[spence]

Originally Posted by Jim in CT

When the Democrats took control of congress in January 2006, unemployment was at 4.6%, the Dow was at 12,600, and the GDP had been growing like crazy since Clinton balanced the budget. In other words, what the democrats "inherited" in 2006 was a thriving, robust economy. Since 2006, the Democrats had control of all the committees.

Ummm, I think that's why they called it a "bubble" as it had yet to burst.

It was Democrats who pushed subprime mortgages. In my opinion, the worst you can say about the GOP was that they proposed the de-regulation of financial markets in 1999 (I think it was 99) that Clinton signed. However, no one knew what was going on with those crazy mortgage-backed securities. If it was so clear that Wall Street was abusing the de-regulation, why didn't the Democrats propose to re-regulate Wall Street when they took control in 2006? Answer? No one had a clue what Wall Street was doing. But everyone knew that banks were being reckless by writing so many subprime mortgages, which was based on liberal doctrine that everyone is entitled to a home, even if they can't afford one.

I love it, so the GOP is responsible for de-regulation "the reason why nobody knew what was happening" but it's the insane liberals that really must be under it all...

Think of a big reason why the economy in the mid 2000's was doing well to begin with. A rise in International investment combined with low rates made credit easy to obtain and plenty of investors wanting to cash in on mortgage backed securities which seemed magical considering the housing market which continued to grow. Everybody was in on this, not just the minorities or poor, in fact they represented a fraction of the market.

This drove the bubble that eventually got as big as it could and housing prices -- across the board -- started to decline rapidly for everyone, which resulted in the sub-prime ARM's to ratchet up their rates. Many of which were a result of predatory lending and people not knowing what they were really getting into.

If properly regulated perhaps this could have been controlled (there still would have been a lot of sub-prime foreclosures) but considering the risky loans had been bundled with good loans (and sold off as AAA) nobody knew where the risk really was...and everybody pulled out.

Crash...

When the Dem's took Congress in 2006 they inherited this time bomb waiting to go off.

Not a lot of liberal ideology here, unless you think the entire house of cards was build to satisfy some government mandate, largely during a period where the GOP held both the Executive and Legislative branches of our government.

Oh wait, didn't President Bush push hard for more sub-prime lending because he felt that home "ownership" was good for America? Wasn't this conservative thinking? That the people owning their own home is more stable and responsible than looking for a government handout?

"Fannie Mae, Freddie Mac and the federal Home Loan Banks -- the government-sponsored corporations that handle home mortgages -- will increase their commitment to minority markets by more than $440 billion, Bush said."

Source: Bush aims to boost minority home ownership - CNN

And shortly after the rate of sub prime lending goes through the roof.

The primary Dem opposition to reform (in 2003 and 2006) was driven more by the accounting scandals rather than concerns over sub-prime lending. Some of their issue were valid, some not...but I don't believe much of this reform would have had an impact on the derivatives market and mortgage backed securities.

And when Dems took over in 2007 they immediately pushed for more regulation to help ensure the same issues wouldn't arise again. Bush, focused on the present, was pushing taxpayer funded subsidies to help mortgage holders in over their head! What a RINO

The net is you're basing opinion off of a portion of the story...only a crazy person (i.e. mental disorder) would do this in good faith.

Spence is 100% right when he says there is blame on both sides.

First thing in 3 weeks you've said that's made any sense.

I'd love to know what Spence thinks when he sees Obama, time and time again, putting all the blame on the Republicans, who had been out of power for almost 3 years when the economy collapsed.

I don't believe Obama was sworn in until Jan 2009. By your reconing that would make today January 2nd 2012!

If Spence is right (and he is), then Obama is either an idiot or a liar, and there simply isn't another option. (In my opinion, Obama is BOTH an idiot and a liar).

It's called politics.

If you want someone to blame for this mess blame your neighbor for pulling equity from his house to buy a boat he can't afford, the short-term'ism of our markets, shady lenders out to make a quick buck, politicians trying to hold their power, Wall Street, a lack of personal responsibility etc... etc... etc...

Like I've said, there's plenty of blame to go around...

-spence