Financial Bubble Coming Back : Deja vu - Dodd/Frank Democrats

Mr Moore brings more doom and gloom for the financial markets and therefore our very source of survival for  those of us in the trenches. After all, it's the market that drives the entire economy, for better or for worse,  on which we depend for our retirement, which in turn gives the people the confidence when the market is doing well to spend some our resources believing our nest egg will be there when we needed it.

Now, as Steve points out, the progressive socialist liberal democrats have doubled down on passed financial failures of the Carter and Clinton administration, and the Bush administration that continued it with TARP, and now with the Stimulus plans of Objma of nearly a trillion dollars that was total failure to deliver, we now face another coming financial disaster.

Worst of all, it is based on the very same theology and ideology of the last failure, and the very people that brought us the last one are the same that are bring it back again.

Looming Fallout
Source: Stephen Moore, "Washington Sets the Stage for Another Financial Crisis," Daily Signal, October 16, 2015.

October 26, 2015

Here's the latest story line: bailouts, trillions of dollars of government spending and debt, easy money and re-regulation of Wall Street ended the 2008 Great Recession. Actually, says Stephen Moore, this is what created the crisis.

The myth took on new life last week when Ben Bernanke took a bow in the Wall Street Journal for, in his mind, saving the economy with his $3 trillion of quantitative easing and zero interest rate policy.  Now the Fed, the White House and Congress are recreating the very same conditions for another financial bubble. If it pops, we could replay the same devastating effects as occurred during the first bubble in 1999 and 2000. It is doing so in four ways:

• Dodd-Frank regulations are exacerbating one of the greatest consolidations of the banking industry since the Great Depression. 
• Fannie Mae and Freddie Mac are engaged in the same low down payment lending mania of 2004-07, and the Obama administration is on a Bush-like homeownership push. 
• The Fed refused to tighten its stance in September.
• Government is hopelessly over-leveraged, and the interest rate exposure is enormous.

All of the conditions of financial wreckage are reappearing. The presidential candidates should start warning voters that Washington is rebuilding another financial house of cards.


If they don't, when the financial crash comes and Americans see their life savings disappear, the media and the history books will again blame conservatives for the destruction from the rampant financial negligence of government.