The media wants you to believe that the Bush administration is to be blamed for the economy crash, and I am no fan of former President Bush but that is not factually true. According to the Noble Prize winning economist Paul Krugman, the collapse of the housing market is the # 1 cause of the bad economy, which former President Bill Clinton is largely responsible for. In June 1995, Clinton started the "Opening the Doors to Affordable Housing" initiative that gave trillions of dollars in subsidies to mortgage companies who were willing to give home loans to subprime borrowers, high risk individuals who normally would not be considered for loans. The mortgage companies, the banks and the lenders were being blind sighted by the trillions of dollars the federal government was rewarding them with for giving these loans to these risky people. The lenders used to make money off of giving loans to deserving people but because of Clinton's initiative, they were making money off of giving loans to risky people. So in essence, the reinforcements were all backwards. Like the domino affect, the fall of the mortgage companies, the banks, the stock market and the continued loss of millions of jobs throughout the nation, all began with the home foreclosures of the subprime borrowers, and that these people would have never received loans had it not been for President Clinton’s initiative.
I was shocked to find out that Senator John McCain tried to stop and shed light on how dangerous this initiative was in 2005, but his efforts were quickly squashed by Democratic congressman Barney Frank and Democratic Connecticut senator Chris Dodd. The only thing the Bush administration is responsible for in terms of the fall of the economy is not stopping the government from getting involved in private business and the free market. Banks know who to give loans to and who not to. It’s a successful formula that has worked time after time, but as soon as the government stepped in and tried to “regulate” their business, all hell broke loose. Now the new Obama administration wants to impose even more government regulations and interventions on private businesses. They think that the cause of the problem is the solution to the problem but they are wrong. Government and private business are like oil and water, they do not mix and if we are going to learn anything from the housing crisis, this should be it. Those who do not learn from the past are doomed to repeat it.
Sources
http://news.boconline.com/article.asp?artid=7766
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The media is very liberal and would never want people to know that their Bill Clinton is to be blamed for anything. Bush was in office at the time and so it's easy for them to make it look like he's at fault.
ReplyDeleteHave you ever thought about going into politics? I think it's something that you should definitely consider. You could be our first female president :)
ReplyDeleteI agree that the media is extremely biased. MSNBC is practically owned by the Obama administration. CNN is a little bit better then them. Obama wants to make it impossible for average people to achieve upward mobility by imposing heavy taxes on small business owners and then claiming that he's "ony taxing the rich." Bull shit, the truth is the rich never pay taxes anyway because they're accountants always find loop holes or they keep their money stashed in foreign accounts. Thus, small business owners and middle class people are stuck with the burden and are never able to move up. This is why I believe in a flat tax for all because with a flat tax, rich people will finally stop stashing their cash in foreign accounts. Krugman is right that "Obama is Wrong. (Newsweek, 2009)" This has inspired me to wright another blog....
ReplyDeleteThat's absurd. That's like saying a Bentley is a little bit better then a Hyundai.
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