The Daily Star, Oneonta, NY - otsego county news, delaware county news, oneonta news, oneonta sports

August 15, 2012

Letters to the Editor: Aug. 15, 2012

Daily Star

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Reagan, Bush, Greenspan to blame for housing crisis

President Ronald Reagan started the present worldwide financial crisis by escalating a national debt of less than $1 trillion into a debt of $3.5 trillion and left a recession.

He did this by reducing a top income tax of 70 percent to 28 percent and misspent trillions of taxpayer dollars on a military America didn't need. Japan won the Cold War.

When the conservative Supreme Court handed George W. Bush the presidency, he directed his Federal Reserve Chairman, super-conservative Alan Greenspan, to unnecessarily stimulate the economy. Greenspan took a Bill Clinton borrowing rate of 6 percent and in two years reduced it to 1 percent. Americans borrowed cheap money and raised the cost of housing. Bush and Greenspan caused the worldwide housing bubble, which they ignored.

Mortgage sellers discovered that the Bush administration was ignoring mortgage regulators, and started to sell many undocumented mortgages to people who normally would not be qualified. Mortgages were therefore sold cheap. Banks, etc., bought the cheap mortgages and hid them within packages of otherwise decently documented mortgages.

The ratings companies rated these security packages "Triple A" when they should have been designated pure garbage because of the poor documentation. The banks sold these punk packages to unsuspecting customers. When this stuff hit the fan, all these thousands of pure criminals, including the Bush administration, were involved in criminal deregulation. No one paid the price. But, no. It seems the taxpayers must have been at fault because they paid for the outrageous bailouts.

Now the National Debt is at $16 trillion and the two Bush wars are adding $3 trillion. Interest charges are nearly $1 trillion a year. Money printing by Treasury indicates we are hopelessly bankrupt. It is entirely Reagan-Bush's fault, not Barack Obama's. Why didn't Bush declare American bankruptcy?

Bob Joyce