On edit: Even though the housing problem was largely caused by the banking queen and Dodd.
Last edited by Lars1701a; 07-23-2009 at 09:05 AM.
I really don't expect you to answer the question, you won't be alone, nobody on the CU has answered it yet.
Maybe you will be the first .....probably not.
I answer ALL questions. I am begging you to ask me anything and everything.
I tried this yesterday and the CUer refused to ask me a question...then in the next breath accused me of not answering questions
So ..."why did Bush ask for 700 billion" ?????????????????????????????????????????
It is. :DAnother thread that belongs in stupid liberal tricks!
That's former PRESIDENT Bush to you, dork.So ..."why did Bush ask for 700 billion" ?????????????????????????????????????????
It is my view that specific policies that were supported by (mostly) democrats are what led to the recession.
First off, they restricted oil drilling here at home and the leftist lobby is actively working against adding refining capability here at home also.
Second. They interfered with the private market in the housing industry. They created incentives and flat out forced banks to grant loans they NEVER would have granted without the incentives, and laws that pushed them to do so.
Third. They dramatically increased the overall regulatory burden on businesses that drove some of them out of business, some of them to other countries and some of them to lower levels of profitability (and thus they did not hire as many people) Bush does not get a pass on this.
Fourth, they taxed and borrowed money that the private sector would otherwise have used to create more jobs. Bush gets a BIG part of the blame on borrowing money (spending money we don't have). The Dems were far worse, but Bush deserves some blame also.
Artificially low interest rates created an abnormal boom in the housing industry. These were policies of the fed and were further enhanced by government incentives to the lending industry. This all by itself would not have been that bad, but liberals stepped in to create an atmosphere that turned these good loans into toxic ones. They mandated "affordable housing" loans for people not qualified to receive them. The banks that were forced to make these loans did not want them on their books for obvious reasons. Spurred on by another government agency and favorite of liberals (Ginnie mae) the investment industry found a way to spread the risk of these loans by combining them with good loans. In a manner similar to what Freddie Mac and Fannie Mae did with home loans, Ginnie Mae "guaranteed" the securities that were created by combining the good loans with the bad loans. That is what the investment bankers were led to believe anyway. This would work fine for NORMAL levels of defaults and barring an abnormal level of defaults, it would have been fine.
But two things were at work, the sheer number of questionable loans and the recession that was set off by the high oil prices. The questionable loans were no longer merely questionable, they were bad. This set the snowball rolling down the hill.
Lots of things contributed to the recession and ALL of them have their origins in liberal policies that were supported (mostly) by Democrats.
Last edited by Constitutionally Speaking; 07-23-2009 at 09:25 AM.
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