Business
See other Business Articles
Title: George W. Bush: Bailout Call 'Wasn't That Hard'
Source:
POLITICO
URL Source: http://www.politico.com/news/stories/1010/43883.html
Published: Oct 20, 2010
Author: ANDY BARR
Post Date: 2010-10-20 13:41:34 by Brian S
Keywords: None
Views: 21626
Comments: 41
Former President George W. Bush on Tuesday night defended his decision to bail out banks toward the end of his term, saying the call “wasn’t that hard.” “I made the decision to use your money to prevent the collapse from happening,” Bush said during a speech in Tyler, Texas, according to reports from The Associated Press and other outlets. Bush said that when the markets crashed in the fall of 2008, he recognized that if his administration didn’t do “something significant,” a “depression greater than the Great Depression” could occur. The former president said the choice to backstop many of the country’s leading financial institutions “wasn’t that hard for me.” "Here's what you learn," Bush said of his time as president. "You realize you're not it. You're a part of something bigger than yourself."
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
Begin Trace Mode for Comment # 27.
#1. To: Brian S (#0)
Bush made the right decision here.
I completely disagree. First, it is a good thing when poorly run businesses go out of business because it allows their resources to be freed up for more productive uses. Second, over the last two decades, too many of the best and brightest Americans have chosen careers on Wall Street over science and engineering because of the big money involved. Someone with a masters degree in math from a top university who goes to work for HP or IBM creating products might make $80K out of school. As a "quant" on Wall Street, they could make $400k modeling derivatives and other crazy investment instruments. The bailout enabled these failed companies to continue to throw money at these people, as well as at their failed executives, to the detriment of the rest of the economy. Third, the savings of average people were not a risk because FDIC insurance covers $100K per account. The Japanese refused to restructure their banks when faced with a similar crisis in the early 90s. Now, the once mighty Japanese economy has been basically in a rolling recession for 20 years. It's hard for me to find even one thing that Bush did right, other than his two Supreme Court nominees. The TARP was one of the worst things he did.
First, it is a good thing when poorly run businesses go out of business because it allows their resources to be freed up for more productive uses. The alternative to Bush acting was a complete melt-down of the global financial system. I think he took the correct immediate approach in stabilizing the system, but longer term nationalizing failing backs, re-capitalizing them, and splitting them out into smaller entities banks as Roubini recommended rather than build bigger banks was arguably the correct approach. The economy is never going to turn around until we get a banking system that isn't weighed down by bad mortgage debt.
So, like a junkie who's suffering withdrawal symptoms, your answer is to simply inject MORE money in, yes? Of course, it was (allegedly) $787B ($24T in actuality), the next will be far greater... Each injection gives less of an effect, until you O.D. Yeah, it was easier to take another hit, then let the system clean out... Hey, bubba, guess what??? The "system" isn't going to get rid of the bad debt (and corruption by banking officials, government officials, etc) until the system COLLAPSES under the weight of all that debt. Bush signed the bailout, because he's a COWARD. He's a shit-head moron. (And this, from someone who voted for him twice- to my eternal shame.) You talk about debt...? Do you know how much that debt is??? For the U.S. alone, the total government debt comes is at $100 TRILLION. For the global economy, with the financial virus created on Wall Street, and spread around the world as Collateralized Debt Obligations and Mortgage-Backed Securities, as well as the various derivatives and hedges... All that bad paper that has yet to be collected on, works out to $1.4 QUADRILLION. Put in perspective, $1.4Q in single dollar bills could cover the entire world in a layer of paper 1.24" thick... Another perspective, is that this is the gross domestic product of every nation in the world... For the next 23 years. UNDERSTAND something. The global financial system is going to "melt down," very soon... NOTHING can stop it. And as they get more desperate in their measures to forestall the inevitable- like taking bigger hits of a drug- they guarantee that the nasty after-effects last longer, and feel far more painful.
I don't think folks like yourself really understand the impact of a total collapse of the global financial system.
Folks like me..... Yeah, RIGHT.... Oh, let me bow down before thee, oh WISE and KNOWING man.... Hey, DUMMY... the longer you put it off, the WORSE it's gonna' be... What part of that, do you NOT understand???? Like the typical liberal, you prefer the easy, intellectually-empty approach. You believe good intentions trump cold hard FACTS. Of course, 'folks like myself' can't truly understand how bad it's gonna' be, because the magnitude of what's coming hasn't happened in about 500 YEARS. Which means, of course, "folks like yourself" don't know any more about it, than I do. So get down off your high horse, you pretentious prick.
Hey, DUMMY... the longer you put it off, the WORSE it's gonna' be... What part of that, do you NOT understand???? Like the typical liberal, you prefer the easy, intellectually-empty approach. You believe good intentions trump cold hard FACTS. Of course, 'folks like myself' can't truly understand how bad it's gonna' be, because the magnitude of what's coming hasn't happened in about 500 YEARS. Which means, of course, "folks like yourself" don't know any more about it, than I do. So get down off your high horse, you pretentious prick. So tell me what YOU think would have happened if banks started shutting down en-masse in October- November of 2007 while state/local governments shut their doors due to lack of money to pay their bills? All would have been peachy?
All would have been peachy? You idiot liberals. What do you NOT understand....???? I will say it again, THE ECONOMY IS GOING TO CRASH AND BURN, AND NOBODY CAN STOP IT. We have an old saying: Pay me now, or pay me later. The problem with paying later, is that the interest is a BITCH. The longer you delay, the worse it's gonna' be. NOW DO YOU GET IT??????????????
Given that the GOP appears poised to take over the House, I think you are right.
THE ECONOMY IS GOING TO CRASH AND BURN, AND NOBODY CAN STOP IT. Given that the GOP appears poised to take over the House, I think you are right Its this insane 'party before country' crap thats at the heart of WHY the economy is going to 'crash and burn' next year.
I agree, things will get worse next year.
Childish, GO65.
It's childish to agree with you? OK.
#28. To: go65 (#27)
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#4. To: go65 (#1)
(Edited)
Bush made the right decision here.
#6. To: jwpegler (#4)
I completely disagree.
#10. To: go65 (#6)
(Edited)
The alternative to Bush acting was a complete melt-down of the global financial system.
The economy is never going to turn around until we get a banking system that isn't weighed down by bad mortgage debt.
#11. To: Capitalist Eric (#10)
Yeah, it was easier to take another hit, then let the system clean out...
#13. To: go65 (#11)
I don't think folks like yourself really understand the impact of a total collapse of the global financial system.
#18. To: Capitalist Eric (#13)
Yeah, RIGHT.... Oh, let me bow down before thee, oh WISE and KNOWING man....
#21. To: go65 (#18)
So tell me what YOU think would have happened if banks started shutting down en-masse in October- November of 2007 while state/local governments shut their doors due to lack of money to pay their bills?
#22. To: Capitalist Eric (#21)
THE ECONOMY IS GOING TO CRASH AND BURN, AND NOBODY CAN STOP IT.
#24. To: go65 (#22)
#25. To: Badeye (#24)
Its this insane 'party before country' crap thats at the heart of WHY the economy is going to 'crash and burn' next year.
#26. To: go65 (#25)
#27. To: Badeye (#26)
Childish, GO65.
Replies to Comment # 27. Childish, GO65.
End Trace Mode for Comment # 27.
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]