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BUSH KNEW! Associated Press Reveals Clear Warnings of Economic Meltdown

by Erik Larson | December 4, 2008 at 11:20 am

273 views | 18 Recommendations | 7 comments

According to the Associated Press, their review of regulatory documents shows that the Bush Administration was well aware of the risk to the economy and financial markets of their regulatory decisions, but decided to continue giving free reign to lenders, under pressure from them. Some of these banks have already failed, many more are in trouble and are being rewarded for their bad decisions by being bailed out with taxpayer's money. Many of these same people are being appointed to Obama's administration, instead of being investigated for fraud and criminal negligence.

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.

“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.

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.

We do not have a "free market" system in the US; what we have are markets rigged by corporate socialists; selfish, corrupt, deceitful, criminal and treasonous scoundrels who seek to privatize benefit and gain, and socialize risk and loss.

Abolish the privately-owned and controlled Federal Reserve. Can anyone tell me why banning interest (usury) and charging a tax on money would be a bad idea?

The NATURAL ECONOMIC ORDER by Silvio Gesell

Laboratory readings: Wörgl's Stamp Scrip – The Threat of a Good Example?

See The Complete 9/11 Timeline for the hundreds of warning signs leading up to 9/11 (one example; the Aug 6 PDB included these words:

“Nevertheless, FBI information since that time indicates patterns of suspicious activity in this country consistent with preparations for hijackings or other types of attacks, including recent surveillance of federal buildings in New York.

The FBI is conducting approximately 70 full field investigations throughout the US that it considers Bin ladin-related. CIA and the FBI are investigating a call to our Embassy in the UAE in May saying that a group of Bin Ladin supporters was in the US planning attacks with explosives.”

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lampshadeheadshotman=( (not verified)

at 11:48 on December 4th, 2008

even if bush knew that the economy was going to crash, what do you want him to do about it? once the economy startsheading downhill, it is very hard to stop it, so why does everyone keep on blaming bush? did you try to save the economy? if you did not, then you cant blame him for it crashing.

Erik Larson

at 17:21 on December 4th, 2008

if you hire a lifeguard to stop people from drowning, and he ignores someone drowning, even when people are bringing it to his attention that someone's drowning, do you blame the drowning person or the people that brought it to the lifeguard's attention, or do you blame the lifeguard?

I guess if you're a fan of the most unpopular (and unelected) pResident in US history, you blame everyone but the lifeguard.

EDIT- besides all that, this article notes specific signs and things that could have been done that could well have prevented the meltdown from happening; Wall Street, lender and investor greed did away with sensible lending practices, exploited the people and our society and now that their house of derivatives cards is crashing, they're dumping the whole stinking pile on the taxpayers- Bush and many others in his administration could've done something; Bush's administration even prevented states from restricting some lender's abusive and predatory practices

Paschen

at 18:03 on December 4th, 2008

I like the analogy you are making here.

Paschen

at 18:01 on December 4th, 2008

Interesting point of view here Erik.

djermano

at 18:42 on December 4th, 2008

He tried by using the tax rebate scheme...not once but twice..and I never got one stimulus check. It proved his tax rebate scheme was like tossing pennies in a wishing well. They knew going back to Reagan, Bush Sr, and Bill Clinton..

http://my.nowpublic.com/world/history-united-states-bank-failures...

Rev.