The Wall Street Journal and others have labeled the drop the “Barack Market,” reflecting the higher taxes on everything from capital gains and dividends to income and increased regulations. They are right, but they are thinking much too narrowly. Much, if not all, of any recession and economic problems is due to Democratic policies.

The media focuses on the drop in housing prices, consumer purchases or stock prices as the cause of economic problems, problems that they view as unrelated to Democratic policies.

The financial problems seem obvious. Democrats have been the ones pushing for federal regulations that forced financial institutions to make risky loans either though the threat of penalties from the Federal Reserve or through subsidies from Fannie Mae and Freddie Mac. They protected  Fannie Mae and Freddie Mac from regulations

Obama himself played a role in creating these problems, and not just because he supported these Democratic policies. Take his policy where judges will be able to step in and rewrite home mortgage contracts unilaterally reducing the amount that homeowners owe and reducing their interest rates.

How would such a policy affect the willingness of banks to lend money for new mortgages? It likely even affected the market before the election. If you thought that Obama could win, would you want to loan money for people to buy homes if a judge could lop off a $100,000 from what is owed and cut interest rates? Lenders don’t even know how much the government would possibly reduce what would be owed. Many lenders this year simply didn’t want to take such incredible risks.

What does that do to the price of houses? Obviously, when people have a hard time borrowing money, there are fewer buyers and prices go down.

What about Obama’s campaign promises earlier this year to double  the capital gains tax? Surely that hits stock prices hard.

SOURCE

The truth is comong out! I said away back when the democrats took charge of congress and the first thing they did was to raise wages! I said at the time that prices would go up to cover the cost for the businesses. Then on top of this the democrats were forcing fannie mae and mac to give loans to people that they knew could not repay them. When all this hit the headlines just before the elections It seem to me that it was all plan to go against the republicans so that Obama could win the election.

LINKS:
(1) Naked Emperor Paulson: Hey, gimme the rest of TARP dough Michelle Malkin

(2) Fox Biz Net sues Paulson over bailout secrecy Michelle Malkin