Saturday, December 13, 2008

Conservatives Tried Subprime

I guess we're just fortunate that we had a Liberal government for all those years that the Americans were desperately trying to loot their economy for the sake of the rich. While they were setting up mortgages to people who had no business having mortgages, we had a Liberal government that wasn't letting that happen in Canada.

We did manage to get a Conservative government in 2006 and they did their best to completely ruin our economy, but it was too little too late. The subprime bubble was already bursting and, try as they might, Harper and Flaherty couldn't quite get us in to the disaster.

They did their best by creating 40-year, no-money-down mortgages, but they had to cancel that offering when it became obvious how disastrous the long term effects were.

But make no mistake about it. Leaving Conservatives in charge of our economy is a disaster. They'll sell everything off so they can give tax cuts to wealthy people. They'll run up massive, unnecessary debt.

And if they had their way, they'd have dumped our economy straight in to the drain to create huge, fake economic booms for the sake of their banking friends.

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Ian said...

I thought the Dems in the US had a hand in creating the sub-prime crisis by allowing those mortgages in the 90s (Clinton and the idea that everyone should be a home-owner).

Greg said...

There are a bunch of different issues that get mixed up in the U.S., mostly thanks to Fox and what not.

1) The CRA (Community Reinvestment Act) forced banks to not be racist. It didn't force them to give out bad loans.

2) Clinton did sign the revocation Glass-Steagle as one of his first acts in office. Whether he did this because he thought it was a good idea, was on the hook to Wall St. for campaign donations or simply followed what the previous Bush administration had been doing, I have no idea.

3) That's only part of what happened in the U.S. There's still all of the deregulation of stocks, derivatives on black markets and all the other nonsense that really brought the whole thing crashing down.