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Diane Richardson

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Democrat Propaganda: A Democrat President was Needed to Save Us from Bush’s failing 2008 Economy

The Truth is really ugly, and tells us who Democrats really are:

Begin quote from my book, Left v Right.

""10) The Economy

How did we get in this mess? A year and a half before the 2008 presidential election, the economy was just fine with unemployment at less than 5%. [53] Aside from the Fed constantly trying to regulate the economy, President Bush hadn't done anything except spend money on Democrat programs, like 'No Child Left Behind,' and fight unwelcome wars that Democrats were using quite successfully to retake control of Congress by lying about their encouragement. (That I will prove later.)

Democrats however were also about to select Barack Obama as their candidate for president. Given these activities, and the fact that the investment community does not like one-sided Democrat-controlled government, there is no question in my mind that the economy went negative because investors in the stock market feared the future direction of the country. Forward-thinking savvy investors anticipated that a free-spending high-regulating Social-Democrat would likely be elected president supported by a Democrat Congress. After the market started down and fear spread, and action by the (over-controlling) Fed and investment rating companies confirmed their fears, by downgrading the banks, businesses started to hold back on new products and lay off workers. This caused most, if not all, Carter presidency Community Redevelopment Act sub-prime mortgages to fail, as well as many others, which made unregulated MBSs worthless, causing many banks and insurance companies to fail worldwide.

We could blame 'Fannie and Freddie' for insuring sub-prime mortgages that became worthless, but they were doing just what they were chartered to do. Blaming them is like blaming DHHS for the creation of ObamaCare. We could also blame Congressman Barney Frank because of his insider knowledge related to these GSEs and financial matters at a critical time, and point to his refusal to support sensible controls, but he's a politician, not a trained economist.

But, like any numbers of known cause and effects, there is absolutely no logical reason why global economists with knowledge of how large banks and large brokerages work, like the 'Group of Thirty,' headed by Volker, The Federal Reserve, and the U.S. Treasury could not have know this could happen. So. The logical question is, Why didn't they act in ways to prevent this from happening? The disturbing answer is, Nothing in this bad economy hurts the Left. Because it creates more government dependents, and it helps them to sell their socialistic economic controls while blaming free-market Capitalism and President Bush.

This completely avoidable disaster compelled the federal government (guided by Volker) to force (Yes. Force.) the big banks to borrow over $10 trillion, globally, to insure that they would not fail [140], because their level of 'toxic assets' (MBSs and CDSs) held in bad debt either exceeded or where about to exceed the amount allowed by government regulations. The government believed that if these banks failed the entire world economy would have crashed. [54] Since then the Fed has also been buying those toxic assets, from time-to-time (as a part of Quantitative Easing or QE) at our expense, because there are so many of them.

Personally, I would have preferred that these banks take care of themselves without government help, if not for three concerns: 1) if the government was right the damage to the economy would have been far worse than the cost; 2) the huge loses of pensions funds invested through these banks and many others in an economic meltdown; 3) the knowledge that the government actually created the problem in the first place by not regulating MBSs and CDSs when it knew that it should, and setting banking rules in a way that do not allow banks to get rid of this class of bad debt before declaring bankruptcy. But there was at least one winner: the head of Fannie Mae, Franklin Raines, walked away with over $90 million by reportedly falsifying documents. [127]

Here's a list of those that should probably go to jail over this economic disaster or at least be banned from politics, because they are trained in economics and had knowledge of the risks to the big banks and economy pre-crash due to unregulated MBSs and CDSs: L. Summers, R. Rubin; all members of the Federal Reserve pre-crash, which included H. Greenspan, P. Volker, B. Bernanke, and T. Geithner; and U.S. members of the global Group of Thirty economists pre-crash, which included P. Volker, L. Summers and P. Krugman. Notice that they are all Democrats. And now B. Obama, as he is perpetuating it because he should know 'cause and effect' from his many economic advisers.

Investors continue to be right, because President Obama is overspending at the rate of about $120B/month ($1.4T/year), hiring tens of thousands of government employees at high wages, and creating thousands of new rules and regulations. It's no wonder employers are fearful and not hiring.

" End quote

USA TODAY: Ben Bernanke: More execs should have gone to jail for causing Great Recession


A) The current economy is the negative results of naive democrats attempting to create their version of a wealth-redistribution utopian society.

B) The current economy is the positive results of long-term planning by democrats attempting to create their version of a dependent society based on (government-controlled) Socialism.

Fred Thompson, RIP



Democrat Propaganda: A Democrat President was Needed to Save Us from Bush’s failing 2008 Economy

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