Re: Obama Spending Lowest In 60 Years
Ok let's test YOUR naivety on the cause of the housing bubble.
1) Who "Kicked off" the housing boom in 2002 with a program that got Fannie Mae to buy $440 billion in subprime no money down mortgages?
2) Who used Federal power to stop the States Attorneys from using their own laws to regulate predatory "subprime" mortgages?
3) How were CDS's used in relation to housing and why did they precipitate the failure of the financial system?
4) Who's name is on the bill that deregulated the banks and insurance companies? hint: He is now sitting on the Board at UBS Bank
If you don't know off hand, feel free to use the internet.
Other then the Credit Default Swap question - I have no idea who the people are (hey - I never claimed to be an expert, FAR from it).
I assume they are conservatives, since you are a liberal?
Instead of ordering others to answer your questions and acting condescending; why don't you just make a statement, include a link to provide 'proof' of your point and ask if they agree or disagree?
As for the financial collapse? Means little to me. They screwed up because of greed and the government bailed them out - which was TOTALLY wrong.
But this had little to do with what caused the housing bubble.
The housing bubble was precipitated by the Fed lowering interest rates too much and GWB falling in love with low income home ownership (which Congress quickly fell in love with as well) as a no lose idea...when it should have been obvious it was a recipe for disaster.
Bubbles start when new money enters a market. If the money is there for legitimate reasons, the market generally grows in a healthy manner. When the money is there for illegitimate reasons - like the government decides to artificially stimulate that market - then the growth is based on a fallacy.
The GWB administration decided to begin a low income housing boom (an idea Clinton had fooled around with on a much smaller scale) and the Fed and later the banks went along (in my opinion).
GWB forced HUD to pour billions into Fannie/Freddie to help low income people (who had no business owning homes) to own homes. And he got Congress to go along with it.
Apparently, according to White House employees from that administration, it was a HUGE pet project of Bush's. one he REALLY thought would help the country.
It was a dumb (noble?) idea and it failed miserably.
And it ALL would have (again, imo) been behind Americans by now if the powers that be had just let the market hit bottom, balanced the federal budget, let the banks/corporations that needed/deserved to fail - fail and let interest rates rise to where the market decided instead of keeping them artificially low.
The American economy would be growing again, the unemployment rate would be far lower and the national debt would be about 1/2 of what it is now.
But you or a Keynesian-loving person will say 'things would have been disastrous if the government had not spent, spent and spent.'
Yeah? Then please prove it?
You can't?
Then the threat means nothing.
And that is the ONLY argument big spenders can make - scare tactics. knowing that it is impossible to prove.
I believe the housing boom/bust was caused by - in order - the Fed, GWB admin, Congress, the Clinton admin (they opened the door to the dumb ass low income housing nonsense), home buyers and then the banks (sure, the banks acted like idiots - but no one put a gun to American's heads to go SO far into debt).
I assume you blame it all on conservatives and the banks.
I am not partisan - I KNOW both parties are worse then useless. And if the greedy masses had not have gotten WAY over their heads and if the Fed/Congress had told the idiotic banks back in the mid 00's when it was apparent they were taking MASSIVE risks with debt; 'Hey! If you guys get into trouble...you are completely on your own' - then I guarantee you they would have acted a lot less wreckless.
Moral hazard.
Have a nice day.
