I see two basic problems here:
1. The assumption that Republicans want single mothers with children to starve. This is not true. We have dozens of programs to help the poor and it is never a choice between abandoning these programs and keeping them. At the moment they aren’t even on the table. Maybe someday we can come up with a better system.
2. The fact that Obama is super-Keynesian. He believes that government spending drives the economy. He scolded Europpe for not spending enough while the French of all people scolded us for spending too much.
a. Essentially the financial collapse was stopped by the Bush bailout. I would have done nothing.
b. Obama decided to add to this with two stimulus packages. This is where I have a problem. He chose to add several hundreds of billions of dollars to our debt twice. He chose to spend this money on public works and private companies including buying GM. He spent this money in a way to most benefit public employees, Unions and corporate campaign contributors giving him an appearance of being corrupt.
If you consider that the Community Reinvestment Act and two Government Sponsored Entities created the financial collapse then you really could say that over-regulation caused the financial collapse. It was government meddling with the financial markets that caused this collapse.