The conservative Republican businessman writes: "Unsurprisingly, the Obama administration’s policies have not made things better – in part because Obama has doubled down on the dumb idea of prosperity through debt. Not only has he exploded the federal government’s debt, he continues pushing banks to lend lavishly, encourages students to take on massive education loans (student loan debt is quickly approaching $1 trillion; there’s your next big financial crisis) and pushes the Federal Reserve to keep interest rates artificially low so credit will be easy."
He continues his commentary: "And for people facing foreclosure on homes they never should have purchased in the first place, Obama pressures banks to keep them in the homes. What do you think that’s going to do? It’s going to keep these folks under financial strain while saddling the banks with more high-risk loans – the very thing that led the mortgage market to collapse in 2008. The people would be better off finding more affordable accommodations. The banks would be better off cutting their losses and reselling the homes at realistic prices to more stable buyers. But none of this will happen because Obama refuses to let the market work as it should."
More: "This is what really happened. The blame Bush narrative we are sure to hear in Charlotte [at the upcoming Democratic National Convention] is a predictable attempt to mask the real reasons for the meltdown, and to hide the reality of Obama’s failures in dealing with the problem. He has made things worse – not better – because he never understood what happened in the first place and still doesn’t. Too much capitalism was not the problem. Too little economic rationality was the problem, and that has only gotten worse under the most economically irrational president this nation has ever had."
Herman Cain Op-Ed: What Really Killed The Economy
