I don't understand why Obama is more equipped to handle the economy

The media keeps saying and that masses are starting to believe that Obama is more equiped to handle the economy. The question I have is why?

In 2006 McCain warned that something was hinky with Fannie Mae. Obama chose the shady people from Fannie Mae to help on his campaign.

People keep calling McCain the great deregulator and blaming him and deregulation for the current mess. However, how we got here has less to do with deregulation and everything to do with the Democrat push to get poor people into homes they couldn't afford.

The subprime mortgage crisis (the crisis that has led to the giant financial crisis) started with the idea that banks were being discriminatory in their lending practices because minorities were getting less mortgages (this actually had nothing to do with discrimination and everything to do with sound financial principals). Now the sad reality is that in society, minorities represent a disproportionately high percentage of the poor and unemployed in America. When banks led money for mortgages traditionally they did not lend it to people who were risky investments (i.e., the poor and unemployed). Accordingly, sound business practices began to look like discrimination. A greater push began to develop to address this "discrimination." The result was a relaxing of the standards required to get a loan.

As a sidenote I am NOT somehow blaming minorities who received loans as the source of the problem. The problem developed with a relaxing of standards and the general society response to take out loans that they should not have - loans higher than they could technically afford, loans their credit history made obvious they should not have. this is the fault of everyday citizens who bought more house than they should have. This is the fault of banks who gave out these loans. This is the fault of Wallstreet traders who treated these mortgage backed securities as low risk when they weren't. There is a lot of fault to go around here, including Congress who killed the bill McCain sponsored targeting at reigning in Fannie Mae.

Coupled with this push for increased access to mortgages and a relaxing of the standards was also the misbelief that somehow the massive raise in housing prices was sustainable (which makes about as much sense as the decoupling theory that helped push up the value of the euro - but that is a whole other story). Accordingly, mortgages became viewed as less risky because even if the purchasers defaulted on their mortgage, the bank could simply sell the home and get a profit or at least break even.

So now there are two forces at work: (1) Democrat initiative to end "discriminatory" lending practices which led to a push in subprime mortgages (i.e., give people who shouldn't have homes, home) and (2) a mistaken belief that a bubble in the housing market was sustainable. Banks were then encouraged to hand out mortgages like free samples at the grocery store under the mistaken belief that nothing could go wrong.

So we have problems. And lets add a little accounting fraud into the mix and financial meltdown here we come.

Now again, in 2006 McCain warned that something needed to be done about Fannie and no one listened. If Congress (controlled by Dems, mind you) had listened this crisis could have been averted. But right now we have a do nothing dem run congress and so nothing happened and McCain's bill got killed in committee. The reality is McCain may push for deregulation sometimes but where it counts he is all about accountability and government oversight. That is really what a market needs to operate. It needs to be let run free so it grows, but needs to be reigned in when it starts to go haywire so as maintain stability. It does not need increases in capital gains tax so as to decrease investment (Hint to Obama increasing capital gains taxes historically has led to a decrease in government revenue, decreasing it has done just the opposite - Obama you do not understand the economy).

Tomorrow.... How Obama's tax policy is essentually communism and will cripple the economy even more and perhaps a little on trade (and how if you stopped shopping at Walmart jobs wouldn't be forced overseas).