Economic Disaster of 2008 - August 2009 Update

Economic Disaster of 2008 - August 2009 Update

Anytime there is a problem, both sides are wrong, one for not doing enough to stop the problem and the other for doing too much for supporting the problem.

I believe the Economic Disaster of 2008 was caused mostly by the Community Reinvestment Act, Fannie Mae, Freddie Mac, and the assumption that housing prices would always go up.

http://economicdisasterof2008.blogspot.com/

The Wikipedia discussion is very good, but soft on democrats like Carter and Clinton who did too much to promote lending to unqualified borrowers.

http://en.wikipedia.org/wiki/Community_Reinvestment_Act

Democrats always support Socialistic programs that cost the government big money, but with the CRA, the democrats pushed the costs to banks by forcing the banks to make the loans.

Both democrats and Republicans liked the expanding economy produced by the increase in housing prices, so the Republicans did not do enough to stop the lending to unqualified borrowers.

Lending to unqualified borrowers was not a problem so long as housing prices continued to rise since the house could be resold even if the owner defaulted. Most financial institutions and most Americans had their total economic strategy based on increasing housing prices.

I believe the election of 2006 and 2008 killed the economy. Bush was keeping things together, until the democrats and the Atheistic Liberal News Media saw a bad economy as the way to win control of the government. The day the housing prices started down every American was affected.

What disturbs me most is that there does not seem to be a solution except inflation. 20% of mortgages are under water and that is expected to rise to 50% in 2011. That means people cannot sell a house unless they pay the bank $20,000 to $100,000. People are stuck in place with no options. Inflation would cause the value of homes to increase so there would be no out of pocket money, but then people on fixed income would need government assistance.

I believe the democrats have received a problem that they created, thus deserve the painful solutions that will be necessary. I think inflation is inevitable.

I oppose the health care/welfare of democrats, because it is another Socialistic program the will get the government involved in a huge expenses.

Socialism is an ugly path for any country because it lead to a reliance on the government and away from the self reliance of the Christian Religion.

When compared to perfection, Republicans did not look good, but when compared to democrats, Republicans look brilliant. Without the propaganda support of the Atheistic Liberal News Media the democrats would look ridicules.