Blame the bubble on FDR, Jimmy Carter and Bill Clinton

September 30, 2008

Johan Norberg, on his blog JohanNorberg.net, points out the Democratic intervention that caused the financial crisis

SOME milestones in the prehistory of the crisis. 1933: As part of the New Deal, investment banks are stopped from also acting as commercial banks (which would have given them bank deposits and more stability). 1938: As part of the New Deal, president (Franklin D.) Roosevelt creates Fannie Mae and in 1970 Congress creates Freddie Mac. With their implicit government guarantees they can offer cheaper loans and expand until they dominate the American mortgage market.

Some 2003 Video Footage of the Republicans and Democrats

Here is a good follow up video showing the Democrats trying to talk down to the Republican’s that were trying to enact regulation on Freddy Mac and Fanny Mae. Make sure to check out the videos in the post below first!

The US Financial Meltdown: How We Got Here