Sunday, July 31, 2011

Even intelligent, well connected people are confused - shameful


There are so many amazing aspects to whats going on in our country right now.  But the primary problem?  Americans aren't taking time to educate themselves as to what got us into this mess.  We need to understand how we got here before we can solve the problems and get us back on the right track.

Even the most intelligent,  well connected in our country don't understand how we got here.  The latest example?  Tom Brokaw on Meet the Press this morning.  Tom was on a roll in talking about what got us here,  until he squarely placed the blame on Democrats for "pushing home ownership on people who didn't deserve and could not afford the houses they bought"  Wrong Tom.  Its absolutely shameful that even Tom Brokaw is confused.

Republicans are squarely to blame for wrecking our housing market and thereby destroying our economy.   And that's why I will not support my Republican party,  until every one of the Republicans who served during the Bush Administration are run out of office.

The housing crises largely caused our economic collapse.  And the economic collapse accounted for $6 Trillion of the $12 Trillion swing in our federal budgets from 2001 - 2011.  So it was Republicans who blew a massive hole in our budgets.

We can talk about a myriad of issues that caused our housing collapse:
  1. Deregulation of the CDS market in 1999,  largely pressed forward by a Republican Senator.  CDS allowed $25 Trillion in bets to be placed on $2 Trillion in subprime debt,  blowing up the entire mortgage debt system, and causing massive losses for banks, pension plans, and insurance companies, world-wide.  Even local government entities like school systems, cities, towns took massive losses as a result of this blow up in the value of mortgage securities.
  2. Approval of 40 to 1 leverage for investment banks,  approved by a Republican Controlled SEC during a time when Republicans controlled the White House and both the Senate and the House.  This massive leverage allowed I-Banks to be stuffed to the gills with bad mortgage loans.  That took down Bear Stearns, and it took down Lehman,  leading to financial chaos around the world.
  3. Allowing a shadow banking system to grow out of control,  to the point that well over 50% of mortgage loans were made by entities beyond the arm of federal regulation and oversight.  Again, happening at a time when Republicans were in full control of Washington DC.
  4. Believing that a hands off,  free market approach to regulation was best for oversight of the mortgage market.  This hands off attitude is called "Laissez-faire".  And the laissez-faire attitude was largely practiced by the one man who had the most power to have regulated and cleaned-up the mess in our mortgage markets - Republican Federal Reserve Chairman Alan Greenspan.   And by way,  another individual who practiced and preached laissez-faire - my sorry assed Republican Senator,  Richard Burr.   These people deserve most of the blame for the blow up in housing that wrecked our economy.
While there are other contributing factors, these were the primary.  Most Republicans try to divert your attention over to FNMA and Freddie Mac.  They were bit players in this whole mess,  coming in very late in the game,  after the major damage was already well underway.  Most Republicans wave their arms, make up stories,  just boldly and blatantly lie,  in an effort to divert your attention elsewhere.  But this housing bubble that crashed and burned our economy to the ground was a Republican mess.

As a final,  and the most damning evidence of this housing issue belonging squarely in the laps of Republicans,  I remind you of the words of George W. Bush as he stood at the podium in the Republican Convention in New York City in 2004, giving his acceptance speech for the Republican nomination on the Presidential ticket.   George had been in office for four years when he shared this statement with the American people:

"Thanks to our policies, home ownership in America is at an all-time high. Tonight we set a new goal: seven million more affordable homes in the next 10 years so more American families will be able to open the door and say welcome to my home." 

Tom Brokaw, I hardly believe by "our policies" George W Bush was giving credit to the Democrats for pushing record numbers of people into housing under the Bush "ownership society" policies.  Tom, you are just flat wrong. This housing issue, which caused our country so much pain, and accounted for over $6 Trillion of the $12 Trillion swing in budget deficits off the 2001 ten year projections, this was a problem caused by Republicans. They own it. They wrecked our economy. Republicans are why we are where we are today. Republicans are squarely to blame.

No rational,  thinking American should support any Republican who served during the Bush Administration.  These are the people most accountable for our economic mess.  And North Carolina Republican Senator Richard Burr is among this sorry assed group of Republican politicians who need to be punished.

North Carolina deserves better than Republican Senator Richard Burr.

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