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The Republicans tried for 5+ years to reform the mortgage industry to stop any bubble from taking place. They even had Congressional hearings, and the Democrats stopped reforms THIRTEEN TIMES. They even ridiculed people for suggesting there would be a future bubble that will burst..
Yep, this was a disaster seen coming.
And even now Democratic leaders are still not seeing the problem with the housing market. Sen. Kerry (D-MA) is asking that lenders stop asking for a 20% downpayment on a new mortgage because they are too much to be afforded. Huh? These low downpayment, low-interest loans were exactly the problem that caused the bubble. *smh*
its not rocket science.. Where on gods earth do you think government gets the money from? THE PRIVATE SECTOR.. So you cant take money out of the private sector, and then expect spending to increase..
Cutting spending, caused an economic boom under Clinton years. Sensible policy would be not taking money out of the economy and then by some miracle, expect people to spend more..
First, I've discredited that statement the last time you used it but it's clear that YOU don't get it.
This is not a time of high demand by businesses for money. The economy is flush with funds. Businesses have $2 trillion sitting on the sidelines. That's why Fed bills (10-yr.) are selling at around 3%. In short, the government isn't crowding out private demand for money.
It's pure tried and true Keynesian economics. As you said, "its not rocket science" -- (at least for some.)
Second, Clinton didn't cut spending. He kept spending down to a 1% increases per year.
Third, the economy under Clinton was different than today. Unemployment was low and jobs were plentiful. Back then, businesses WERE expanding and needed funds. There was no need for economic stimulus then because there was enough private sector activity.
Different economic situations require different responses. When I am driving my car, sometimes I use the accelerator and other times I need the brakes. Your policy is to always use the brakes.
How does cutting government spending create jobs? Government spending puts money into private hands who then spend it, creating a multiplier effect. Cutting spending cuts off money to private hands. Contractors layoff workers as government contracts are cancelled; government lays off workers, etc.
What you are proposing -- cutting spending in the wake of a severe recession is the exact opposite of sensible policy.
Govt spending TAKES money out of the private sector. It does not grow on trees.
The Republicans tried for 5+ years to reform the mortgage industry to stop any bubble from taking place. They even had Congressional hearings, and the Democrats stopped reforms THIRTEEN TIMES. They even ridiculed people for suggesting there would be a future bubble that will burst..
Thirteen times in two years. Wow! I never heard of that before.
In the other hand Bush and GOP controlled Congress embarkerd an on ambitious "mission" to put 5.5 million minorities in homes when they would not otherwise qualify a mortgage. They did it by loosening lending standards 40 times during Bush admin. We started paying the price for these policies in 2007 and it is still not over.
Ok, I'll bite. What policies of the Democratic Congress caused the crash?
Oh, I dunno - how about then-Senator Obama standing on the floor of the Senate saying, "Everyone DESERVES a home!" to support the Democratic Congress' push to lower the lenders' requirements so that anyone who applied could buy a home, whether they were financially stable or not?
But it isn't just the Democrats - almost every politician firmly believes that 1) rules don't apply to THEM, 2) People - whether they own a multibillion dollar business or are working in a chain restaurant - 'owe' the government their livelihood, and especially their money, and 3) EVERYone wants something for nothing, so if we rob from Peter to pay Pauline long enough, we can give the voters what they want and walk away with our own pockets full. All we have to do is say, "I'm sorry, I tried" and they - like the gullible mouth-breathers they are - will forgive us.
Not enough people any more bother to educate themselves in basic economics, much less basic political strategies, so they jump on the Obama-Zombie or Tea Party train, thinking it will take them to prosperity, not realizing that it will drive them over the economic cliff like the mindless lemmings they are.
People get the government they deserve.
Last edited by SCGranny; 06-03-2011 at 07:20 AM..
Reason: speling ;->
Please, klugman has ZERO credibility. He is nothing more than a liberal hack spewing dem talking point.
How many examples of government interference (i.e. Stimulus) do you need to convince you it doesn't work?
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