Did the Democrats cause this financial crisis? Did the Repugs?

Today, while waiting for the markets to open, I watched a couple of videos that were on YouTube, and a particular duo of them were incredibly impactful – using what could be perceived as nicely, sliced content setting up the argument that Democrats are the cause of the financial contagion. This does not make sense to me.

I was concerned in posting these videos since they are not the most flattering to our party, but rather than read only the pablum from the Repugs, I thought it better to ask friends on the web. I posted these on DailyKos to get some feedback – to be able to fight this slander of the Repugs on the Democrats.

The argument that the Repugs want us to believe is that Fannie, Freddie and FHA was the root of the financial crisis, their framing suggests that the Democrats – thought payments made to various legislators changed the rules and allowed Fannie and Freddie to run amok.

But what the videos DONT show are:

  • During the time of the Repug legislation for regulation – the Repugs were in control. How come they did not actually implement the regulation legislation that they talk about?
  • The reason for this crisis is not Fannie or Freddie, it was the deregulation of the markets and the lack of regulation and/or transparency on the CDS and CDO markets that caused the bubble.
  • Fannie and Freddie were forced to absorb toxic mortgages against their better judgment – pressured by the Bush Adminstration.

I will find some references for the future so we can discuss this appropriately.

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2 Responses to Did the Democrats cause this financial crisis? Did the Repugs?

  1. Joe says:

    Wow, your “article” is so pathetic in it’s desperation to lay blame at the feet of the Republicans, that one doesn’t even have to know the real history to see that your party is fully to blame for this crisis. Of course, being a repug, I know the facts, and therefore can say that you ARE desperately trying to rewrite history. Your party sucks. Hopefully Obama will do the right thing, and govern from the middle for all of our sakes.

  2. Sanford says:

    Sorry @Joe. Lots of blame to go around here.

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