Letter: The origins of the recession
We all cherry-pick the facts from time to time, but Vincent Melquist takes this practice to new heights in his criticism of Earl Pederson's letter.
When criticizing Bush, he neglects to mention the fact that the Democrats took over both the House of Representatives and the Senate in January of 2007, which severely hamstrung President Bush's intentions. Before that, the economy was humming along rather nicely, with GDP growth at 3.5 percent, unemployment at 4.5 percent, and the Dow at over 12,000. But in January of 2007 it was Barney Frank who became head of the House Finance Committee and Chris Dodd the head of the Senate Banking Committee.
Remember how they assured everyone that everything was fine and there was nothing to worry about? But only 15 months later the disaster struck and we had the TARP bailout, robbing the U.S. taxpayers of almost a trillion dollars.
This all started under the Clinton presidency, when the radicals began their practice of putting pressure on banks to offer the NINJA loans (remember, no income, no job or assets) under the threat of being labeled "racist" if they didn't. It was called "redlining". And then when Fannie and Freddie offered to guarantee those unsecured loans, the scheme was set, and the disaster that followed is history.
Now who benefited from all this? Well, big banks, Freddie and Fannie and their officers, who received huge payoffs, not to mention then-Sen. Obama. But Bush, who on numerous occasions had tried to stop the practice because he realized how damaging it was to our economy, got the blame. Go figure.
I am not here to toot President Bush's horn, since I don't agree with his handling of the crisis either. But at least he tried to correct the problem (albeit, too little too late), but it was the liberal arm of the Democratic Party that caused such mayhem in our financial markets by ignoring sound financial practices in order to force their ideology on us all -- with disastrous results.