How exactly did GWB and republican policy cause the current economic crisis in the EU!?
- 1 decade agoBest Answer
He didn't. What is now known is the GAO warned Clinton that bank derivatives were a serious threat to the economic stability of America. Clinton ignored the news and even pushed for deregulation to let poor people buy homes.
One of Clinton's changes to foreclosure insurance that protected banks from foreclosures.
"On June 6, 1996, President Clinton announced that he had directed FHA to reduce the up-front mortgage insurance premium (UFMIP) for first-time homebuyers who receive housing counseling"
Clinton created the housing bubble, which is now collapsing:
U.S. Federal Reserve
Clinton wanted supbrime loans:
""...rapid growth in affordable-loan programs and subprime lending..."
"The growth in these [special loan] programs has been actively sponsored by the Clinton administration "
"The currently strong housing market is due in part to the initiation of a wide variety of affordable home-loan programs. These programs are intended to benefit low-income and minority households and neighborhoods through more flexible underwriting policies. These policies include low-downpayment requirements, higher acceptable ratios of debt payment to income, the use of alternative credit history information such as records of payments for rent and utilities, flexible employment standards, and reduced cash reserve requirements. The growth in these programs has been actively sponsored by the *** Clinton administration *** in a concerted effort to raise home-ownership rates."
Mortgage Banking [News] - Aug 1, 1997
Clinton's Freddie mac changes:
"Freddie Mac, one of the primary government-sponsored enterprises involved in the purchase of mortgages, recently announced plans to enter the secondary market in subprime loans by purchasing significant numbers of "A minus" subprime mortgages by 1998 and the higher-risk "B and C" loans by 1999.(20) "
- Edg1Lv 71 decade ago
Magic. The same way he's "responsible" for all the crap the democratic congress does.The mere mention of his name seems to be able to cause hurricanes too.Just ask the lefty's, Bush is personally responsible for making the levees in New Orleans too short, even though they were built before he was president. The lefty's always call GWB names like moron, idiot, stupid and so on. Yet he is personally responsible for every ill in the world.Even a James Bond villain genius couldn't possible be in that many places at once.
- SageandscholarLv 71 decade ago
When America sneezes Europe catches a cold.
Are you seriously trying to suggest that the current situation in the USA would not flow onto the rest of the world? The Great Depression hit much of the world back in the 1930s - are you going to claim that did not start here too?
- Timothy SLv 61 decade ago
Goldman sachs Paulson and barnake appointed by Bush to the Fed and SEC are in bed together. Two years ago is about the time they were appointed GS and JPM with other bought a truck load of leveraged bonds betting on the collapse of the market. These are the people who we count on to provide safety and prosperity in the world.
Despite the 2007 subprime mortgage crisis, Goldman was able to profit from the collapse in subprime mortgage bonds in the summer of 2007 by selling subprime mortgage-backed securities short. Two Goldman traders, Michael Swenson and Josh Birnbaum, are credited with bearing responsibility for the firm's large profits during America's sub-prime mortgage crisis. The pair, who are part of Goldman's structured products group in New York, made a profit of $4bn by "betting" on a collapse in the sub-prime market, and shorting mortgage-related securities. By summer of 2007, they persuaded colleagues to see their point of view and talked around skeptical risk management executives . The firm initially avoided large subprime writedowns, and achieved a net profit due to significant losses on non-prime securitized loans being offset by gains on short mortgage positions.
Goldman Sachs' newest acquisitions are to include the subprime portfolio of imploded mortgage company Popular Financial Holdings late in the third quarter of 2008. 
Detractors believe that Goldman wasn't quite as careful with its clients' money as it was with its own—its flagship Global Alpha hedge fund tumbled 37% in the global credit crunch. As most individual investments of hedge funds are not made public, however, no one can know exactly what assets the firm traded during the period leading up to the credit crisis
In short they forced a fire sale. This straight out of JD Rockefellers book.Source(s): http://en.wikipedia.org/wiki/Goldman_Sachs
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- hofstetterLv 43 years ago
the entire international became effected simply by fact of greed and stupidity. Recession is cyclic, and we choose them. What makes this one undesirable is that we placed off recessions, simply by fact the first public hates them. The longer we placed off them, the greater severe they develop into. it quite is fairly a 20 3 hundred and sixty 5 days cycle for undesirable recessions. it quite is simply by fact the youngsters do no longer remember the final undesirable recession and the reason of it so as that they permit the stupid blunders that reason undesirable recession to ensue. maximum undesirable recession is brought about by skill of banking failure, and a housing bust. it quite is what reason this one. What aggravated this one is likewise our national debt. The banking failure is brought about this time simply by fact we motivate banks to make stupid loans. They have been getting funds initially, so as that they grew to develop into sloppy and irresponsible. while the housing marketplace slowed, the earnings dried up and that that they had an unusual sort of undesirable loans. This feed the difficulty greater beneficial devaluing properties. The recession is aggravated simply by fact CLinton and Bush allowed the banks to merge to this sort of great length, that as quickly as some financial employer failed, it quite harm our financial gadget. different issues that help create the financial down turn is oil fees being so severe that our makers have been no longer able to sell a number of their product, extremely vehicles. we've been in comparable recession earlier. This one looks undesirable simply by fact the clicking is over exaggerating it. it quite is think to be reminiscent of Carters recession. Edit: in case you don't understand the final area. the clicking is scaring human beings so the individuals do no longer choose to purchase stuff.
- slipstreamerLv 71 decade ago
The EU is responsible for it's own mess. No one forced their banks to invest poorly, just as no one forced the US banks to be so greedy. They need to stop blaming the US for everything and start fixing things.
- Anonymous1 decade ago
GWB insisted for almost a year that there is no problem
He had a whole year to sort it out
instead of trying to sort it out he kept it as a time bomb for his successor
- krissukristelLv 41 decade ago
By now the cost of war has passed trillion.Source(s): The true cost to date, though, is $1.3 trillion, the committee staff estimates, when taking into account the costs of caring for wounded soldiers, replacing equipment lost or destroyed, the economic impact of disrupted oil markets and lost work time for reservists and other expenses. http://www.ajc.com/news/content/news/stories/2008/... National Debt Graph: Bush Sets 50-Year Record http://zfacts.com/p/318.html
- BrandonLv 51 decade ago
I imagine the $500 Billion (and growing) price tag on the "War on Terrorism" had something to do with it.