HOW LIBERAL POLICIES CAUSED THE FINANCIAL MELTDOWN?
October 16, 2016 in Politics
To this day, Obama and the democrats use the bumper sticker slogan, ”The Republicans put the car in the ditch and now they want the keys back!”
Is that true? Was it really the republicans??
There is no question that the government was deeply involved in what happened, but was it really conservative policies that caused it and does it even matter? YES? Once set of economic policies brings as much stability as any system can have… another always ends in chaos. A quick overview and history of the Financial Meltdown encapsulates the fundamental problems inherent in liberal philosophy. Even the FDIC acknowledges that it was policies forced upon the financial system that was the major cause. But what really happened and who was behind those policies?…
Government involvement and liberal policies and regulation played an enormous part in our economic collapse. Specifically, the Community Reinvestment Act, overseen by Clinton in 1995. https://www.fdic.gov/regulations/compliance/manual/pdf/IV-1.1.pdf
Like so many liberal policies, helping more to achieve the American Dream of home ownership was a noble goal. But like so many liberal policies, it was not well thought out and will little contemplation of the possible “unintended consequences”. It was also intended to promote the goal of assuring elections and power through enaction of policies that are popular, but also unsustainable and damaging. see also How liberal tactics destroy America http://wp.me/p2EGlL-4TE
This policy ultimately was instrumental in the financial collapse. The fact is, governmental regulations incentivized, if not actually, required lenders to make loans that they NEVER have otherwise made. Make it easier to achieve the American Dream of home ownership; a noble objective, of which, I agree. But as with so many things government does, it was not well thought out, badly implemented and the law of unintended consequences was never taken into account. Ill-advised loans were made every day that would never have been made in a free market, absent government influence and pressure. This with with governmental guarantees against loss, (ultimately backed by our tax dollars), plus, penalties for non-cooperation; all combined to create a situation in which for the lender “anything goes”. If we close the loan we get paid, if we don’t close the loan, we can get fined. Financial regulations were now tantamount to, “do it our way, or else”. Consequently, any semblance of business principles were tossed out the window, with catastrophic results.
I’m not being partisan here, the fact is that both liberal and conservative politicians gave broad support to these policies. However, when disaster was on the horizon, one party tried to act… and one party stood firm to continue on the road to disaster.
SOME SAW IT COMING:
2 years prior to the crash, it became obvious there was a looming problem on the horizon. Remember, at this time, democrats had control of the house and the senate. Consequently, conservatives could actually force nothing. Bush and conservatives began taking about the coming problem, trying to alert the public, even drafted legislation to try to stem the tide of the coming storm. It was brought to a vote on the house. The fact is the democrats blocked it. It was a straight party line vote. All republicans voted to do something… Every democrat voted no; to do nothing!
Not only did democrats bury their heads in the sand, they went to the normal liberal political playbook… they labeled republican attempts to avert disaster as being motivated by a general unresponsiveness to the needs of the poor and pure and simple racism! So what’s new? That’s the liberal way.
The liberal playbook... .
BIG GOVERNMENT= BIG PROBLEMS