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Congress has power of the purse & dems controlled Congress in 2007. Who’s to blame for the sour economy?


I think someone who majored in Constitutional Law at Harvard would necessarily see that dems and not repubs were responsible. Can anyone explain how Obama still blames Republicans for the economy while being honest?

Started with banks giving out bad loans. Has nothing to do with republicans, Obama is blaming others for problems he has to take care of trying to hide the fact that he hasn’t done anything and will never fix this country.

Responsibility can be spread very widely. It is not simply the responsibility of one group.
1. The Democrats certainly had a hand in the disaster. The mortgage crisis can be directly traced to the efforts Democrats from the days of Clinton to Barney Frank and Chris Dodd that pushed Fannie Mae and Freddie Mac to loosen credit restrictions on lower income / bad credit applicants, and threatened the major banks to not &quot:redline&quot: neighborhoods because it was &quot:prejudicial&quot:. This resulted on millions of mortgages that should never have been made.
2. Republicans can take part of the blame as well, increasing deficits during Bush’s administration, and in the state budgets as governors (Pataki and Arnold particularly).
3. The banks and insurance companies pushed the economy to the brink by poor investment decisions, poor planning, and poor due diligence. Then they aggravated the situation by tightening credit lines on business and consumers.
4. The average American has plenty of blame as well. They spent with abandon, increasing their consumer debt, without any concern about paying it back.
so the moons and stars aligned, and the world suffered a huge economic correction. And we are all responsible.

Oh, give me a break.

Republicans have been in charge most of the last 30 years.

The rot set in LONG before 2007. The housing bubble had been going on MUCH longer. The trend to deregulate the economy had been going on MUCH longer. The trend whereby financial industries became nearly half the economy had been going on MUCH longer. The concentration of wealth in the hands of a few, and the downward fall of everyone else’s standard of living had been going on MUCH longer.

Although Clinton was a Dem (a right-leaning one in many ways), most of his presidency was with a Republican-run Congress.

Then for 6 years we had complete control by Republicans.

The two years of Dem-controlled Congress were mostly under the wing-nut, neo-con Bush, who could veto any good thing Congress wanted to do — they really didn’t have power since 2007.

No one who has any brain at all blames the powerless Congress of 2007 for the disaster caused by decades of Republican rule (in concert with some help from right-leaning Dems).

Mr. wolf is right. It was the Republicans and Democrats alike that caused the economic crisis and it didn’t just happen in 8 or 9 yrs. It has been in the works for a very long time.

Obama knew what he was getting when he ran for President so his continued crying that the crisis was dumped on him is just stupid. He wanted to be President, so why doesn’t he start acting like one?

You seem to ignore Bush and the republicans deregulating the financial industry from 2001-2007!

The Majority Leader of theUnited States House of Representatives in 2007 was Steny Hoyer, Democrat. However: you conclusion is way off based: our economy’s recession was caused by the deregulation of the banking, mortgage, and investment industry: with the signed into legislation by Ronald Regan, Bush Sr and Clinton. Yes the power of the purse is with the House of Representatives: but way before the Democrats came into office to sit on their butts.

Obama is not honest, he never will be. He has lulled libs into a situational system of abuse and manipulation and they are to stupid to realize it. He is responsible for the financial mess and libs, like followers of the Piper, are marching lock step over the cliff. I would not be surprised to learn that the entire life as depicted by Obama including his white mother and grandmother, his Harvard education and all aspects of his history are a fabrication.

Republicans had congress MUCH longer than the Democrats. If the Democrats were completely responsible they wouldn’t have a super majority now would they?

Seriously use Common Sense. If Republicans did everything so right as you people claim wouldn’t they be in power still?

Still Republicans, sorry… George W Bush has been in office for 8 of the last 9 years, started 2 major wars, cut taxes when we couldn’t afford to, and stood by and didn’t regulate the Financial or Real Estate markets as they brought us down the toilet. Economies don’t react to things that happened two years ago, why don’t you try reading a book or getting an education past high school before you attempt future speculation. Kthx.

It was a snow ball that everybody pushed down the hill until it was too big to handle.

The Federal Reserve, which slashed interest rates after the dot-com bubble burst, making credit cheap.

Home buyers, who took advantage of easy credit to bid up the prices of homes excessively.

Congress, Republicans and Democrats ,which continues to support a mortgage tax deduction that gives consumers a tax incentive to buy more expensive houses.

Real estate agents, most of whom work for the sellers rather than the buyers and who earned higher commissions from selling more expensive homes.

The Clinton administration, which pushed for less stringent credit and downpayment requirements for working- and middle-class families.

Mortgage brokers, who offered less-credit-worthy home buyers subprime, adjustable rate loans with low initial payments, but exploding interest rates.

Former Federal Reserve chairman Alan Greenspan, who in 2004, near the peak of the housing bubble, encouraged Americans to take out adjustable rate mortgages.

Wall Street firms, who paid too little attention to the quality of the risky loans that they bundled into Mortgage Backed Securities (MBS), and issued bonds using those securities as collateral.

The Bush administration, which failed to provide needed government oversight of the increasingly dicey mortgage-backed securities market.

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