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Accept the truth and look at history October 20, 2009

Posted by fetzthechemist in Uncategorized.
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Pundits and media people, especially those on the right, are continually harping on and on about the Obama adminstration blaming the economic crisis on the Bush administration.

This crisis started showing up last summer, even before the Democratic primaries were done. It was in full swing with Wall Street collapse and banks on the edge of closing before the November election. Bush’s administration put out the bailout monies with no string, no conditions to be met. This all happened before Obama was inaugerated.

Just as Herbert Hoover’s administration was blamed for the Wall Street collapse of 1929 and starting the Great Depression, Bush ought to be carrying that albatross. Franklin Roosevelt inherited that mess and it took several years to turn things around. Obama has been in office for only 8 months. Part of that period, his administration had to administer that free bailout money agreed to by Bush (and yes, the Democratic-controlled Congress, so blame those two). The banks have steadily refused any bailout monies that might now be tied to doing business differently. Forcing them to comply with ex-post-facto rules imposed after they had the money is nigh on to impossible. The Obama administration has no legal footing to do that.

People expect instant results these days. Everything has to be done now or it is ineffective. Undoing any problems created by a predecessor is irrelevant to that thinking. Change has to be instantaneous. Ludicrous, but the way a lot of people are thinking.

As far as the debt load, as a percentage of GNP, these deficits are not records. When you have a multitrillion dollar economy, a trillion dollar debt is what has to happen. Roosevelt had bigger proportional debts, then a short period of prosperity before the huge debts for World War II started. The post-war boom erased all of the debts from the New Deal and the War. Everybody needs patience and perspective.

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