Right-wing Hate Radio likes to repeat the fiction that it was Democratic initiatives alone which caused the crisis, namely the 1977 Community Reinvestment Act. But while CRA raised the stakes at the roulette tables, Reagan and his posse changed who could go to those tables in the first place. In other words, no one is clean here.
Neil Barofsky, the former special inspector general for government financial bailout programs, whom Glenn Greenwald called "one of the most impressive and courageous political officials in Washington", told Congress bluntly that the series of bailouts and bank rescues could end up costing the federal government as much as $23 trillion, what Politico called "a staggering amount that is nearly double nation's entire economic output for a year."
For comparison purposes, the entire US federal budget for a year is about $4 trillion, the current total national debt about $14 trillion.
The respected blogger Dr. Housing Bubble
("How I learned to love SoCal and forget the housing bubble") writes in
"Crony Capitalism for Dummies: Housing and Economic Recovery Act of
2008. How the Bailout will not Help you and Cost you Money.":
"The problem with our current politicians is this. Democrats with control of the House should have fought harder to simply come out and nationalize the two mortgage giants. If their mission of providing liquidity to the secondary mortgage market and helping provide affordable housing to the American public is so vital, these two should be nationalized, allow shareholders who knew these were quasi-private enterprises take their hit and move on..."Yet the majority of Republicans are playing even a more clandestine game of politics. What the current administration is playing is verbally acknowledging free market capitalism but in reality, what they are doing is nothing more than crony capitalism. Some have called what is currently going on as socialism, but socialism by definition is a redistribution of wealth from those at the highest income brackets to the vast majority of those at the bottom.
Where did Obama stand? After George Bush signed HR 3221 making the taxpayers liable to a black hole the depths of which are yet to be plumbed, (and after voting "present" on all important related votes) candidate O'Bailout said:
"I applaud the enactment of the Housing and Economic Recovery Act of 2008, which will finally begin the process of providing relief to homeowners and communities and helping to stabilize the housing market."
Rather than allow the shareholders of Freddie and Fannie to "take their hit and move on," allow FDIC insurance to kick in when banks failed, which is what it is for, he became part of the problem. The silver-tongued orator who hypnotizes millions on simply... HEY &%^ WHERE'S MY WALLET!?
The Center for Budget Priorities reports:
"Two-thirds of the nation's total income gains from 2002 to 2007 flowed to the top 1 percent of U.S. households, and that top 1 percent held a larger share of income in 2007 than at any time since 1928."
Any sympathy Obama professes for the OWS movement without taking his share of responsibility for the crisis hitting the "99%" only gives ammunition to those who would like to sideline the movement as a creation of George Soros and the overtly partisan MoveOn.org. There should be no mistake and it should be said very clearly: The Occupy Wall Street protesters do not approve of Barack Obama.
Repeal HR 3221 Housing and Economic Recovery Act of 2008 related diary: "Occupy Wall Street. What Wars and Socialism for Corporations Are Costing You."
"Listen I like you. Just do what you're told and you'll be okay, okay?"
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