If you think the Democrats are solely responsible for crashing our economy please answers these three question?
Democrats took control of congress 01/07/2007 what specific Republican policy did they overturn that caused this last recession that started at the end of 2007?
what specific policy did the Democrats enact in 2007 that caused the recession that started at the end of 2007?
If the last recession was caused by Democratic policies that were enacted when the Democrats controlled congress before the Republicans took control in 1995 why didn't the Republicans correct that policy? They had from 1995 to 2007 to do so.
- Anonymous10 years agoFavorite Answer
Started well before Bush came into office
Read below.. and Democrats blocked all attempts by Bush to possibly prevent it.
Subprime Mortgage began in 1994
October 23, 1997
(From the Clinton Archives)
In 1994, President Clinton, along with the National Partners in Homeownership, set a goal for the nation to achieve an all-time high homeownership rate by the year 2000. Today -- a full three years early -- the Census Bureau reported that in the third quarter of 1997 the homeownership rate climbed to its highest level ever. Here are some of the results from the Census report, as well as other housing-sector statistics:
--In 1995, at the request of President Clinton, the Administration convened the National Partners in Homeownership to carry out a National Homeownership Strategy
-- The Clinton Administration has cut FHA home mortgage insurance premiums four times
--In 1999, under pressure from the Clinton administration, Fannie Mae, the nation's largest home mortgage underwriter, relaxed credit requirements on the loans it would purchase from other banks and lenders, hoping that easing these restrictions would result in increased loan availability for minority and low-income buyers.
Putting pressure on the GSE's (Government Sponsored Enterprise) Fannie Mae and Freddie Mac, the Clinton administration looked to increase their sub-prime portfolios, including the Department of Housing and Urban Development expressing its interest in the GSE's maintaining a 50% portion of their portfolios in loans to low and moderate-income borrowers.
Fannie Mae Eases Credit To Aid Mortgage Lending
WASHINGTON, Sept. 29, 1999 — In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans.
***** Fannie Mae officials say they hope to make it a nationwide program by next spring. ***
--BUSH REGULATORY OVERHAUL OF FANNIE/FREDDIE BLOCKED BY DEMOCRATS
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By STEPHEN LABATON
Published: September 11, 2003
WASHINGTON, Sept. 10— The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors.
DEMOCRATS BLOCKED IT
--Supporters of the companies said efforts to regulate the lenders tightly under those agencies might diminish their ability to finance loans for lower-income families.
-- ''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.''
Representative Melvin L. Watt, Democrat of North Carolina, agreed.
''I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' Mr. Watt said.Source(s): All in the name of "Affordable Housing" and the Democrats own 100% of it !
- Flush Hope HereLv 610 years ago
1. The democrat controlled congress held Bush's war money ransom in order to get some of their agenda passed. One thing that did pass was the ridiculous and very gracious rules for obtaining a mortgage. According to the democrats, all people have a right for their shot at home ownership. The real estate market prices ballooned into overly valued houses. The banking system swelled with toxic mortgages. Insurance companies had ridiculous insurance plans that were directly tied to the economy; case in point is insuring commercial buildings if things fell below a specific vacancy rate. All told, Bush sold himself to the devil to keep his war going. Da** that Bush for doing it.
#2. When Bush first took office, Clinton left him with a respectable 4.3% unemployment. 6 years later when the democrats took office it increased slightly to 4.7%. The economy does have it's cycles. Plus crappy trade laws from both sides kept the flood of manufacturing jobs to continue to pour overseas. The specific policy was the toxic real estate loans.... That was the chain reaction. After two years of the democrats in congress, the unemployment hit 7.7% when Obama took office. It still hovers very close to 10%, even though 8% was grabbed out of the air as a promise by Obama if only, if just only this stimulus bill could be passed for "shovel ready " jobs. One trillion dollars for a huge amount of PORK.
#3 Clinton was in there. Honestly, he was pretty smart. The single most thing I hate him for was for those pardons. I do not know about the last recession, can't really add on that too much. But I will say both parties are to blame for much of our national debt and deficit. But what Obama is doing is so far off the brink... It is dangerous. I would trade Clinton for Obama any day of the year. That's the honest truth.
- justine 2Lv 610 years ago
Your question is a red herring since their was no "specific policy " it was a culmination of lack of oversight at the Treasury , SEC, Senate and House Banking Committees and Rampant greed specifically at Fannie and Freddie , Frank Raines of Freddie took over 90 million bucks in pay in under 6 years , etc ----------What pisses me off about Democrats is that they have yet to take any blame for any action and act as if they are innocent as usual . Cowards all . .[The same Frank Raines who later served on Obama's campaign staff, the same Frank Raines who received a mere slap on the wrist by Congress ]
- ToadheadLv 510 years ago
1) They over turned nothing as the Republican, when in control were impotent an accomplished next to nothing.
2) They began massive increases in debt spending even more so than Bush had. Look at the historical figures
3) Sorry I do not have to name The Housing re-investment act or Community Re-investment act. I believe it was actually implemented under Carter and enhanced under Clinton.
Again the Republicans were impotent. They are always two scared someone would say they were mean, to actually accomplish anything.
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- JanetLv 44 years ago
no watch any other channel except fox news and you hear what the government WANTS you to hear. why do you think they attack fox news and talk radio? because they give the all facts, not the part to make you feel all warm and cozy inside. all the things they said before obama was elected are coming true. the facts that no one else would mention. closed minded people
- Anonymous10 years ago
the zionist agenda of greed is the problem . capitalism , as practiced today , does not conform to biblical teaching . we must turn from the zionist agenda of greed and return to our christian patriotic roots .
for example : the zionist backed politicians in congress ( mostly conservative republicans but dems have been bought too ) are for free trade agreements . what is so patriotic about putting americans out of work so you can move the jobs to communists in china , while getting a tax break to boot ? free trade agreements have slowly collapsed the working class economy . notice how the cogs of the zionist agenda like fox , beck , savage , etc NEVER mention free trade agreements ? they distract the public with "illegal immigrants" , "welfare" "muslims " etc . they never blame the crooks in banks and wall street that are stealing trillions .Source(s): i am not anti semite , i voted for nader , i will vote for blumenthal , i am anti 'robbing me blind by folks who think god chose them to be the elite' .
- 10 years ago
I think we need to stop the blame game from both sides and find a way to fix this mess actions speak louder than words.
- Anonymous10 years ago
Democrats aren't solely responsible, but definitely contributed.
Libs refuse to admit that they might have played a role....cowardly.
- poopLv 610 years ago
They'll merely ridicule. I similarly grilled conservatives on questions about the Founding Fathers. They frothed at the mouth, and flew back to the flock proclaiming victory.
Most of them are braindead.
- 10 years ago
Just wanted to give you a round of applause. Good question. Republicans, please answer.