Why do people Blame Bush on the Economy when…?

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The Community Reinvestment Act (CRA) started this entire mess. If you did not know already, the fall of our banks, housing markets, and the oil crisis in the summer of 2008 lead us to our demise. The Community Reinvestment Act started it all. This Act was passed in 1977 by Congress to address the so-called discrimination by banks, which would not lend money to most minorities. The act provided that banks have “an affirmative obligation to meet the community’s needs.”

The banks were not giving the loans out to minorities because most of them just didn’t have the money to pay them back-but the liberal congress under President Carter thought differently. But this Act was not enough to force the banks to give loans out to everyone. So in 1989, Congress amended the Home Mortgage Disclosure Act which required banks to collect racial data on mortgage applications.

This data all came together in great use when in 1995 the Clinton Administration’s Treasury Department issued regulations tracking loans by neighborhoods, income groups, and races to rate the performance of banks. The ratings were used by regulators to determine whether the government would approve bank mergers, acquisitions, and new branches. The regulations also encouraged liberal-aligned groups, such as the Association of Community Organizations for Reform Now (ACORN) and the Neighborhood Assistance Corporation of America (NACA), to file petitions with regulators, or threaten to, to slow down or even prevent banks from doing their business by challenging the extent to which banks were issuing these loans.

With such great leverage over the banks, many of the liberal groups were able to legally extort banks and make huge pools of money available to them. Then with such power over the banks, the government and groups were able to force the banks to give out loans to individuals who had bad credit or insufficient income. These loans are known as “sub-prime” loans. Most estimates put the figure of CRA-eligible loans at $ 4.5 trillion dollars lost to the banks…

In 1992 the Department of Housing and Urban Development pressured two government chartered corporations, known as Fanny Mae and Freddie Mac, to buy large bundles of those sub-prime loans for the conflicting purposes of diversifying the risk and making even more money available to banks to make further risky, sub-prime loans. Congress also passed the Federal Housing Enterprises Financial Safety and Soundness Act, which mandated that those companies buy 45% of all loans from people of low or moderate income…

In 1995 the Treasury Department under the Clinton Administration established the Community Development Financial Institutions Fund, which provided banks with taxpayer money to allow the banks to give out more risky, sub-prime loans.

All of these actions turned the sub-prime mortgage market into a huge ticking time bomb that would magnify the housing bust by orders of magnitude… These policies lead to the housing boom which was seen in the 1990’s and early 2000’s. But it all eventually back fired when loans weren’t being paid back. The banks ended up losing more money than they were making – that lead to the collapse of our banks. This also led to the housing market’s demise or BIG bust…

How did this affect the housing market? Well there were no more loans being given out, since the banks finally began to collapse. With no money being given out and thousands of houses going into foreclosure it is easy to see how the housing market went to hell…

As you can see, the liberals caused us the major reason for our demise. All because they believed people had the right to houses. All because they believed high spending and expansion of government would help the poor… It didn’t…

But that was not the only reason for our fall. The high spending from congress led to higher debt and almost no money, which forced us to borrow from China… This debt left us with almost no money and that is why taxes were raised on most middle class families. This spending came from republicans and democrats who believed more government programs would reduce poverty or fix any other problems. It mainly came from the war over seas.

Then came the gas crisis in the summer of 2008. This crisis happened due to the supply of oil being lower than the demand. It was also due to the speculation at home and the raising of prices by the Saudi Arabians. This all could’ve been avoided if President Clinton allowed the oil companies to drill in Alaska. In the 1990’s the companies went to congress for approval, but they were shot down…

Many liberals say we have almost no oil here, but the REAL experts from the oil companies say we have more oil than the Middle East. Who would you trust? Oil company experts or politicians? My point is th
I’d like to see people actually read this answer instead of acting like ignorant idiots.

  1. Reply
    May 3, 2011 at 4:42 am

    Bush was president when it happened, therefore its entirely his fault!!!!

  2. Reply
    Astro K?
    May 3, 2011 at 5:06 am

    Too long; therefore I didn’t read.

  3. Reply
    T D
    May 3, 2011 at 6:05 am

    anyone attempting to blame the housing market collapse on one person or one party is a fool.

  4. Reply
    Rebecca M
    May 3, 2011 at 6:56 am

    good luck with this one fonz..bush haters don’t care about facts they just care about hating bush and blaming him for everything they don’t happen to agree with.

  5. Reply
    May 3, 2011 at 7:16 am

    Only a small minority of the bad mortgages that created this recession were issued by CRA-affiliated banks. The CRA didn’t cause this recession. Contributed to it? You bet. Responsible for it? No.

    And by the way, I don’t blame Bush. I don’t blame any single individual. There is a lot of blame to go around, but most of it falls on predatory lenders and greedy investors who tried to make a quick buck off of bad mortgages before sticking us with the bill.

  6. Reply
    May 3, 2011 at 8:01 am

    Right, and Obama is responsible for it getting worse.

  7. Reply
    Vena Cava
    May 3, 2011 at 8:40 am

    R u &&&&ing me? I kant reed dat&&&&. tuu macz 4 mee

  8. Reply
    May 3, 2011 at 9:09 am

    Because the media has made it popular to point the finger at Bush. Everyone wants to be cool.

  9. Reply
    right winged
    May 3, 2011 at 10:01 am

    astro K wasnt smart enoug to read so he didnt even try, ive been trying to say this to people all teh time and no one listens. plus it takse 7-9 years for a presidents ecnonomic decisiouns to kick in. and dont forget about clintons free trad agreement with china therefore making them now own 1/3 of our debt. nice one

  10. Reply
    truth seeker
    May 3, 2011 at 10:40 am

    how is that different than people like Hannity and Limbaugh that refer to the recession as the “Obama Recession”???

    do you have a problem with that to??????

  11. Reply
    El Tecolote
    May 3, 2011 at 11:12 am

    Don’t confuse liberals with facts. They want to continue doing what they do best — live in shallow waters and only look as far under the surface as they have to in order to get a glimpse of the bikini attached to the girl whose face they can see above the surface.

    (For those of you in Rio Linda, the subtext is that Bush was in office when it all went south, so it’s really easy for the left to blame him and re-take all three branches of government through the use of it.)

  12. Reply
    Angela Q
    May 3, 2011 at 11:40 am

    Because the propaganda you copied and pasted into here is basically untrue.

    There was never any sort of legislation to force banks or any other lenders to make loans to unqualified borrowers. The push to do that came from the banks themselves, who were looking for an easy way to defraud people who were inexperienced at home-buying. ∠°)

  13. Reply
    Change Now
    May 3, 2011 at 12:06 pm

    Looks like you have been a victim of the FAUX news propaganda machine and failed to do your own homework.

    Investigate and find out what % of all mortgages were the direct result of the CRA. You’ll find it was a negligible amount.

    Only 1 in 20 loans during the real estate bubble were subprime.

    If the CRA was started in 1977, how come we didn’t have this situation occur in the 80’s if the CRA and libs caused our current malaise.

    Do some more homework and you’ll find Greenspan and your buddy Paulson behind most of this mess.

  14. Reply
    May 3, 2011 at 12:21 pm

    Nice rant.

    “I’d like to see people actually read this answer instead of acting like ignorant idiots.”

    It’s your NeoCon buddies that would rather report somebody than spend any time reading anything.

  15. Reply
    Lou Sephir
    May 3, 2011 at 12:42 pm

    Damn that’s long

    Back to looking at porn again

  16. Reply
    Live To Fish
    May 3, 2011 at 12:48 pm

    Bush Derangement Syndrome has no cure.

  17. Reply
    May 3, 2011 at 1:23 pm

    I blame every president from reagan to bush. Reagan began the deregulation of the financial markets which was continued by every president after him. This deregulation resulted in the deep recession we are in. Deregulations was more responsible for the recession than the housing collapse. I find it hard to believe that we have this many fiscal conservatives all of sudden since Obama took office. Where were you guys when we needed you like when bush began the war on terror and also decreased taxes at the same time. I do believe that is the only time in modern history that we didn’t raise taxes while going to war. He managed to turn a surplus into a deficit. At least the majority of the spending Obama has done this year is one time spending though we are still left with a huge problem. We also have very little domestic oil even after taking possible deep sea reserves into account. You could go even farther and take oil shale reserves into account but these reserves are expensive to extract, harder to refine, and require large amounts of water and energy. The Saudis have easily recoverable light crude oil and that is why we buy from them. The real experts know there are virtually no more easily recoverable oil reserves left in the united states. They are looking far offshore and to unconventional resources.

  18. Reply
    Mike F
    May 3, 2011 at 1:33 pm

    liberals dont care about facts. they use phrases like “8 years of failed republican policies” to try to justify the insanity that is barack obama. they completely ignore the fact that the economy was great for 6 years under bush and then when the congress was taken over by the dems in 2006…

  19. Reply
    May 3, 2011 at 2:20 pm

    The CRA was instrumental in the housing market crash but you fail to mention that the deregulation of the investment banks also played a pivotal role (a Bush act). Also the excessive tax breaks for the rich along with record government spending also deeply hurt the economy during the Bush years. The current economic crisis we find ourselves in started in late 2006 because of several factors over the past 30 years. It came to head under Bush and for that he does get the blame. And you are right there is a lot of oil under the US. The problem is though that the large majority of that oil is oil shale which is deep, a much lower grade, expensive to drill, and expensive to process. Come up where I live, we have one of the largest reserves ever found (again oil shale) in the Bakken field and there is drilling going on everywhere. Right now most of the wells are capped because at $ 50 a barrel for crude on the market it is not profitable.

  20. Reply
    May 3, 2011 at 2:46 pm

    i do not blame bush I blame all presidents form regan to bush but the war and everything else that occurred during his time in office pushed it over the edge the billions spent in the war alone dropped the worth of the american dollar. i do not blame one person it was gradual.

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