But is the Fed to blame?

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superchase's picture
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Joined: Jul 14 2008
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But is the Fed to blame?

Maybe the real culprit is none other than the Bush Administration. Perhaps the Fed's measures had a lot to be desired, but maybe they were only reacting to a very poor set of fiscal policies by that administration. Bush primed pumped the American economy with debt, lax lending policies, unrealistic tax cuts and budget projections. So really, what was the Fed supposed to do? Just do its best to react to whatever those controlling the finances and treasury were doing. In that case, it was Bush and his cronies. Not even John McCain initially backed the Bush tax cuts. As well, Alan Greenspan warned about what he called 'irrational exhuberance'. It's quite apparent he knew what was going on, but with a bad leader like Bush, what could Greenspan, a Republican himself, do about it?

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