The Mudcat Café TM
Thread #109748 Message #2523836
Posted By: GUEST,beardedbruce
24-Dec-08 - 10:25 AM
Thread Name: BS: Bush Administration: Aftermaths
Subject: RE: BS: Bush Administration: Aftermaths
The insignificance of Bush's economic policy, though, might work to his advantage. We are in the midst of the worst recession of our generation, yet it is hard to attribute this crisis to anything that Bush actively did. If his large deficits produced skyrocketing interest rates that crushed the economy, then the argument that Bush caused the mess we're in might hold water. If he was the one who deregulated the financial sector, then we could justifiably blame him for our predicament.
Instead, the forces that allowed the financial sector to blow up -- deregulation, for example -- were in place when he took office. Former Federal Reserve Chairman Alan Greenspan, who failed to stem the crisis, was inherited from the previous president. Bush even tried to avert the crisis early and often in his presidency, as he sought strict limits on the actions of Fannie Mae and Freddie Mac, the mortgage-finance companies that were at ground zero of the crisis.
Bush was unable to stop the housing crisis and its fallout, but he tried. In that failure, he is hardly alone. The crisis has touched just about everyone, wiping out wealth in countries run by both liberals and conservatives.
All told, it seems unlikely that history will blame Bush for the financial crisis. He may even receive credit for helping to minimize its impact