my membership) a vote occurred and the Bill did not (thank God) pass. Even in this so-called drastically needed “Bail-out Bill”, the Democrats just couldn’t help adding in a few earmarks for their power base, including the corrupt organization called Acorn, who is famous for its history of voting fraud. But that aside…)
Now, I agree that it can be argued either way whether this Bill should or should not have passed, but what has got my goat is the partisan slander that is coming from the usual suspects. These include the Speaker of the House, Democrat big wheels such as Barney Frank and Chris Dodd, who carry the heaviest loads of guilt in the first place and are largely responsible for halting any correction attempts. Of course as usual, the liberal press is echoing their points.
I’m not really talking about the ‘blame game’. Both sides can be expected to do some of that. What I’m talking about are the statements being made that John McCain’s efforts were not successful. Some are even blaming him because this Bill didn’t pass. Whether or not you approve of the Bill, the fact remains that John McCain entered the battle to help get it passed in a way that was best for the country. Everyone knows that, and so the fact that the Bill did not pass is laid, by these people, at the feet of John McCain, obviously in an attempt to hurt his Presidential bid.
I contend that one would have to either just downright lie to themselves, or they would have to be drinking the Democrat cool-aid to believe that. Look at the facts that we know for sure. Before John McCain got to work, there were only about 4 House Republican votes for the Bill; maybe a few more, but not many. When the Bill finally found its way to a vote, 65 Republicans voted for the Bill. Now, I’m not saying that John McCain is responsible for all those conversions, but he certainly had a hand in it.
Now what about Barack Obama? Well, he was busy campaigning, of course. He said, “Call me if you need me.” It seems to me, that somebody in the Democrat Party should have called him, because 96 Democrats voted against the Bill.
So, if Pelosi wanted to get the Bill passed, and she did, she should be scolding her own party, including Barack Obama – especially Obama, because who can deny that these two candidates hold great sway over their parties at this time.
Will you hear any of this from the Press? Well, what do you think?
I've watched several Documentaries, which explicitly confirm this scenario. although I may stand 'corrected' by you - does not Robert Williams below state essentially what I wrote in my 'Crooks In Congress? In fact, he MERGES the two parties together as 'Demo-publican.
"If you remember since 1989, Daddy Bush declared a "New World Order", then it's rather easy to see our Democrats and Republicans as two sides of the same corportist coin, just as Labour and Tories have shown themselves to be the same in Britain. Our one-party, Demo-publican Party system serves the power elite well, to everyone's detriment."
Since, FDR - a Republican, the best thing that ever happened to America - it has all been DOWNHILL since! 64 YEARS of DEMS/REPS ... all controlled by CORPS.!
I recommend reading Professor Thomas DiLorenzo's article "Economic Fascism" archived at www.fee.org . It was originally published in 1994 in The Freeman. Go to their site and type in the author's name into the search window. From the list, click on the title above - Economic Fascism. This economics professor from Loyola College has written an excellent article on what is happening.
If you remember since 1989, Daddy Bush declared a "New World Order", then it's rather easy to see our Democrats and Republicans as two sides of the same corportist coin, just as Labour and Tories have shown themselves to be the same in Britain. Our one-party, Demo-publican Party system serves the power elite well, to everyone's detriment.
I remember when I worked at the Canton Repository, the local Republican Congressman was very adept at having government contracts awarded to the Hercules Engine company. The problem was that the military didn't want their gas hogs nor the headaches with their reliability, but Ralph Regula didn't care. This was corporate welfare, and he knew that tax victims' money going to Hercules would eventually find its way into his next campaign for reelection. That's not free enterprise, folks!
I have just completed reading "Economic Crisis" by Paul Kogel this date of Jan 9 2009. I do have the advantage of some hindsight I must admit, but I do not need it at this point. Paul has just reiterated history, quite accurately I may add, in his article. Apparently there are some who have been blinded by their beliefs and refuse to accept facts when presented. They believe what they want to believe and will not be swayed. Good job with the article Paul, it tells it just the way it happened. I lived it and followed it day by day so I can vouch for the article's correctness.
Well, we'll just have to agree to see it differently. It doesn't surprise me really. We will see how the election works out. So far, it looks like your team is winning. If you do, we will see then. The only real fear I have (if you will pardon me for saying this - because I have nothing but politics at odds with you) is that you guys once saw (8years of Bill Clinton) and yet still don't see. All that you have won over the many years; the policies you have put into place - and still you fight the same battles you have won already because they are still not fixed. Even with all your fixing. That is because - you will not see, that your left hand is undoing the things of your right. You will not admit error.
I cannot relate to this view, since the European banks are also going down, not due to foreclosures but because of the "domino effect" from the US. The banks that fell because of housing problems must have put all their cards in mortgages, which is utterly absurd in banking,
and very illogical, Accounting-wise. Perhaps an investigation into the books of these banks will reveal a lot more than just unpaid housing mortgages. Politics has nothing to do with this, I say it has been caused by GREATER FACTORS and needs to be investigated by an independent global committee. The American people need to know where the money went, so do we.
Can't agree agree with a lot of things in your article. Obama and the democrates did their part. President Bush did want this to be Bipartisan.
McCain did not put his campaign on hold to go to Washington. His Ads were still on TV all day and Gov. Palin was all over the TV. and, McCain didn't help anything by going to Washington.
Going to Washington was strickly politics for McCain. He was hoping to come out looking like the big hero at the debate.
When he did go to the debate; it only took 90 minutes out of his time. The world didn't come to an end and the bill, still, did not past. It is in limbo. I see McCain is campaigning and the bill is still has not passed.
Why should Obama follow McCain's lead? They are both working hard on the bill in their own ways.