edthecynic
Censored for Cynicism
- Oct 20, 2008
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Funny thing is the right wingers credit Snooty Newtie and the GOP controlled Congress for the 1990s boom so they own the bust too. And Bush made the GOP controlled housing bubble of the 1990s worse by the Bush housing policy exposed in my post above. It was the Bush ADDI that burst the GOP controlled Congress' housing bubble. Bush and the GOP Congress own the housing crash.Gee, weren't Bush's tax cuts in effect for more than 4 years, and wouldn't an honest appraisal of their effect include all years they were in effect. BTW, that is a rhetorical question, the answer is an undeniable "yes."When people don't want to admit to themselves they elected an affirmative action moron....well you get it.
Here is from the article:
At a campaign rally, Obama said Romney is "just churning out the same ideas that we saw in the decade before I took office . . . the same tax cuts and deregulation agenda that helped get us into this mess in the first place."
It's a standard Obama talking point. But it's not true. Bush's tax cuts did not cause the last recession.
In fact, once they were fully in effect in 2003, they sparked stronger growth generating more than 8 million new jobs over the next four years, and GDP growth averaging close to 3%.
Those tax cuts didn't explode the deficit, either, as Obama frequently claims. Deficits steadily declined after 2003, until the recession hit.
Nor was Bush a deregulator. Conservative Heritage Foundation's regulation expert James Gattuso concluded, after reviewing Bush's record, that "regulation grew substantially during the Bush years."
Even the Washington Post's fact-checker, Glenn Kessler, gave Obama's claim three out of four "Pinocchios," saying "it is time for the Obama campaign to retire this talking point, no matter how much it seems to resonate with voters."
What did cause the economic crisis? The housing bubble. And that, in turn, was the result of a determined federal effort to boost homeownership by, among other things, pressuring banks to lower lending standards.
Read More At IBD: Obama's Re-Election Case Rests On 5 Phony Claims - Investors.com
So deficits declined by borrowing from SS until the BUSH Depression hit. How could anyone possibly blame the BUSH Depression on Bush???
And the Bush economic crisis/Bush Depression was a result of a determined federal/Bush effort to boost home ownership, the very heart of the Bush 2004 presidential election campaign, so how could anyone possibly blame Bush for his own campaign.
USATODAY.com - Bush seeks to increase minority homeownership
USATODAY.com - Bush seeks to increase minority homeownership
Bush seeks to increase minority homeownership
By Thomas A. Fogarty, USA TODAY
In a bid to boost minority homeownership, President Bush will ask Congress for authority to eliminate the down-payment requirement for Federal Housing Administration loans.
In announcing the plan Monday at a home builders show in Las Vegas, Federal Housing Commissioner John Weicher called the proposal the "most significant FHA initiative in more than a decade." It would lead to 150,000 first-time owners annually, he said.
Nothing-down options are available on the private mortgage market, but, in general, they require the borrower to have pristine credit. Bush's proposed change would extend the nothing-down option to borrowers with blemished credit.
Neither Bush, nor nothing down mortgages had a damn thing to do with the housing boom and/or the bust. The fact that you don't understand that, means the rest of your argument is pure BS.
The housing boom, right along with the dot.com boom were taking place during the Clinton years, and the two together created the rosy economic scenerio that you left wingers love to credit Clinton with.
Speculative booms always bust at some point, and both did. The dot.com boom busted in Clinton's last year, and left Bush with a recession in the first three months of his term. Hundreds of billions of dollars disappeared almost overnight in that bust, and a whole lot of dot.com millionaires wound up broke.
Bush's tax cuts ended that recession, and the economy began to grow again at a fairly healthy level, but then the housing boom began to bust two years later, and led to the 2007recession, and the financial crisis of 2008. The housing bust did not happen overnight. It took about three years to collapse to near normal levels, and another few years for the bottom to occur. Many think the bottom finally hit last year.
During the Clinton years, homeowners were cashing in their growing home equities, and living high. They were also maxing out their credit cards, with the expectation of paying them off with the next refinancing. But, equities ceased to rise, and that dried up credit. Buying took a hit as consumers quit purchasing durable goods, and the economy went into a downward spiral.