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Decision Points by George W. Bush - Excerpt
Decision Points by George W. Bush - Excerpt
Decision Points by George W. Bush - Excerpt
Decision Points
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FINANCIAL CRISIS
financial stocks. “These are dramatic steps,” Hank said, “but America’s
financial system is at stake.”
He outlined a n e ven bolder proposal. “We need broad authority to
buy mortgage-backed securities,” he said. Those complex financial assets
had l ost va lue wh en t he housing bubble burst, i mperiling t he ba lance
sheets of financial firms around the world. Hank recommended that we
ask Congress for hundreds of billions to buy up t hese toxic assets a nd
restore confidence in the banking system.
“Is this the worst crisis since the Great Depression?” I asked.
“Yes,” Ben replied. “In terms of the financial system, we have not seen
anything like this since the 1930s, and it could get worse.”
His answer clarified the decision I faced: Did I wa nt to be t he presi-
dent overseeing an economic calamity that could be worse than the
Great Depression?
I was furious the situation had reached this point. A relatively small
group of people—many on Wall Street, some not—had gambled that the
housing market would keep booming forever. It didn’t. In a normal envi-
ronment, the free market would render its judgment and they could fail.
I would have been happy to let them do so.
But t his wa s n ot a n ormal e nvironment. The ma rket had cea sed
to f unction. A nd a s Ben had ex plained, t he consequences of i naction
would be catastrophic. As unfair as it was to use the American people’s
money to prevent a collapse for which they weren’t responsible, it would
be even more unfair to do nothing and leave them to suffer the conse-
quences.
“Get to work,” I said, approving Hank’s plan in full. “We are going to
solve this.”
I adjourned the meeting and walked across the hallway to the Oval
Office. Josh B olten, C ounselor E d Gillespie, a nd Da na Perino, my t al-
ented and effective press secretary, followed me in. Ben’s historical com-
parison was still echoing in my mind.
“If we’re really looking at another Great Depression,” I said, “you can
be damn sure I’m going to be Roosevelt, not Hoover.”