The Politics Of Blame

The Bulletin ^ | Thursday, April 09, 2009 | Victor Davis Hanson

[curth]

It should have been easy for Democrats to connect depleted 401(k) accounts and lost home equity with the buccaneers of Wall Street who supposedly prompted the panic.

The public, after all, has been whipped up in furor at the masters of the universe who bankrupted portfolios as they walked away with multimillion-dollar bonuses. We now hate those on Wall Street as much as we used to like them for bringing spectacular growth to our retirement accounts.

In a recent private meeting with some of the world’s largest bankers, President Obama reportedly railed at them: “My administration is the only thing between you and the pitchforks!”

But not so fast, Mr. President.

The Obama administration, remember, signed the Democratic-sponsored bill to authorize new bailouts for Wall Street firms and mega-bonuses for their executives. And during the Clinton administration, Treasury Secretaries Robert Rubin and Larry Summers — who both later made millions on Wall Street — succeeded in freeing investment banks from federal regulations that eventually led to their reckless gambling with trillions in subprime mortgage debt.

The quasi-government-run Fannie Mae and Freddie Mac mortgage agencies — staffed with ex-Clinton administration cronies — were at Ground Zero of the financial meltdown. Liberals in Congress like Sen. Chris Dodd and Rep. Barney Frank were among the largest recipients of Wall Street money. In the 2008 presidential campaign, most of the big investor money went to Democratic candidate Obama.

Billionaire investors like Warren Buffet and George Soros proved to be among Mr. Obama’s staunchest supporters. Health and Human Services Cabinet-nominee Tom Daschle had to bow out because he skipped paying income taxes on free corporate limousine service. Democrats are clearly no longer the party of dirt farmers in bib overalls and sweaty dockworkers.

[Impy]

I took a shower after.