Bush’s burst bubble

Lawrence B. Lindsey, Mr. Bush’s first chief economics adviser, said there was little impetus to raise alarms about the proliferation of easy credit that was helping Mr. Bush meet housing goals.

“No one wanted to stop that bubble,” Mr. Lindsey said. “It would have conflicted with the president’s own policies.”

An interesting story here in the New York Times where White House insiders explain how it was Bush’s own determination to encourage people to buy their own homes that was a major factor in the credit crunch that lead-up to the financial crisis. Nobody at the top wanted to confront him over his own personal Messianic mission.

This is what happens when political targets and economic goals are put before plain common sense. It was obvious to anyone with even a basic grasp of economics that the country could not go on borrowing like it was. In Bush’s blind attempt to increase the wealth of Americans, he’s actually ended up impoverishing them instead.

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