David S:
That’s the party line and you are sticking to it. The Bush Adminstration attempted to get at the root of the problem as early as 2002 when the IG found that Fannie and Freddie were engaging in poor business practices under Clinton appointed members to the Board. The Democrats let by Chris Dodd and Barnie Frank shot it down. In 2005, John McCain tried once again to fix the problem and the same politicians including freshman senator Barak Obama on Fannie and Freddie payrole shot that down too. Dodd, Frank, Obama and a host of other Democrats were on the take. There was article written in 2002 in the Atlantic Monthly on how corruption at Fannie and Freddie would cause a catastrophe.
Robert Barro wrote about something called the Government Budget Constraint in the early 1970′s. Government spending does not stimulate the economy. It is merely robbing Peter to pay Paul though taxes or borrowing or else financed by printing money. If you print money you get inflation. If you borrow money from foreigners then you get a falling dollar, high interest rates and more inflation. When the government spends money it merely transfers it from a less favored to more favored group. The Democrats are looting the economy Chicago style.
You can shove your peace.
