The origin of the housing market meltdown isn't precisely traceable as fault lies with both parties, the private sector, unscrupulous lenders, etc etc ad nauseum. Trying to blame it on any one party, person, president, whoever is impossible, and above all, irrelevant. That's only one small part of the American economic problem. In eight years the USA went from running budget surpluses to running massive deficits (which oddly enough in history is sort of the norm for Republican governments). I accept that the disposal of the Taliban and Al Qaeda in Afghanistan and the military commitment of NATO to that region was necessary after 9/11 (if I didn't believe in that mission, as a reservist I would not have volunteered to serve there next year). The invasion of Iraq, however, was wrong. I'm not going to argue about legality (or the unenforceablility of international law or whatever), but it was simply wrong. Perhaps if Bush 41 had finished the job in 1991 as MR supports, it would have turned out differently then (before Hussein had stoked religious fervour in what had for years been a secular nation), but in 2003 it was wrong. Bush et al used lies (obvious lies to anyone who had any understanding of the region, as well) to sell the war to the public. I think some part of them honestly believed that it was going to be a lot easier, but a country with two long-disenfranchised sects/ethnic groups (the Kurds and the Shia) forming the majority of the population was obviously going to cause problems once the Baathist state was disposed of.
Iraq was boondoggle on a Mongolian Clusterf**k scale. It has cost American taxpayers thousands of soldiers' lives and billions if not trillions of dollars, to say nothing of what it has done to the people of Iraq who have died in the tens of thousands at the conservative end of the scale. The tide of Iraqi refugees has caused problems for neighbouring states like Jordan, and provided a ripe opportunity for Iran to rattle its sabre and stoke violence in its neighbour.
There's no easy way out of it for America, and the fiscal damage is preventing meaningful debate on issues like healthcare reform. They worry about further deficits but the lion's share of them are funding the debacle in Iraq still, and now even more scandal is emerging over it, with things like Erik Prince's murder allegations and so on coming to light.
I don't think Obama is some messianic figure or that he's somehow going to be able to save America in a few months (the standard by which his opponents seem to want to judge him), but I do think he was the right man for the job vice John McCain who didn't seem to offer anything to counter what has gone horribly wrong with America in the last eight years. I similarly can't have seen another Republican government having done much else to handle the economic meltdown. They would have engaged in the same sort of economic stimulus efforts they claim so passionately to oppose now because they probably don't have any better ideas... no one seems to.
Colin P said:
The meltdown ca be traced to the Clinton days when rules where changed regarding lending regulations, also take a look at who was on th boards of Freddie and May, quite a few high ranking Dem names involved. Both McCain and Bush warned about the issues several years in advance of the meltdown. The Rep. still take some of the blame, but certainly not all of it.
One Obama's problems will be living up to the mythology being built around him, combined with a press who's love affair is begining to wilt.