The Blame Game

Who Does Bush blame for the financial crisis? Here is an extract from Bush's speech on Wednesday 9/24. (courtesy the White House website).

"Well, most economists agree that the problems we are witnessing today developed over a long period of time. For more than a decade, a massive amount of money flowed into the United States from investors abroad, because our country is an attractive and secure place to do business. This large influx of money to U.S. banks and financial institutions -- along with low interest rates -- made it easier for Americans to get credit. These developments allowed more families to borrow money for cars and homes and college tuition -- some for the first time. They allowed more entrepreneurs to get loans to start new businesses and create jobs.

Unfortunately, there were also some serious negative consequences, particularly in the housing market. Easy credit -- combined with the faulty assumption that home values would continue to rise -- led to excesses and bad decisions. Many mortgage lenders approved loans for borrowers without carefully examining their ability to pay. Many borrowers took out loans larger than they could afford, assuming that they could sell or refinance their homes at a higher price later on.

Optimism about housing values also led to a boom in home construction. ..."

Ah, It is the fault of the foreigners who gave us the money when we wanted it...

To which the German Finance Minister Peer Steinbrückgave a sharp reply, outlined in the NYT article, Germans Receive Bush Speech Coldly. “Investment bankers and politicians in New York, Washington and London were not willing to give these up,” he said. “The financial market crisis is above all an American problem.”

The long-term consequences, Mr. Steinbrück added, could be serious for the United States. “The U.S. will lose its status as the superpower of the world financial system,” he told the Bundestag. “The world financial system will become multipolar.”

The United States of America has benefited greatly from the Globalization of Capital, and blaming others for one's lack of moral fiber is par for the course for people who claim to live on faith.