Posted on 09/18/2013 6:44:41 AM PDT by Kaslin
Editor's note: This article was adapted from the authors’ Hoover Institution essay, "Observations on the Financial Crisis."
It is now five years after the financial shocks of September 2008. The two of us were members of the problem-solving team at the time, serving in the White House as Director of President Bush’s National Economic Council (Hennessey) and Chairman of his Council of Economic Advisers (Lazear).
In a booklet that we released last week through the Hoover Institution at Stanford University (“Observations on the Financial Crisis”), we review the crisis, its causes, remedies and implications for the future.
A major theme is correcting popular misinterpretations of events and policy decisions during and after that crisis.
(Excerpt) Read more at foxnews.com ...
shhhh, doesnt fit the template...
Before I read the article, I’ll just say this would be a tough sell for a conservative like me.
I done defending W after the ‘financial crisis’ mid Aug 2008.
Really. If this is an apologetic for TARP I’m not interested.
It just delayed the inevitable.
Isn’t it too bad everyone in the government lost interest in finding the identity of the perpetrators of the “October Surprise” financial crisis that blew up in Oct. 2008, just in time to get Obama elected?
Of course, once Obama was in office there was no way he was going to investigate the scam - after all, it was done on his behalf.
George Bush didn’t have the cojones to call Paulson’s and Bernake’s bluff and call in the Justice Department and the FBI to find out the source of the scam.
If there was any justice, Paulson and Bernake would still be in a federal penitentiary serving life sentences.
The ‘financial crisis’ came about in 2006 when Pelosi took over.
Look at the spending jump between 2006 and 2008
She never once opened her mouth without saying the words “the failed Bush administration”
Correct. The Dimorats took power in Congress in 2006.
“The ‘financial crisis’ came about in 2006 when Pelosi took over.
Look at the spending jump between 2006 and 2008
She never once opened her mouth without saying the words “the failed Bush administration””
And, Bush went right along with her. The ink in his veto pen ink well dried out along with any of my support.
Correct. The Dimorats took power in Congress in 2006
To get the answer to the causes of the economic crisis, perhaps you should look at Bush's financial policies during his first term in office.
This is when he set the events in motion that ultimately led to the crisis that occurred at the end of his second term where the effects of his the Partnership for Prosperity Agreement (with Mexico), New Alliance Task Force and PATRIOT Act of 2001 were felt.
If you want more details, feel free to read all about it on my FR home page.
There will no doubt be plenty of skeptics here on FR. What should not be in doubt however is that the Bush recession ended in June 2009; long before a single stimulus dollar ever reached the economy. The economic malaise we are still experiencing four plus years later is Obama’s version of a recovery. As to the article, I think TARP succeeded, but I can’t just skip over the “Moral Hazard” aspect as the authors so glibly did. What remains unknown is what the long term effects would have been had we let the big boys fail.
Before we can conclude the 'Bush recession' has ended, we should first establish its cause.
Once we've done that, then we can look at the industries host hard hit by the recession to determine the level of recovery they've experienced since Bush left office.
In your opinion, what was the cause of the 'Bush recession' and the industries most affected by it?
The rats won the election in the November 2006 election, and they did took over in January of 2007. Now the question is why did the win the election? I tell you why. Many people, including Freepers in here wanted to teach the GOP a lesson and stayed home instead. And what did that bring us? Recession and 0bamacare. I sure hope those who stayed home learned their lessons
You are forgetting that the rats took over in January of 2007, so the blame lays entirely on them, not on President Bush
Bush did correct the financial crisis before Obama. Bush also allowed Obama to checkmate the liberal agenda with the initial bailout sitting at a fireplace in the Whitehouse having invited the ungrateful Obama’s into “their” home. The next step was the liberal demands to bailout American Unions, oops I really mean industry. By getting the liberals to “spend” the Nation’s “capital” on Union enhancing programs the Republicans denied implementation of Global Weather Nonsense, and were lucky to prevent at the same time a total destruction of America’s energy sector. The liberals agenda was blinded with power and they shot their financial wade with social-welfare programs that today had the net effect of destroying the dream of a socialist America. Obama and the hard left moved too much too fast, just as the Muslim Brotherhood in Egypt did, and in America that overreach has resulted in prolonged dysfunction within the economy, and the world’s economies. Socialist’s worldwide were happy to coordinate Global Bailouts but the game can only run so long. At the end of the game of bailouts is the need to balance the all the different money supplies, and since most of the printed money is in the financial/stock markets taking a huge drop can easily right the financial ship’s monetary balance sheets with a mega correction. The mega correction will not be as bad for main street as it is for wall street but since the rich made their money already, skimming the cream out of the churn at the stock price level fixes everything.
This was the event where one party tried to crash the dollar, causing a financial panic. The quote above is all Wikipedia has to say about it. There has been no investigation to find the George Soros-like perpetrator.
It's just that W and top GOPers at the time NEVER EVER laid out a coherent "here is the problem, how we got there, and the logical solution would be ...." case to the public.
No matter how shrilled the liberals screamed at the time, more 'adults' would have looked/listened dispassionately, and thus rationally. [Probably another chalk up Rove's brilliance.]
Correction. Bush, Paulson, and Bernanke took care of the Wall Street banks, at the expense of the taxpayer, before Obama took office.
They used those headlines to drive the economy in and usher in a Chicago thug socialist...and the closer Obama got to his goal the more the economy crashed.
This still makes me physically nauseous.
Logic would NEVER have worked.
The people were in an emotional mood and the fire-breathing socialists know just how to exploit that.
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