Bush Ignored Warnings that Economy Was in Serious Trouble

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No one can ever accuse Chimpy of being Inconsistent-

He Made Up His Mind-

The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed.

He Was Warned-

“Expect fallout, expect foreclosures, expect horror stories,” California mortgage lender Paris Welch wrote to U.S. regulators in January 2006, about one year before the housing implosion cost her a job.

He Listened to Fools-

“These mortgages have been considered more safe and sound for portfolio lenders than many fixed rate mortgages,” David Schneider, Home Loan President of Washington Mutual, to Federal Regulators in 2006. (When Wa-Mu collapsed, some two years later, it was the Largest Banking Failure in U.S. History).

Suggested Rule Changes Were Ignored-

In 2005, faced with ominous signs the housing market was in jeopardy, bank regulators proposed new guidelines for banks writing risky loans. Today, in the midst of the worst housing recession in a generation, the proposal reads like a list of what-ifs:

_Regulators told bankers exotic mortgages were often inappropriate for buyers with bad credit.

_Banks would have been required to increase efforts to verify that buyers actually had jobs and could afford houses.

_Regulators proposed a cap on risky mortgages so a string of defaults wouldn’t be crippling.

_Banks that bundled and sold mortgages were told to be sure investors knew exactly what they were buying.

_Regulators urged banks to help buyers make responsible decisions and clearly advise them that interest rates might skyrocket and huge payments might be due sooner than expected.

He put his faith in the Free Marketeers-

“An open market will mean that different institutions will develop different methodologies for achieving this goal,” Joseph Polizzotto. (Old Joe Represented the now Defunct Lehman-Brothers).

“Appears excessive and will inhibit future innovation in the marketplace,” Mary Jane Seebach, Managing Director of Public Affairs at Countrywide Financial Corporation, in response to the Proposal from Federal Regulators.

“To conclude that ‘nontraditional’ equates to higher risk does not appropriately balance risk and compensating factors of these products,” Lillian Gavin, Chief Credit Officer at Downey Savings, which joined the Growing List of Failed Banks Last Week.

I could on, but…

Let’s Review-

-Chimpy received Warning that a Potential Catastrophe Was on the Horizon, but, Per usual, he said, “Nah, everything’s going according to plan.”

-Lenders knew a Potential Catastrophe Was on the Horizon, but told Washington, “Don’t worry we Got This. Trust the Free Market, Baby.”

-Regulators attempted to Tigthen the Reins, but were Rebuffed by the Great Chimpleton.

-American Tax Payers were Forced to Eat 7 Trillion Pounds of Shit.

Ladies, and Gentlemen-

A Round of Applause for One of the Most INEPT Men to Ever Walk The Earth

Oh-

Having an Old Milk Jug Filled with Ron Paul’s Duck Butter does not make you an Economist.


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~ by fairlane on December 2, 2008.

10 Responses to “Bush Ignored Warnings that Economy Was in Serious Trouble”

  1. He is known as the moronic monkey for a reason.

  2. He’s been like the girl who can’t say no…

  3. Now, now, fairlane, you read the warnings as warnings, for W and his masters they were signs that the plan was going exactly as planned. Remember, he only appears incompetent if your goal is good governance, but to those he really serves W gets an A+.

  4. He was too busy wagging the dog with Iraq to be bothered about little things like peoples’ incomes and homes.

    If it were me, they would have thrown away the key years ago. It amazes me no one has had the balls to take him to task for this.

    Old Bill got impeached, remember? And he had a budget surplus.

  5. Too bad he didn’t ignore the warning on a step ladder that says don’t place the ladder in wet shit.

  6. I think I’d have to agree with Pissed in NYC about the success level of this particular ploy. The problem is they deliberately pulled the plug on this tub of bathwater but had no clue the baby would go down the drain too.

  7. ichabod, it amazes you that no one has had the balls? What country are you living in? 😉

  8. George Bush Did Not Heed Warnings of Impending Disaster?

    Oh, Come On Now.

    I find this VERY hard to believe, Fairlane. Not only that, I find it Upsetting.

    Your Evidence is Scanty, to Say The Least.

    😉

  9. Fairlane… these warning sound much like the warnings he was given before 9/11. He knew the attacks were coming and did nothing. This can only lead me to believe that he was too stupid to respond or wanted it to happen because he will reap the benefits. I can only conclude that the same holds true for the financial crisis as well. He did nothing because in doing nothing in the end, through the credit market bailout, his financial interests benefit. It would not surprise me to know that a company in which his holdings are considerable is a major investor in those bailed out banks. This, I’m afraid, has always been his MO and what you call ineptness I call the biggest swindle perpetrated on the American public.

  10. Just to be sure of fairness here I should mention that one of Bill Clinton’s last proposals to pass was the Financial Institutions Modernization Act of 1999. That’s what started the gambling on cds’s and the unraveling we’re seeing now. The whole country went back to the bucket shops of the early 1900’s and Bush was never the guy to stop the show.

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