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Gwb Makes 100% Accurate Summation Of The Credit Binge

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http://uk.news.yahoo.com/itn/20080724/twl-...ge-41f21e0.html

Bush in 'Wall Street got drunk' clanger
ITN - 45 minutes agoPresident George W Bush has explained the global credit crunch by saying "Wall Street got drunk".
When asked what led to the US housing market meltdown that threw the world's economy into turmoil, Mr Bush said: "There's no question about it. Wall Street got drunk.
"It got drunk and now it's got a hangover. The question is, how long will it sober up and not try to do all these fancy financial instruments?"
Mr Bush's comments were recorded on a mobile phone camera and then posted on YouTube.
"He has said before that Wall Street was dealing with very complex financial instruments and that the markets didn't fully understand the risks that those instruments posed to the system," White House spokeswoman Dana Perino said.
"It is certainly a more colourful way of saying what he said before, but he's described it that way before in terms of his observations of what happened to the market," she said.
The video also shows Mr Bush joking with a friendly crowd and musing about his life when he leaves the White House in January.
"We've got a housing issue," Mr Bush said. "Not in Houston, evidently not in Dallas, because Laura's over there trying to buy a house today."
He explained that his wife no longer wished to live in rural Crawford, Texas, and preferred Dallas where the Bush presidential library will be located.
"I like Crawford, unfortunately after eight years of asking her to sacrifice, I am no longer the decision maker," he said

Typical ITN clanger if you ask me. I could not have summed it up better myself. The entire decade of credit binging was like a drunken party and now follows the most painful hangover since the Great Depression. GWB is being honest and calling it for what it is. Good on him.

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http://uk.news.yahoo.com/itn/20080724/twl-...ge-41f21e0.html
Bush in 'Wall Street got drunk' clanger
ITN - 45 minutes agoPresident George W Bush has explained the global credit crunch by saying "Wall Street got drunk".
When asked what led to the US housing market meltdown that threw the world's economy into turmoil, Mr Bush said: "There's no question about it. Wall Street got drunk.
"It got drunk and now it's got a hangover. The question is, how long will it sober up and not try to do all these fancy financial instruments?"
Mr Bush's comments were recorded on a mobile phone camera and then posted on YouTube.
"He has said before that Wall Street was dealing with very complex financial instruments and that the markets didn't fully understand the risks that those instruments posed to the system," White House spokeswoman Dana Perino said.
"It is certainly a more colourful way of saying what he said before, but he's described it that way before in terms of his observations of what happened to the market," she said.
The video also shows Mr Bush joking with a friendly crowd and musing about his life when he leaves the White House in January.
"We've got a housing issue," Mr Bush said. "Not in Houston, evidently not in Dallas, because Laura's over there trying to buy a house today."
He explained that his wife no longer wished to live in rural Crawford, Texas, and preferred Dallas where the Bush presidential library will be located.
"I like Crawford, unfortunately after eight years of asking her to sacrifice, I am no longer the decision maker," he said

Typical ITN clanger if you ask me. I could not have summed it up better myself. The entire decade of credit binging was like a drunken party and now follows the most painful hangover since the Great Depression. GWB is being honest and calling it for what it is. Good on him.

I think that's is how Mrs Bush explained it to him so that he would understand it all. I don't think she counted on the fact he would then go and blurt it out in public. :ph34r:

AFP

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“William McChesney Martin Jr. vividly described the Fed's role as to "take away the punch bowl." In essence, the Fed was supposed to be the "adult chaperone" at an economic party that was likely to get out of hand. Thus, the Fed was supposed to allow, even induce, if necessary, the occasional recession to cleanse the excesses of the economy”

So it was an alcoholic punch bowl then???

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The problem here appears to be that most of the banking sector wants to avoid the hangover drinking their way out of it.

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It got drunk and now it's got a hangover.

He's Close but not far off...

Wall Street got everyone drunk and on magic beer. The more beer that is drunk the more beer is created for other people to drink. Eventually someone asked, hey who's paying for the free magic beer? Word got back to wall street people weren't paying for the beer and kicked everyone out into the street. They started smashing up the pub and demanding free beer but Wall Street didnt have any left because people had stopped drinking as much beer. The pub decided it needed to collect as much beer from its former customers and other banks to give to the angry mod, but this only made things worse as no-one was drinking beer, they were saving it in barrels for the next party... The cost of beer went up.

Edited by moosetea

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I think that's is how Mrs Bush explained it to him so that he would understand it all. I don't think she counted on the fact he would then go and blurt it out in public. :ph34r:

AFP

I believe the Economist is fond of the 'Central bankers should have taken the punchbowl away' metaphor, he probably came across it there ;)

Fair play to him, it's a perfectly reasonable metaphor.

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While the metaphor may be reasonable it should not be forgotten that this catastrophe happened on Bush's watch (as did 911, the DotCom crash, Enron, WorldCom, the Hurricane Katrina disaster etc) and for these very reasons he has a very great deal to answer for.

IIRC Bush insisted the cameras where switched off while he made these remarks so we can't be sure of his body language when he said it, but if it was his typically swaggering flippancy those who have complimented Dubya's comments might wish to consider a retraction. But then of course we'll never know, but certainly one simplistic analogy does not absolve him of his grotesque failings.

Thanks to Bush's inaction, partly motivated no doubt by his banking buddies, after the punch bowl comes the dust bowl.

For those who haven't seen it I recommend viewing the video on the home page of www.fedupusa.org

Edited by Dave Spart

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  • 396 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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