Democrats Caused Housing Mess

Kasz216

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Kasz216 on 29 September 2008

akuma587 said:

bigjon said:
Ok, I should have made a better Subject line.

I believe all of washington is to blame for the crisis. Both Parties.

I should have said "Dems to Blame For Fannie and Freddie Failure Which Lead to Collapse of Financial Markets"

basically what the point of this was, if the dems had not been in bed with Fannie and Freddie the snowball would have been stopped before it got too big. It still would have been bad, many of the Bad loans had been made.

The Federal Reserve made it into a problem before anyone in Congress did by keeping rates low for so long.

And you should say that the Democrats and the Neo-cons caused the problem if any group of people was responsible.

Yeah Greenspan was at fault for stopping a bunch of "mini" recessions as well that balled into a big one... but I gotta believe a big reason he did that was constant bi-partisian pressure from incumbants... where short bumps would hurt their relection chances.

That and the ability to brag about the amazing rise in home ownership due to the low rates.

I mean... I can't figure out any other reason why they kept things as they did...

Jackson50

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Jackson50 on 29 September 2008

akuma587 said:

The Federal Reserve made it into a problem before anyone in Congress did by keeping rates low for so long. And you should say that the Democrats and the Neo-cons caused the problem if any group of people was responsible.

BAM!!! Honestly, this is something Democrats and Republicans should be able to agree on. The bureaucrats at the Fed were the chief cause of this mess. The Fed's irresponsible handling of the money supply is to blame for this. They created the housing bubble and, consequently, the mess that followed it. They did this in the 1920s with their reckless inflation of the money supply, and then they caused the inflation of the 1970s. Honestly, what do you expect people to do when artificial demand is created because interest rates are so low? It was simply too tempting to lend and borrow. This caused a spike in ARM loans and then interest-rate-only loans. I suppose you could hold the Republocrat Party responsible because it has not abolished the Fed, but our focus should be on holding Greenspan, Bernanke and all of the other clowns at the Fed accountable.