Skip to comments.So Obama Inherited a Mess, Did He? From Whom?
Posted on 09/09/2012 12:58:53 AM PDT by neverdem
For the past three and a half years, we have had to endure the nonstop whining of Barack Obama and his surrogates telling us over and over that he inherited the financial mess that required him to add trillions of dollars to the national debt, to run trillion-dollar-plus deficits for each year that he's been in office.
Now he is telling us that he needs another four years and trillions more in money borrowed from China to complete the clean-up of the mess he inherited.
Well, for once, he nearly has it right. He inherited not simply a financial mess, but a historic financial disaster. Even the most virulent anti-Obama partisans will admit that Barack Obama didn't directly create the 2007-2008 financial meltdown.
But Obama's own claims that it was all the fault of his predecessor, George W. Bush, sounded a little thin the first time he uttered them, while now they appear remarkably transparent. The source of the financial crisis precedes Bush by a number of years, and like many landslides, it starts with a small pebble being dropped that starts the whole thing.
Looking backward through the historical record might help us decide just who provided Barack Obama with the financial legacy he has to cope with if it wasn't Bush.
In 2007-2008, the major financial institutions of Wall Street found themselves holding hundreds of billions of dollars in so-called derivatives. And just what are derivatives?...
So whom can Obama blame? Well, some of the most destructive avalanches have begun with the dropping of a tiny pebble that unsettles the slope of a mountain. Barack Obama dropped such a pebble in 1995 when he sued Citibank in Chicago.
So, Mr. President, it might be inferred that the mess you inherited, you actually helped cause yourself.
(Excerpt) Read more at americanthinker.com ...
It will be instructive to repeat this over and over that the rats made the mess and Romney has to clean it up.
Oh, didn’t they get the memo? History doesn’t matter anymore if it effects any democrats chances for election.
History only matters if it can be used to slime and slander a Republican.
Now, back to your discussion....
A very good piece - clear and direct explanation of the housing bubble.
Everytime I encounter an O worshiper saying “O inherited it” I remind them that O AND Biden were in Congress preceding the big financial meltdown,,and then I ask what O or Biden did to prevent it...
That usual turns the conversation away from O and the person starts throwing insults at me...
That’s when I know I got ‘em!
I would be very interested to see an investigation a la NTSB of the disaster that is the housing market.
Blaming the Community Reinvestment Act of 1977 is an old exercise, one that I gave up espousing because the people on the other side of the argument just couldn't believe that such well-meaning legislation would trigger the start of such a failure cascade. "What about the greedy banks?" When you mention Fanny Mae and Freddie Mac as some of those "greedy banks" you get push-back of the strongest kind. Also, the people on the other side of the argument have problems understanding why banks repackage loans as investments — to reduce their risk and exposure. Actions that people do retail aren't understandable at all at the wholesale level.
The whole tale won't be told for a number of years yet. The academics won't be able to decouple their own self-interested enough to really see the dominoes until well into the century. Too late to really fix the problem.
This is not news to me
I knew about this foour years ago.
The vetting of this democrat presidential candidate is four years too late
Great read ping.
Barney frank and chris dodd, Carter and clinton, gov cuomo head of HUD under clinton. Architects of the deliberate housing mess.
HOPE AND CHANGE!
After three years of Obama.
Here’s your change since January 2009!
Avg. Retail price/gallon gas in U.S.
Then: $1.83 Now: $3.44 Change: 84% Source: 1
Crude oil, European Brent (barrel)
Then: $43.48 Now: $99..02 Change: 127.7% Source: 2
Crude oil, West TX Inter. (barrel)
Then: $38..74 Now: $91..38 Change: 135.9% Source: 2
Corn, No.2 yellow, Central IL
Then: $3.56 Now: $6.33 Change: 78.1% Source: 2
Soybeans, No. 1 yellow, IL
Then: $9.66 Now: $13.75 Change: 42.3% Source: 2
Sugar, cane, raw, world, lb. Fob
Then: $13.37 Now: $35.39 Cange: 164.7% Source: 2
Unemployment rate, non-farm, overall
Then: 7.6% Now: 9.4% Change: 23.7% Source: 3
Unemployment rate, blacks
Then: 12.6% Now: 15.8% Change: 25.4% Source: 3
Number of unemployed
Then: 11,616,000 Now: 14,485,000 Chance: 24.7% S: 3
Number of fed. Employees
Then: 2,779,000 Now: 2,840,000 Change: 2.2% Source: 3
Real median household income
Then: $54,983 Now: $50,964 Change: -7.3% Source: 4
Number of food stamp recipients
Then: 31,983,716 Now: 43,200,878 Change: 35.1% S: 5
Number receiving unemployment benefit
Then: 7,526,598 Now: 9,193,838 Change: 22.2% S: 6
Number of long-term unemployed
Then: 2,600,000 Now: 6,400,000 Change: 146.2% S: 3
Poverty rate, individuals
Then: 13.2% Now: 14.3% Change: 8.3% Source: 4
People in poverty in U.S.
Then: 39,800,000 Now: 43,600,000 Change: 9.5% S: 4
Present Situation Index
Then: 29.9 Now: 23.5 Change -21.4% Source: 11
Then: 140 Now: 164 Change: 17.1% Source: 12
U.S. Dollar versus Japanese yen exchange rate
Then: 89.76 Now: 82.03 Change: -8.6% Source: 2
U.S. Money supply, M1, in billions
Then: 1,575.1 Now: 1,865.7 Change: 18.4% Source: 13
U.S. Money supply, M2, in billions
Then: 8,310.9 Now: 8,852.3 Change: 6.5% Source: 13
National debt, in trillions
Then: $10..627 Now: $14..052 Change: 32.2% S: 14
Just take this last item: In the last two years we have accumulated national debt at a rate more than 27 times as fast as during the rest of our entire nation’s history. Over 27 times as fast. Metaphorically speaking, if you are driving in the right lane doing 65 MPH and a car rockets past you in the left lane, 27 times faster, it would be doing 7,555 MPH!
(1) U.S. Energy Information Administration; (2) Wall Street Journal; (3) Bureau of Labor Statistics; (4) Census Bureau; (5) USDA; (6) U.S. Dept. Of Labor; (7) FHFA; (8) Standard & Poor’s/Case-Shiller; (9) RealtyTrac; (10) Heritage Foundation and WSJ; (11) The Conference Board; (12) FDIC; (13) Federal Reserve; (14) U.S. Treasury
So, tell me again, what is it about Obama that makes him so brilliant and impressive? Can’t think of anything? Don’t worry. He’s done all this in 33 months — so you’ll have about 3 months to come up with an answer. Every statement here is factual and directly attributable to Barrack Hussein Obama. Every bumble is a matter of record and completely verifiable.
EVERYONE SHOULD READ THIS.
This tells the story, why Bush was so bad at the end of his 2nd term.
Dont just skim over this, read it slowly and let it sink in. If in doubt, check it out.
The day the Democrats took over was not January 22nd 2009, it was actually January 3rd 2007 the day the Democrats took over the House of Representatives and the Senate, at the very start of the 110th Congress.
The Democrat Party controlled a majority in both chambers for the first time since the end of the 103rd Congress in 1995.
For those who are listening to the liberals propagating the fallacy that everything is “Bush’s Fault”, think about this:
January 3rd, 2007 was the day the Democrats took over the Senate and the Congress. At the time:
The DOW Jones closed at 12,621.77
The GDP for the previous quarter was 3.5%
The Unemployment rate was 4.6%
115,000,000 employed Americans and who knows how many illegals (Today there are 111,000,000 employed Americans)
George Bush’s Economic policies SET A RECORD of 52 STRAIGHT MONTHS of JOB GROWTH.
Remember the day.-
January 3rd, 2007 was the day that Barney Frank took over the House Financial Services Committee and Chris Dodd took over the Senate Banking Committee.
The economic meltdown that happened 15 months later was in what part of the economy?
BANKING AND FINANCIAL SERVICES!
Unemployment - to this CRISIS by (among many other things) dumping 5-6 trillon dollars of toxic loans on the economy from your Fannie Mae and Freddie Mac FIASCOES!
Bush asked Congress 17 TIMES to stop Fannie & Freddie - starting in 2001 because it was financially risky for the US economy.
And who took the THIRD highest pay-off from Fannie Mae AND Freddie Mac? OBAMA.
And who fought against reform of Fannie and Freddie?
OBAMA and the Democrat Congress.
So when someone tries to blame Bush,
REMEMBER JANUARY 3rd, 2007, THE DAY THE DEMOCRATS TOOK OVER!
Budgets do not come from the White House. They come from Congress and the party that controlled Congress since January 2007 is the Democrat Party.
Furthermore, the Democrats controlled the budget process for 2008 & 2009 as well as 2010 &2011.
In that first year, they had to contend with George Bush, which caused them to compromise on spending, when Bush somewhat belatedly got tough on spending increases.
For 2009 though, Nancy Pelosi & Harry Reid bypassed George Bush entirely, passing continuing resolutions to keep government running until Barack Obama could take office. At that time, they passed a massive omnibus spending bill to complete the 2009 budgets.
And where was Barack Obama during this time? He was a member of that very Congress that passed all of these massive spending bills, and he signed the omnibus bill as President to complete 2009.
If the Democrats inherited any deficit, it was the 2007 deficit, the last of the Republican budgets. That deficit was the lowest in five years, and the fourth straight decline in deficit spending. After that, Democrats in Congress took control of spending, and that includes Barack Obama, who voted for the budgets.
If Obama inherited anything, he inherited it from himself. In a nutshell, what Obama is saying is I inherited a deficit that I voted for and then I voted to expand that deficit four-fold since January 20th.
The Wall Street Journal reported that middle class income rose 30% between the period 1983 to 2005.....30%! Republicans controlled the presidency during that time with one exception; Bill Clinton, but he had a Republican congress to guide him! Republicans controlled the House from January 1995 until January 2007. Republicans controlled the Senate for 15 of the 22 year period in which middle class income rose 30%.
If Obama gets four more years of his failed policies, there will be no HOPE for any of us.
Bush inherited the dotcom bust, the CRA scam, and the Path to 9-11.
“The buck stops here.”
“It’s all due to... anyone but me!”
Well, things have certainly changed in the past six decades.
Great article. However, it did not mention the repeal of the Glass-Stegall Act. This action alone should implicate Bill Clinton in allowing the derivatives market to get out of control. He, Larry Summers and Alan Greenspan were warned but chose to ignore the warnings. The reason this is never mentioned is because congressional Republicans were implicit in the passage of the repeal. If Bernanke was truly a historian of the Great Deppression he should have lobbied to get something similar on the books.
We are defenitely headed off the cliff.
I was in the banking business in 1977 when this law took effect. This article is well written and quite accurate. The one chapter he did not include was the demise of the “Savings and Loan” industry in the 80’s where they got caught with 6% long-term loans, and the depositors were being paid 14%. It didn’t work and thousands went out of business. Consequently the lenders that remained would no longer keep the loans on their own books. They sold the loans to Fannie and Freddie who had an unlimited amount of money from the US Treasury. It then spiraled out of control as Congress relaxed the “standards” which resulted in the “sub-prime” mortgages.
Carter gave Reagan 10% unemplyment, 20% interest rates, gfas rationing, gas lines etc. Yet, BHO inherited the worst economy since the Great Depression? Absolute BS.why isn’t Romney doing this ad dail?
How about the Many levels of Insurance Companies Insuring all these Bundled Mortgages? The Banks Knew these Mortgages were toxic,they knew there would be a Lot more Defaults ,so did Insurance companies, they began competing against each other,offering better and Better deals for insuring those Bundled toxic Gems.
Of Course the insurance companies themselves also Knew these were Bad Bets and therefore insured themselves against the Inevitable Losses that surely would Materialize.
All of them though NEVER thought they would all go bad at the same time,but guess what? They did,I have read that these losses were in the tens of Trillions of dollars,and that is where the entire world including Europe took the hit,and they did cause it by telling everyone these were highly rated Bundles. So that is where we are and we have yet to pay the real price,so Obama will get reelected and we are all going to suffer the Horrors
Not sure if can find it gain on Youtube, but there is a 6-7 minute video up there of Cuomo as Clinton’s HUD Secty introducing and explaining the CRA.
Bad audio but towards the end, iirc a journalist asks something to the effect of “did you just say the government is going to use tax payer money to guarantee billions of dollars of loans to people who normally wouldn’t qualify?”
Cuomo answers yes.
George Washington started it.
Yep - if it weren’t for the Democratic Party, we wouldn’t be in the mess we now find ourselves in. The Republicans lost their directions and spines longa ago and tried to hard to pander to the “new age” PC society that the Democrats were busily creating. Politics corrupts - politicians are the proof.
>>to the new age PC society that the Democrats were busily creating.
"The technetronic era involves the gradual appearance of a more controlled society. Such a society would be dominated by an elite, unrestrained by traditional values. Soon it will be possible to assert almost continuous surveillance over every citizen and maintain up-to-date complete files containing even the most personal information about the citizen. These files will be subject to instantaneous retrieval by the authorities."
“How The Democrats Caused The Financial Crisis: Starring Bill Clinton’s HUD Secretary Andrew Cuomo...”
Thank you, I WILL use this...
Off to wingnut land I go....HeHeHeHe
Barack Obama dropped such a pebble in 1995 when he sued Citibank in Chicago. ... So, Mr. President, it might be inferred that the mess you inherited, you actually helped cause yourself.It wasn't only Obama doing the suing in Chicago.
He was proceeded by his partner in Race-Baiting-Crime, the not-so Rev Jessa Jackass who started the ball rolling on banks and finance companies having to give Risky Loans - or else - when he went after Automobile Dealerships in Chicago. Mostly those Auto Dealers along South Western Avenue in the Marquette Park neighborhood from approximately 6400 South to 7400 South.
What once once a nice looking, clean, and thriving business area, is now a ghost town of vacant lots and abandoned buildings. Naturally as the area declined to a mini Detroit, the crime increased. Today it's a war zone and there's no time of the day when it's 'safe' to be out. You can be personally attacked and robbed at gunpoint while waiting for a bus, or catch a stray bullet meant for someone else.
Why don't Romney surrogates use this post-Convention moment to place the "blame" right back on Clinton/Frank/Dodd/Pelosi/Reid/Jackson/et al for what this President claims he "inherited"?
The record is there. Use it.
Obama was a senator when the ‘mess’ was being created. They keep bring up romneys and Ryan’s voting records maybe its time to look at Obama’s.
George W. Bush isn't dead but he might as well be as far as defending his actions as President, and the Republican Party has acted for the past four years as if they never heard of him.
That has allowed the Democrats to have the floor to themselves blaming the crash of 2008 and the recession on Bush. That seems to be their plan to counter Obama's economic failure--to blame it all on the Republicans. It would have been good if in the last four years someone from the Republican side had pushed back. It could be critical for this election not to let the Democrats get away with the line they have been pushing.
Welcome FRiend happy FReeping.
I hear she made a fortune on sub-primes in Chicago.
One day I do hope he gets his due. I do believe him to have been one of the Greats.
Thanks for looking.
The analogy of driving 65 miles and going 27 times faster doesn’t yield 7,555 miles. 65 x 27 = 1,755