How Obama and Democrats Almost Collapsed US Economy

by Doc Vega | July 10, 2012 at 11:03 am

671 views | 2 Recommendations | 15 comments

Do not be swayed by Obama's campaign rhetoric. Read the facts first.

When evaluating who is at fault for the massive deficit this nation faces and which party you should be voting for come November to end this insanity, consider the facts. Obama continually refers to eight years of the Bush era and that's why his fledgling economic policies have not worked. In truth, Congress and the House of Representatives were Democratically controlled by January 2007. During that period Congressional spending had to contend with George Bush, who forced the Democrats to cut proposed spending. However, by Fiscal year 2009 Harry Reid and Nancy Pelosi were able to bypass President Bush vetoes and continue their deficit spending spree until Barack Obama was elected.

Democrat Spending Spree Buying Votes

It was the Democrats who passed the massive omnibus bill that increased spending in the final fiscal year of 2009 with Obama himself was a member of the very Congress that supported the massive deficits that marked the final year of Bush's 2nd term as president. At that time the budget stood at just over 400 billion dollars. We have heard Obama and the Democrats moan continually about the deficit they inherited prior to the presidential election, but in truth when the Democratic Congress took over in fiscal year 2007 although it was a deficit year this marked the 4th straight decline in deficit spending until the Democrats began their irresponsible spending spree. 2007 marked the lowest deficit in five years, the last year of Republican control of Congress, who decides the budget.

From 480 billion dollars in 2007 to 1.85 trillion dollars by 2009, according to the CBO. The equivalent of all the spending ever compiled by the US government in 234 years of our nation's existence, the Democrats used their advantage in numbers to steam roll unprecedented expenditures to further their cause. As a Senator, Barack Obama presided over the ailing Fannie Mae federal mortgage giant, helped authorize deregulation that insured thousands of unfit mortgage buyers would be guaranteed loans while he collected more than a $100,000 for passing the bill. This insured the economy would spiral down into the worst financial crisis since 1929 once mortgage backed derivatives failed due to massive foreclosures.

Democrats like to sentimentally recall that under President Clinton, that not only was deficit spending curtailed, but the federal budget was actually in a surplus. Congress was controlled by the Republicans in those years and Clinton practically gutted the military during that time to do so by closing air bases, laying off workers, and insuring certain ruin to many communities once those bases closed. Our military was spread dangerously thin in those years.

In truth, the only deficit inherited by Obama and his administration were only the expenditures that they authorized from 2007 thru 2008 and enacted while blaming Republicans, but as we have learned, this is the typical tactic of liberals. If tested, Obama's claims as they measure up to facts are more often than not lies.

The worst of all of these facts that we are discussing is that our liberal mass media will not be revealing these stories to the general public for some reason they have backed the President's policies no matter how idiotic and destructive they have been. So, I appeal to you to take what you read here and spread the word! This administration must be stopped.

Let's summarize, Democrats began their deadly spending spree in the last 2 years of the Bush administration when they had House majority. By 2008 they were able to override Bush's vetoes. Obama sat on the board for Fannie Mae and Freddie Mac and helped orchestrate the very policies that caused the bubble that nearly collapsed the US economy in 2008 and 09.

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PeaceFrog

at 12:10 on July 10th, 2012

If only Democrats voted, the Iraq War Resolution would never have passed, and a multi-trillion dollar fiasco would have been avoided:

http://en.wikipedia.org/wiki/Iraq_Resolution#Passage

Doc Vega

at 06:54 on July 13th, 2012

Just a thought, after 9-11 if the US had done nothing at all to pressure terrorism in its own backyards how many more hits do you think we would have to have taken? Obama said without reservation that the US could stand another hit or two like 9-11 you know why? Because this president does not give a damn about Americans and this country, and he could care less if we suffered another tragedy as long as he's not in it!

Doc Vega

at 18:27 on July 10th, 2012

I'm afraid you're misinformed. Democrats voted alongside Republicans on an approved aggression pact to invade Iraq and Afghanistan unlike Obama who declared war on Libya with no Congressional approval and deployed US forces without legal authorization, an impeachable offense. Obama approved a 787 billion dollar bailout and pledged funding for infrastructure yet only 6% went to roads, bridges, and other public works while Obama bailed out Democrat friendly banks, car dealerships, and election campaign funding for liberal candidates in coming elections. Criminal appropriation of funds for causes that did not improve the economic picture for the US. Typical of our lying treasonous President!

PeaceFrog

at 18:56 on July 10th, 2012

Iraq War Resolution:

House Republicans: 215 Ayes, 6 Nays

House Democrats: 82 Ayes, 126 Nays

Senate Republicans: 48 Ayes, 1 Nay

Senate Democrats: 29 Ayes, 21 Ayes

http://en.wikipedia.org/wiki/Iraq_Resolution#Passage

Henry Paulson, a Bush crony, got down on his knees and begged Pelosi for the TARP bailout money!

Doc Vega

at 05:41 on July 11th, 2012

TARP was administered a lot more responsibly then Obama's 787 Billion Bailout in 2009 where there were no conditions, funds disappeared into the black holes of bank corps debt while almost non of the promised infrastructure funding ever reached the promised mark. Your reflection of votes cast reinforces my point that there was significant Democrat support for the war.

PeaceFrog

at 05:53 on July 11th, 2012

The numbers also show a significantly smaller percentage Democrats voted for the war, so much so, that, a minority of Democrats in the House voted to pass the Resolution.

As far as the non-transparency and misuse of TARP money, Secretary Paulson set the initial stage for this by demanding secrecy and unfettered control. I guess he learned this handling money at Goldman Sachs. Also, Bernanke, Geithner, and other significant administrators are all tied in to the Federal Reserve System, which is privately owned. If you throw raw meat into the lion cages at the zoo, you have to expect the lions to devour it.

just saying (not verified)

at 15:14 on July 11th, 2012

As usual, clearly the Democrats had nothing to do with anything government does.LOL. Even under Obama Democrats are distancing themselves from his agenda and the support they gave to it in the House and Senate when their own elections come around. How many Democrats have fled to the GOP since Obama. 4-5 this year already. yep. The Republicans did it. Democrats aren't accountable for their acts.

Doc Vega

at 12:33 on July 11th, 2012

Still TARP was still accounted for unlike the 2009 Bailout which Democrats kept tied up and used for some re-election campaigns after allowing AIG and other institutions unconditional funding that was even lavishly wasted on parties and other activities previously unspecified and undisclosed. Typical of liberal use of taxpayer funds.

just saying (not verified)

at 15:09 on July 11th, 2012

Bush TARP is being paid back, the majority has been, with some small Banks with negative dividend payments to the government. These are small banks worth less than 1Billion. Treasury Dept. is still forecasting a break even +/_ net gain. Obama bail out billions disappeared into the ether and the public is uninformed by Obama Admin. or MSM as to what happened to the funds in their entirety. Obama sought and got a no accountability clauses from his majority House at the time. Same with his health care public tax rip off. Liberals are cheering now because they think they are screwing the system over and making the rich pay. Wait till the bill comes due! Wont be the rich picking up the tab. It will be mainstream property owners and small to medium businesses. The usual majority who carry the entitlement load.

The 1

at 04:21 on July 12th, 2012

"Wait till the bill comes due! Wont be the rich picking up the tab. It will be mainstream property owners and small to medium businesses. The usual majority who carry the entitlement load."

I wonder who's fault that would be, democrats or republicans ?

Doc Vega

at 06:51 on July 13th, 2012

The Democrats have been historically responsible for the lion share of deficit spending beginning with FDR in the 1930's but it was LBJ who really started the negative cycle of federal debt rolling in earnest to finance his "great society" and the Vietnam War.

My Kool-Aid is TEA (not verified)

at 07:39 on July 12th, 2012

"I wonder who's fault that would be,..." The progressive tax system at work. Towns, Cities, States, have to get the money to pay for social demands and that means upping the taxes for the majority earners. Economics 101- how do we entice investors to move their businesses or do business in our State? Offer a better return on that investment. That means lower tax rates. Federal Government has expanded into the area of State's Rights (again) and this new health care tax is going to have many bankrupt Cities and States cutting back even further as individuals fail to meet their tax share and real unemployment, depending on what State you live in, remains around 12-15%. The system is only going to become more dysfunctional under a already very depressed economic time with no up-take on the horizon. So as already stated, those cheering this as a victory are doing so under a pile of debt. Federal debt, national debt, State debt, Municipal debt, and personal debt. Health care just got more expensive not less expensive. And that would be the Democrats fault and the voting backs it up with 212 House Democrat ayes and 34 House Democrats joining all 178 House Republicans opposing.

Doc Vega

at 17:21 on July 12th, 2012

Just think mortgage interest rates are the lowest in history so lenders now make it impossible by demanding 20% DOWN and only finance 80% well is this lenders securing their position or could it be that the Federal government is controlling the majority of available loan money to pay the incredible debt service for the huge national deficit? By the 1980's mortgage applicants had to compete against the government for 3 out of 5 loans as the rest of that money was going for paying the loans it takes for the feds to pay for the national debt. This is the crushing truth. The government's footprint in your life is growing larger!

My Kool-Aid is TEA (not verified)

at 17:44 on July 12th, 2012

Which puts more stress on apt. rentals so their cost to rent increases. And the stone cast by the Obama/Pelosi Health Care Reform ripples throughout the economy. The true end result will not be known or fully felt until 2015. By that time, if re-elected come November, Obama will no longer be in the WH and Democrats will be blaming big business...again. The same big business of the Pharma industry and private Health Insurer's Obama and Pelosi made the backroom deals with in the first place; to make health insurance a government collected tax for private business interests.