Liberal Economics 101 - It's all Bush's fault

It's George Bush's fault!  Booooosh!  Eleventy!!  Boooooosh!

CRA led to risky loans

CRA caused sub-prime crisis which led to 2008 recession

So, it was all Bush's fault, huh? The government forces banks to give loans to bad credit risks......and they default in predictably huge numbers. Go figure. Every time the government interferes with the free market bad things happen.


Liberal policy led to 2008 financial collapse

Remember this the next time Democrats or the media (same thing) start blaming Bush or Wall Street for the 2008 financial meltdown and recession. This was caused, as many financial crises are, by government interference in the free market. The free market doesn't take unnecessary risk because it must balance risk and reward to provide value for both parties in an exchange. The free market is inherently stable. When the government interferes with the market for social reasons it throws off the natural balance. The Clinton administration's strong-arm threats to the banks under the CRA forced the banks to abandon lending practices that were founded in proven, long-standing economic truths. This set the stage for the avalanche of mortgage defaults that were at the heart of the 2008 bubble collapse. The government demanded that people who did not posses the financial means to buy a home be given loans; not because the could be expected to pay off the loan, but out of some perverted sense of fairness. The good ol' Marxist concept of fairness; equality of outcome in spite of equality of means or effort.

The sad thing is that this type of government intervention in the name of 'fairness' is being applied throughout our economy now. Government intervention leads to a housing and banking crisis.....government response is more regulation. Government interference in the health care industry causes prices to rise.....government response is more interference (Obamacare) that will cause the inevitable collapse of the health insurance industry as we know it. Government interference in domestic energy production causes shortages and higher prices....government response is to spend billions on inefficient/economically unsustainable green energy programs that leave us even more dependent on foreign energy. Government interference with college financial aid results in massive increases in tuition costs.....government solution is to take over all student loans; setting the stage for a student loan bubble to collapse. Let's face it; when the government interferes in the free market the results are usually just the opposite of intended. We need less government intervention in our markets. No government can effectively and efficiently control an economy as well as free markets. The greater the degree of control influenced by the government, the more severe the effects on the economy. Central planning destroyed the economies of Russia, China and every other communist nation. Central planning by the socialist European governments nearly fatally handicapped their economies. Why are we recklessly following in their footsteps?