What role did the Democrats play in the US financial crisis?

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10 points for the most informative answerWhat role did the Democrats play in the US financial crisis?On September 11, 2003 the Bush administration recommended an overhaul in the housing finance industry which would include supervision of Fannie Mae and Freddie Mac. The Democrats in congress blocked it. McCain supported it.

In 2005 McCain predicted the problem was coming and again tried to get Congress to do something. Dems again were against it, Obama included.

And now here we are today. . .What role did the Democrats play in the US financial crisis?
Who’s to blame? Both parties technically, due to the fact that some Democrats rolled over for the Republicans/banks. But much, much more of the blame is to be laid at the feet of the Republicans. After years of clamoring for less and less regulation, John McCain’s economic adviser, then Senator (“Foreclosure Phil”) Phil Gramm introduced legislation to repeal the part of the Glass Stegall Act that regulated the baking system, allowing financial supermarkets to operate any kind of financial business they want, and profit from multiple conflicts of interest. This was also directly related to the crash of the housing market, where banks gave out faulty loans, and immediately turned around and sold those loans to speculators. This is essentially the free market run amok. This is what happens when industry is deregulated, and every Republican who championed deregulation, including John McCain, are very much to blame.



Now, we sit faced with a $700 Billion taxpayer funded “bailout” of an industry that isn’t even in need of it. The bush Administration has put forth a proposal that gives sweeping authority to the Secretary of the Treasury to buy up any asset that he alone, without any oversight or review by any court of law, deems “bad”. This means that the government has the potential to own your mortgage, car payment, or essentially any other debt you own. And what happens if you miss a payment? Debtor’s prison? This is a scam, pure and simple, and I urge you to call your Senators and tell them you aren’t going to stand for this.



So, long story short, Republicans have a proven track record of trying to deregulate the hell out of anything with a dollar sign, so most of the fingers should be pointed squarely at them.



P.S. To Rooster2, Bush never “tried to pass legislation to limit risky mortgages”. In fact, he threatened to veto the housing bill several times before actually signing it in July. I don’t know where you’re getting your information from, but it sounds like Hannity to me. And you want to try to link Obama to Fannie and Freddie? You can on the grounds that he had Jim Johnson, former CEO of Fannie Mae, vet potential VP Picks. Funny thing is, he stopped being the CEO in 1998, back when it was doing just fine!

But what is largely ignored by the corporate media, is the fact that McCain’s campaign manager, Rick Davis, was a lobbyist for Freddie and Fannie, making $30,000 per month, until he was fired by both in 2005. Also interesting is Charlie Black, McCain’s top policy adviser, was a lobbyist for Freddie Mac for ten years! I think you need to do a little more research before you start tossing around Republican talking points…

What role did the Democrats play in the US financial crisis?A very large part. Over the years Bush has tried to past legislation 12 times to limit the number of risky mortgages that Fannie Mae and Freddie Mac held, it was blocked each time by the dems. Dodd and Obama are # 1 and 2 on the contribution list from Fannie and Freddie.
Carter did the Community Reinvestment Act - forced lenders to give loans in high risk areas.



Clinton made revisions that resulted in many more of these loans.



Bush tried to fix it years ago, but got shot down.



http://en.wikipedia.org/wiki/Community_R…What role did the Democrats play in the US financial crisis?A LOT



http://www.bloomberg.com/apps/news?pid=n…



How the Democrats Created the Financial Crisis

What role did the Democrats play in the US financial crisis?
Its the Republican party that has the platform of free market and no regulations. Its been the Republican party in charge (most part) for the last 8 years.
The same as the Republicans. Both did nothing although both knew what was going on. PeaceWhat role did the Democrats play in the US financial crisis?
Oh god here comes the Republican circus




Some what less than that played by Bush I should imagine. Although in reality there is very little to choose between the two parties in spite of all the bluster.