How to handle inflation and recession: Bush vs. Biden
The economic crash in 2008 was the result of many things — but the first major factor was the housing and commercial real estate bubble. Banks and lending institutions were massively over-leveraged, as they lent without concern for proper underwriting. Junk mortgages abounded, where borrowers weren't even required to show their ability to repay, and there were even no-document loans — it was pure stupidity, allowing people to buy properties they couldn't afford.
Ratings agencies like Moody's gave illegitimate mortgage pools, packaged by investment banks, an AAA rating, allowing pensions, mutual funds, Fannie, Freddie, and others the ability to buy these faulty mortgages that would eventually go belly-up.
The reason? Pure greed. These ratings were bought, not earned.
Why didn't executives from these criminal ratings agencies go to jail for their massive fraud that destroyed the U.S economy?
Whenever Hillary, Obama, Biden, or any other Establishment politician need an "independent" economist to support their policies, they go to Mark Zandi, the chief economist at Moody's. Maybe this is why Mark Zandi of Moody's didn't go to jail. Zandi supported Obamacare, and just like most "journalists", idealizes leftist policies.
As Zandi supported Hillary, he made predictions about Trump that were 100% wrong:
Donald Trump's presidency would "significantly" weaken the country, driving the U.s. into a "lengthy recession" with nearly 3.5 million job losses and a 7 percent unemployment rate.
Zandi even bragged about Yellen and others in support of Biden, penning an article for CNN titled, "Biden's economic picks show that we are in good hands".
Now, Zandi repeats Biden's talking points, blaming Putin for record-high inflation. Zandi is essentially a Democrat campaign worker posing as an economist.
In the aftermath, the government focused on several key solutions to bring us out of the economic disaster. First, the Federal Reserve lowered rates in December 2007 from 4.75%, to below .5% within one year. That move injected mass liquidity into the market. Secondly, there was the TARP program, passed by a bipartisan Congress in October 2008, which created liquidity for banks and insurance companies:
TARP stabilized the financial system by having the government buy mortgage-backed securities and bank stocks. From 2008 to 2010, TARP invested $426.4 billion in firms and recouped $441.7 billion in return.
One of the most important actions taken was the unilateral decision by Bush to open drilling in July 2008. That sent the message to traders, OPEC, Russia, and speculators that the U.S. would be a major competitor in the oil market. Clearly the drilling wouldn't immediately yield a product, but by January 2009, the price of crude had dropped from $147/barrel to around $40/barrel and gas had decreased from over $4 per gallon to under $2 per gallon.
This gave businesses and consumers a major increase in disposable income. Of course, the simpletons thought it was all symbolic and wouldn't actually lower prices.
What didn't bring us out of recession was the slush fund program passed in February 2009, giving over $570 million to Solyndra and other political supporters. By June 2009, the economy came out of recession, 130 days after Obama took office. So why do Obama, Biden and the media pretend their policies were the solution? Because facts don't matter.
Once again, we have major problems with massive inflation and an incoming recession. We clearly have an asset bubble, significantly caused because the Federal Reserve kept rates artificially low, punishing the fiscally responsible. Investors drove up the price of real estate, stocks, and crypto currencies.
Throughout the campaign, and since Biden's first day in office, he has been talking and taking actions to show the destruction of the oil industry is intentional. He sent the message to OPEC, Russia, and oil barons that the U.S. was no longer a serious competitor for energy, absconding from the role of America First. Therefore, the prices began to skyrocket as soon as he usurped control of the Executive Office.
Biden is making no serious effort to lower energy prices because his overall goal is to destroy the industry in favor of the Green Agenda.
Biden uses gimmicks instead of productive actions. He releases a few days supply of strategic reserves and talks about a temporary cut in gas taxes but those do not increase supply.
He claims he will lower inflation by subsidizing daycare and early childhood education. Those actions will not reduce prices, they will raise them because providers have a captive audience. It just shifts who pays for the costs.
Sadly, we have a lap dog media that mostly repeats Democrat talking points instead of doing their job.
Not once have they asked Biden, Kerry, or anyone else for scientific data that proves oil consumption caused temperature changes, storms, or sea levels to rise. The media just repeats what they are told as they are complicit in the destruction of our economy and way of life.
The constant dire predictions, that have been 100% wrong, and are not based on data, are much more dangerous to our freedom, prosperity, and survival than a president who challenged an election with clear malfeasance.
Inflation statistics will certainly decrease soon as we go into recession, but the economic disaster will continue if the president and his party does not change to make gasoline, diesel fuel, and utilities affordable for those under the elites.
Democrats will get one of their main wishes as asset prices collapse — the reduction of the wealth gap. The poor and middle class will be destroyed but the wealth gap will indeed be less. Is that something to be excited about?