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Good discussion at Tigerhawk

February 25, 2009

Good discussion at Tigherhawk’s place. You should check it out. They even have their own Chamber troll (goes by Chris).

TH asks what the President was talking about by saying “regulations were gutted”. I tossed him Tim’s Ritholtz article from Barrons just to see what everyone thought. Tigerhawk is a smart conservative rich guy and I think his observations are very astute. I commented further this morning (how I really feel):

I will say this: for the President to say “regulations were gutted” and then go off on “banks and lenders who pushed those bad loans anyway” is an appalling act of dishonesty, a complete non-sequitir especially from the Democratic point of view. It’s an argument against CRA and Fannie/Freddie at least as much as the failure to regulate derivatives etc.

Obama will seek only to regulate/punish wall street, which obviously needs some kind of guard against this foolishness in the future- not that it can be eliminated. By the same token, he will not lift a finger against Barney Frank and co. for their egregious mishandling of Fannie and Freddie resulting in their failure. There will be no consequences on that end.

Moreover, there will be great sums of money expended making sure those people who bought homes they couldn’t afford from banks and lenders who pushed those loans get to stay at their homes at a good rate. I, who bought a house I can afford, will pick up the tab.

How to battle this brazen dishonesty when it will “feel”so right to a majority of Americans??

The New Honesty is getting ofto a horrible start. The only “hard decisons” to be made is “how much should we raise taxes by?”.  No soul-searching will be forthcoming on behalf of the Democrats as relates to their half of the problem: government meddling in the mortgage market. No, that meddling will actually increase exponentially.

Don’t comment here though- give it a shot at TH- I’ll see the updates via email.

UPDATE: A good counter- article from Barron’s suggested in the thread. More where I’m coming from: The Culprit Is All of Us

CONTRARY TO A VIEW POPULARIZED DURING THE 2008 presidential election season, the current economic crisis was not the result of deregulation.

The Bush administration made many mistakes, but deregulation was not one of them.

Not only was there no major deregulation passed during the past eight years, but the Bush administration and a Republican Congress approved the most sweeping financial-market regulation in decades.

The bipartisan Sarbanes-Oxley Act was enacted in 2002 to prevent corporate fraud and restore investor confidence after the collapse of Enron and WorldCom. It failed to prevent the accounting fraud and influence-peddling scandals at Fannie Mae and Freddie Mac. And even after those scandals were widely understood, regulators sent Fannie and Freddie back into the market to continue buying subprime loans, lending and borrowing with implied taxpayer backing.

It was and is a moral failure accross the board.

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