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Financial Crises In America How Did We Get Here And Who’s To Blame?

By; Jim A Wade SmartShoper.net October, 6, 2008

To find the answers to these questions we have to go all the way back to 1933, F D R, and the New Deal. We were in the throws of the great depression and people in America were hurting, hungry and out of work. President Roosevelt introduced a series of programs to grow the economy and provide assistance to the needy. Although the economy did grow and America did pull out of the depression, the unseen results over time would prove to be a far greater threat to the country as a whole. In order to grow the economy President Roosevelt took the approach of growing the government and created work programs that basically turned America into a “Nanny State”. It created an entitlement mentality in America, Americans began to see the government as the answer to there problems.

Some people believe that President Roosevelt secretly knew all about the unseen result and intended to create the entitlement mentality or cause the people to become dependant on the government. I personally don’t pretend to know what was in his mind or heart and would rather believe his intentions we genuinely to help the country out of a crisis. That said I don’t believe we can say the same for the politicians in power today.

The next significant event that leads us to where we are today is the introduction of the fair housing act and the establishment of Fanymay and Fredymac. The democrats in congress came to realize that they could increase there numbers and ensure there power in congress by increasing the number of people that looked to the government for there daily needs. What better way to do this than to offer the American dream to every one, whether they could afford it or not. This was done under the pretence of fairness and the democrats exploited the widening gap between the haves and the have-nots and promoted class warfare. After all, the more people that saw the government as the answer to there problems and the democrats as the ones who were creating and increasing programs to give more to them the more people that would vote for the democrats thus ensuring there election and re-election year after year. The catch was in order to create and grow these programs the democrats needed to increase taxes and did so on the very people the were claiming to help and thus keeping them dependant.

The problem with Fanymay and Fredymac was that with the government backing them they had no risk of failure. After all the government was backing them, they could take risks no other company dared to. And then there is the corruption that inevitably runs rampant in almost every government run or backed program.

In 1993 President Bill Clinton expanded the Fair Housing Act and loosened the regulations. The government actually encouraged riskier loans. Now you could buy a house with no money down and you could barrow far more than the house was worth with little or no credit and far less income. This set the stage for disaster.

The final straw came when Enron failed. The fraudulent accounting practices caused the government to react and pass a law that changed the way companies could value there assets such as home mortgages. This was a dramatic over reaction and caused company portfolios to suddenly shrink far below there debt. After that it was just a mater of time before the house of cards crumbled.

Now here we are on the eve of the most important election in our lives and suddenly it’s a crises. Wouldn’t you know in full crises mode we are asked to expand the government in a manner so large and so radical it is strangely familiar, Oh yes The New Deal that’s where I have herd this before. And who stands to gain the most from this? Just ask yourself, who is going to be in charge of all theses new programs designed to save us all, the democrats, and all the billions of dollars, the democrats, and who is paying for this, That would be you.

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