How has the White House, created the banking system failure and housing slump?
Posted on August 25th, 2009 by admin
Banking
Please give rational answers, not the Bush failed line? But what he actually did that caused it? Does Obamas claim hold water?
Please give rational answers, not the Bush failed line? But what he actually did that caused it? Does Obamas claim hold water?
Filed under: Government
Street Fighter: The Later Years
The banking system failure & housing slump was brought on by the banks themselves by giving loans to people who were not qualified to get these loans .. Everytime they ( the bank ) approved a loan the loan officer gets a bonus. The failure was brought on by greed and I don’t think the American taxpayer should have to pay to bail them out. The White House had nothing to do with it. It used to be very hard to get credit but now even the dog can get a credit card. It is the greedy bankers who have created the mess. Obamas claim holds no water. Put the blame where it belongs.
Free Screensavers
It is the product of a systemic attack on “government” by sabotaging it from the inside. Tax policies that favor irresponsible investments. Promoting a culture that exalts exorbitant pay and dividends over investment or value. Reduction of oversight of the financial markets; politics replacing ethics in the Justice Department, which would otherwise pursue and prosecute wrongdoing discovered by the agencies tasked with oversight (which have been reigned in, in the first instance, so even if they did point out wrongdoing, it would never get prosecuted). Capitalism is a good thing. Reasonable regulation is also a good thing. When there is balance, everyone benefits. When it is out of balance, as it has been under President Bush and Vice President Cheney and the policies of Phil Gramm, (Senator McCain’s BFF), greed takes over and the only thing to provide checks and balances is the crushing and dramatic “correction” we are seeing right now.
As for the housing slump? Same thing. By dropping regulation and oversight to ensure that actual review of loan documentation was occurring, the foxes were in charge of the hen house. Without oversight, bogus loans were made, with mortgage brokers and real estate sales people raking in cash, arranging absurd loans to people who were not qualified. Everybody got paid, then handed the loans to Fannie Mae and Freddie Mac (and several large European banks that were looking to make exorbitant profits in our smoking hot housing markets), and home ownership increased. President Bush then says, “economy is great! More homeowners than ever!” Republicans say, “see, policies work, economy is great, look at all the new homeowners!” Well, how long can “irrational exuberance” [Greenspan's words] last? Until now…
And now, all the “pure” capitalists that say “get government off our backs” come calling and say “oh, big government, please save us!” And, because they are so entwined in our national financial fabric, letting them die the death they have brought upon themselves, would hurt us all, leaving the President no alternative but to bail them out. Except the President has so overspent our national treasure, while failing to ensure sufficient revenues to cover his checks, that we will have to go even further into debt in order to appease our creditors (primarily the Chinese).
In conclusion, if there had been adherence to sound government, reasonable regulations and oversight, and diligence and ethics in the Justice Department, we wouldn’t be in this mess. President Bush’s (with the Republican Party that controlled both houses of congress for six years) policies of deregulation and political intervention with Justice, led to the environment that resulted in the financial mess we are in now.
Barack Obama cannot have all the answers. But he is at least intelligent enough to lead the process to find and implement them.
Web Hosting
Reagan deregulated banks,shorty after,white collar crime began.still want less govt. over sight.