On November 2, 2010, the voters in the United States Congressional elections delivered a smashing victory to the Republican Party, augmented by the tea parties. It is now well documented that not only did the Republicans gain significant seats in the Senate, they also gained an outright majority in the House of Representatives, removed Nancy Pelosi as Speaker of the House, and reduced her to minority leader status. All in all, election day in November, 2010, was a great day for those who fervently believe that government is at its best when it governs least, thereby giving all citizens maximum freedom from the boot of government on their necks as they pursue the American dream for themselves and their families.

In 2010, Americans were clearly focused, like a laser beam, on rejecting Obama’s socialistic solutions to the 2010 economic recession, on cutting spending, and on reducing the size of government. They were disturbed and genuinely frightened by the massive bailouts and other spending initiatives of the Obama Administration, and they watched with horror as the federal government literally went into the automobile business through the takeover of General Motors, an authentic American icon (the nation’s Secretary of Defense once said “what is good for General Motors is good for the country”). They watched the government’s bailouts of quasi-federal financial institutions like the politically active Fannie Mae and Freddie Mac, both of which openly supported Congressional candidates of their liking, even though their financial operations were backed by the federal government. Finally, they watched, with fear and trembling, what appeared to be the teetering of the nation’s financial system, with the demise of Lehman Brothers and billions of government dollars loaned to Morgan Stanley, Citibank and other investment banks and banking institutions across the country in an effort to avoid a financial crash similar to the l932 crash which resulted in the Great Depression.

The Herring Blog