Charles Question: Whether people want to admit it or not, the economy is doing much, much better than when Obama first became president. He was handed an economy that was on the verge of a depression with a collapsing stock market. All the money we gave companies to stay open has been paid back+. Has he been a perfect president-no. But he is a lot better than both Bushes and Clinton. JUST SAYING!!!
All this while dealing with a Republican house and senate. they're only interested in making the president look bad so they win the next election. SHAME ON THEM!!!
I've always felt that most opponents of Obama do not like that we have a black man for president.
Answer: Charles, I know you are a big guy with a big heart and well intentioned.
First saying that people oppose Obama because he is Black is wrong on many levels and not appropriate. I assure you that I opposed Clinton and Carter with equal zeal. It is an unfair accusation. The accusation itself is a slur.
First as a Jew, how do you feel about his relations with Netanyahu? His support of Hamas? His support of Morsi and the Muslim Brotherhood in Egypt? His overthrow of Qaddafi to leave Libya in the hands of the Brotherhood? His abandoning of Iraq to ISIL? And lastly his deal with Iran that trusts them not to make an atomic bomb? As a WASP, it is ironic that I am more committed to Israel than you.
As for the charts showing the surging stock market: His policy of Quantative Easing - pumping ~80 billion per month in the bond market has bond yields close to zero. Yellin keeps promising to taper off - but she knows the stock market will tank. They are leaving that stinky pile for the next president.
Institutions have nowhere to go but the stock market with their investments. Price to earnings ratio's are historically high. And you are touting higher executive compensation? This president promised to lower income gap. Is this a plus for him?
Unemployment rate drop: The unemployment rate has dropped but so has the number of employed. The number of people working is at 1978 levels. How is the unemployment rate still dropping? Two reasons: 1> Baby boomers are retiring. Their jobs are not being refilled. They don't count as lost jobs. 2> And many workers have given up. (If they haven't applied for a job for 6 weeks they are taken off the unemployment rolls.) The long time unemployment rate is by most estimates 3X the 5.5% rate. Then there are the under-employed. Those who are working part time that want full time or more. There has been a surge in part-time employees as Obamacare is implemented. Part time workers are considered employed (two 20 hr.per week employees equal one 40 hr. employee).
Income reduction: Median family income under Obama has dropped over $3000.00. A figure that the chart did not show. It is reflective of the loss of jobs and loss of full time employment. Other indicators are increased exploding number of people on food stamps, social security disability and the increase in the poverty rate.
The deficit: Bush's deficits were high as he had to deal with the recession left by Clinton (Dot.com bubble burst - Yes the last quarter of Clinton's presidency left the US in a recession - google). And the aftermath of 911. They averaged about 525 billion a year. The critical year in the left's claim that Obama reduced is 2009.
The 2009 1.4 trillion deficit is attributed to Bush because he was president when the fiscal year started on November 1st 2008. He had a meeting with McCain and Obama both approved of the "Bailout" (TARP). TARP (500 Billion dollar loan to banks and troubled assets) was attributed to Bush even though he spent very little of it. He was under the thumb of the Democrat house who watched over every dime.
Obama spent most of it, some on projects like the GM and Chrysler bailouts. Some went to the banks, etc. The money was loaned to banks like Bank America, CitiCorp and assets like AIG were paid back. And Obama got to re-spend this money - but it was added to Bush Deficit: But spent by Obama. This would be an outrage if it were the other way around.
The Stimulus (ARRA) was a similar story. I the 2009 budget was not approved until after Obama was sworn it. It was an all Democrat budget but Bush got nailed for it in the 1.4 trillion dollar deficit figure.
The great recession was triggered by the collapse of the housing market. No doubt that 2008-2009 were terrible years and the herd blames Bush under the theory that if your are President - what ever happens while you a President - it is his fault.
Bush must be faulted to some degree for not anticipating the crises. There were a couple of attempts at investigating but they were turned back by Democrats who controlled the house. Bush was distracted by the Iraq war.
The Democrats had a hand in the collapse. It started with the CRA. Bill Clinton's Community Reinvestment Act. To help minorities buy homes, banks were "encouraged" to make loans to people with low credit scores.When the regulators "encouraged" them they responded. Banks and their mortgage loans are heavily regulated. Suddenly people with 640 the later 620 credit scores were qualifying for subprime loans. They could be structured as nothing down loans with 3% down paid by the Seller (Who just adjusted his sale price). There were "no doc" loans and "low doc loans" where they could get loans without just a credit rating and 20% down. This was great for people who had no documented income. Remember ACORN was trying to help a pimp and prostitutes get a home loan.
All these new buyers bid up the prices of homes on the market causing homes to increase in value as high as 10% a year in some places. Home owners were pulling their new equity out in record numbers. Mortgage companies and banks were doing great.
The other key to the collapse was the repeal of parts of the Glass-Steagall act. The Glass-Steagall act kept investment banking and commercial banking separate under the theory that banks should not be able to risk money that was insured by the FDIC.
Bill Clinton and his Secretary of Treasury Robert Rubin (Former head of CitiGroup) pushed through the Gramm–Leach–Bliley Act (GLBA) that allowed commercial banks to also invest as investment banks could. Rubin also assured Clinton that there was no need to regulate CDO's (mortgage bundles - Certified Debt Obligations). Rubin said they would be self regulating.
The stage was set for the Great Recession: The sub prime loans were bundled into huge billion dollar bundles by commercial banks which could now sell investments. The value was determined by the loan's interest rate and a expected default rate on the loans. These mortgage bundles were sold by banks to mostly institutional investors all around the world. The default rate soared. The huge bundles were at first worthless then became a liability.
The bundles were insured by AIG and the liquidity crises hit. Bush, Obama and McCain agreed on the bailout? Overnight the subprime loans, no doc loans and low doc loans disappeared. Over a trillion dollars in equity disappeared.
Clinton and Bush both had a hand in it. Who was most responsible - you decide.
Understanding the cause of the Great Recession is key to understanding Bush's low job creation numbers : Over three million jobs were lost in the last quarter of Bush's presidency when the recession hit. Some of these losses should be given to the Democrats and their subprime loan fiasco.
As for Obama's lower number of troops deployed: Give him that. But he should have left some in Iraq. He removed all against the advice of his military advisers. The world has paid a terrible price as ISIL has flourished.
And there is the National Debt to GNP ratio: This is an indication of Obama's spending over the past 6 years. It was ~77% in the first quarter of 2009. It is now at ~103%. Greece was 180%... We are headed in that direction.
I oppose Obama and Hillary solely because of what they stand for. Their ineptness in executing their offices should be apparent to all who follow politics. They appeal to anger and envy of the rich and make vague promises about transferring their wealth into their voters pockets. It will not happen. They are just buying personal power.
America has soared to its status as a world power on a simple idea: A man gets to keep what he has earned. Yes, there must be a safety net.Yes, Markets must be regulated to make sure that the players are playing without fraud or deceit. But less regulation the better is the general rule. The role of the national government should be limited as much as possible. The safety net, national defense, border protection, market regulation, drug certification, and other interstate common interest.
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