“Wall Street Got Drunk”

Via the Huffington Post comes this video of President Bush at a fundraising event, explaining what he thinks is going on in the financial markets.

If Bush means to attribute blame for the sub-prime crisis on investment bankers’ irrationally exuberant trust in Moodys et al., well, he might not be too far off the mark. But if that’s the case, doesn’t it make the bail out of Bear and (potentially) Lehman sound a little like enabling? A better approach – to push the addiction metaphor a bit further – would require self-reflection.

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1 Response

  1. The HuffPost merely amped this; it originally came from Houston’s ABC-13 news station. The YouRube vid was taken down, but the original news story has it.

    Credit where credit is due.

    Aside from the ol’ “Bushism” moment here (not to mention the cellphone “gotcha” moment), does this help shed light on anything? I still remember Paul Krguman’s 2005 citing of PIMCO’s Paul McCulley, who had predicted that the fed would replace the stock market bubble with a housing bubble (through drastic rate cuts). That sounds like a plausible theory– so I’m still curious what supporters and detractors of the President make of that.