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Why wont the Obama and the democrats take responsibility for their part in this financial mess we are in?

The Real Culprits In This Meltdown By INVESTOR'S BUSINESS DAILY | Posted Monday, September 15, 2008 4:20 PM PT Big Government: Barack Obama and Democrats blame the historic financial turmoil on the market. But if it's dysfunctional, Democrats during the Clinton years are a prime reason for it. -------------------------------------------------------------------------------- Read More: Business & Regulation -------------------------------------------------------------------------------- Obama in a statement yesterday blamed the shocking new round of subprime-related bankruptcies on the free-market system, and specifically the "trickle-down" economics of the Bush administration, which he tried to gig opponent John McCain for wanting to extend. But it was the Clinton administration, obsessed with multiculturalism, that dictated where mortgage lenders could lend, and originally helped create the market for the high-risk subprime loans now infecting like a retrovirus the balance sheets of many of Wall Street's most revered institutions. Tough new regulations forced lenders into high-risk areas where they had no choice but to lower lending standards to make the loans that sound business practices had previously guarded against making. It was either that or face stiff government penalties. The untold story in this whole national crisis is that President Clinton put on steroids the Community Redevelopment Act, a well-intended Carter-era law designed to encourage minority homeownership. And in so doing, he helped create the market for the risky subprime loans that he and Democrats now decry as not only greedy but "predatory." Yes, the market was fueled by greed and overleveraging in the secondary market for subprimes, vis-a-vis mortgaged-backed securities traded on Wall Street. But the seed was planted in the '90s by Clinton and his social engineers. They were the political catalyst behind this slow-motion financial train wreck. And it was the Clinton administration that mismanaged the quasi-governmental agencies that over the decades have come to manage the real estate market in America. As soon as Clinton crony Franklin Delano Raines took the helm in 1999 at Fannie Mae, for example, he used it as his personal piggy bank, looting it for a total of almost $100 million in compensation by the time he left in early 2005 under an ethical cloud. Other Clinton cronies, including Janet Reno aide Jamie Gorelick, padded their pockets to the tune of another $75 million. Raines was accused of overstating earnings and shifting losses so he and other senior executives could earn big bonuses. In the end, Fannie had to pay a record $400 million civil fine for SEC and other violations, while also agreeing as part of a settlement to make changes in its accounting procedures and ways of managing risk. But it was too little, too late. Raines had reportedly steered Fannie Mae business to subprime giant Countrywide Financial, which was saved from bankruptcy by Bank of America. At the same time, the Clinton administration was pushing Fannie and her brother Freddie Mac to buy more mortgages from low-income households. The Clinton-era corruption, combined with unprecedented catering to affordable-housing lobbyists, resulted in today's nationalization of both Fannie and Freddie, a move that is expected to cost taxpayers tens of billions of dollars. And the worst is far from over. By the time it is, we'll all be paying for Clinton's social experiment, one that Obama hopes to trump with a whole new round of meddling in the housing and jobs markets. In fact, the social experiment Obama has planned could dwarf both the Great Society and New Deal in size and scope. There's a political root cause to this mess that we ignore at our peril. If we blame the wrong culprits, we'll learn the wrong lessons. And taxpayers will be on the hook for even larger bailouts down the road. But the government-can-do-no-wrong crowd just doesn't get it. They won't acknowledge the law of unintended consequences from well-meaning, if misguided, acts. Obama and Democrats on the Hill think even more regulation and more interference in the market will solve the problem their policies helped cause. For now, unarmed by the historic record, conventional wisdom is buying into their blame-business-first rhetoric and bigger-government solutions. While government arguably has a role in helping low-income folks buy a home, Clinton went overboard by strong-arming lenders with tougher and tougher regulations, which only led to lenders taking on hundreds of billions in subprime bilge. Market failure? Hardly. Once again, this crisis has government's fingerprints all over it. To all of you who are so totally negative, I didn't say who I was supporting or one party is to take all blame. I'm just asking why wont dems accept responsibility for their part?

Public Comments

1. False http://www.factcheck.org/askfactcheck/did_electing_a_democratic_congress_in_2006.html
2. because how often do you hear the guilty admit it and obama and his camp will not say anything like they are guilty but we know this problem is caused by the dems
3. Because Obama supporters have no clue what democrats have been up to all along. They are blissfully ignorant. Democratic leadrship loves that too.
4. Democrats had nothing to do with this crisis. Sure they paid a small part in the 90's but don't forget George Bush was president in the 90's also. Mostly Republicans fault.
5. Dude when Clinton was in office this country was nearly out of debt and our economy was thriving. Maybe you shouldn't have voted for Bush. Do a little more research.
6. Apparently, the article writer ( a Republican apologist, no doubt) forgot to mention that Raegan, Bush Sr and Bush Jr ALL ran deficits for their entire mandates - 20 years' worth. Had the US not had a $10 TRILLION debt load, this wouldn't have been such a big deal.
7. Because its not their fault dummy, check the facts. Republican president and Republican congress for the most part who continually vote deregulation and no safeguards and this is the result. We need "common sense" regulation. wake up.
8. Because the Democrats are notorious for not taking responsiblity for what they do. Their motto is "Let's Find A Republican To Blame"
9. Your must be joking right? There is no one else to blame but the Bush administration from allowing 9/11, to going to war, till present time he messes around and deliberately hurting this country. If Obama was the president maybe we would have an expansion of welfare system, just like when Major Dinkens was in NY. But thats pretty much where it would stop. Look at what Bush has done?
10. I like that you pulled in a news report instead of just spouting opinion, like some people do on here. I know that Republicans played a part in all this mess, too. I think everyone just needs to grow a pair and admit that they messed up, get over it, and try to work together to fix it. But the people in our country are getting so spiteful and petty, they're wasting all their time blaming each other instead of trying to make things better. No wonder our economy is screwed up.
11. the truth is not somthing donkies adhere to.the ms media will help to cover their involment.
12. "Dude when Clinton was in office this country was nearly out of debt and our economy was thriving. Maybe you shouldn't have voted for Bush. Do a little more research." you know that the real economic challenge for a president is to look 3-5 years after he is out of office to see what he really has done. Obama will never admit fault because he has to big of an ego, Mccain atleast admits when he is wrong.
13. The reason that the Democrats can pass the blame to the Bush administration is that most of the public, along with Congress, don't understand economics. They don't realize that the cause of economic movements up or down generally are because of something that started years before. They want to assume that since Bush is in office now that the cause has to be his fault. They also have made a living from blaming Bush for everything.
14. They shouldn't have to take responsibility to make you feel comfy. That would be like me taking responsibility for my neighbor's filthy backyard.