There’s no shortage of political gaffes on the internet. I don’t have any personal interest in making fun of politicians; I have a personal interest in discussing facts. But, to premise this particular discussion, you all get to watch Hillary Clinton bark like a dog.
In context, Clinton says that Republicans lie when they say that the 2008 recession was caused by regulation. I disagree with her entirely. For those of you who aren’t so familiar with the 2008 financial crisis, I will give you the Republican explanation:
Quick History Lesson
In May, 1984 Continental Illinois was the 8th largest bank in the United States. They filed for bankruptcy and President Reagan introduced the term, “Too big to fail”. For years after that, whenever a large bank would file bankruptcy, the Federal Reserve would step in and save the day. The Federal Reserve became an enabling parent; whenever their child got in trouble, they would be there to save the day. This signaled to all banks everywhere that they could take much bigger risks than they did before. They started handing out loans left and right- this saturated the market with home-buyers and led to housing prices to skyrocket. On September 15th, 2008, the Lehman Bros. filed for bankruptcy. All banks waited for the Federal Reserve to step in and bail them out, but for one fleeting moment, they didn’t. Lehman Bros. failed, which caused a credit freeze, and with a country’s wealth so closely tied to credit, our economy tanked.
That was a brief explanation; the Republicans subscribe to this belief. The government stepped in too many times and gave the banks an incentive to take advantage of these opportunities, like any good business would.
Opinions vs. Facts
Hillary wants this proverbial dog to bark whenever a Republican lies; then quotes a scenario that is actually a matter of opinion- for all politicians and economists alike. This statement regarding government regulation is not some lie that Republicans tell their peons to garner votes.
I don’t like it when people lie. I especially don’t like it when people, who should know better, falsely accuse others of lying. It is our duty to be vigilant when politicians make sweeping declarations such as these.