Did GW Bush cause the financial crash of 2008?
Uh oh, looks like his home ownership initiative backfired...
From his earliest days in office, Bush paired his belief that Americans do best when they own their own homes with his conviction that markets do best when left alone. Bush pushed hard to expand home ownership, especially among minority groups, an initiative that dovetailed with both his ambition to expand Republican appeal and the business interests of some of his biggest donors. But his housing policies and hands-off approach to regulation encouraged lax lending standards.
"There is no question we did not recognize the severity of the problems," said Al Hubbard, Bush's former chief economic adviser, who left the White House in December 2007. "Had we, we would have attacked them."
- tribeca_belleLv 76 years agoBest Answer
Bush's economic failures had less to do with his advocacy of home ownership than with his advocacy of lack of oversight, hostility towards proper regulation and pushing general laissez-faire policies towards businesses. The mortgage industry and lending institutions ran amok, causing an economic disaster of gigantic scale.
One would have hoped that conservatives/Republicans would have seen the error of their ways but they seem to have learned absolutely nothing. They pursue the same idiotic economic policies and oppose all efforts to correct their nonsensical approaches.
Edit: I neglected to point out the disastrous activities of the major Wall Street investment houses who took full advantage of the lax regulatory environment to engage in outrageous greedy behavior and bring down the country's financial system.
The government bailouts saved the system but if such policies are followed in the future, the government may not be able to help again. The results would be catastrophic on a worldwide basis.
- LynneLv 66 years ago
A lot of his actions backfired. Sadly many can't seem to make the connection that much of what has happened SINCE he LEFT office is, simply put, the CONSEQUENCE of those actions. Consequences do FOLLOW an action!
I fail to see why regulation isn't recognized as necessary due to HUMAN attributes which corrupt all system without that regulation... like greed and fear and blah blah blah Regulations are to protect all from those who don't want to play fair (like banks that nickel and dime the average consumer to death in questionable ways at best).
- TomLv 56 years ago
The market would have been able to survive if the banks weren't betting on derivatives. That led to the massive credit freeze that halted the economy. Otherwise, it would have been an easy bailout to Fannie/Freddie for a few foreclosures.
Bush didn't cause derivatives, but he (and others) looked the other way while unregulated banks went wild. The whole "let's deregulate" culture goes back to Reagan.
- Anonymous6 years ago
Bush, Clinton, Reagan, and Carter all bear some responsibility.
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- Anonymous6 years ago
WTF ????? lol
Bill Clinton doesn't think so
EMOCRATS Admitting who is at Fault !
Bill Clinton admits fault
“I think that the responsibility that the Democrats had may rest more in resisting any efforts by Republicans in the Congress, or by me when I was President, to put some standards and tighten up a little on Fannie Mae and Freddie Mac.” – Former President Bill Clinton (D-AR), September 25, 2008
Democrat Congressman Admits Fault
“Like a lot of my Democratic colleagues I was too slow to appreciate the recklessness of Fannie and Freddie. I defended their efforts to encourage affordable homeownership when in retrospect I should have heeded the concerns raised by their regulator in 2004. Frankly, I wish my Democratic colleagues would admit when it comes to Fannie and Freddie, we were wrong.
Congressman Artur Davis (D) Alabama
BACKGROUND Info on Clintons "National Homeownership Strategy"
Clinton HUD Secretary 1998
""To take a greater risk on these mortgages...yes. To give families mortgages they who they would not have given otherwise?...yes."
Mr. Cuomo is then asked if this people in this group could have gotten the loans at all in the first place. In a telling response, he answers:
"They would not have qualified, but for this AFFIRMATIVE ACTION on the part of the bank...yes."
Mr. Cuomo then confirms for a reporter that the affirmative action is indeed for minorities and that he expects the default rate to be higher than the rest of the portfolio:
"It is...by income it is mostly by minorities...yes."
TRANSLATION GIVE LOANS TO PEOPLE WHO CAN'T PAY THEM OR BE FINED FOR DISCRIMINATION !
Fannie Mae Eases Credit To Aid Mortgage Lending
WASHINGTON, Sept. 29, 1999 — In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans.
***** Fannie Mae officials say they hope to make it a nationwide program by next spring. ***Source(s): Derivatives were NOT the problem.. the COLLATERAL was the problem (Subprime Mortgages)
- Anonymous6 years ago
It was a bipartisan effort. I don't blame one party over the other.Source(s): http://www.youtube.com/watch?v=kVrjOuXqq80
- 6 years ago
It wasn't him personally, but his policies certainly played a roll in the crash.
- yLv 76 years ago
Over forty pieces of legislation aimed at correcting the Clinton's housing and market regulation role backs that the Dem's blocked.
- SummertimeLv 76 years ago
On his watch. Yes. But Republicans don't blame him. They blame Obama before Bush came along.Figure that on out because I cannot.
- xpatinasiaLv 76 years ago