Financial crisis

Dear Editor,

The cause of our financial crisis was deregulation; plain and simple.

Deregulation over the past 30 years has been devastating to the middle class, throwing families into poverty, while the richest become even richer.

Don’t be fooled by the Republicans (especially the Tea Party and special interest groups) who falsely blame Democrats and President Obama for economic problems, which are the fault of Republicans.

Our budget deficit problem began a long time before President Obama. Ronald Reagan in 1980 ran on a platform of cutting the deficit in half, instead, after eight years of his rule, the deficit had doubled.

David Stockton, a Republican, who worked in the Reagan Administration, and was author of “Trickle down economics” and has tremendous credentials as an economist and Wall Street expert, has come out and attacked Republican’s refusal to increase taxes on the very rich and admitted that “trickle down economics” does not work.

In the 32 years since Reagan was elected, Republicans have controlled The White House for 20 years. The economy during the last four years under President Obama was clearly the result of overspending during the Bush years. During the 12 years the Democrats controlled The White House, their efforts were hampered by a Republican controlled Congress. Even those very few years in which Democrats also controlled Congress, the inability of Democrats to get 60 votes in the Senate and prevent Republican filibusters has cemented the Republican ability to prevent Democratic Administrations from effectuating real change.

Holding Republicans responsible for the damage they’ve caused over the last 30 years should be our first priority.

1). The Savings & Loan crisis. Deregulation of the S&L industry was pushed by Reagan and Republicans.

2). The Dot. Com Bubble, created and allowed to overheat under a Republican Congress.

3). The bankruptcy of Enron, WorldCom, and a number of other large corporations as a result of the Commodity Futures Modernization act, a Republican bill pushed by Phil Gramm.

4). The largest financial failure since the Great Depression caused by passage in 1999 of the Republican backed Financial Service Modernization Act, which repealed the Glass Steagall Act, that had protected hard working Americans for 68 years.

5). The Housing Bubble, blamed on Democrats but embraced by a Republican Majority Congress and a complacent Fed Chairman.

6). The numerous Bankruptcy Laws enacted by Congress. Each allowing the financial services industry more devices to steal from “The People” and help their corporate friends.

7). TARP (Toxic Asset Relief Program), an unpopular bank funding program pushed by an incompetent Republican President and an equally incompetent Secretary of the Treasury.

8). The AIG Bailout from TARP, a money laundering scheme to transfer $64 billion dollars to Goldman Sachs and eight other troubled banks.

9). The BP oil spill in the Gulf, a failure on so many levels and one of the most devastating environmental disasters in history.

10). The failure of LTCM (Long Term Capitol Management), as a result of an unregulated derivatives market still supported by Republicans.

11). The Bernie Madoff Ponzi Scheme, which festered under a weakened Republican Securities Exchange Commission.

These are all Republican backed initiatives and failed policies, that have caused much pain and suffering and have added to the erosion of the Middle Class.

Talk is cheap and Republicans are good at framing an issue even if it involves lies and half truths to mislead the public.

Wake up people! We are living in a terrible economy, one of Republican creation.


Ben Lofton