Bush was responsible for the 2007-2008 financial crisis! So sayeth the Democrats as they look for reasons to demonize the Republicans during election years (as well as others). But wait a minute...didn't the meltdown result from excessive risk taking in the financial system? The answer is yes but it was not George W. Bush's fault. Let's turn back the clock to 1998.
Robert Rubin, then Secretary of the Treasury under Bill Clinton, approved of the merger of Citibank with Travelers Insurance. In order to facilitate the merger, provisions under the then still law Glass Steagall act had to be waived...Clinton agreed to it and a waiver was granted effectively weakening the act.
That wasn't enough for Rubin however. He argued that the times had changed and it was time for banks to be allowed to take on more risk. In order for that to happen simple waivers would not do...the act had to be repealed. Clinton agreed and endorsed the repeal of Glass Steagall. It was repealed in 1999. Oh, and by the way, as soon as that impediment was removed, Robert Rubin left the government and went on to be an extremely high priced executive at Citigroup.
The rest is history...banks, brokerage houses and insurance companies, now often under one roof, oversaw the biggest risk taking adventure in U.S. history. A short seven years later, the great financial meltdown occurred but it was not because of policies under George W. Bush.
Sunday, October 20, 2013
Sunday, October 13, 2013
The liberal media particularly is quick to point out that the Democrats are united and the Republican Party is in disarray. Even conservative observers are wringing their hands and gnashing their teeth over the emergence of the Tea Partyers and Senator Ted Cruz. They see the in house party arguments between the old and new schools as self destructive exercise dooming the GOP to the dustbin of history.
Hold on just a cotton pickin' minute. Maybe the whole problem should be looked at from a different point of view. As I see it, the Democrats unanimously rallying around a President whose policies have failed are hanging on to tired, old and worn ideas. They have started down the road to implicit socialism and don't have the mindset to turn away before it is too late. Now let's take a look at the 'fractured' Republican Party.
Let's start with a name...Georg Wilhelm Friedrich Hegel. Hegel was a 19th Century German philosopher who observed an astounding evolution of social progress. It has been referred to as the Hegelian Dialectic:
The dialectic consists of three simple words...thesis, anti-thesis and synthesis. The above diagram explains it so very well.
Now let's go back to the issues of the day. As I said, the entire Democratic Party, without exception, have drawn the wagons around Obama's thesis of big government and growing welfare state. Clearly there is no anti-thesis emerging to help progression to a new way of thinking. On the other hand, the Tea Party is challenging the moribund Republican Party to a new way of thinking. If the new way of thinking is nurtured instead of being attacked from within a new, and more powerful, Republican Party can emerge as a synthesis to take to the American people.