Ok, now tell us this in your own words!The golden goose (the U.S. economy) is badly hurt. It needs resuscitation soon or it is going to get cooked (become another Greece). So what’s to be done? There are many ideas on how to revive the goose but what’s already been done hasn’t helped much. To arrive at an effective solution on how to help this particular goose, one must discover the reasons that initially caused and is still causing its problems.
The initial causes were finally spelled out clearly in the book, Reckless Endangerment, by Gretchen Morgenson and Joshua Rosner: the quasi-government mortgage institutions, Fannie Mae and Freddie Mac. Basically, they forced banks to loan mortgage money to people who could not repay them, and they did this because of the amendments to the Community Reinvestment Act that President Clinton pushed through and that Representative Barney Frank and Senator Chris Dodd, as Committee Chairmen in the House and Senate in 2006 would not allow to be changed to make them fiscally sound.
But that’s “water under the bridge” so to speak, or is it?
The Dodd-Frank bill which was supposed to add regulations mostly on banks to prevent the economic downturn from happening again, does not even address Fannie Mae and Freddie Mac. It does ensure the failure of small community banks by placing reporting burdens on them that only large banks could afford to comply with and making the penalties to banks so severe (the government would take over the bank) that banks are afraid to make loans. But Dodd-Frank is just one minor peg in the goose’s coffin.
Other factors hurting our goose is Obamacare which is slowly going into effect (postponed until AFTER the November election). Obamacare affects everyone in the United States. The President said it was based on Romney-care, or the medical insurance system put into place under then-Massachusetts-governor Mitt Romney. Romney-care, however, only affected the 8% of Massachusettes residents who were not covered by medical insurance.
Then there’s the huge increase in deficit spending which is quickly bankrupting the U.S. and thrusting a knife in the heart of the goose. Positive, job-creating actions, like the Keystone Pipeline , which would also provide much-needed oil, with the job killing decision delayed until after Obama's re-election, as Canada makes a deal with China and starts the pipeline going west to the Pacific ocean where China will take it in oil tankers to its homeland.
I could go on and on and on, but I think you have the idea…policy after policy, each hurting the economy, is fatally hurting our friend, the golden goose. If things are not turned around soon , this goose will be cooked.
But as Obama and the Dems put it, voters have given him a "Mandate" to kill the golden goose. Cause as much he raises taxes, he will continue to waste and overspend with four more years of NOT fixing the economy and blaming everyone but himself and his failed policies.