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How Bush Fueled the Mortgage Mess

His philosophy at center of housing crisis

By Matt Cantor,  Newser Staff

Posted Dec 21, 2008 6:52 AM CST
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(Newser) – A range of factors led to the housing crisis that dragged the economy into the toilet—but President Bush’s philosophy likely played a key role in the collapse, reports the New York Times. Dozens of interviews point to both Bush’s drive to expand homeownership and his steadfast belief in minimal market regulation as central factors in the crisis, the Times reports.

“The Bush administration took a lot of pride that homeownership had reached historic highs,” said former Treasury secretary John Snow. “But what we forgot was that it has to be done in the context of people being able to afford their house.” As trouble mounted, Bush aides were slow to recognize it, ignoring experts’ advice. “The result was a series of piecemeal policy prescriptions that lagged behind the escalating crisis,” the Times notes.

President Bush discusses the auto industry Friday at the White House.
President Bush discusses the auto industry Friday at the White House.   (AP Photo/Ron Edmonds)
President Bush conducts the United States Marine Corps Band. Critics say he also helped orchestrate the current economic quagmire.
President Bush conducts the United States Marine Corps Band. Critics say he also helped orchestrate the current economic quagmire.   (AP Photo/Haraz N. Ghanbari)
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This administration made decisions that allowed the free market to operate as a barroom brawl instead of a prize fight. - L. William Seidman, adviser to Republican presidents

There is no question we did not recognize the severity of the problems. Had we, we would have attacked them. - Former Bush chief economics adviser Alan Hubbard

The problem with those guys at the White House, they had all the answers and they didn’t think they had to listen to anyone, including the Treasury secretary. - Rep. Michael G. Oxley, R-Ohio

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COMMENTS
Showing 3 of 8 comments
Guest
Dec 22, 2008 4:49 AM CST
The derivatives market is the cause-and the reason for the bailouts-in this crisis. There is blame to go around, but the vast majority of it stems from Reagan's philosophy of deregulation. We have deregulated every industry over the past 30 years, and foxes have been in charge of the henhouse to long. I blame Clinton too, but Newt and his boys, then Bush and his boys have been clearly running the show for a very long time. They were just hoping it wouldn't all come tumbling down before Bush was gone. This is what happens when you work so hard to destroy the government. Why does Bush hate America?
John
Dec 22, 2008 1:20 AM CST
I like the way republicans can reinvent history. By the way, the Community Reinvestment Act had nothing to do with this mortgage mess. You all are just looking for another way to keep the poor, poor!! Shame on you.
Guest
Dec 21, 2008 11:24 PM CST
Feragola, do you need glasses?

Clinton tax break's role in housing bubble
New York Times

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National Post (Canada)

Bush looks back
New York Times

US

 
Bush administration • philosophy • mortgage • market • homeownership • housing crisis • mortgage delinquency • George W. Bush

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