In another devastating blow to the outrageously false, debunked Democrat narrative that it was deregulation and too little government that destroyed the economy in 2008, another study has now been released that confirms that there was actually a massive increase in federal intrusions and interference in the financial services sector in the decade leading up to the economic collapse.
According to the study, by the Washington-based Mercatus Center, between 1999 and 2008, overall government rules and regulations on lending institutions exploded by a full 23%, includingthe obscure, irrelevant acts of deregulation that liberals were so eager to rush in and blame.
This, of course, flies in the face of everything Democrats have told us about how it wasn’t their relentless race-baiting attacks on lending standards that artificially inflated (and eventually imploded) the housing market, but a random act of deregulation (enacted by Bill Clinton in 1999) called the Gramm–Leach–Bliley Act.
Again, even the New York Times is on the record officially dismissing this nonsense, admitting that there is “little evidence” of any connection between the deregulation law and the economic collapse. The Times was also one of the first to warn Democrats that their reckless pandering to minorities at the expense of lending standards (through the Community Reinvestment Act) were going to destroy the economy.
As I have noted before, other studies have thoroughly established at this point that the unmistakable cause of the housing market collapse was Democrats threatening to drag banks into court, have them fined, branded as racist and sued into bankruptcy if they didn’t lower their standards and make more bad loans to unqualified people.
Never mind the fact that our ultra-partisan scam-artist-in-chief blamed his way into power entirely on this blatantly erroneous talking point about abandoning “the failed policies of the past,” only to turn around and reinstate the same time-disproven Democrat policies that put us here in the first place, while even dramatically expanding them.
Incidentally, as The Daily Caller explains, “the researchers estimate a further 26 percent increase in financial restrictions over the next several years” as a result of the disastrous 2010 Dodd-Frank Wall Street takeover, which Democrats used this brazenly dishonest misinformation campaign to enact.