A Sept 19 a letter writer claimed President Barack Obama saved America from another depression. I submit Obama had a bigger hand with policies that led to the crash than most realize. If center-right economics had been applied since January 2009, like in Canada, we would have another 10 million to 12 million jobs and a lower overall unemployment rate than today. The real world indicates Obama has truncated a recovery.
Policies triggering the crash:
* Community Reinvestment Act broadened due to legislation and veiled threats by the Democrat-controlled Congress of 2006-8.
* Mark to market. Forced banks to restate balance sheets based on asset sales completed at the end of the current business day. Sponsored by Obama.
* Removal of the uptick rule allowing naked short selling of stocks. Democratic senators supported this change.
* Blocking the Bush administration's efforts to increase underwriting rules for Fannie Mae and Freddie Mac.
* Deregulation signed by Bill Clinton not repealed by Democrats in Congress or George W. Bush.
* Barney Frank's blocked legislation sponsored by Paul Ryan to rein in repackaged mortgage-backed securities.
* Chris Dodd and Obama blocked Republican legislation to expand federal regulation into dark markets.
The crash was orchestrated mostly by Mideast sovereign wealth funds though dark markets. First they manipulated oil prices, then with naked short selling and mark to market manipulated stocks followed last by an electronic run of U.S. bank accounts. Democrats and the GOP made this possible.
Obama was part of the problem; Mitt Romney was not.
Pat Kean
Kihei
