Bush's Recession, Rooted in Self-Interest

While there are many technical explanations for the current recession, the underlying cause is the pervasive ideology of self-interest that has guided President Bush's administration and permeated mainstream American ethics.

While George Bush ran for President as a born-again Christian and "compassionate conservative," his behavior indicated he was guided not by the principles of Jesus but rather by a narcissistic morality of personal advantage. While making a revealing documentary about the 2000 Bush campaign, filmmaker Alexandra Pelosi asked the candidate why she should vote for him; Bush replied. "It's in your interests." Pelosi observed, "He didn't push my country's interest - but rather, my own." Bush's primary consideration was what's in it for me?

As President, Bush conflated his personal interests - strengthening his power - with those of the United States and political considerations governed all White House decisions. In late 2001, after leaving his appointment as head of the White House Office of Faith-Based and Community Initiatives, John DiLulio observed: "There is no precedent in any modern White House for what is going on in this one: a complete lack of a policy apparatus. What you've got is everything, and I mean everything, being run by the political arm."

Presidential decisions were determined by the toxic alchemy of power and greed. Major legislative initiatives - energy and healthcare - were written by corporate lobbyists to benefit their interests at the expense of average Americans. And the President's self-centered attitude influenced both Main Street and Wall Street.

Bush promoted a national culture of profligacy. After 9/11, when asked how Americans should respond, he advised us to "go shopping." Rather than call on our patriotism, the President appealed to consumerism; citizens responded by running up huge credit card debts and dipping deeply into their home equity. During the Bush Administration, Americans borrowed $6.2 trillion, doubling their debts and causing the U.S. to have a negative savings rate.

At the same time, the President expressed absolute confidence in the wisdom of the free market and expanded the dangerous deregulation begun during the Clinton era. Among the consequences of Bush's extreme laissez-faire ideology were the accelerated flight of decent-paying jobs from the U.S. and pillaging of the environment. As Americans shopped until they dropped, financial-sector profits surged: by 2007 the finance industry represented a record 25 percent of US stock-market capitalization.

Aided by the loosening of regulations, banks such as Citgroup, broadened their scope of business and began to engage in a wide variety of financial activities. With this expansion came problems of control and oversight. The increased size of financial institutions made them more difficult to manage as executives were pressed to make profits beyond the range historically associated with banks.

At Citigroup, earning pressure caused bond traders to increase their participation in risky markets, particularly collateralized debt obligations (CDO's), which repackaged mortgages - notoriously sub-prime mortgages - for resale to investors. The expansion of this niche business was fueled by its profitability - fees were unusually high and, therefore, traders made million in bonuses - and the lack of oversight. Because of deregulation, there was no Federal oversight of the CDO marketplace. Financial industry supervision supposedly came from rating agencies, such as Moody's and Standard and Poor's, but they failed to exercise the required due diligence. So did internal auditors, such as Citigroup "risk managers;" who were impeded both by the Byzantine nature of CDO's and their perceived value as major earnings generators.

As the credit bubble grew, two pernicious moral propositions blinded top managers at Citigroup and other greedy banks to the ever-increasing probability of calamity: everyone else is doing it, so it must be okay and the ends justify the means . Over the course of the Bush Administration, the worldwide CDO market grew to near $500 Billion, resulting in gigantic executive bonuses and corporate earnings. Understandably, none of the participants was eager to jump off the gravy train.

Lurking behind this frenzied momentum was a naïve faith in the wisdom of the marketplace: the belief that whenever excesses occurred, the market would gracefully adjust. Recently, financier George Soros criticized "the prevailing theory of financial markets, which... holds that financial markets tend toward equilibrium and that deviations are random and can be attributed to external causes." He observed: "This theory has been used to justify the belief that the pursuit of self-interest should be given free rein."

The President of the United States has a dual responsibility to make key decisions and set a moral tone. By promoting a climate of unfettered self-interest, George Bush precipitated the current economic meltdown. American's eagerness for the onset of the Obama presidency indicates our need for a leader who will establish a public morality that emphasizes the common good.

Comments

[Michale32086]

@realpolitic

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I would say that Dr. Strangelove is a much better film with a good deal deal more wit and irony attached to it. In that film, you know, the president gives the Russians the coordinates to shoot down the American planes carrying nuclear bombs and one slips throw.
{{{{

Well, I didn't go into details. Yes, in the book, the US tries to help the Russians shoot down the aircraft. There is actually a really good subplot that explores those lines. But with a 250-word limit I had to be brief..

{{{{
Excuse me, but no, I do not see how your book or film is relevant to the discussion. Originally, I thought you were talking about a non-fictional work.
}}}}}

I would have thought you would have been able to grasp the meaning quite clearly... No matter, I will spell it out for you.

These types of "no win" scenarios were covered extensively in our ethics course at OCS. I doubt you would have the stomach for them, though....

The point is that sometimes illegal & horrible things must be done to serve the greater good.. I think you would agree with me that having the POTUS order the nuking of New York City would be pretty close to the top of the list of those illegal & horrible things..

It illustrates how sometimes illegal & horrible actions are the CORRECT actions to take, in order to prevent an even greater or more horrible tragedy.

Michale.....

[LeftRight]

BUT, you are talking about fiction, not reality! As soon as that happens in real life, THEN we can talk about the morality of such a situation!

In the meantime, the laws are still there, and no one, least of all you, has given me ANY reason to think that the laws shouldn't be followed!

[JNagarya]

Should laws be followed? Or should they be obeyed?

[realpolitic]

Well, there was a book called Jaws in which the huge fish was intent on eating people. Should we kill on the sharks and pay a $10,000 bounty on each? There was a film that showed global warming happening so quickly that a huge tidal wave hit New York and then I think the temperatures finally fell to frezzing, so should we toss all other priorities aside and concentrate on eliminating the burning of carbon-based fuels? Finally, I saw a movie where a meteorite is about to hit earth. Should we begin a space program to move to distant planets to plan for that event? You get the picture. Fictional works can create any scenario and that is why they are escapist fiction. Our constitution is not escapist. It is very concrete and it protects us. Let's respect and honor it.

[JNagarya]

"Jaws" was a cheap downsizing of "Moby Dick". It wasn't necessary, except that the movie-going audience doesn't read.

[ObjectiveRealist]

From his tax cuts for the rich, which Alan Greenspan should last no longer than the budget surplus, to the current shadow bailouts, Bush's economic policy has been redistribution of wealth to his patrons, the wealthiest corporatists in the world.

[
Lurking behind this frenzied momentum was a naïve faith in the wisdom of the marketplace: the belief that whenever excesses occurred, the market would gracefully adjust.
]

That was just the ad campaign, like the yellowcake from Nigeria and the meeting of Al Qaida and Iraqi government officials in Prague that war criminal Richard Bruce Cheney concocted from whole cloth.

[LeftRight]

@ Michale
}}}That's really a stretch..

The fact is, President Clinton said those words and meant them exactly as they were said. He was roundly castigated by Democrats for giving the GOP ammunition...

But I understand that you can't accept the reality.

Michale.....{{{

Since you haven't seen fit to respond, and I would like one, I will place this on the first page....

But you don't KNOW that he said those words and meant them in the way that they were shown to us. All that you know is that the words were spoken, but you don't have the context of the whole interview to CONFIRM what was meant!

And I'll grant you that my example was a stretch, it was meant to be one. BUT it DOES show how taking the words out of context can COMPLETELY change the meaning of the statement! ESPECIALLY when you are editing the audio!

[realpolitic]

Yes, even though at times Democrats may have stood in the way of greater regulation of Fannie and Freddie, and at other times Republicans stood in the way, the two mortgage giants had little to do with the financial collapse, although conservatives like to blame the entire responsibility on them. In fact, Freddie and Fannie portfolio consisted of a small proportion of subprime mortgages. The real culprits are the subprime lenders who were not regulated at all and the lack of regulation which led to increasing leveraging ratios to such a degree.

[LeftRight]

Considering that the former DEFINITION of a subprime loan was one that Freddie or Fannie wouldn't back.... Yeah, you are ENTIRELY correct! In fact, the only reason that they even had the 5% or so that they had at the beginning of the collapse is that the "CEO's" in charge of them wanted in, which was not allowed, so they found a few loopholes. Then suddenly as OTHERS started to collapse Fannie and Freddie were TOLD to take subprimes on! That's why they had around 30% when they failed!

[Michale32086]

CONT

Anyways, the book deals with a squadron that, due to mechanical failure, is sent into Russia on an attack run, even though the initial threat turned out to be false. The squadrons target? Moscow..

In the climax of the book, the POTUS makes an agonizing decision. The POTUS must assure Moscow that this was not an intentional act. To stave off WWIII, the POTUS makes a promise to the Soviet Premiere regarding what will happen if Moscow is destroyed..

One of the BUFFS makes it thru and Moscow is destroyed in a nuclear bombing attack..

The POTUS then orders the head of the Joint Chiefs, who is orbiting New York City in a B-52, to destroy New York City with nuclear bombs.

Do you see how all that is relevant to this discussion??

Michale......

[realpolitic]

It sounds like a crazy fantasy! I would say that Dr. Strangelove is a much better film with a good deal deal more wit and irony attached to it. In that film, you know, the president gives the Russians the coordinates to shoot down the American planes carrying nuclear bombs and one slips throw. At the end, as you know, Slim Pickens rides the nuclear bomb to oblivion. Excuse me, but no, I do not see how your book or film is relevant to the discussion. Originally, I thought you were talking about a non-fictional work.

[realpolitic]

Your question is sort of like asking is the series 24 relevant to a serious discussion about our torture policies. It most likely is not!

[LeftRight]

I have read the book, and while it is a tragic ending, it also doesn't equate to what you are saying. In fact, it more closely matches what *I'VE* been saying, about how it would be tragic, but worth it for hundreds or thousands of Americans to die in a terrorist act rather than to torture a person who may or may not be one of the terrorists!

BTW, the reason that I am just now saying that I've read it is that at the time I was also reading three or four books for school, and a couple more for recreation, just depended on where I sat down in the house.... Thanks for reminding me of it, I need to reread it!

[realpolitic]

Keep up the reading! That's great! I am trying to read Machiavelli's The Prince, but much of the language is lost on me. It is a good summary of the Bush regime.

[Michale32086]

@realpolitic

}}}}}}
Does it end with a terrorist carrying a nuclear bomb into Manhattan and Bush tackling him and them dismantling the bomb singlehandedly to save the day and preserve freedom?
{{{{{{{

I hesitate to tell you the ending in case someone hasn't read it...

However, since you apparently are not inclined to read anything that disrupts your myopic and bigoted view of things, I'll tell you about it..

*******SPO­ILER******­**
I am about to discuss the book FAIL SAFE, explaining what it is about and giving away the ending. For those who haven't read it (or seen the movies) and don't wish to have it spoiled for you, please do not read further..
*******SPO­ILER******­***

OK, Fail Safe is a novel written in the early 60s (I believe). Back in those days, any possible threat detected by NORAD resulted in squadrons of BUFFS (B-52s) being sent towards Russia. The squadrons would head to a point on the map and orbit until recalled or sent in.. These "positive control points" were also known as FAIL SAFE points, because a squadron would not proceed past this point unless specifically ordered to... As an aside, if you want to see an updated version of this activity, watch the movie BY DAWNS EARLY LIGHT.

CONT

[realpolitic]

But thanks for the description. If it comes on, I'll see it. Really I never heard of it and I like movies.

[dfranz]

It doesn't matter if Bush has the most expensive Presidential Library ever he will still go down as the most destructive and worst president ever, including Cooledge and Harding. Hey, SMU you want to reconsider?

[realpolitic]

What will be in his presidential library? Will it document his role in bringing about the second Great Depression, letting New Orleans residents wade in the water for a week without help after Hurricane Katrina, lying us into war, spying on American citiens, torture, or politicizing the Justice Department. His library should be called the Bush Hall of Shame!

[guitrman]

Excellent article Mr. Burnett. Very insightful. Even if GWB did not directly cause some of it he certainly encouraged the situations for it to happen. He encouraged it to happen. I'm not sure anyone in his administration has been held accountable for their actions.

I'll be glad when the trials for criminal negligence begin.

[Michale32086]

Again, read the book FAIL SAFE.....

Michale.....

[realpolitic]

Does it end with a terrorist carrying a nuclear bomb into Manhattan and Bush tackling him and them dismantling the bomb singlehandedly to save the day and preserve freedom?

[Michale32086]

@realpolitic

}}}}
I do not think it is against the law for law enforcement to exceed the speed limit in times of emergency. Sometimes it may be a better idea to call off a high speed chase in heavy traffic, as is the policy in several places now.
{{{{

So, what does that tell you if a law is made that allows one to break a different law??

That perhaps there are somethings that are more important than the law...

Michale......

[realpolitic]

We are a nation of laws. If someone decides there is something more important than the law, then he should be prepared to accept the consequences. There are always exceptions to laws that are still within the law. For instance, I can disobey the traffic lights if in a funeral procession, which I ordinarily can not do. You see!

Now not all laws are moral. At one time.blacks could not legally sit in a lunch counter in the south. It is an example os an immoral law. Now when laws are immoral we should do our best to change them, as Dr. King did. Tthe Bill of Rights underlies most of what we understand as our civil liberties. We are not supposed to be targeted by government unless suspected of a crime and then with a warrant. With the new laws like the issuance of National Security Letters by the FBI, government can collect vast amounts of information about us such as financial information, telephone records, emails without prior approval of a judge. There have been myriad abuses of these National Security Letters. "The abuses of the national security letters were brought to light by the Justice Department's office of inspector general, which found numerous violations of law and government regulations."

[LeftRight]

You are bringing up speed limits, which are specifically written with an exception allowed to emergency vehicles responding to an emergency, and then claiming that the exception WRITTEN INTO THOSE LAWS justifies bush ignoring the 1st through 10th Amendments and the treaties that the US has signed (which according to the Constitution are on an equal footing WITH the Constituti­on!)??????­?????????

[Anciano]

Not my interest. We're certainly not going to validate and approve of "his interest" by supporting the tail end of that lame duck. That's why we have taken a vow not to spend one cent on anything we don't have to buy such as food or gas until the Obama/Biden administration is sworn in. Bush’s so called rebates of our own future tax refunds and his pleas to go shopping show the importance of consumer spending to the legacy of Republican economics. Bush hijacked the country for the benefit of the wealthy for eight years. Let the wealthy keep the Bush consumer economy going for the next two months until the Republicans are flushed in disgrace. Learn about and patronize your smaller locally owned businesses and pay cash so it's under the radar of statistics. We're hoarding all our discretionary spending until the Obama Administration when the recovery can begin.

[USA2Sense]

Actually - never thought about what you said - I ALSO WILL VOW NOT TO SPEND ONE CENT ON ANYTHING I DON'T HAVE TO BUY - EXCEPT FOOD AND GAS - UNTIL THE NEW ADMINISTRATION IS SWORN IN........­.....THANK YOU FOR THE IDEA.........

ALL OF YOU OUT THERE WHO READ THIS - JOIN US!!!!!!!!!!!!!!!

Learn about and patronize your smaller locally owned businesses and pay cash so it's under the radar of statistics. We're hoarding all our discretionary spending until the Obama Administration when the recovery can begin.......THANK YOU.......

[Michale32086]

@LeftRight

}}}}
According to your definition, Capt Burge was RIGHT for torturing all those people, even though he illegally imprisoned many innocent people! By my definition, and the definition of the Constitution, he should be currently sitting in jail, and stay there for the rest of his life.
{{{{

I would have to know the specifics of the case before I could comment. I am sure you will agree that there are 2 sides to every story and I just heard yours..

I'll get back to you.

Michale......

[realpolitic]

Captain Burge in Chicago tortured a number of citizens to extract confessions for crimes most of them did not commit.

"Many officers and detectives actually have come forward to support the victims of Jon Burge’s reign of terror. For instance, in a 2004 statement, retired officer Doris M. Byrd affirmed the existence of torturous techniques at Area 2. She testified:

Examiner: “…when this black box and the phone book and the bags that you were told about, was this -- would it be fair to say that it was somewhat of an open secret up at Area 2 that this kind of stuff was going on?”"

Byrd: “Yes"

Examiner: “…What [is] your belief about what would have happened if you had come forward and rocked the boat with regard to what you know and what you had heard about police torture and about Burge and the A-team?”

Byrd: “Well, first of all, we would have been frozen out of the police system. We would have been ostracized. We definitely wouldn’t have made rank. We probably would have been stuck in some do-nothing assignment.”

http://humanrights.uchicago.edu/chicagotorture/faqs.shtml

Chicago has been forced to pay millions for his legal defense. Additionally, they have paid millions to victims in civil suits brought against Burge. Thus, he has victimized the community twice. Once by extracting confessions by torture for crimes people most likely did not commit and secondly by making the public pay for his legal defense. .

[Michale32086]

@LeftRight

}}}}
Michale, I can say this honestly, and I wish that you could see it. Even though it costs my life or that of everyone that I know, love, and respect, YES, I would rather see the laws obeyed.
{{{{

Well then we simply have a fundamental difference of opinion on the value of life.

I place the ultimate value on innocent lives.

You place the ultimate value on your principles.

}}}}
The fact of the matter is that when the laws are not obeyed, we ALL become a little less. Especially when they are the supreme laws of the land!
{{{{

But whose land?? Will you obey Iranian "law" if you are ever in Iran. What about the "law" in Afghanistan that allows innocent women to be brutally murdered?

Laws are made by man and hence, are fallible.

To worship at the almighty altar of the Law opens up a whole can of moral worms that I think you would have trouble digesting.

}}}}
And it's STILL better for 1000 guilty men to go free than for one innocent man to be wrongly imprisoned!
{{{{

Not if any number of those 1000 men could be responsible for the deaths of millions of innocent men, women and children... Not even close..

Michale.....

[Michale32086]

The fact that your emphasis is different than mine was not meant to be an insult, even though it appeared to come out that way.

I respect your devotion to your principles. While I feel you are taking to extremes, it's an honorable trait..

Michale......

[LeftRight]

And I can understand your value of human life, I just wish that you would extend it to ALL human life, not just Americans!

[realpolitic]

Principles are fine. The constitution and Bill of Rights is what protects us and not President Bush. Who protects us from Bush? If he argues the terrorists hate us for our freedoms, then the response is to take away these freedoms to better fight the terrorists. I think the reasoning is alittle insane.

[LeftRight]

Of course I will not consider Iranian law as the supreme law of the land in America. If I ever visit Iran I will treat their laws with the same respect that I treat American laws. Maybe a little more, since I REALLY don't want to get arrested there. But here in the land of the free and the home of the brave, the laws specifically state that we do NOT consider someone guilty until they have been PROVEN guilty in a court of law, we do not allow punishment for crimes that are not committed, we do not allow torture.

And yes, you are right, laws are made by men and are therefore fallible, but when those laws place a high value on human life (not just SAVING it, but ensuring that it's a good life) the chances are that it's a good law. On the other hand, laws such as FISA, while potentially needed, are more likely to be bad laws!

And once again, until such time as that one person who kills millions of Americans does so, it's NOT acceptable to jail them! ONE innocent man being wrongly imprisoned is worth that much! Now then, if you can actually go before a court and show reasonable evidence that the one person is LIKELY to commit a crime, then you can jail them, and that's FINE! Conspiracy to commit a crime is often considered as bad as actually COMMITTING the crime!

[realpolitic]

If you are in Iran, then you would have to obey Iranian law or you may be arrested. Do you often go to foreign countries and disobey their laws? I would suggest it is not a good idea. Many of the jails abroad are very brutal places and the justice systems may be beyond our comprehension.

[bioluminescence]

Bush stands for banks. It is curious that two generatios of Bush presidents have presided over banking collapses. De-regulation of S&L's initiated by Reagan and continued by senior Bush led to the $1.2 trillion dollar collapse of that sector. Some call it the largest theft in history. Ask Jeb Bush what he things. He and his partners defaulted on a $4 plus million loan from a Florida S&L to buy an office building only to buy that building for $500,000 when the S&L went belly-up. Taxpayers picked up the rest of the tab. And fast forward to today, junior Bush presides over a $700 billion bail-out of the banking system with Citicorp waiting, hands-out, in the wings.

You do the math. There have been 43 Presidents of the U. S. Two presidents named Bush. $2 trillion in public bail-outs of the banking system. The total national debt is a little more than $10 trillion. Two Bush presidencies presided over 20 per cent of the total.

How scary a number is a trillion? Well, 10 million seconds is 120 days. 10 billion seconds is 320 years. 10 trillion seconds is 320,000 years. Look it up.

[Peter007]

I understand your anger. Image is everything. I don't think either Bush president anticipated the financial crisis they managed. Maybe that's the problem. Failure to anticipate. I blame the system or type of government we have. We all voted for it and now we have it. Since going off the Gold standard in the 30's we now how to rely on the soundness of our financial markets to back our dollar. Its a federal reserve NOTE. Whats the value of that.? Also, all the banks and mortgage companies were heavily regulated. That news is out this morning. The trouble was, the regulators didn't think that the loans were that risky. Banks and many financial institutions have multiple levels of regulators they have to report to. Adding another layer could cause more harm than good.

[DS3M]

four words

Federal Reserve Banking System

[bioluminescence]

Sentiment aside, the facts speak for themselves. About 25 years of Reagan (R), Senior Bush (R), Clinton (D) and Junior Bush (R) and supply side economics, the so-called trickle down theory have clearly shown that prosperity doesn't flow down, it flows up during good times and bad times. Washington's own statistics show that during that the top quintile of income earners in the U. S. have captured a greater share of all income in the U. S. from about 42 per cent to more than 50 per cent today. Aren't you at all curious about the fact that all unforeseen circumstances seem to favor
the wealthy at the expense of the middle and lower wage earners? Just a coincidence that most of those administrations have been Republican?

When a plane crashes we don't just say, let's forget about finding fault. We don't say if there were errors in judgment, let's forget about them.

No. We say, we're going to go through the wreckage and find out how and why this happened. Even if it takes years.

Why on earth would anyone suggest doing less with a crash of America's financial institutions?

[moonflowerjewelry]

i say, lets all stop playing the blame game and take responsibility. last week we were all blaming the media for advertising at us. lots of us lefties forget our core values in the face of a made in china sale at the dollar store. taking responsibility for individual choices is absolutely not easy. how many walmart black friday stompers have come forward and said yup i was there, take me to jail? but i'll bet they are blaming somebody else for their greed and callous indifference.
its time to ask ourselves "how can I make it better?"

[USAFree1]

Business interests can see no future beyone the next quarter. It's no wonder the BIG 3 automakers are in the ditch as is the rest of our economy. Gimme, gimme, gimme. This really has been trickle down. That is trickle down lack of moral clarity. And least we forget, it's not just us; it's the whole world that spinning out of control. Sorta makes one feel like we're in a car going faster and faster and faster with no brakes. Out of control. Control? Wha'ts control mean? 'Nuff said.