To hear Obama tell it, no one who took out a subprime mortgage lied about their income. No one failed to ask common-sense questions from the mortgage lender when they signed an ARM (adjustable-rate mortgage) to find out what their interest rate would be when the higher rate kicked in. No one took out a subprime mortgage on a house they couldn't afford.
The only people to blame were "a reckless few" who were gaming the system -- big banks, Wall Street investment houses, unscrupulous brokers.
This is not to say that mortgage brokers do not bear part of the blame for approving subprime loans for poor credit risks that they should have rejected. And he never acknowledges that many subprime borrowers did ask the right questions and are paying their mortgage on time because banks gave them a chance to own their own home.
So Obama says the economic policies of the past eight years "haven't worked. It's time to leave them in the past where they belong. It's time for something new."
What he's proposing is a lot of new taxes and regulations on the wellspring of most of the jobs in this country: businesses, investors, trade and the U.S. industries who produce our oil and gas. You do not strengthen our energy posture by raising taxes on the people who produce and sell it, or by imposing a ban on offshore exploration and drilling.
Obama's misunderstanding about the fundamentals of our economy is truly breathtaking when you examine who he intends to go after if he wins in November.
He wants to slam the breaks on trade agreements when that is the one pillar holding up much of our economy right now. He wants to pile on a lot of government regulations on banks and Wall Street when subprime-mortgage buyers who couldn't afford them largely caused the mortgage debacle (and when the Fed has already rewritten the rule book on the industry's lending standards). He wants to shovel out another $50 billion in giveaways to the states for more public-works programs when the economy is in need of liquidity that comes from lower taxes on businesses (he would raise their taxes), investors and taxpayers. This doesn't make any sense, and it will further weaken an economy that is already overtaxed and overregulated.