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Originally Posted by WhiplashDug
Well.. actually, the "lending practices" that created the huge run on 'sub-prime' loans originated during the Clinton Administration and democrat congress. But, then the Republican run congress DID nothing while they held control.
However, in 2005 after Greenspan complained, the Bush administration preassured congress and a group of Republicans (including McCain) co-sponsored S.190. This was blocked by democrats 'right down party lines'. The republicans held only a 1 seat majority at that time, and were not able to get enough votes. HOWEVER .. .EVERY democrat in congress OPPOSED IT! And that includes both Obama & Biden.
It's not revisionist history. It's fact. It's all on the record.
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Ok see here's where a big part of the problem is...as it relates to democrats and this crisis.
Bill Clinton was not a rank and file Democrat. Alan Greenspan even referred to him as one of the best republican presidents we've ever had.
While obviously, as a liberal myself, I liked him and his policies alot more than Bush Sr before him and Bush Jr after him....that doesn't mean I agree with everything he did.
Personally, I think most democrats are more in line with FDR than they are with Bill Clinton.
Capitalism won't survive in this country without a strong and prosperous middle class. I support labor unions, universal health care that is a right for all and not just a privilege for the well off, social security for our seniors and a minimum wage that is a living wage. (i.e. anyone who works a full time job should be above the poverty line, period)
The current crisis isn't a just democratic or republican issue really, it's a problem caused by lack of regulation and lack of enforcement of the regulations that did exist.
I'm sure you can find plenty of democrats who opposed more regulation just as you can find some republicans who did want more regulation.
As a whole though, republicans are the party of deregulation and democrats are the party of "big government" as conservatives like to say.
Also please note
The current crisis isn't "just" a result of mortgage defaults. Currently almost 1 in 10 mortgages in this country are delinquent or in some stage of foreclosure.
A 10% loss on an investment isn't really a big deal, relatively speaking. The reason so many firms are going belly up is because
they borrowed money to buy these mortgage securities, and now they can't sell the securities to pay back the loans and they can't get new loans using the mortgages as collateral.
So the problem isn't really bad mortgages....it's that wall street leveraged themselves 10, 20, or 30+ times over to buy the mortgages and now they can't unload them.