Don’t blame the Republicans for the financial crisis
Blaming the current problems of the economy on Bush, McCain and the Republicans doesn’t cut it. Here’s why:
1. In 2006 Bill Lockyer the Democrat California State Attorney General sued the Big Three Automakers – soon perhaps to be the Big Two American Automakers – claiming they were responsible for global warming.
(Caveat: While this suit was dismissed, I begin with it not because it caused significant economic damage per se, but rather because it is indicative of the highly imprudent use and abuse of legal power by government AGs that existed in 2006 following the Spitzer era (noted in Item two) and the colossal economic damage done in that era; and I observe that such an economic environment constitutes a great impediment to the operation of private sector entities on a profitable basis.)
2. Eliot Spitzer the Democrat New York State Attorney General sued Mutual Fund industry over after hours trading violations. He followed that siege with another long high-profile siege over the fees of mutual funds being too high. Then he followed the mutual fund campaigns with high profile long-running lawsuits of the CEOs of the New York Stock Exchange, General Electric, and the American International Group over compensation matters.
As a practical matter, the threat of Spitzer prosecutions loomed over our markets for a several years, undermining confidence in our markets, and doing grave damage to the reputations and goodwill of major corporate names needlessly. Icon logos such as the NYSE, GE, and AIG were slimed along with countless other entities that played crucial roles in capital formation in the American economy, and ultimately by extension, all American enterprise around the world.
3. Twelve States Attorneys General (Democrats) entered into a class action lawsuit and sued the Bush Administration for it’s easing of environmental standards on power plants (2003) as part of the Bush Administration’s plan to assist a distressed economy post the 9/11/2001 attacks which had gravely damaged the American economy.
4. Congress passed Sarbanes-Oxley Act in 2002 and it contained the pernicious mark to market FASB 157 accounting rules to be applied to level 3 long-term, hard to value, highly illiquid assets. In November 2007, the Royal Bank of Scotland issued a warning that if enforced these mark to market accounting rules would result in losses to American Banks and Brokerage firms in excess of $100 Billion. By early fall 2008, Five Hundred Billion Dollars of losses attributable to the imposition of mark to market accounting rules (FASNB 157) constituted 70% of all losses that had been sustained up to the bailout. Democrat Senator Christopher Dodd the Chairman of the Senate Banking and Urban Affairs Committee knew of the warnings and the dangers related to mark to market valuations applied to level 3 assets, and yet he never managed to lift a finger or advocate any means to mitigate against the cause of these catastrophic losses. Instead, he just watched as those rules destroyed over $500 Billion of vital American economic infrastructure, and then pointed his finger at others.
5. In a vote along party lines Democrats blocked reform of Freddie Mac and Fannie Mae in 2004 while there was still time to stop their mad dash to insolvency. This was long before the real estate bubble had reached epidemic proportions, while there was still time to stop the reckless behavior of Freddie and Fannie, behavior that contributed mightily to a colossal real estate bubble, then a pernicious credit crunch, and a market contagion that crippled the economy.
6. Again Sarbanes-Oxley, this time though another provision of that congressional enactment that worked to reduce the number of Initial Public Offerings in the United States by 90% following its passage. In brief, until Sarbanes-Oxley was passed, fifty percent of all successful Initial Public Offerings in the world originated in the United States. After it was passed, the percentage of all Initial Public Offering originating in the US dwindled to five percent of total Initial Public Offerings. Meantime, the number of Initial Public Offerings in London and Hong Kong skyrocketed.
7. The Janet Reno/Clinton (Democrats) Justice Department threatened lending institutions with prosecution to the fullest extent the law allowed, if loans for socially good purposes were denied. The result of this threat was that lending institutions that might have used prudent financial underwriting for loans that qualified as socially good purpose loans did not dare decline those loans on grounds they were too risky. This set up a pernicious template for lending as should now be evident to all
8. Democrats consistently sided with extreme environmentalists in opposition to new domestic oil and gas development. This exacerbated American dependency on foreign oil and made us both vulnerable and virtually without recourse as oil prices rose meteorically hurting consumers as well as manufacturers throughout the United States.
Those who would still insist on blaming the current nightmare threatening our economy on Bush, McCain, and the Republicans can of course vote however they please. Hopefully though, the majority of voters will not be fooled by the deceptive rhetoric of those who would blame Bush, McCain, and all things Republican for the monumental economic catastrophe that so many Democrats have engineered and disingenuously try to blame on the other guy.
It’s time to pin the tail on the donkey where it belongs. It’s time for Americans to stand up and take their country back at the polls. Now is the acceptable time.
Ken Brinzer is 62 years old, and lives with his wife, a high school chemistry teacher, in Penn Hills, PA. He and his wife have been married 34 years and have 3 adult children. He is a financial services professional, licensed both as a life insurance agent and a registered representative series 6. He holds a BA degree in Spanish from Rutgers (1968). He served in the USAF for 4 years 1968-1972 and attained the rank of captain. He is a practicing Catholic, reads at church, and loves God, Family, and Country and the splendor of truth.