Little-Acorn
09-07-2012, 07:36 PM
I've heard this whopper several times now, most recently during the Dem convention this last week.
As has been pointed out in this forum (see http://www.debatepolicy.com/showthread.php?36822-A-reminder-of-what-caused-the-econ-crisis-we-ve-had-for-four-years-Democrat-policies ) , the current economic crises, which manifested itself four years ago with panic over crashing financial institutions, "toxic mortgage loans", and frantic bailouts, was caused primarily by court decisions penalizing banks for not making loans in a pattern someboy thought was "fair" - basically a quota system that measured how many mortgage loans were made to minorities, poor people, etc. Banks started making more and more such risky loans rather than risk long, costly lawsuits over ill-defined standards that they might lose.
It was then exacerbated by large government institutions such as FNMA and FNMC announcing they would buy up most "sub-prime" mortgages from the lenders, thus absolving the lenders from the risks of making loans that might not get paid back. They bought up literally billions of dollars worth of those risky loans, while large lenders such as Lehman Brothers, Countrywide Financial etc. kept many more in their own portfolios.
In fact, Republicans started sounding warnings over these practices shortly after they began, and made them stronger and stronger as Democrats laughed them off and kept right on doing what they had been doing. Republicans then started writing legislation to oversee and control those government institutions, only to see the bills buried in committee by Democrat majorities, or filibustered to death in the Senate when Democrats were in the minority.
Todays shouts by Democrats that "We don't want to go back to REPUBLICAN policies that cuase the problems we've been having!" are astoundingly misleading... a nice way of saying they are lying through their teeth, again. As usual. It was Democrat policies (fought every step by Republicans) that caused the economic crisis, and are well documented as doing so.
Next time you hear this Democrat Lie Du Jour, remind them of these things. It's time for the desperate lies to stop, and sense and intellgence to take over at last... or we will never get out of this mess they caused.
As has been pointed out in this forum (see http://www.debatepolicy.com/showthread.php?36822-A-reminder-of-what-caused-the-econ-crisis-we-ve-had-for-four-years-Democrat-policies ) , the current economic crises, which manifested itself four years ago with panic over crashing financial institutions, "toxic mortgage loans", and frantic bailouts, was caused primarily by court decisions penalizing banks for not making loans in a pattern someboy thought was "fair" - basically a quota system that measured how many mortgage loans were made to minorities, poor people, etc. Banks started making more and more such risky loans rather than risk long, costly lawsuits over ill-defined standards that they might lose.
It was then exacerbated by large government institutions such as FNMA and FNMC announcing they would buy up most "sub-prime" mortgages from the lenders, thus absolving the lenders from the risks of making loans that might not get paid back. They bought up literally billions of dollars worth of those risky loans, while large lenders such as Lehman Brothers, Countrywide Financial etc. kept many more in their own portfolios.
In fact, Republicans started sounding warnings over these practices shortly after they began, and made them stronger and stronger as Democrats laughed them off and kept right on doing what they had been doing. Republicans then started writing legislation to oversee and control those government institutions, only to see the bills buried in committee by Democrat majorities, or filibustered to death in the Senate when Democrats were in the minority.
Todays shouts by Democrats that "We don't want to go back to REPUBLICAN policies that cuase the problems we've been having!" are astoundingly misleading... a nice way of saying they are lying through their teeth, again. As usual. It was Democrat policies (fought every step by Republicans) that caused the economic crisis, and are well documented as doing so.
Next time you hear this Democrat Lie Du Jour, remind them of these things. It's time for the desperate lies to stop, and sense and intellgence to take over at last... or we will never get out of this mess they caused.