Letter to the Editor
On October 9, 2007, 11 months before our economic crisis occurred, the Dow hit its highest point ever, closing at 14,164.53. Unemployment was steady at 4.7%.
According to our current president, Obama, Bush was to blame for the current mess we are in.
The day the Democrats took over was not January 22, 2009, it was January 3, 2007, when they took over control of the House of Representatives and the Senate. This was the first time they had controlled both chambers since 1995.
At the time the Democrats took control, the Dow Jones closed at 12,621.77; the GDP for the previous quarter was 3.5%; unemployment was at 4.6% and Bush’s economic policies recorded 52 straight months of job growth.
January 3, 2007 was the day Barney Frank took over the House Financial Services Committee and Chris Dodd took over the Senate Banking Committee. These are the areas that caused the meltdown in our country 15 months later. 5 to 6 TRILLION dollars of toxic loans dumped on the economy by the Fannie Mae and Freddie Mac fiascoes. Bush asked 17 times to stop Fannie Mae and Freddie Mac to prevent an economic disaster to our country. Who took the third highest pay-off from Fannie Mae and Freddie Mac and fought against their reform? OBAMA and the Democratic Congress, that’s who.
Budgets do NOT come from the White House – they come from Congress and the Democrats controlled Congress since January of 2007. They also controlled the budget process for 2008, 2009, 2010 and 2011. In the first year they had to contend with Bush which caused them to compromise on spending. After that though, Nancy Pelosi and Harry Reid bypassed Bush entirely, continually passing resolutions to keep government running until Obama could take office and they passed a massive omnibus spending bill.
And where was Obama during this time? He was a member of that Congress who passed all of these massive spending bills.
If the Democrats inherited any deficit, it was the 2007 deficit, the last of the Republican budgets which was the lowest in five years and the fourth straight decline in deficit spending. After that, Democrats took control (including Obama) and voted for the budgets. If Obama inherited anything, he inherited it from himself and basically what he has been saying is “I inherited a deficit that I voted for and then voted to expand it four-fold” since his inauguration.
Remember all this November 6th.
Daniel A. Derfler