Is Bush to blame?
President Obama blames Bush for our financial crisis. Is he right? The simple answer is no. However, since the full story is long and rather complex, I recommend that you read this post and watch these videos first. You should then read Obama’s Biggest Lie for a more complete understanding of what really happened. Taken together, these two posts refute the false claim of Obama and the Democrats that Bush’s economic policies caused our current financial crisis and they expose the culprits who actually did trigger the financial meltdown.
If there was a single most important “trigger” of the financial meltdown, it was the lack of regulation and reform at Fannie Mae and Freddie Mac. Also, it is important to know that what Barack Obama is telling us is patently untrue.
Below, are three videos that, irrefutably, tell the truth. It is important to watch all three to fully understand what triggered our financial crisis, who warned us, and who blocked reform that could have prevented it.
Video 1 of 3
Video 2 of 3
Video 3 of 3
Let’s summarize:
- For years, the Bush Administration and Republicans warned repeatedly about an impending financial disaster and pushed for reform in order to head it off while the Democrats dishonestly accused them of setting off false alarms. (See Bush Warned Us Of A Potential Financial Crisis)
- Democrats repeatedly blocked reform, declaring that there was nothing wrong. Their reason for doing so was simple: The recipients of the bad mortgage loans, which were being pushed by Fannie and Freddie, were virtually all Democratic voters. So once again, the Democrats put the pursuit of power before the good of the country. Now, without skipping a beat, the very same people who are most culpable for our current financial and economic problems, lie to us and blame “Bush economic policies” for the financial meltdown.
- Democrats praised Franklin Raines for his stewardship of Fannie Mae while Mr. Raines was in the process of destroying that organization.
- Even Bill Clinton correctly and honestly placed the blame on the Democrats.
- Astonishingly, even after Franklin Raines was forced out of Fannie Mae in disgrace, Barack Obama asked him to join his campaign as an adviser on mortgage and housing policy!
Here’s what the Washington Post had to say:
The Obama Campaign Has Solicited Franklin Raines, Who “Stepped Down As Fannie Mae’s Chief Executive Under The Shadow Of A $6.3 Billion Accounting Scandal,” For “Advice On Mortgage And Housing Policy.” “In the four years since he stepped down as Fannie Mae’s chief executive under the shadow of a $6.3 billion accounting scandal, Franklin D. Raines has been quietly constructing a new life for himself. He has shaved eight points off his golf handicap, taken a corner office in Steve Case’s D.C. conglomeration of finance, entertainment and health-care companies and more recently, taken calls from Barack Obama’s presidential campaign seeking his advice on mortgage and housing policy matters.” (Anita Huslin, “On The Outside Now, Watching Fannie Falter,” The Washington Post, 7/16/08)
“Two Members Of Mr. Obama’s Political Circle, James A. Johnson And Franklin D. Raines, Are Former Chief Executives Of Fannie Mae.” (Editorial, “Tough Decision Coming,” The Washington Post, 8/28/08)
Note: Most of our media have been conspicuously silent on this matter. If they mention it at all, it is with mitigating caveats that serve to veil its true significance. They simply did not report in full anything that would harm Barack Obama. Of course, the so-called “mainstream media” no longer serve us. They serve Barack Obama, their “Messiah.” After all, we are not to be trusted with the truth so we can decide for ourselves. They think they know best.
“The recipients of the bad mortgage loans, which were being pushed by Fannie and Freddie, were virtually all Democratic voters.” A rather large portion of the subprime mortgages were utilized by speculators, not low income families trying to obtain a mortgage they could not afford. And the vast majority of the loans that went bad were not Fannie and Feddie loans. Typical tactic towards low information voters to reference recognized problems at Fannie and Freddie relative to their portfolio and infer that those problems were related to the financial meltdown. Documentaries like Inside Job, present the reality of what occurred and correctly place the blame on greedy investment bankers, banks and pay to play rating agencies. Watch them and get educated. You’ll thank yourself and be able to do something more productive than promoting propaganda.
No propaganda here. Greedy investment bankers, banks and pay to play rating agencies certainly played a part, but whether intended or not, Fannie and Freddie were enablers and the genesis of the entire scheme. Without their participation and the aggressive urging of Democrats like Barney Frank in Congress the ensuing financial collapse would not have occurred. As to the documentary “Inside Job” you should read the Washington Post article titled “What Inside Job Got Wrong.” Also, please remember the title of this article is “Obama Blames Bush for Our Financial Crisis.” Not true.
“it was the lack of regulation and reform at Fannie Mae and Freddie Mac” He did not say Bush was responsible, he said it occurred under his watch as President. No doubt individuals like yourself blame President Obama for all kinds of things he had no direct involvement in merely because he was sitting in that same chair. The FACT sir is that greedy Wall Street bankers are directly responsible for the financial meltdown due to two very verifiable actions they undertook. First, was to create mortgage backed securities to go avoid the banking regulations that would not allow them to sell subprime mortagatges. Second, was to create credit default swaps to avoid insurance regulations that would have necessitated adequate reserves. The proof of this is clear when you note that investment banks like goldman sachs actually was betting against the fraudulent AAA rated mortgage backed securities they were selling. For the majority of the pedaling of these two fraudulent mechanism, Freddie Mac and Fannie Mae were actually prohibited from purchasing these mortagage backed securities because they were non-conforming mortgages. It is never an honorable thing to infer someone else is lying about who caused they financial meltdown and then lie about what actually caused it. And yes it happened on Bushe’s watch due to an SEC which was asleep at the wheel. And yes Bush actually appointed two of the individuals who were involved in developing the two fraudulent mechanisms referenced to oversee the bailout. And yes because the majority of Treasury Secretaries come from Goldman Sachs, the federal money to AIG was earmarked to bailout GS, so that their partners could continue to received outlandish bonuses.
First, I didn’t blame Obama for anything. I said he was wrong to blame Bush for the financial crisis. Second, when you say things like “No doubt individuals like yourself blame President Obama for all kinds of things he had no direct involvement in …” you disqualify yourself from any further discussion. I stand by my post.