Which president is responsible for the economic crash


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The economic crash that occurred in 2008 is primarily attributed to the policies and actions of President George W. Bush's administration, although the severity of the crash was exacerbated by the actions of the subsequent Obama administration. Here are the key factors that led to the economic crash:
- Subprime Mortgage Crisis: The subprime mortgage crisis, which was a significant contributor to the economic crash, began under President Bush's watch. The administration's policies encouraged the growth of subprime mortgages, which were designed for borrowers with poor credit histories. This led to a proliferation of risky loans, many of which defaulted, causing financial institutions to hold large amounts of non-performing mortgage-backed securities1.
- Financial Regulation: The relaxation of financial regulations, such as the repeal of the Glass-Steagall Act, allowed for the creation of large, complex financial institutions that were prone to systemic risk. This made the financial system more vulnerable to the shocks that ultimately led to the crash2.
- Bailout of Financial Institutions: The Bush administration's bailout of financial institutions, such as Bear Stearns, effectively prevented the failure of these institutions, allowing them to continue operating and further exacerbating the problem1.
- Stimulus and Monetary Policy: The Obama administration's stimulus programs and monetary policy, including the Troubled Asset Relief Program (TARP) and quantitative easing, while intended to stabilize the economy, prolonged the cycle of easy credit and speculative investment, which contributed to the crash1.
In conclusion, while both Presidents Bush and Obama played a role in the economic crash, the policies and actions of the Bush administration, particularly in the areas of subprime mortgages and financial regulation, were the primary drivers of the crisis. The Obama administration's response to the crisis, while well-intentioned, ultimately prolonged the problem by delaying the necessary adjustments in the economy.
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