July 23, 2011 in Letters, Opinion

Obama inherited mess

 

Randall Babin’s history lesson is all wrong. Babin should look up the facts before writing to the editor and giving us a lesson on Hoover and the Crash of ’29.

The crash of 2008 occurred during the Bush administration, not during Obama’s! On Sept. 16, 2008, failures of massive financial institutions in the U.S., due primarily to exposure of securities of packaged subprime loans and credit default swaps, rapidly devolved into a global crisis.

This was helped by 20 years of deregulation, which was supported by the Republicans. The economic crisis caused countries to temporarily close their markets! Who was in the office? Bush.

Beginning Oct. 6 and lasting all week the Dow closed lower all five sessions. It fell over 18 percent, 1,874 points. Worst weekly decline ever.

The Dow peaked at 14,164 and fell to a low of 6,469. A 54 percent drop! The first financial bailouts were signed by Bush on Oct. 3, 2008 – $700 billion bailout of the financial services industry. So September through January we were in free-fall and Bush was in office.

Obama was sworn in on Jan. 20, 2009. Who is Hoover, Randall? It seems to me Obama inherited this mess. God bless Obama.

Terry King

Medical Lake


Get stories like this in a free daily email