As a Republican why do you try and blame the Democrats for the economy?
Because they have been in charge for 2 years? That doesn't make much sense to me because for one... the Republicans had control of the house for 6 years and a Republican President now for almost 8. And also... it's kind of difficult for the Democrats to try and push anything and accomplish anything significant when you've got the current Republican President with veto power. Now this economic problem is ENTIRELY the Republicans fault, but it is most certainly mostly their fault.
- 1 decade agoFavorite Answer
Catch up. Democrats caused the mess. President Bush has been trying to fix it since 2001. Democrats blocked the change by filibustering in congress.
The Clinton housing bubble started before laws were passed by congress in the 1990's
1) The last Democrat president created the housing bubble which is now collapsing. http://www.frbsf.org/publications/economics/letter... (Federal Reserve website)
2) Democrats caused the housing bubble to collapse by reducing consumer confidence (negative campaigning) and by encouraging home builders to overbuild by using illegal immgrant labor to generate 100% to 400% profits. ( Democrats blocked massive efforts made by President Bush to fine employers of illegal immigrants.)
3) Clinton ignored a government report that said bank derivatives were dangerous to the economy. He also threatened to fine banks that were not giving loans to poor people.
4) Clinton, ACORN, and Rubin pushed for changing laws to provide more risky loans.
5) Obama and other Democrats voted for weak border control which decreases wages, increases joblessness, lowers the standard of living, etc.
6) Democrats blocked President Bush's GSE reform (Fannie Mae and Freddie Mac reform) by filaabuster in congress..
7) $700 billion was spent to fix Clinton's bank derivatives problem.
8) Democrats increased our dependence on foreign oil. That increases gas bills, decreases national security, and gives other countries hundreds of billions of dollars yearly. Also, it financially helps many countries which do not have our best interests in mind.
Since 2001, President Bush warned of the problem and put forward plans to fix Fannie Mae and Freddie Mac:
In 2003, "Spurred by worries that Fannie and Freddie were cooking their books and taking too many risks, Treasury Secretary John Snow proposed placing the companies under Treasury oversight with strict controls over risk and capital reserves. The NYT labeled the proposal "the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago""
In 1997 Clinton "actively sponsored " risky home loans :
""...rapid growth in affordable-loan programs and subprime lending..."
"The growth in these [special loan] programs has been actively sponsored by the Clinton administration "
"The currently strong housing market is due in part to the initiation of a wide variety of affordable home-loan programs. These programs are intended to benefit low-income and minority households and neighborhoods through more flexible underwriting policies. These policies include low-downpayment requirements, higher acceptable ratios of debt payment to income, the use of alternative credit history information such as records of payments for rent and utilities, flexible employment standards, and reduced cash reserve requirements. The growth in these programs has been actively sponsored by the *** Clinton administration *** in a concerted effort to raise home-ownership rates."
Mortgage Banking [News] - Aug 1, 1997
Clinton's Freddie Mac changes:
"Freddie Mac, one of the primary government-sponsored enterprises involved in the purchase of mortgages, recently announced plans to enter the secondary market in subprime loans by purchasing significant numbers of "A minus" subprime mortgages by 1998 and the higher-risk "B and C" loans by 1999.(20) "
One of Clinton's changes to foreclosure insurance ( that protected banks ).
"On June 6, 1996, President Clinton announced that he had directed FHA to reduce the up-front mortgage insurance premium (UFMIP) for first-time homebuyers who receive housing counseling"
Democrats' response to President Bush's reform of Fannie Mae And Freddie Mac.
"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."
Democrat Barney Frank: In April 2004, Fannie announced a multibillion-dollar financial "misstatement" of its own. Mr. Frank was back for the defense. Fannie and Freddie posed no risk to taxpayers, [ Barney Frank ] said, adding that "I think Wall Street will get over it" if the two collapsed. Yes, they're certainly "over it" on the Street now that Uncle Sam is guaranteeing their Fannie paper, and even Fannie's subordinated debt.
[ Democrat Barney] "Frank was publicly arguing for an increase in the size of their combined $1.4 trillion portfolios right up to the day they were bailed out. Even now, after he's been proven wrong about a taxpayer guarantee, he opposes Treasury's planned reduction in the size of the portfolios starting in 2010, according to a quote attributed to him in this newspaper last week. "Good luck on that," he reportedly said. Mr. Frank's spokeswoman hung up the phone when we sought confirmation Tuesday" ... "For years, Mr. Frank and other friends of Fan and Fred opposed not only bills written to limit the size of their portfolios"
Wall Street Journal.
- ephremLv 43 years ago
so which you will vilify Democrats for blaming Republicans, yet supply the Republicans a loose bypass for blaming Democrats? heavily, are you new to usa of america or some thing? the two components blame the different. it is what they do. the two components voted for the sequester. the two put in place issues that they seen unacceptable to the different part. The Democrats are asserting the gentle downturn interior the economic gadget replaced right into a results of businesses protecting back until eventually they knew what could take place as a results of the economic cliff disaster. however we lost interior the fourth quarter would be extra beneficial than made up interior the 1st quarter, now that the uncertainty is long previous. So why even difficulty worrying approximately this?
- Jeff ELv 41 decade ago
I don't blame the Democrats, I blame Americans. We sit back and do not keep up with anything except every 4 years. It is a combination of things. Too much spending, Bush and all those who voted for the budgets. It was lack of regulation of Freddie and Fannie, which was voted against by Democrats and some Republicans while Barney Frank and Chris Dodd ran them in the ground. But we all were just sitting back not paying attention while both parties did a number on us. Still, we will persevere and the economy will rebound and then we will have another issue that divides us and those in power will use it to keep us divided against each other.
- David P. LLv 41 decade ago
I have to agree with "A Bush Family Member". Back in the Clinton Administration, The Clinton administration put pressure on the mortgage lenders to give loans to those who could not otherwise afford it. Thus this mortgage debacle was set forth a long time ago. What's more, has anyone noticed that when Obama talks about his so-called :plan" to fix the economy, it isa 10 year plan? 10 years? He would only be in office for a maximum of ten. This is by design. The reason for this is so when it doesn't work, they have an "out". "It didn't work because the succeeding administration didn't follow thru with the "plan"."
Just because a particular president (regardless of who it is) is in office, does not make them responsible for what happened before they take office. This happens every time there is a change in presidents.
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- Tim HLv 51 decade ago
Jeff E and a Bush family member have it right. People go back and forth blaming whoever it is trendy to blame according to the media. If people would actually look at political records and make an attempt to find out where their politicians stand there wouldn't be so many problems because politicians could be held accountable for their faults. As it stands now anyone who is a good speaker and a good liar with good friends in the media is always going to be blameless.
- Anonymous1 decade ago
Um...because Dems still make up the majority in congress and have for the last 8 years...the economy isn't solely dictated by the President you know. Thought you libs were supposed to be educated on the process of economic policies? But the above is right...too much spending, not enough saving...our credit mess. It's a combination of failed policies on a two party system.
- Anonymous1 decade ago
STOP blaming this on the Democrats, people!
And START BLAMING IT on your precious Jesus-Loving daddy's boy.