Thread: This Is Not A CraigsList Notice

Tweet

Being someone who values language I will point out that while an article like that (Daves post) does contain some factual information, it's use of selective inflamatory language should be an instant tip off to it being incomplete in it's bias. The mention of Presidents Carter and Clinton are done in a very benign fashion, whereas Reagan "released shock troops" demonstrates at least contempt. I see no mention of President Bush initiating any action that led to actual deregulation, only a reference to the SEC chosing to interpret rule making authority in a specific way that the author opines was detremental. I say opines because he didn't offer a specific cause/effect relationship except to conflate that a failure in the financial markets happened after that action occurred...........so there for it was causal? Implication at best. He goes on to attack legislation by Sen. Gramm, but fails to mention a Clinton backed rachet up of subprime lending under the Affordable Housing Act, a Carter era program to force banks to lend to poorly qualified borrowers. No mention of Attorney General Reno threatening banks with prosecution for the practice of loan qualifying known as "red lining". No mention of Fanny or Freddie Mac having a hand in backstopping the bundling of home mortgages in an effort to create vehicles that would "bury" the bad loans in bundles with good ones to "spread the risk". No mention that a freshman representative from Wisconsin named Ryan proposed a bill in 2000 to rein in the underwriting of sketchy loans by Fannie and Freddie, and that he was only able to get 12 (!) cosponsors (shame on both Dems and Reps there). And no mention that Barney Frank killed a Bush White House proposal of legislation that would curtail the wild west actions of Fannie and Freddie.

That article may be a reasonable stimulus for further study but as a definitive analysis of what caused the financial collapse it neither proves/defines Bush responsibility nor discloses accurately all of the factors that contributed. Beside it's obvious political bias enumerated by the various negative adjectives employed strategically.