The chief thing/lie held against Bush, according to leftists like Gregory, is that Bush’s economic policies crashed the economy. The truth is William Jefferson Clinton and his buddies Janet Reno and Andrew Cuomo are the arch-villains. Read Paul Sperry’s “The Great American Bank Robbery” or Tom Sowell’s “The Housing Boom And Bush” to get the true story of the disaster.
“The truth is William Jefferson Clinton and his buddies Janet Reno and Andrew Cuomo are the arch-villains. Read Paul Sperry’s “The Great American Bank Robbery” or Tom Sowell’s “The Housing Boom And Bush” to get the true story of the disaster.”
It was neither the fault of Clinton nor Bush. Their role in the whole debacle was believing that feel-good government programs wouldn’t have any consequences, and they made the developing problem worse. But the bubble was the result of innovation in mortgage finance and the refusal of lending houses to heed their risk officers, not misguided government meddling.
It was the result of reliance on David X Li’s Gaussian copula function, on replacing traditional lending with brokers and bundling, with derivatives driving the lending process, and lending CEOs putting huge short term profit ahead of sound lending practice.
The factual case can be learned in Muolo and Padilla’s ‘Chain of Blame’, in Gillian Tett’s ‘Fools Gold’, in Yves Smith’s ‘Econned’.
These authors warned of the impending crisis as it was developing. They are not johnny come lately writers peddling their favorite political excuse. And 80 yr old Thomas Sowell was ill served by his researchers who don’t understand the particulars of the mortgage business during the bubble.