Granted, the economy has taken a tremendous dive, and the stock market is scary, but the truth is, Bush did not have a lot to do with the combination of factors that came together to make the economy implode.
Almost since taking office, Bush did warn about the need to bring Fannie Mae and Freddie Mac under control. He introduced legislation to do so. Each time, Democrats and Republicans in Congress rejected the measures. Ultimately, he took bold action to help fix the financial meltdown.
Er, not so much:
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. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents.
Bowing to aggressive lobbying _ along with assurances from banks that the troubled mortgages were OK _ regulators delayed action for nearly one year. By the time new rules were released late in 2006, the toughest of the proposed provisions were gone and the meltdown was under way.
The administration's blind eye to the impending crisis is emblematic of a philosophy that trusted market forces and discounted the need for government intervention in the economy. Its belief ironically has ushered in the most massive government intervention since the 1930s.
Any chance Kessler will tell his readers about this important information that runs counter to his fawning narrative? Don't count on it.