ARC's 1st Law: As a "progressive" online discussion grows longer, the probability of a nefarious reference to Karl Rove approaches one

Sunday, September 28, 2008

GOP Deregulation Caused the Credit Crunch?

Let's go to the video tape!

H/T to Jeff @ Protein Wisdom who provides this analysis:

And this is now: suddenly — after Bush administration attempts in 2003 to avert this crisis, as well as John McCain’s 2005 attempt, both of which were opposed by Congressional Dems — according to Barack Obama we “have to recognize that [the current mortgage / credit crisis] is a final verdict on eight years of failed economic policies promoted by George Bush, supported by Senator McCain [...].”

In Obama’s mind, it was he who sounded the alarm bells — not those actually trying to pass legislation for tougher oversite of a government run enterprise. “Two years ago,” Obama noted last evening, “I warned that, because of the subprime lending mess, because of the lax regulation, that we were potentially going to have a problem and tried to stop some of the abuses in mortgages that were taking place at the time.”

Uh huh. But what did you do about it, Senator? Other than, you know, take money from Frannie and Freddie while inviting Raines and Johnson to advise your campaign? Write a strongly worded letter?

True to form, I guess you did what you normally do: signaled “present,” then just hoped things would change.

Leadership you can count on!

I especially enjoy the clips of Barney Frank, our current savior.

Even more enjoyable is Republican Manzullo calling out Franklin Raines and Jamie "I'm a walking disaster" Gorelick on their ridiculous bonuses.

Another video that provides good analysis of the situation is here:

Your Co-Conspirator,
ARC: St Wendeler

Comments (1)
Anonymous said...

Marriner S. Eccles, was the Chairman of the Federal Reserve from 1934 1948

In his 1951 memoir Beckoning Frontiers, Eccles detailed what he believed caused the Great Depression.
Our current situation is eerily similar.

Eccles wrote:

"As mass production has to be accompanied by mass consumption, mass consumption, in turn, implies a distribution of wealth — not of existing wealth, but of wealth as it is currently produced — to provide men with buying power equal to the amount of goods and services offered by the nations economic machinery.

Instead of achieving that kind of distribution, a giant suction pump had by 1929-30 drawn into a few hands an increasing portion of currently produced wealth. This served them as capital accumulations. But by taking purchasing power out of the hands of mass consumers, the savers denied to themselves the kind of effective demand for their products that would justify a reinvestment of their capital accumulations in new plants. In consequence, as in a poker game where the chips were concentrated in fewer and fewer hands, the other fellows could stay in the game only by borrowing. When their credit ran out, the game stopped.