Which President Do You Blame For The Current Economic Condition? Bill Clinton? George W. Bush? Barack Obama?

Which President Do You Blame For The Current Economic Condition? Bill Clinton? George W. Bush? Barack Obama?

Neither.

Who do you blame?

Former Federal Reserve Chairman Alan Greenspan. He urged government regulators to take it easy on the banks like Lehman Brothers. Banks buried themselves and the economy under mountains of debt. This lack of regulation failed all ofthe government’s policies.

The current economic crises we are faced with today were caused by the housing market bubble. The Federal Reserve kept the interest rate at 1 percent in 2003. Federal Reserve asking the consumer to borrow money. The financial problem of overleverage of too much debt.

Greenspan wanted less government regulation but he never did a thing to roll back regulation cut spending and taxes. Financial regulation created the mess that we are in today. There was the “Saving and Loan” crisis. Under Clinton the saving and loan (S&L) was the most regulated industry. It also did not help that Clinton pass law that every consumer could afford housing. This did not stop the crisis from happening. Regulation don’t prevent crisis, they cause them.

It also did not help under Bush that spending billions of dollars on a lost war. Regulation of all sectors led to massive numbers of jobs shipped to overseas for profits. Our capitalist system was based on greed. Capitalism goes through cycles of economic boom or bust. The market started to go bad in the fall of 2006 under Bush.

Businesses fear now that we are headed towards more regulation. Our economy is station on consumer spending. The economy cannot function with nothing to spend.

 

About the Author

Michael Coker

Conservative Political Writer, Contributor and Blogger, Founder secondopinionpundits – Political Web Magazine – Politically Opinion Based Facts