Getting It All Into Perspective

The following story was sent to me and I started checking the claim being made.  This is a common story that is on several websites and is being circulated on Facebook.  I have edited the story so that, to the best of my knowledge, it represents the facts that existed at that time.  I was unable to either verify, correct or discount some of the claims and they were removed from the story.  The thought behind the original story was correct, but the facts supporting it were not always correct and in some cases did not support the story at all.  In any case, I believe it to be in its edited form accurate as to what is stated.  Part of the words are mine and part are as the original story.  All the links where added as part of the editing process.

This tells the story of where the economy came from that Obama’s refers to as inherited from Bush.  If you have not being paying attention this may surprise you.

The day the democrats took over was not January 22nd 2009, it was actually January 3rd 2007, the day the Democrats took over the House of Representatives and the Senate, at the very start of the 110th Congress.                            Wikipedia Link that verifies the data.

The Democrat Party controlled a majority in both chambers for the first time since the end of the 103rd Congress in 1995.

For those who are listening to the liberals propagating the fallacy that everything is “Bush’s Fault”, think about this:

January 3rd, 2007 was the day the Democrats took over the Senate and the Congress.

At the time the Democrats took control  (Jan 3, 2007) the DOW Jones closed at 12,621.77 by Jan 22, 2009 the day Obama took office it closed at 8122.80.

The Unemployment rate was 4.6% in Jan 2009 it rose to 7.8% and today it is even higher.  So it appears the longer the Democrats had control the higher unemployment rose.

George Bush’s Economic policies showed consistent employment rates and after only 1year in the hands of the Democrat’s majority congress the rates began to rise.

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
2002 5.7 5.7 5.7 5.9 5.8 5.8 5.8 5.7 5.7 5.7 5.9 6.0
2003 5.8 5.9 5.9 6.0 6.1 6.3 6.2 6.1 6.1 6.0 5.8 5.7
2004 5.7 5.6 5.8 5.6 5.6 5.6 5.5 5.4 5.4 5.5 5.4 5.4
2005 5.3 5.4 5.2 5.2 5.1 5.0 5.0 4.9 5.0 5.0 5.0 4.9
2006 4.7 4.8 4.7 4.7 4.6 4.6 4.7 4.7 4.5 4.4 4.5 4.4
2007 4.6 4.5 4.4 4.5 4.4 4.6 4.7 4.6 4.7 4.7 4.7 5.0
2008 5.0 4.9 5.1 5.0 5.4 5.6 5.8 6.1 6.1 6.5 6.8 7.3
2009 7.8 8.3 8.7 8.9 9.4 9.5 9.5 9.6 9.8 10.0 9.9 9.9
2010 9.7 9.8 9.8 9.9 9.6 9.4 9.5 9.6 9.5 9.5 9.8 9.4
2011 9.1 9.0 8.9 9.0 9.0 9.1 9.1 9.1 9.0 8.9 8.7 8.5
2012 8.3 8.3 8.2 8.1 8.2 8.2 8.3 8.1

Remember the day…

January 4th, 2007 was the day that Barney Frank took over the House Financial Services Committee and Chris Dodd took over the Senate Banking Committee.  Term of office for both (Jan 4,2007 -Jan 3, 2011)

The economic meltdown that happened 15 months later was in what part of the economy?    BANKING AND FINANCIAL SERVICES!

The Housing and Community Development Act of 1977 was the cause of a financial crises resulting in  trillions of dollars of toxic loans backed by YOUR Fannie Mae and Freddie Mac.  The act was driven by someone’s concept of what equality should be.  The concept was that everyone should be able to own a home.  It seems they threw the baby out with the bath water when special consideration was given to those who could not qualify in the real world.  The end result was that Fannie Mae and Freddie Mac backed a lot of bad paper.  Sooner or later it had to affect the economy and the rest is history.

Bush asked Congress  to stop Fannie & Freddie – starting in 2001 because it was financially risky for the US economy.

This is a snippet of an interview of Karl Rove on the O’Reilly Factor.

“You left the Bush administration 15 months before the president did,” O’Reilly said to Rove. “While you were there at the end, was there any inkling, did you have any idea that the underpinnings of the economy were eroding so seriously?”

Rove responded, “Well, there was concern about it, particularly in the housing area, we were briefed as far back as 2001 about the problems with Fannie and Freddie; in fact, we moved aggressively in 2004 to regulate Fannie and Freddie, actually got a bill through the Senate Banking and Finance Committee only to have it filibustered by [Sen.] Chris Dodd.”

The original story states that Obama had the 3rd largest payoff from Fannie Mae.  I am unable to confirm or refute that statement as I do not have a list of all payments.  What I can offer is a list of campaign contributions.  It is apparent that the defenders of Fannie Mae received the largest contributions with Obama 2nd at $126,349.00 behind Dodd. 

For a much more complete set of figures, try this link.

And who fought against reform of Fannie and Freddie? OBAMA and the Democrat Congress

So when someone tries to blame Bush.


Furthermore, the Democrats controlled the budget process for 2008 & 2009 as well as 2010 2011 and 2012.  We are still without a budget as September 2012 with congress in recess.

In that first year, they had to contend with George Bush, which caused them to compromise on spending, when Bush somewhat belatedly got tough on spending increases.

For 2009 though, Nancy Pelosi & Harry Reid bypassed George Bush entirely, passing continuing resolutions to keep government running until Barack Obama could take office.

And where was Barack Obama during this time? He was a member of that very Congress that passed all of the massive spending bills, and he signed the omnibus bill as President to complete 2009.

The original story was wrong about the deficits but this is an accurate accounting.  In the Bush years the deficit ran between $17 billion and $595 billion with the last year at $500 billion.  After the first full year of Democrat control the deficit reached $1.12 Trillion and the public debit was approximately $10 Trillion.  The public debt as of September 2012 is at $16.02 Trillion and the deficit for the last fiscal year was at $1.327 Trillion which I am sure has already been exceeded.

You may find this link useful in evaluating the debit and deficit on the longer history of the US back to about 1913.  Debit and Deficit spreadsheet

If Obama inherited anything, he inherited it from his own party. In a nutshell, what Obama is saying is he inherited a deficit that he voted for and then he voted to expand that deficit four-fold since January 20th.


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