Stop Blaming the Financial Crisis on George W. Bush

Nov 2015
278
179
Alpine, NJ
#1
I understand that hardcore Democrats will blame the Republican for all their problems and vice versa. That is the nature of politics. At some point, however, you must take a step back and objectively examine the root causes of our issues.

George W. Bush did not create the global financial crisis of 2008. Yes, the disaster of a war in Iraq was costly and put the country deeper into debt. No, I don’t think he was a good president.

Most Democrats say the cause of the financial crisis was deregulation of the financial services industry. Let’s ignore the complex realities of financial services that make this argument more complicated. We will assume that deregulation was the sole cause of the bubble and subsequent recession.

Democratic president Jimmy Carter signed the Depository Institutions Deregulation and Monetary Control Act of 1980. This broadened lending powers, raised the deposit insurance limit from $40,000 to $100,000, and allowed credit unions & savings and loans companies to make checkable deposits.

Republican president Ronald Reagan signed the Garn–St. Germain Depository Institutions Act of 1982. This allowed for adjustable-rate mortgage loans.

Democratic president Bill Clinton signed the Gramm–Leach–Bliley Act of 1999. This allowed commercial and investment banks to merge (repealed parts of Glass-Steagall). Investment banks are known to have a risk taking culture. Now commercial banks could engage in risky investment banking practices.

Democratic President Bill Clinton signed the Commodity Futures Modernization Act of 2000 which essentially banned the regulation of derivative financial products. Credit Default Swaps were among those products. Warren Buffet in 2003 famously called derivatives “financial weapons of mass destruction” in 2003.

In 2004 the SEC relaxed net capital rules which allowed investment banks to take on more debt. This prompted wide-spread growth in mortgage backed securities.

Tally of key deregulation legislation:
3 signed by democrats
1 signed by a republican
1 rule adopted unanimously by the SEC
0 signed by president Bush
 
Likes: 1 person
Jul 2014
14,706
8,965
massachusetts
#2
I understand that hardcore Democrats will blame the Republican for all their problems and vice versa. That is the nature of politics. At some point, however, you must take a step back and objectively examine the root causes of our issues.

George W. Bush did not create the global financial crisis of 2008. Yes, the disaster of a war in Iraq was costly and put the country deeper into debt. No, I don’t think he was a good president.

Most Democrats say the cause of the financial crisis was deregulation of the financial services industry. Let’s ignore the complex realities of financial services that make this argument more complicated. We will assume that deregulation was the sole cause of the bubble and subsequent recession.

Democratic president Jimmy Carter signed the Depository Institutions Deregulation and Monetary Control Act of 1980. This broadened lending powers, raised the deposit insurance limit from $40,000 to $100,000, and allowed credit unions & savings and loans companies to make checkable deposits.

Republican president Ronald Reagan signed the Garn–St. Germain Depository Institutions Act of 1982. This allowed for adjustable-rate mortgage loans.

Democratic president Bill Clinton signed the Gramm–Leach–Bliley Act of 1999. This allowed commercial and investment banks to merge (repealed parts of Glass-Steagall). Investment banks are known to have a risk taking culture. Now commercial banks could engage in risky investment banking practices.

Democratic President Bill Clinton signed the Commodity Futures Modernization Act of 2000 which essentially banned the regulation of derivative financial products. Credit Default Swaps were among those products. Warren Buffet in 2003 famously called derivatives “financial weapons of mass destruction” in 2003.

In 2004 the SEC relaxed net capital rules which allowed investment banks to take on more debt. This prompted wide-spread growth in mortgage backed securities.

Tally of key deregulation legislation:
3 signed by democrats
1 signed by a republican
1 rule adopted unanimously by the SEC
0 signed by president Bush

Welcome to the United States of America, it's a little difficult for foreigners to understand how US politics work, as you have just demonstrated, but keep at it, some day you may grasp the intricacies of the US political system.
 
Jun 2015
1,881
1,386
Minnesota
#3
I think the essence of the anti-Bush charges stem from his failure during 8 years in office to do ANYTHING to forestall what financial strategists warned was coming as early as the first Clinton administration. I'm no financial genius, but I believe it was Greenspan who alerted both the Clinton and the Bush administrations of the danger of subprime mortgages and fiscal mismanagement in a sluggish economy, and they did nothing to bring lenders under control, though they had a combined 16 years to rein them in.

I could be wrong.
 
Likes: 1 person
Nov 2015
278
179
Alpine, NJ
#4
Welcome to the United States of America, it's a little difficult for foreigners to understand how US politics work, as you have just demonstrated, but keep at it, some day you may grasp the intricacies of the US political system.
I'm a foreigner? Guess my driver's license, birth certificate, passport, SSN, etc lie. I'll check with the appropriate authorities. Thanks for alerting me.

You, by the way, did not provide any factual information; just rhetoric.
 
Nov 2015
278
179
Alpine, NJ
#5
I think the essence of the anti-Bush charges stem from his failure during 8 years in office to do ANYTHING to forestall what financial strategists warned was coming as early as the first Clinton administration. I'm no financial genius, but I believe it was Greenspan who alerted both the Clinton and the Bush administrations of the danger of subprime mortgages and fiscal mismanagement in a sluggish economy, and they did nothing to bring lenders under control, though they had a combined 16 years to rein them in.

I could be wrong.
Yes... in summary it was a bipartisan failure.
 
Likes: 1 person
Oct 2010
67,712
27,594
Colorado
#6
What about:?

• The Bush tax cuts

• Looking the other way while millions of illegal immigrants (read: cheap labor) surged across the boarder?

• The flood of easy credit, card offers in the mail multiple times a month?

• "Just sign here" mortgages?

• A tsunami of "re-finance" cash looking for something, anything, to buy?

• The then-record Bush Administration deficits?

What about those factors?
 
Jun 2013
28,864
15,449
Ohio
#7
I understand that hardcore Democrats will blame the Republican for all their problems and vice versa. That is the nature of politics. At some point, however, you must take a step back and objectively examine the root causes of our issues.

George W. Bush did not create the global financial crisis of 2008. Yes, the disaster of a war in Iraq was costly and put the country deeper into debt. No, I don’t think he was a good president.

Most Democrats say the cause of the financial crisis was deregulation of the financial services industry. Let’s ignore the complex realities of financial services that make this argument more complicated. We will assume that deregulation was the sole cause of the bubble and subsequent recession.

Democratic president Jimmy Carter signed the Depository Institutions Deregulation and Monetary Control Act of 1980. This broadened lending powers, raised the deposit insurance limit from $40,000 to $100,000, and allowed credit unions & savings and loans companies to make checkable deposits.

Republican president Ronald Reagan signed the Garn–St. Germain Depository Institutions Act of 1982. This allowed for adjustable-rate mortgage loans.

Democratic president Bill Clinton signed the Gramm–Leach–Bliley Act of 1999. This allowed commercial and investment banks to merge (repealed parts of Glass-Steagall). Investment banks are known to have a risk taking culture. Now commercial banks could engage in risky investment banking practices.

Democratic President Bill Clinton signed the Commodity Futures Modernization Act of 2000 which essentially banned the regulation of derivative financial products. Credit Default Swaps were among those products. Warren Buffet in 2003 famously called derivatives “financial weapons of mass destruction” in 2003.

In 2004 the SEC relaxed net capital rules which allowed investment banks to take on more debt. This prompted wide-spread growth in mortgage backed securities.

Tally of key deregulation legislation:
3 signed by democrats
1 signed by a republican
1 rule adopted unanimously by the SEC
0 signed by president Bush

Oh please, to this very day, Republicans are stopping at nothing to get rid of regulations that were applied since the financial crisis happened.
 
Jun 2013
28,864
15,449
Ohio
#8
I think the essence of the anti-Bush charges stem from his failure during 8 years in office to do ANYTHING to forestall what financial strategists warned was coming as early as the first Clinton administration. I'm no financial genius, but I believe it was Greenspan who alerted both the Clinton and the Bush administrations of the danger of subprime mortgages and fiscal mismanagement in a sluggish economy, and they did nothing to bring lenders under control, though they had a combined 16 years to rein them in.

I could be wrong.
You would be wrong. Greenspan himself has admitted that his belief in market self regulation was seriously flawed.
 
Mar 2013
9,923
10,693
Middle Tennessee
#9
I understand that hardcore Democrats will blame the Republican for all their problems and vice versa. That is the nature of politics. At some point, however, you must take a step back and objectively examine the root causes of our issues.

George W. Bush did not create the global financial crisis of 2008. Yes, the disaster of a war in Iraq was costly and put the country deeper into debt. No, I don’t think he was a good president.

Most Democrats say the cause of the financial crisis was deregulation of the financial services industry. Let’s ignore the complex realities of financial services that make this argument more complicated. We will assume that deregulation was the sole cause of the bubble and subsequent recession.

Democratic president Jimmy Carter signed the Depository Institutions Deregulation and Monetary Control Act of 1980. This broadened lending powers, raised the deposit insurance limit from $40,000 to $100,000, and allowed credit unions & savings and loans companies to make checkable deposits.

Republican president Ronald Reagan signed the Garn–St. Germain Depository Institutions Act of 1982. This allowed for adjustable-rate mortgage loans.

Democratic president Bill Clinton signed the Gramm–Leach–Bliley Act of 1999. This allowed commercial and investment banks to merge (repealed parts of Glass-Steagall). Investment banks are known to have a risk taking culture. Now commercial banks could engage in risky investment banking practices. A bill sponsored by Republicans and passed by a Republican controlled congress.

Democratic President Bill Clinton signed the Commodity Futures Modernization Act of 2000 which essentially banned the regulation of derivative financial products. Credit Default Swaps were among those products. Warren Buffet in 2003 famously called derivatives “financial weapons of mass destruction” in 2003. A bill sponsored by Republicans and passed by a Republican controlled congress.

In 2004 the SEC relaxed net capital rules which allowed investment banks to take on more debt. This prompted wide-spread growth in mortgage backed securities. Yes the SEC board, the chairman being appointed by Bush.

Tally of key deregulation legislation:
3 signed by democrats
1 signed by a republican
1 rule adopted unanimously by the SEC
0 signed by president Bush
You left out a key factor or two. Bush REQUESTED Franklin Raines over at Freddie Mac to set up special low income/minority loan programs. He thanked Mr Rains in TWO 2002 speeches he made at a housing conference in Georgia. President Calls for Expanding Opportunities to Home Ownership

He then asked the still republican controlled congress to pass and fund the ADDI. It gave money to poor people to make down payments on houses they couldn't afford. The republicans were convinced home ownership would create more republicans. I wish I could remember who said it, but when asked why he supported such a socialist style bill, a repub congressman said, "crab grass and property taxes will create more republicans than any ad campaign we could ever devise".

And let's not forget !!! One the CEO's in that 2004 SEC meeting (which took place in the BASEMENT, no press allowed) was Henry Paulson Jr. It was attended by only 5 investment banks. Ironically the same five banks that headed up the financial crisis. This is the meeting where "too big to fail" originated. Bush would turn around later and appoint Paulson, one of the men RESPONSIBLE for the banking disaster, as SECRETARY of THE TREASURY !!! Talk about putting the fox IN the hen house !!!!!!!!

SO YES a thoroughly bi partisan effort.

Today though, it is the Republicans that are fighting to block every effort to re-regulate Wall St. and to repeal what little control has been put in place.
 
Likes: 1 person