Letter to the Editor: Schowalter
September 21, 2012
Time to Stop Blaming Bush
To the Editor:
Obama and the Democrats are still blaming Bush for all their problems. It is election time and the American voter should be asking for accountability from Obama and the Democrats, as they have controlled the majority of our government for six years. They took over the House and Senate in 2007, had total control of government from 2009-2011 and have controlled the White House and the Senate since January 2011. It is obvious that Obama’s policies are not working to get us out of the recession, so lets also look as to what got us into it.
What were the causes of the Great Recession? The major causes of the recession were the decontrol of banks and too many subprime loans and both parties are equally to blame. The Republicans were responsible for bank deregulation. The Democrats were responsible for too many subprime loans.
As far back as Jimmy Carter, Democrats started forcing regular banks, Freddie and Fannie Mae to make home loans to unqualified buyers. Each time the Democrats were in control of the government, they demanded more subprime home loans. Bush started warning Congress that the subprime loans were a risk for the U.S. economy as far back as 2001 and continued doing so until he left office. Senate Bill 190 was pushed by Bush to control Freddie and Fannie but it was defeated. Guess which senator promised to filibuster the bill if it came to the floor? Barack Obama (WSJ 7/26/2012). So Obama keeps saying he inherited a mess when he and his party caused the mess.
From 2005 to 2008, Freddie and Fannies loans increased from $1.2 trillion to $5 trillion and the subprime loan portion of that lending was $1.8 trillion. After the Democrats took over Congress in 2007, they made no effort to stop the out-of-control lending. And we know what happened next, the crash of 2008, which put Obama and the party that was a major cause of the recession in charge.
And what did they do? They passed the 2,000-plus page Dodd-Frank Bank bill, which didn’t solve the problem. Regular banks can still act as investments banks, banks still have to make subprime home loans, and the government must bailout the “too big to fail banks.” A party that still blames the opposition after six years in power doesn’t deserve four more years.
Tim T Schowalter