Their acquiescence with the GOP in everything out of fear and lack of oversight deserves our scorn, but there were plenty of Democrat initiatives that had signficant contributions ot the mess we find ourselves.

The repeal of the Glass-Steagall Act can be put directly at the feet of Clinton, as can NAFTA’s passage. Chris Dodd did such a poor job running the Senate Banking Committee that I cannot fathom the standing he still has in the party.

Nancy Pelosi and other Democratic leaders who put politics ahead of policy when they began to see what was coming but allowed things to get worse so the Dems could win the White House should also be driven from office.

gerry, what about FNME and FDMC purchasing upwards of 90% of all subprime, high risk mortgages in the country and then selling them as securitized debt with fraudulent AAA ratings from the SEC? Those are all government agencies which Ron Paul adviser Peter Schiff argues created an artificial market for bad bank loans, leading to collapse when the bubble inflated by the Federal reserve (another government agency) burst.

When the governement says, “We have 1 trillion dollars to spend on Widgets!” well, a whole lot of people will start making them. When the government says, “If you buy our new widgets we just acquired, we will guarantee you 7 cents on the dollar in a year for every one you buy; we will even print the money or force our citizens to pay for it if necessary!” then a whole lot of people will start buying.

J. Harden, there is nothing even remotely conservative or libertarian about todays republicans. Nice try though.

Argh, argh, and more argh!

The Republican myth that the finanacial meltdown can be traced back to
“Democrats wanting more people to have access to mortgages” in general and the Community Reinvestment Act is particular is exactly that–a myth.

The intent and structure of the CRA was to ensure that QUALIFIED individuals in poorer markets were able to gain access to credit.

QUALIFIED

The CRA itself had nothing to do with over-inflated appraisals, home flipping, pushing otherwise qualified individuals into subprime adjustable rate mortgages, the invention of derivatives, or the shell game that financial institutions played with securitized packages of bad loans.

The whole myth began with a right wing idealogue (Thomas DiLorenzo) who has such a weak grasp of reality that he still thinks the south’s seccession from the union was a good idea (he is also one of the early proponants of the idea that FDR prolonged the great depression)–in other words, he’s one of the fringe right’s favorite idiots.

Much of the blame for the practices that really led to the mortage crisis and financial meltdown lie at the feet of the Republican push for constant deregulation.

The GOP still refuses to face up to the reality of their mistakes and are looking to scapegoat anyone who doesn’t have an R after their name.

It is going to pass with or without the Republicans. Obama wants 80 to politically cover the Dems when massive inflation hits and this stimulus package only prolongs and intensifies the correction. Who cares about the Republicans? who cares about bipartisanism — “I won,” he declares to the Republicans…well then, I guess too much bipartisan isn’t needed.

And his lame diversion and polarization via a referrence to Rush Limbaugh is pure Saul Alinksy. It may work in the projects of S. Chicago, but the Great Unifer is doing nothing buy galvanizing and polarizing.

Honestly Justin, I don’t think the Republicans are really worrying about 2010 — there is something kind of liberating about the current situation for conservatives and libertarians — the solemn, calm clarity of the gallows.

Sen. I:

Are you sure it’s not just another huge hoax by those liberal scientists like global warming?

Rep. B:

It might be but we’d better pretend we believe in this so-called asteroid that’s supposed to hit us or the voters will hold it us against us according to the latest polls. We’re even going to have to look like we’re doing something.

Sen. M:

Big government programs like the Dems want in their “Throw money at the Pentagon and NASA.” crap aren’t an answer. There’s only one thing that can help. You know what we have to do.

All heads nod as one and in unison the voices say the same thing.

We need a tax cut fast!
Rep. B:

The only question is what kind of cuts should we propose? Corporate tax rate cuts? Eliminating capital gains taxes? Wiping out the death tax?

Sen. I:Don’t be foolish. This is a major emergency! Lives are at stake. We need them all!

That being said, it would stand to reason that prudent policy dictates low taxes and infrastructure spending during a downturn, and relatively higher taxes and paying down debt during an expansion.

We all know the basic argument: you give people back more of their money, they’ll spend it wisely. Well, during these unique times I think that argument isn’t addressing the economic reality that exists.

So how about giving people back more of someone else’s money, in the form of rebate checks to lower income people who didn’t pay taxes in the first place? Is that a better idea?