Last updated 2/26/2009 at Noon
Everyone is, or should be, aware that the world finances are in a precarious condition. When things go bad a correct understanding precludes proper corrective action. For the most part, the public does not understand national and international economics. Recent letters to the Village News exemplify that fact.
There is more than one cause for the financial implosion, but a primary factor was the subprime mortgages which were promoted to a large degree by Freddie Mac and Fannie Mae, which in turn were being pushed by Democrats Barney Frank, Chris Dodd, Chuck Shummer, etc. There are records of several efforts by Republicans to stiffen lending standards. So to blame this on Republicans (there is enough blame to go around) is disingenuous.
The Hoover (Republican) administration made grave errors which exacerbated the financial implosion that started with the stock market crash in October 1929 and became the Great Depression. To say that Roosevelt “turned the tide” after he took office in March 1933 is a gross misrepresentation. Very limited improvement occurred (I lived it – I was 9 in 1932) until WWII, which started almost nine years after Roosevelt took office. Should he get credit for that?