Did Republicans deliberately crash the US economy?

[bigrebnc1775]

I think it's more they deregulated the banking industry and completely gangfucked the economy in order to line their pockets and piss on the little people. The destruction of the economy was more an unforeseen consequence of their greed. And as evil as the Republicans are the Democrats deserve blame for being their willing prison bitch through much of the GWB administration and not being tough enough during the Obama Administration.

What really annoys me about the right wing of this country aside from their unbelievable ignorance is there's a whole litany of things to nail Obama and the Democrats on but they choose utterly the most retarded arguments and things to bitch about.

Franks Stopped Bush in 03 to regulate Fannie Mae 17 times!
Franks Stopped Bush in 03 to regulate Fannie Mae 17 times!

Housing Bubble, Financial Crisis – What Happened, Who is Responsible
“I don’t mind cleaning up the mess that some other folks made, that’s what I signed up to do” – Barack Obama (D-IL), October 20, 2009

“I think that the responsibility that the Democrats had may rest more in resisting any efforts by Republicans in the Congress, or by me when I was President, to put some standards and tighten up a little on Fannie Mae and Freddie Mac.” – Former President Bill Clinton (D-AR), September 25, 2008

“Like a lot of my Democratic colleagues I was too slow to appreciate the recklessness of Fannie and Freddie. I defended their efforts to encourage affordable homeownership when in retrospect I should have heeded the concerns raised by their regulator in 2004. Frankly, I wish my Democratic colleagues would admit when it comes to Fannie and Freddie, we were wrong.” – Congressman Artur Davis (D-AL) , September 30, 2008

————-

President Obama is using the financial crisis to make Americans doubt themselves, their values, and the very system they had believed enabled their specialness. In the vacuum of this doubt, he is moving his agenda to radically alter the fiber of what it means to be American. – TJ Hancock (American)

”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ‘‘The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

 

[g5000]

I see a world flush with $70 trillion of investment cash and I want some of that action.

So I take a bunch of car loans, home loans, corporate loans, credit card balances, bonds issued by various governments (sovereign debt), anything that has a regular payment cash flow (revenue stream). These are the "assets", these loans. And I pack $10 billion worth of them into a collateralized debt obligation (CDO).

$10 billion of debt. That's what I am selling to the investors. I am selling the principal and interest payments of all those loans and sovereign debts.

An investor is not buying the principal and interest payments of a specific home loan. He is buying into the revenue stream. The stream is all the payments combined. The investor buys as much or as little of that stream as he wishes.

An investor can choose to be the first one to dip his cup in the stream each month, or he can choose to be the last one to dip his cup in the stream each month. Or he can choose somewhere in between.

The closest to the front of the line you are, the smaller your cup is. The closest you are to the back of the line, the bigger your cup is. You get a bigger cup for taking the risk of the monthly revenue stream running dry after everyone ahead of you has filled their cups. The more borrowers default, the drier the stream gets.


This system orginally worked fantastically well.

But here's the thing you need to know to understand the causes of the crash: There are not $70 trillion worth of good risks on the entire planet out there. If you took all the borrowers who were good risks, and loaned them all money, and then sold those loans to investors in CDOs, you would barely have made a dent in that $70 trillion.

You are leaving money on the table. Every time you sell an investor a big or small cup, you get a fee. And the people who service the assets and allocate the revenue streams to all those cups get their fees.

All those people gorging on fees don't want the party to stop. The investors are jumping up and down with their cups demanding revenue streams to dip them into.

But after a couple years, you have run out of good risks to sell them. And your competition has seen all the fees you are making and they are chasing after the same investors you are. So the competition for assets is incredibly fierce.

And we are not talking just in the US. We are talking worldwide.

Ireland's property loan bubble dwarfed ours as a percentage of GDP. So did Spain's. Iceland also went under. Germany, Italy, Greece.

Your insurance company wanted its cup filled. So did your city treasurer. So did your 401k manager. So did your local college's endowment fund. And your local public employee pension fund. And Middle Eastern oil princes.

That's a lot of fees for those who can connect all those cups to revenue streams!

And so the financial services sector threw the underwriting laws of the Universe out the window.

They deluded themselves into believing they had eliminated risk through the use of a gambling device known as a Credit Default Swap.

This is why it was important to them that Congress legalize gambling with the Commodities Futures Modernization Act. All these new and exotic derivatives were completely unregulated and various government agencies had been squabbling for some time over which one had jurisdiction and should therefore be regulating them.

Congress cut through the Gordian knot of this problem and said no one would regulate them. While they were at it, they violated all 50 states' rights and said these gambling devices were not subject to the states' gaming laws.

A bank being exempted from gambling regulations should have been a HUGE danger signal!

Not long after, Wall Street's trading in derivatives dwarfed that of the GSEs Fannie and Freddie.

Yes, Fannie and Freddie became bloated with over a trillion dollars worth of toxic assets. Yes, Bush tried to get a bill passed to force them to shrink their portfolios. Yes, there were people saying they were becoming a systemic risk. And yes, Barney Frank and Chris Dodd actively worked to prevent their portfolios from being scaled back.

So think about that. If Fannie and Freddie were going too far with derivatives, what does that tell you about Wall Street's trading that was larger than the GSE's trading?

Remember, this was going on worldwide. Not just here in the US.

What you see going on in Europe right now with the sovereign debt crisis, that is just another face of the global derivatives bubble.

It was not just subprime mortgages, folks. It was subprime sovereign debt, too. Greece is a high credit risk borrower who would never have been given a loan in normal times. It was only through the magic of derivatives Greece was able to get loans, just like your neighbor down the street.

And contrary to the belief of some people, minorities were not the main target of sub-prime loans. A white middle class earner is capable of taking on far more debt than a low income minority person. Remember, we are trying to channel $70 trillion of investor cash into the borrower's hands. You aren't going to get there with minorities. You have to go after middle and upper income people much more aggressively.

The CRA meme was started literally within days of Lehman's collapse by people who had no clue what the derivatives bubble was. Not a clue.

That it persists is testament to the stickiness of ignorance.

Did you see all those foreclosures of white people in your predominantly white town? Did you say to yourself, "Gee, I had no idea all those people were black!"

It is strange how some people ignore the reality literally in front of their faces every day.

.

 

[MisterBeale]

When ever the economy becomes too diversified and too prosperous, then it is time to consolidate it, extract capital, decrease liquidity, all for the purpose of increasing control over the world's population.

The same people that brought you WWI, the great depression, WWII, the United Nations, all of the world's international organizations, these are the people that have manipulated the world regulatory laws and engineered global financial transactions in such a way to give us the state of affairs that we have to today.

To believe that it is one partisan party, in one particular nation is that height of naivete. This financial wizardry was engineered for a dual purpose. It was done so that a certain class of people could become immensely wealthy, draining the collective wealth of the world into the private pockets of the few who have engineered this fiasco. The second reason it has been engineered, is for power. It has been done to shift power away from the many, into the hands of the few. Why do this? When you create a problem, you can come forward with the solution. It is the classic dialectic. What do the elites want? What they have always wanted, world government. Complete and absolute centralized control. They want to weaken the United States national government and subsume it into a one world order. The more problems that you can create that appear only to be solvable at an international level, the better. Likewise, our national educational curriculum has more and more been indoctrinating us into the belief that this is a good thing, rather than having us believe that we should live in a federalized system of control. It used to be the quintessential cultural American characteristic that as many political decisions as possible were to be made at the local level. Even making a Constitution to bind the States and localities took several years. Now, they are going to control what your local school teaches your child so that it is the same through out the world. They want you to use the same currency, have the same dietary standards, the same energy standards, as the entire planet; they want to micromanage every aspect of your life. . . "for your own good."

 

[bripat9643]

Democrats are now boasting that Obama is a "job creator." Which is it? Is Obama a job creator, or did the Republicans sabotage the economy? It can't be both.

Did Republicans deliberately crash the US economy?

Be it ideology or stratagem, the GOP has blocked pro-growth policy and backed job-killing austerity – all while blaming Obama

Why has job creation in America slowed to a crawl? Why, after several months of economic hope, are things suddenly turning sour? The culprits might seem obvious – uncertainty in Europe, an uneven economic recovery, fiscal and monetary policymakers immobilized and incapable of acting. But increasingly, Democrats are making the argument that the real culprit for the country's economic woes lies in a more discrete location: with the Republican Party.

In recent days, Democrats have started coming out and saying publicly what many have been mumbling privately for years – Republicans are so intent on defeating President Obama for re-election that they are purposely sabotaging the country's economic recovery. These charges are now being levied by Democrats such as Senate majority leader Harry Reid and Obama's key political adviser, David Axelrod.

 

[thanatos144]

For all you ignorant progressives out there.....Congress spends the money....Who was control of congress when the shit hit the fan 5 years ago? You progressives are hypocritical asshats .



Oh and liesmatter you retard, Bush hasn't been in office for 4 years you dumb bitch get new material cause that old shit doesn't wash with anyone with a brain.

 

[Mr. Peepers]

Who was control of congress when the shit hit the fan 5 years ago?

Why, the banksters and other mega corps... just like now. THEY control congress. Not us, and certainly not the president. They have been sold off to the highest bidder. Keep cheerleading our demise, though.

 

[thanatos144]

Who was control of congress when the shit hit the fan 5 years ago?

Why, the banksters and other mega corps... just like now. THEY control congress. Not us, and certainly not the president. They have been sold off to the highest bidder. Keep cheerleading our demise, though.

Thats yours and mines fault not theirs....Why? Cause we vote them in.

 

[mudwhistle]

When ever the economy becomes too diversified and too prosperous, then it is time to consolidate it, extract capital, decrease liquidity, all for the purpose of increasing control over the world's population.

The same people that brought you WWI, the great depression, WWII, the United Nations, all of the world's international organizations, these are the people that have manipulated the world regulatory laws and engineered global financial transactions in such a way to give us the state of affairs that we have to today.

To believe that it is one partisan party, in one particular nation is that height of naivete. This financial wizardry was engineered for a dual purpose. It was done so that a certain class of people could become immensely wealthy, draining the collective wealth of the world into the private pockets of the few who have engineered this fiasco. The second reason it has been engineered, is for power. It has been done to shift power away from the many, into the hands of the few. Why do this? When you create a problem, you can come forward with the solution. It is the classic dialectic. What do the elites want? What they have always wanted, world government. Complete and absolute centralized control. They want to weaken the United States national government and subsume it into a one world order. The more problems that you can create that appear only to be solvable at an international level, the better. Likewise, our national educational curriculum has more and more been indoctrinating us into the belief that this is a good thing, rather than having us believe that we should live in a federalized system of control. It used to be the quintessential cultural American characteristic that as many political decisions as possible were to be made at the local level. Even making a Constitution to bind the States and localities took several years. Now, they are going to control what your local school teaches your child so that it is the same through out the world. They want you to use the same currency, have the same dietary standards, the same energy standards, as the entire planet; they want to micromanage every aspect of your life. . . "for your own good."

Most of the TARP went to foreign banks.

Regardless what Obama says he's a player in this. He's really for the rich and looking the other way while it takes place.

 

[Mr. Peepers]

Thats yours and mines fault not theirs....Why? Cause we vote them in.

The only options we have to vote for are those chosen for us by moneyed interests. The only way we would have a viable non-owned candidate is if we disallowed donations by corporations or any other group of people and went to public campaign financing. We would also have to get rid of lobbyists for good. It is NOT the fault of the American people, but of corporatist ass-kissing policies that big business has put in place for themselves.

 

[g5000]

Most of the TARP went to foreign banks.

More evidence this was a global derivatives bubble, not a CRA or GSE fueled one.


.