THE CAUSE OF THE ECONOMIC COLLAPSE…

Posted on February 6, 2009. Filed under: Obama Unveiled... |

 

The U.S. economy is going down the drain along with everyone’s retirement accounts.  Everyone is still blaming Bush for this atrocity, but they should put the blame where it belongs.  Bill Clinton had a big role in this crisis that we’re in, believe me.  The stroke of a pen was all it took to start the downward spiral, or as I like to call it:  "The bill that we’re footing the bill for now."

Franklin D. Roosevelt signed a bill into law back in 1933 called the Glass-Steagall Act.  For those who don’t know what the Glass-Steagall Act is, I have included an excerpt here from an investment dictionary:

"It was the Act passed by Congress in 1933 that prohibited commercial banks from collaborating with full-service brokerage firms or participating in investment banking activities.  It was enacted during the Great Depression.  It protected bank depositors from the additional risks associated with security transactions.  The Act was dismantled in 1999.  Consequently, the distinction between commercial banks and brokerage firms has blurred; many banks own brokerage firms and provide investment services."

The banking industry had been seeking a repeal of the 1933 Glass-Steagall Act.  Ironically, another Democrat, Bill Clinton, repealed it, signing it into law in 1999.  This bill is called the Gramm-Leach-Bliley Act (Leach…aptly named).  There was a lot of press about how after Clinton signed the repeal, he ceremoniously offered his pen as some kind of trophy.  I strongly feel that Bill Clinton does favors for political gain, and that he repealed the Glass-Steagall Act to benefit bankers who were in his pocket.  Now you know who ended up benefiting from this move…

This is an excerpt from the link below:

"On Oct. 22, 1999, Weill and John Reed issue a statement congratulating Congress and President Clinton, including 19 administration officials and lawmakers by name. The House and Senate approve a final version of the bill on Nov. 4, and Clinton signs it into law later that month.

Just days after the administration (including the Treasury Department) agrees to support the repeal, Treasury Secretary Robert Rubin, the former co-chairman of a major Wall Street investment bank, Goldman Sachs, raises eyebrows by accepting a top job at Citigroup as Weill’s chief lieutenant. The previous year, Weill had called Secretary Rubin to give him advance notice of the upcoming merger announcement. When Weill told Rubin he had some important news, the secretary reportedly quipped, "You’re buying the government?"

That’s exactly what they did…

http://www.progressivehistorians.com/2007/11/bill-clintons-role-in-mortgage-crisis.html

Economists Robert Ekelund and Mark Thornton criticized the Gramm-Leach-Bliley Act as contributing to the 2007 sub-prime mortgage financial crisis, arguing that "while in a world regulated by a gold standard, 100% reserve banking, and no FDIC deposit insurance", the Financial Services Modernization Act would have made "perfect sense" as a legitimate act of deregulation, under the present fiat monetary system it "amounts to corporate welfare for financial institutions and a moral hazard that will make taxpayers pay dearly", and it did.

In response to criticism of his signing the bill when President, Bill Clinton said in 2008:

"I don’t see that signing that bill had anything to do with the current crisis.  Indeed, one of the things that has helped stabilize the current situation as much as it has is the purchase of Merrill Lynch by Bank of America, which was much smoother than it would have been if I hadn’t signed that bill.  On the Glass-Steagall thing, like I said, if you could demonstrate to me that it was a mistake, I’d be glad to look at the evidence."

OK, I can think of a big mistake right off the top of my head.  Despite a near collapse that required $45 billion in federal taxpayer bailout funds, Bank of America "smoothly" sponsored a five-day, carnival-like affair just outside the Super Bowl stadium earlier this week as Obama decried wasteful spending on Wall Street.  Bank of America justified the expense as "part of a growth strategy".  The bank refused to disclose how much it is spending as an NFL corporate sponsor, but insiders have put the figure at close to $10 million.  The NFL Experience was on top of that and was inked last summer, according to the bank.  The NFL said it was a "multi-million dollar" event and that it was also spending money to put on the event.  A Super Bowl insider said the tents alone cost over $800,000.  Another classic case of corruption at our expense…literally.  Now Obama has a lot of Clinton people in his cabinet, with Capital Hillary leading the pack.  My feeling is that we’re going to be worse off than when Bush was in office.

I never did trust a Clinton.  While campaigning, Obama opened a campaign office in Harlem.  Hmmm…Clinton must have offered him some of his tarnished advice.  Clinton has an office in Harlem as well.  Seems they’re partners in crime.  Whose votes do you think they went after with this move?  Here’s an article about Obama’s fundraiser in Harlem.  I guess it’s still politically correct for blacks to spew derogatory racial comments about white people, with Obama leading the pack.  When Obama is with blacks, he speaks a different language than when he’s with a diverse crowd.  How despicable, and people are totally oblivious to these facts:

http://blogs.usatoday.com/onpolitics/2007/11/whats-new-18.html

As you’ve heard me say before, two of the most racist people on the planet are Jesse Jackass and Al Crapton.  They snuggled up to Obama during his campaigning in spite of Jackass’ racist comments about Obama.  I truly believe that racism would lessen considerably if blacks (like Jackass and Crapton) would stop harping on it 24/7 and forever playing the race card.  The comments that follow the article are quite interesting as well:

http://blogs.suntimes.com/sweet/2007/11/sweet_scoop_jesse_jackson_fami.html#more

I know politicians are all "corruption vaults with deep pockets", but I still say McCain and Palin would have been a better choice.  The way Obama and his posse have been performing since he’s been in office only supports my words…

QB

 

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