Please proceed, Governor.
Originally Posted by Fenton
>>I've got all the proof I need ready to go with links.
Loaded for bear, are ya? I anticipate nothing but rhetoric and links to right-wing sites. Since it's all so clear to you, and you've been over this material so many times, why not just tell me what you know?
>>the typical blame the banks and Bush nonsense that typifies the Liberal account of what happened in 2008
If you read my earlier post and see that as "the typical blame" account, perhaps you should spare yerself the effort. I said "[y]ou can join me in blaming Clinton, Bush, Greenspan, and those in Congress who voted to gut the mortgage lending regulations." Apparently, you want Mr. Bush's name removed for that list. As I recall, he was in office for a few years before the crisis hit.
Mr. Bush did foresee the danger posed by Fannie Mae and Freddie Mac, the government-sponsored mortgage finance giants. The president spent years pushing a recalcitrant Congress to toughen regulation of the companies, but was unwilling to compromise when his former Treasury secretary wanted to cut a deal. And the regulator Mr. Bush chose to oversee them — an old prep school buddy — pronounced the companies sound even as they headed toward insolvency.
As early as 2006, top advisers to Mr. Bush dismissed warnings from people inside and outside the White House that housing prices were inflated and that a foreclosure crisis was looming. And when the economy deteriorated, Mr. Bush and his team misdiagnosed the reasons and scope of the downturn; as recently as February, for example, Mr. Bush was still calling it a “rough patch.”
The result was a series of piecemeal policy prescriptions that lagged behind the escalating crisis.
“There is no question we did not recognize the severity of the problems,” said Al Hubbard, Mr. Bush’s former chief economics adviser, who left the White House in December 2007. “Had we, we would have attacked them.”
Looking back, Keith B. Hennessey, Mr. Bush’s current chief economics adviser, says he and his colleagues did the best they could “with the information we had at the time.” But Mr. Hennessey did say he regretted that the administration did not pay more heed to the dangers of easy lending practices. And both Mr. Paulson and his predecessor, John W. Snow, say the housing push went too far.
“The Bush administration took a lot of pride that homeownership had reached historic highs,” Mr. Snow said in an interview. “But what we forgot in the process was that it has to be done in the context of people being able to afford their house. We now realize there was a high cost.” — White House Philosophy Stoked Mortgage Bonfire
, Dec 20, 2008
Believe it or not, I tried to limit the amount of material I quoted from that article. As far as Mr. Bush's responsibility goes, I'd say those reporters did a pretty thorough job.
If banks had no responsibility, why are they settling for tens of billions of dollars in fines?
In any event , I await yer "proof" regarding the central role played by the CRA in precipitating the crisis. Please recall that this has been my focus (#1170). I put up one link to a very brief argument that included F & F along with the CRA as institutions being held to a level of undeserved culpability. If you think you can present an informed indictment of F & F, I'll look it over, but my point has been to defend the CRA for a very simple reason: some on the Right love to hammer on it because it's associated with … BLACKS! Ya know, those horrible, lazy, shiftless people that the Democrat party bribes into voting for them with freebies and giveaways funded by taxes collected from the upstanding, God-fearing whites who built this country.