First, there was a widely spread housing bubble, not just in the United States, but in Ireland, Spain, and other countries as well. This bubble was inflated by irresponsible lending, made possible both by bank deregulation and the failure to extend regulation to “shadow banks,” which weren’t covered by traditional regulation but nonetheless engaged in banking activities and created bank-type risks.
Then the bubble burst, with hugely disruptive consequences. It turned out that Wall Street had created a web of interconnection nobody understood, so that the failure of Lehman Brothers, a medium-size investment bank, could threaten to take down the whole world financial system.
It’s a straightforward story, but a story that the Republican members of the commission don’t want told. Literally...read on
He's beating back the people whose policies helped destroy the world's economy when George W. Bush was President. In another column called When Zombies Win, he then highlights the fact that all the people responsible for the meltdown in the first place haven't been shunned, but instead are leading the charge to only make things worse. Simply f*&king amazing.
There was a reason the GOP kept Bush off the airwaves until after the midterm elections: the man was so reviled. I wouldn't doubt that Roger Ailes had something to do with it, but that's just a theory. Anyway, the one and only panel I did with Andrew Breitbart was revolting for many reasons, but one of the biggest lies he told and is one often repeated by the zombies of the Tea Party (which took off after Rick Santelli gave them permission to do so on CNBC) -- namely, that the greedy poor people created the mortgage meltdown because they had the audacity to become homeowners. Krugman explains away that nonsense and Digby reminded me again of Bush's 2004 acceptance speech, where he bragged about his economic handiwork, and begged to turn America into the ultimate "homeowner society."
I've got yer history for yah right here. Here's one of those bleeding heart liberals at the 2004 Republican Convention:
Another priority for a new term is to build an ownership society, because ownership brings security and dignity and independence.
Thanks to our policies, home ownership in America is at an all- time high.
Tonight we set a new goal: 7 million more affordable homes in the next 10 years, so more American families will be able to open the door and say, "Welcome to my home."
(Bush starts his "Welcome to my home" rant at the 3:36 mark of the above video)
Now Americans are either packing their bags and fleeing from their homes without trying to pay their mortgages, or they're trying to get HAMP assistance. Some are still being kicked out even when they follow the rules, or are not eligible for HAMP; others are just are foreclosed on anyway because they can't afford to pay anymore.
Way to go, Mr. Bush.