CFJ’s Liberal Education Annex is where we try to educate Liberals, even though some are way too far gone to be reasoned with. We try to arm Conservatives with ACTUAL FACTS, preparing them to counter any regurgitated, left-wing, epically false talking points.
This week’s column is about the real cause of the Great Recession of 2008. On a personal note, I wrote the original piece back in 2009 when I had had enough of left-wing talking heads on TV saying, and I quote, “the horrible eight years of Bush.” After investigating policies and economic data, I wrote Remember January 3rd, 2007. I’m proud to say that in the run-up to the 2010 mid-term elections, Remember… had made it on almost 900,000 websites. I won’t say I single handedly brought about the tsunami of republican gains in 2010, but I would like to think that I did change a few minds along the way.
Who REALLY caused the economy to tank in the summer of 2008? There’s ONE day you all should remember: January 3, 2007.
On this date:
- The DOW Jones closed at 12,621.77 (It’s important to point out that the current DOW has been pumped up by the Federal Reserve printing TRILLIONS of dollars, artificially propping up the Stock Market. In the end, it only helps Obama’s one-percenter donors on Wall Street, but hurts the ordinary American with inflation as imports are more expensive and gasoline prices are rising.)
- The GDP for the previous quarter was 3.5%.
- The unemployment rate was 4.6%, INHERITED from Bush and the GOP-ran Senate and House. With a 4.6% unemployment, basically, EVERYONE in America who wanted a job, was working. Bush was able to CUT taxes and increase revenue because of this. It’s simple logic. It’s better to have MORE TAX PAYERS than more taxes.
- The average price of gas then was $2.29 per gallon.
- Previous record of job growth was at 52 straight months of job creation under Bush’s economic policies. Not even FDR, JFK, Ronald Reagan or Bill Clinton had as many consecutive months of job creation.
- The budget deficit went from $412 billion in 2004 to $318 billion in 2005. In 2006, it was $248 billion, and his last budget of 2007 had a $161 billion deficit. (Compare that to the OVER ONE TRILLION dollar deficit Obama and the Democrats have accrued since 2008.)
For those of you who still propagate the fallacy that it’s all Bush and the GOP’s fault, remember January 3, 2007, the day the Democrats took over the Senate and the House.
When Nancy Pelosi and Harry Reid took over and inherited the 4.6% unemployment rate in 2007, THE FIRST thing they did was RAISE THE MINIMUM WAGE. (They are trying to do this once again but this time it’s basically pandering for votes for the mid-terms.) It started the lay-offs that set up the economy to be RIPE for a recession in mid-2008, and it was these first lay-offs in February of 2007 that ended President Bush’s unbelievable all-time U.S. record of job growth at 52 consecutive months.
Another catalyst of the Great Recession was that in the midst of a falling DOW, New York Senator Chuck Schumer spreads a rumor that California Bank IndieMac “is in financial trouble”. He had NO BUSINESS spreading this unsubstantiated rumor, but there was a run on IndieMac and the huge California bank went belly up, fueling MORE uncertainty on Wall Street.
Schumer, and people like Harry Reid, saw the DOW crash as an opportunity to make things so economically disastrous that they could blame it on Bush and get a Democrat into the White House. Of course NOBODY in the media reminded the American public that it was the DEMOCRATS who were in charge of the purse strings for almost two years before the crash.
The biggest nail in the stock market coffin was the dirtiest of the dirtiest political hacks ever to slither on the floor of the Senate. At the EXACT POINT where the DOW was about to free fall, or stop it’s correction from the mortgage bubble, Dirty Harry Reid had a press conference and said: “A major insurance company — one with a
name that everyone knows that’s on the verge of going bankrupt.” Because of Reid’s irresponsible but calculated PUSH, the very next day EVERY SINGLE INSURANCE STOCK took a nose dive and the stock market was gone beyond the point of no return. And as Schumer before him, Harry Reid did this ONLY to make things work to better his party’s chance in the 2008 Election.
January 3, 2007 is also the day that Barney Frank took over the House Financial Services Committee and Chris “Friend of Angelo” Dodd took over the Senate Banking Committee. And the economic meltdown that happened 17 months later was in: BANKING AND FINANCIAL SERVICES!!!
The main culprit for this was the sub-prime mortgage disaster that was ENTIRELY of the Democrats’ creation. Giving housing loans to people who, in the long run, were BOUND to default was generated from a law that Jimmy Carter created, Bill Clinton accelerated and Frank and Dodd exacerbated to the tipping point. Mammoth mortgage houses Fannie Mae and Freddie Mac were forcing the banks to make EXTREMELY risky loans. When a Liberal tries to tell you it’s the BANKERS and WALL STREET that were behind the sub-prime mess, explain to them that if they weren’t FORCED at gunpoint by Capital Hill and community agitates like ACORN to make these loans, there WOULD HAVE NEVER BEEN mortgage backed securities in the market, PERIOD.
Bush asked Congress, 17 TIMES, to stop Fannie and Freddie, starting in 2001. He said it was “financially risky for the US economy”. But because it was mainly for minorities, the race-baters on Capital Hill played the race card EVERY SINGLE ONE OF THE 17 TIMES that Bush tried to reign in the Democrats’ slush fund.
When I call Fannie and Freddie the “Democrats’ Slush Fund”, this is because its boards were STACKED with Democrat cronies and bag men. These Democrats raked in tens of millions of dollars while setting up the mortgage bubble that burst onto the rest of America. From former Clinton officials Harold Reins and Jamie Gorelick, Democrat bag man James Johnson, Chicago thug Rham Emmanuel, to Barney Frank’s live-in lover… ALL became multimillionaires by using Fannie Mae and Freddie Mac as their personal piggy bank.
And then there were those in Congress who benefited by campaign Donations from Fannie and Freddie, such as Barack Obama himself.
Who took the THIRD highest pay-off from Fannie Mae AND Freddie Mac??? Former Senator Obama! (which was UNHEARD of for a Freshman Senator)
And who fought against reform of Fannie and Freddie??? The HYPOCRITE former Senator Obama!
And who is continuing the “failed policies that got us unto this mess” (Obama’s quote) by throwing billions of dollars more down the black hole that is Fannie and Freddie and NOT reforming them??? the Con-man in Chief Obama!
So THANK YOU DEMOCRATS for taking us from an UNassisted 12,000+ DOW record, 3.5% GDP and an unbelievably LOW 4.6% unemployment, to the Great Recession by dumping FIVE to SIX TRILLION DOLLARS of toxic loans on
the economy from THEIR Fannie Mae and Freddie Mac FIASCOS!
The Democrats are ALWAYS “politics before country, party before people”. So when the kool-aid crowd blames Bush and the GOP…
REMEMBER JANUARY 3rd, 2007 – THE DAY THE DEMOCRATS TOOK OVER!
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One of the roots of such wasteful, foolish, thuggish, and tyrannous government is the ease with which it can create almost unlimited amounts of money out of thin air. Near-infinite money buys near-infinite government, and a bureaucracy that is generously funded can entertain an open-ended dream about how to expand its realm.
Every day more people are coming to the judgment that a carefully organized effort to repair the constitution via the States' power to propose and ratify amendments has less risk to our liberty and prosperity than the present trajectory of the federal government and especially the federal bureaucracy.
The first order of business of an Article V Convention must be to limit government's ability to spend and create near-infinite amounts of money.