Sunday, May 15, 2011

The True Causes of the Financial Crisis

Liberals and Democrats have continually tried to evade blame for their overwhelming guilt in causing the 2008 financial crisis and the resulting recession.  Congress appointed a Financial Crisis Inquiry Commission to determine the causes of the financial crisis, but it was a whitewash of the federal government's culpability and a disingenuous effort to blame "Wall Street."

The Obama Administration used this whitewash as a basis for enacting the Dodd-Frank Act (DFA) to more heavily regulate the financial services sector.

Peter J. Wallison was a member of the Inquiry Commission and a dissenter in the Commission's erroneous conclusions.  He tells why in an article for the American Spectator.  He writes:
The DFA was sold to the American people by the media and the Obama administration as necessary to prevent another financial crisis, but as outlined in this article and made very clear in my dissent, the financial crisis was not caused by weak or ineffective regulation. On the contrary, the financial crisis of 2008 was caused by government housing policies -- sponsored and promoted by many of the same people who framed and ultimately enacted the DFA.
Read his entire article here.  It is a good article to bookmark because Dems will issue all sorts of propaganda in the coming election campaign, in order to sidestep their guilt in the financial disaster.


Always On Watch said...

To my great chagrin, the mainstream media will not tell these truths to the American public.

The media, in large part, got Obama elected in 2008. How can we prevent that from happening in 2012?

Stogie said...

AOW, the mainstream media has been the house organ for the Democratic Party for at least 40 years; they no longer pretend to be objective and are already in full campaign mode to reelect Obama.