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Economic Crisis: Bush, Bernacke, and Paulson Blew It

Detailed below are highlights of a news segment aired Saturday morning on CNN hosted by Christine Romans, who opened with "The populist uprising against the Washington Bailout has its roots in a deep distrust of the Bush Administration, which for months said the economy was fine..."

A series of quotes followed, juxtaposed against the timeline of disaster that was unfolding right under their noses.

Everything was rosy according to George Bush until the tone began to change in December of 2007, as the administration finally took notice of the storm clouds on the horizon:

  • December 17, 2007 - President Bush: "There's definitely some storm clouds and concerns, but the underpinning is good. We'll work our way through this period."

Despite unemployment reports that showed a worsening economy all the way back there in December, 2007, Bush maintained the upbeat viewpoint.

  • January 30, 2008 - President Bush: "Our economy is flexible... it is resilient".

We had spiking gasoline prices in February, President Bush was surprised.

  • February 28, 2008 - President Bush: "What did you say? You're predicting $4 a gallon gasoline? That's interesting, I hadn't heard that."

By March, financial giant Bear Sterns was in a "death spiral" and was sold.

  • March 17, 2008 - President Bush: "We're in challenging times, but another thing is for certain -- that we've taken strong and decisive action."
  • March 16, 2008 - Secretary of the Treasury Henry Paulson: "Our financial institutions are strong. Our investments are strong. Our banks are strong. They're going to be strong for many, many years."

In July, 2008 IndyMac Bank failed.

  • July 15, 2008 - President Bush: "I believe we will come through this challenge stronger than ever before."

They simply didn't see it coming, and were instead reassuring the nation that there was not a problem.

The sub-prime crisis began to unfold beginning back in 2007 and the Republican administration was oblivious and negligent.

Then:

  • May 17, 2007 - Fed Chief Ben Bernacke: "We do not expect significant spillovers in the sub prime market to the rest of the economy or to the financial system."

and now:

  • September 24, 2008 - Fed Chief Ben Bernacke: "This plan is an emergency plan to put out a fire. To resolve a serious crisis which has real Main Street implications."

Their incompetence took our nations from "storm clouds on the horizon" to a major financial and economical meltdown. All the way the administration was misjudging and underestimating the situation until it was too damned late.


Note: Wizbang Blue is now closed and our authors have moved on. Paul Hooson can now be found at Wizbang Pop!. Please come see him there!

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Credits

Publisher: Kevin Aylward

Editors: Lee Ward, Larkin, Paul S Hooson, and Steve Crickmore

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