Now as far as the economic collapse of 2008!
Was it Bush's fault as you contend?
In what way was Bush at fault for the housing collapse?
First who's fault was this?
On Thursday (Sept 18), at 11am the Federal Reserve noticed a tremendous draw-down of money market accounts in the U.S., to the tune of $550 billion was being drawn out in the matter of an hour or two. The Treasury ...estimation is that by 2pm that afternoon, $5.5 trillion would have been drawn out of the money market system of the U.S., would have collapsed the entire economy of the U.S., and within 24 hours the world economy would have collapsed. It would have been the end of our economic system and our political system as we know it.
Index of blog
Was it Bush's fault that this occurred?
But let's dissect the housing bubble...
Was Bush at fault? YES!
Were their others? YES!
Read the following VERY very carefully!
Who contributed to the creation to the financial crisis and the ensuing economic crisis?
The following is a general answer followed by a section naming the key players:
Regulators who relaxed risk management regulations required by the banks and for not regulating derivative investments (please, see more specific details below)
The Federal Reserve Chairmen who dismissed the build-up of the housing bubble from 2002 to 2007 until it was too late. They did not take actions to regulate mortgage companies or control the housing bubble
World Central Bankers who blindly copied the US Federal Reserve Bank policies
World Financial Regulators who blindly copied US financial market models and regulations
World Investment Banks who sold subprime (high risk) mortgage backed securities to their customers without fully understanding them and who hired credit rating agencies to rate them as high quality investment when in fact they included high risk loans. The same banks who sold the subprime investments later bet against their own clients without disclosing the conflict of interest to their clients
Credit Rating Agencies who overrated junk securities as investment-grade quality and misled investors about the risk and the value of these investments
Academic and Financial Economists who ignored the warnings and misjudged macroeconomic and financial market indicators
Award-winning Economists who designed flawed risk pricing models
Investment Analysts who used flawed risk pricing models and asset portfolio theories
Wall Street Banking Executives who ignored internal risk management policies out of greed to increase revenues and their bonuses in the short term at the expense of long term stability of their companies
Wall Street Boards of Directors who did not protect their shareholders against excessive executive compensation and ignored prudent risk management strategies
Wall Street Advisors who did not do their homework before advising their clients on bad investments
Investment Fund Managers who lost billions of dollars investing without adequate due diligence
Mortgage Brokers who sold loans to unqualified borrowers in order to collect more commissions
Homebuyers who took loans they could not afford to pay back and blamed the banks for predatory lending
US Presidents for hiring former Wall Street lobbyists as government policy makers who bailed out the banks without regard to the moral hazard. By doing so, they shifted the burden on the taxpayers and risked the future of the national economy
US Supreme Court Justices who ruled that the government may not ban political spending by corporations in candidate elections thus tightening the grip of Wall Street on government officials and skewing the balance of power in favor of Wall Street and big companies.
The Financial Media who took no responsibility for promoting the illusions of a healthy housing sector and for not asking the right questions. Media outlets that favored a promotional business model at the expense of investigative journalism. In our research, we found a prevalent bias in allocating airwaves and print space to brand name experts. Most journalists and editors seem to ignore voices that are not well-known or those who have a story that do not fit their narrative or preconception. All we had to do is Google simple phrases like "US Economic Risks" to find a wealth of information that would raise so many critical questions. If equal media exposure was given to the voices that warned us about the housing bubble, the damage could have been mitigated.
Who is to Blame for the Financial Crisis and Ensuing Economic Crisis
SO YES GWB as a US President has a share of the blame.
Now for the bailout...
The State of the Bailout
Bailout Scorecard Eye on the Bailout ProPublica
Bailout money authorized: $659.1B
- $612.8 B This includes money that has actually been spent, invested, or loaned.
- $388.0 B that was returned to treasury by bailed-out companies
- 40.1% or $245B of total went to Banks and other Financial Institutions
- 30.5% or $187B went to Fannie and Freddie
- 13.0% or $79.7B went to Auto Companies
- 11.1% or $67.8B went to AIG
- 54% or $33 B went to Toxic Asset Purchases and Other
How much has been paid back:
INFLOWS: $659.1 billion Money returned and paid to Treasury as interest, dividends, fees or to repurchase their stock warrants.
$388.00B Refunded money returned to Treasury by bailed =out companies.
240.00B dividends
1.70B interest
9.53B warrants - revenue treasury has earned from selling stock warrants it held on companies that have paid back its' investment.
19.60B Other proceeds -- Revenue from fees and sales of equity or other assets.
$270.94B in the dividends,interest,warrants, Other
$388.00B refunded money...
$658.94B
