REPUBLICANS DOING A GREAT JOB
Date: 2010-03-27, 6:34PM EDT
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BUSH-REPUBLICANS DESTROYED AMERICA, AND OBAMA IS DOING A GREAT JOB FIXING IT
Between Jan 20 2001-2009 under Republican’s policies and leadership:
Unemployment doubled from 4.2% to 8.2%
National debt doubled from 5.7 trillion to 10.6 trillion
Yearly budget went from a 236 billion surplus to a 1.2 TRILLION deficit (a 1.4 trillion drop)
Dow Jones plunged 25% from to 10,587 to 7949
Gasoline tripled from 1.44 to 4.11 per gallon on July 11, 2008
Losing 700,000 jobs monthly
Economy in total freefall
(Republicans try to confuse people by saying democrats took over in Jan 2007 and started the recession, but they can not name one thing democrats did to hurt the economy. All experts state the housing crisis started in 2006 and all subprime loans had already been made under a republican congress and president)
BUSH MORE THAN DOUBLED UNEMPLOYMENT FROM 4.2% TO 8.2% —–(Feb 2001-2009)
(Source: US Dept of Labor – Bureau of Labor Statistics-)
BUSH DOUBLED OUR DEBT FROM 5.7 TRILLION TO 10.7 TRILLION
(Source: US Treasury Dept – Bureau of Public Debt – http://www.treasurydirect.gov/NP/BPDLogin?application=np)
BUSH TURNED A 236 BILLION BUDGET SURPLUS INTO A 1.2 TRILLION DEFICIT (A 1.4 TRILLION DROP)
(Source 1: CBO – Congressional Budget Office – Historical Budget data – Shows the 236 billion surplus in 2000)
(Source 2: Congressional Budget Office – Annual budget and economic report and testimony before Congress on Jan 8, 2009) (Declares 1.2 trillion deficit for fiscal year 2009 —2 weeks before obama takes office)
(Please note: The fiscal year 2009 started Oct 1, 2008 under president bush. At that time, the 2009 deficit was projected at 600 billion. Then the banking crisis occured in Oct 2008 and bush started a 700 billion TARP bailout program which was added to the 600 billion deficit which left obama with a 1.2 Trillion deficit the day he took office according to the CBO)
BUSH OVERSAW A DOW JONES THAT PLUNGED 25% OVER 8 YEARS
GASOLINE TRIPLED UNDER BUSH ENERGY POLICY
(Source: US Dept of Energy- Energy Information Administration) (http://tonto.eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MG_RT_US&f=W)
OBAMA IS DOING A GREAT JOB FIXING THE BUSH DEPRESSION
The dow jones rose 33% in his first year from 7949 to 10,600 on Jan 20, 2010
The job loss rate plunged 97% from 700,000 jobs lost in Jan 2009 to 20,000 jobs lost in Jan 2010
The GDP rate rose to 5.7% in 4th quarter of 2009 – the highest in 6 years
Existing home sales up 27% in 4th quarter of 2009
Jan 10 Home construction up 2.8% (up 23% since april 09 low)
Jan 10 Industrial production up 1%
Jan 10 Retail sales up .5%
In 2002, why did Bush ask his fannie mae appointees to “make 440 BILLION in subprime loans to minorities”?
Here is the video…go to the 4 minute mark to hear him say it.
Here is the offical white house text of that speech he gave in atlanta on june 17, 2002.
Here is the offical white house fact sheet:
Bush said “…That’s why I’ve challenged the industry leaders all across the country to get after it for this goal, to stay focused, to make sure that we achieve a more secure America, by achieving the goal of 5.5 million new minority home owners. I call it America’s home ownership challenge.
And let me talk about some of the progress which we have made to date, as an example for others to follow. First of all, government sponsored corporations that help create our mortgage system — I introduced two of the leaders here today — they call those people Fannie May and Freddie Mac, as well as the federal home loan banks, will increase their commitment to minority markets by more than $440 billion. (Applause.) I want to thank Leland and Franklin for that commitment. It’s a commitment that conforms to their charters, as well, and also conforms to their hearts.”
(Please note that bush appoints Leland and Franklin to their jobs at fannie mae and freddie mac so when he asks for 440 BILLION that is basically a presidential order)
Also note: The govt can not force a bank to make a bad loan. And surely, an ALL REPUBLICAN GOVT would not force a bank to make a bad loan. In 2002, republicans controlled both congress and the white house. You can’t blame this on democrats and barney frank.
In fact, bush’s top 2 banking appointees have stated that the CRA – community investment act has had absoutely nothing to do with the banking crisis.
Bernanke: Experience “runs counter to the charge that CRA was at the root of, or otherwise contributed in any substantive way to, the current mortgage difficulties.” In a November 25, 2008, letter, Federal Reserve chairman Ben Bernanke stated: “Our own experience with CRA over more than 30 years and recent analysis of available data, including data on subprime loan performance, runs counter to the charge that CRA was at the root of, or otherwise contributed in any substantive way to, the current mortgage difficulties.”
Most subprime mortgages not issued by institutions under CRA. In a paper published on the website of the Federal Reserve Bank of San Francisco, Michigan law professor Michael Barr stated that as of 2005: “Only 25 percent of subprime loans were made by banks and thrifts, and the Federal Reserve reports that only six percent of subprime loans were CRA-eligible.” Similarly, a 2008 study by a law firm specializing in CRA compliance estimated that in the 15 most populous metropolitan areas, 84.3 percent of subprime loans in 2006 were made by financial institutions not governed by the CRA.
Prominent republican attorney and bush appointed FDIC chairman has stated that the “community reinvestment act” CRA has had nothing to do with the housing crisis. From an article in US News and World Report:
Along with Fannie Mae and Freddie Mac, the Community Reinvestment Act has been fingered by a number of critics–mainly from the right–as a key cause of the financial crisis. But in a speech Wednesday, FDIC Chairman Sheila Bair–a Republican–called such logic a “myth.”
CRA as a scapegoat
I think we can agree that a complex interplay of risky behaviors by lenders, borrowers, and investors led to the current financial storm. To be sure, there’s plenty of blame to go around. However, I want to give you my verdict on CRA: NOT guilty.
Point of fact: Only about one-in-four higher-priced first mortgage loans were made by CRA-covered banks during the hey-day years of subprime mortgage lending (2004-2006). The rest were made by private independent mortgage companies and large bank affiliates not covered by CRA rules.
You’ve heard the line of attack: The government told banks they had to make loans to people who were bad credit risks, and who could not afford to repay, just to prove that they were making loans to low- and moderate-income people.
Let me ask you: where in the CRA does it say: make loans to people who can’t afford to repay? No-where! And the fact is, the lending practices that are causing problems today were driven by a desire for market share and revenue growth … pure and simple.
CRA isn’t perfect. But it has stayed around more than 30 years because it works. It encourages FDIC-insured banks to lend in low and moderate income (or LMI) areas, and I quote, -“consistent with the safe and sound operation of such institutions”.
Another question: Is lending to borrowers under terms they can not afford to repay “consistent with the safe and sound operations”? No, of course not.
CRA always recognized there are limitations on the potential volume of lending in lower-income areas due to safety and soundness considerations. And, that a bank’s capacity and opportunity for safe and sound lending in the LMI community may be limited.
That is why the CRA never set out lending “target” or “goal” amounts. That is why CRA supporters, many of you here today, have labored for three decades to figure out how to do it safely. It makes no sense to give a loan to someone under terms you know they can’t pay back. That’s a set up for failure.
Despite our current problems, the homeowner is still one of the best credit risks in the world. Today, the delinquency rate on all home mortgages is only 3.6 percent. For subprime loans, there is a stark difference in the type of loan. The rate of seriously delinquent subprime fixed rate loans is a little more than one-third the rate for subprime adjustable rate mortgages.
Any family willing to work, save money, pay the mortgage on their house is a sound basis of credit and a sound basis for America.
So let the record show: CRA is not guilty of causing the financial crisis.