Originally Posted by
JustPassingThrough
The discussion of how the crisis developed is a separate subject, which includes the Democratic Party's refusal to reform Fannie Mae and Freddie Mac, the CRA, and so forth. Politicians of both parties for years encouraged home ownership, and in some cases (mostly Democrats) strong-armed banks into giving loans to risky buyers with easy terms, which investment banks then bundled into securities as a solution for spreading the risk -- all of which was done under the explicit understanding that if anything went wrong, the government would be there to bail everyone out. Which is exactly what happened. If that's what you mean by "Bush policies", I'll give you partial credit. Bush did encourage home ownership, but he also tried to reform Fannie and Freddie, and the Democrats blocked it. The policies that caused the Crisis were Clinton policies as well as Bush policies. If Romney wants to prop that scheme back up, he can rightly be said to be "continuing Bush policies". If what you mean by Bush policies is low taxes and deregulation, you have no leg to stand on in the first case, and in the second case, you only have an argument where Wall Street is concerned. Not the rest of the economy. But the Dodd-Frank bill has been passed, and all that did was to fix in cement the current standing of the big investment banks, making them even more "too big to fail" than they were to begin with.
The other main cause of the problem was Federal Reserve policy. Interest rates were kept too low for too long. Guess what the result of low interest rates is? People are incentivized to borrow money.
In all of those regards, we don't need to elect Romney to continue Bush policy, because Obama has already continued Bush policy. He replaced one Goldman Sachs Treasury Secretary with another, and retained Bush's Fed chairman. Obama and the Democrats supported TARP more strongly than the Republicans did. So what exactly are the "policies that got us into this mess" that Obama has abandoned and Romney would bring back? None, because Obama has continued them all. That rhetorical phrase is a bait-and-switch, intended to suggest that low taxes and deregulation of industry was somehow responsible for the crisis, which is ridiculous and completely divorced from reality. Considering how often he uses the phrase "the last 30 years", Obama is clearly trying to blame Ronald Reagan for the real estate bubble, which is outright lunacy, that only a complete idiot could fall for.
The question at hand for this election, however, is not how the crisis started, but how to fix the economy, and whether Obama has done anything to fix it. We know the answer, after four years. He is an absolute, abject failure. Period. End of story.