Raybans is not aware that private equity and healthy banks bought underperforming loan portfolios for pennies on the dollar in 08. And 09 and then turned around and made profits by conducting short sales on the portsions of those portfolios that consisted of performing but underwater mortgages.
Here is an example to enable Raybans to understand the financial mechanics: take a house with a current loan paid down to $200k. The house is now worth only $150k. The loan is bought for 10 cents on the dollar, for $20k. The new owner of the loan allows a short sale for $150k which is a whopping $50k less than the outstanding value of the loan but a more whopping $130k more than the cost of the paper to the new loan owner.
Some of these outfits have gone public, With very good results.
Raybans thinks all those short sales were Obama handing out free money.
These partisan cult baiters perceive every negative event as an exercise identifiying a person or group they do not like, and then making stuff up to blame the disliked person or group for the event.
Its ridiculous and toxic to any real attempts at problem solving.
"These partisan cult baiters perceive every negative event as an exercise identifiying a person or group they do not like, and then making stuff up to blame the disliked person or group for the event."
Outside of partisan baiting, In the relm of legitimate analysis, it is becoming clear that these were the main mistakes of the Bush administration:
1. Changing gears on defense policy on entry into office in 2001, away from terrorist threats such as AQ and toward an emphasis on Russia. Events of record that support this interpretation are A. Letting go Richard Clark, the main person on top of the AQ threat B. hiring Condi Rice, who was an expert of Russia C. Statements by President Bush such as being tired of swatting fleas. His reference to AQ as a flea indicates he felt the orginaization was not a threat.
2. The decision to invade Iraq. It is ridiculous to pretend the Iraq war had little effect on the US deficit. Alternatives to a trillion dollar invasion were not given much consideration.
3. Unnecessary tax cuts. It is ridiculous to pretend the Tax cuts had little effect on the US deficit. Now evidence is available showing the tax cuts accelerated the narrowing Distribution of wealth and income in this country so that instead of being the America of widely shared prosperity, we are now comparable to the characteristic narrow distribution of less developed nations.
4. Excessive deregulation. This was a contributing factor in the development of the crash of 08. While in defense one can argue that whenever a new financial innovation occurs, it often operates outside of the the regulatory framework until problems are evident. But even with this pass, it is clear that Bush was as sucked in by the idea of "the free market" as virtually all of his economic policy makers and executives.
5. Ownership Society policy did not turn out well.
6. Failure to implement health reform.
It is hard to escape the conclusion that Bush took office when America was at the top of its game and left office in - and I do not exaggerate - shambles.
What of Obama? i believe he will go down very much like Eisenhower - a president who "made all the right decisions" (according to Robert Gates) but who did not provide much beyond that.
Eisenhower started to clean up some of the excesses of the New Deal while Obama began the clean up of the Free Market debacle.