The Blame for Financial Crisis Lies with the Democrats
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The financial crisis we now find ourselves in was completely preventable.
We all know by now how the story looks on the surface: Fannie Mae and Freddie Mac were authorized to approve risky loans with the intention to help the lower class. The cause was noble, but the logic was a little fuzzy. Lower income families were able to get houses that they were unable to pay for, resulting in the eventual loss of said houses and horrific plunges in their credit ratings.
What the popular news media is a little more shy about telling you is that it was the Republican party which tried to tighten up the rules to put an end to this practice which they recognized, in the long run, would be very damaging to our economy.
In response, Democratic Senator Christopher Dodd and Congressman Barney Frank insisted that there weren’t any problems with the system.
When the Bush administration stepped in to set up a regulatory agency that could watch over Fannie Mae and Freddie Mac, Dodd and Frank fought against it.
Had these Democrats listened to the warnings of the Republicans who had been seeking desperately to solve the problem, there would be no need for a bailout, there would not be widespread economic recession.
There is nothing we can do about our past now, but it is important that we focus on where to go from here. How can we improve on this situation in which we have found ourselves?
During his campaign, the now President-Elect Barack Obama consulted with Fred Raines, the former CEO of Fannie Mae who was fired for running it into the ground. Obama has asked Raines for advice on housing. Obama could very well stand to benefit from continuing the same, bad economic policies.
Don’t let this happen. Whether you’re a Republican or a Democrat, whether you voted for Obama or not—pay close attention. Keep your eye out, be open to finding the truth whether it is or isn’t pleasing to hear. The mainstream media has had you believe that the Republicans were at fault for our economic crisis, and these allegations are simply not true.
Democrats—do not blindly trust your party. Look at their actions with the same critical eye that you would at the other party. No party is completely right about everything, no party is completely wrong about everything. We must work together to make sure that our new president will not make the wrong decisions for our country.
...be open to finding the truth whether it is or isn’t pleasing to hear.
Take your own advice, there is plenty of blame to go around.
The markets that crapped out, especially the market for those sub-prime loan swap packages, was COMPLETELY unregulated, and mostly on a Republican watch. They never required the banks that were buying them to properly capitalize themselves, so when those loans started to fail, there was no capital to back them up.
Blame time is past, let's just move forward and deal with it.
Hmmm, looks like a case of cherry-picking to me. Never mind the complete absence of regulation and the corporate goons who made their money betting on others' failures. It's not one party's fault -- the whole "greed is good" culture is responsible.
Take your own advice, there is plenty of blame to go around.
The markets that crapped out, especially the market for those sub-prime loan swap packages, was COMPLETELY unregulated, and mostly on a Republican watch. They never required the banks that were buying them to properly capitalize themselves, so when those loans started to fail, there was no capital to back them up.
Blame time is past, let's just move forward and deal with it.