The 2008 Bush Bailouts — Republican Socialism!

by Ben Hoffman

No, not that stimulus. I’m talking about the Bush 1.632 trillion dollars in bailouts that occurred between March 2008 and October 2008.

March 2008
New York Fed took control of a $30 billion portfolio of assets through a limited liability company formed to manage the assets. J.P. Morgan Chase will bear the first $1 billion of any losses associated with the portfolio, and any gains will accrue to the New York Fed. Source

OMG! That’s socialism!!!

May 2008: Stimulus checks and tax cuts
$178 Billion Stimulus Package
The U.S. Treasury provided an economic stimulus package to American taxpayers in the form of $600 economic stimulus checks for individuals and $1,200 economic stimulus payments for couples. That cost the government $100 billion, and they threw in another $68 billion in tax breaks for businesses, $8 billion to increase unemployment benefits from 26 weeks to 39 weeks, and a $4 billion economic stimulus package to be doled out to states and local municipalities to buy and rehab foreclosed properties.

July 2008: Housing and Economic Recovery Act of 2008
It authorizes the Federal Housing Administration to guarantee up to $300 billion in new 30-year fixed rate mortgages for sub-prime borrowers if lenders write-down principal loan balances to 90 percent of current appraisal value. It also provided tax credits for first-time home buyers, who could be eligible to receive up to a $7,500 tax credit.

OMG! They’re helping people buy homes they can’t afford!!!

September 2008
$200 Billion Stimulus Package – Fannie Mae and Freddie Mac Bailout
Fannie Mae and Freddie Mac (privately owned mortgage companies that are backed by the federal government) were about to fail, due to declining house prices and rising foreclosures. The Bush Administration stepped in with a $200 billion economic stimulus package and placed Fannie Mae and Freddie Mac and their $5 trillion in home loans in “temporary conservatorship,” to be supervised by the Federal Housing Finance Agency.

September 2008
$50 Billion Stimulus Package To Guarantee Money Market Funds
When the economic crisis reached a crescendo, Americans began to pull their money out of money market funds – historically considered to be the safest investment. To stop the bloodshed, the U.S. Treasury agreed to guarantee up to $50 billion, for up to a year.

September 2008
$25 Billion Stimulus Package – Automakers Bailout
In an attempt to stave off bankruptcies for the “Big 3 automakers,” the Bush Administration gave General Motors, Ford, and Chrysler $25 billion in low-interest loans.

September – November 2008
$150 Billion Stimulus Package – AIG Bailout
With the world’s largest insurance company in dire straits and 74 million clients at risk, the American government chipped in and gave AIG (American Insurance Group) $150 billion in a stimulus package that included: loans, purchase of toxic assets, and purchase of preferred shares.

October 2008
$700 Billion Stimulus Package – Banks Bailout
The Bush Administration, under the umbrella of the U.S. Treasury, committed $700 billion in economic stimulus money under TARP (Troubled Asset Relief Program). By many accounts, if this economic stimulus money hadn’t been injected, credit between banks would have frozen overnight, and not only the American economy, but also the global economy, would have seized up.

Source

At least the Obama stimulus helped our economy and improved our infrastructure. With the exception of the stimulus check gimmick and the bailout of Fannie and Freddie, the Bush bailouts pretty much just helped corporations.

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14 Responses to “The 2008 Bush Bailouts — Republican Socialism!”

  1. I’ll assume your figures are correct. In any case I was opposed to government bailouts under Bush. I was opposed to government bailouts under Obama.

    Were you opposed to Bush’s bailouts? Were you opposed to Obama’s bailouts?

    • [Were you opposed to Bush’s bailouts? Were you opposed to Obama’s bailouts?]

      The GM bailout was handled correctly. GM had to go into Chapter 11 reorganization. The banks were just handed money with no oversight.

  2. The figures you posted as being George W Bush’s bailouts were from a Democratic Party controlled Congress.

    The Obama stimulus is a joke at best. I am not regurgitating what I hear on the news, I am looking around my state. The projects that received “stimulus” money were already underway, so it appears that they were refinanced – not new projects at all.

    Live in your world, but you have to see the facts that Bush, no matter how bad you hate the guy, was not in control of anything in 2008. Great post, though, I find your facts interesting.

    • [The figures you posted as being George W Bush’s bailouts were from a Democratic Party controlled Congress.]

      What originated in Congress were bipartisan bills and Bush signed them. Most of it was the action of the Fed and the Treasury, which is Bush’s responsibility.

      [The Obama stimulus is a joke at best.]

      Sure, you right-wingers hate it because it has made our country better.

  3. So you honestly think that I want our country worse off? Really? You did make a fine point about George W Bush; those were bipartisan efforts, a fact you left out in your original posting and your response to my blog. All you say is George W Bush’s bills, nothing about bipartisanship. I find that interesting that you blame Bush for everything until you are confronted, then make childish stabs to deter from the original theme. I’m sure that works against political thinking grade school aged children.

    Always jokes and personal stabs instead of facts and justifications. Liberals are all the same. You actually sound like mega-lez Rachel Maddow now with your “Sure, you right-wingers hate it because it has made our country better” comment.

    Quit using talking points and defend your position. It is quite tiring attempting to get legitimate information from those who simply repeat pundits instead of doing research themselves.

    This does not make sense: “What originated in Congress were bipartisan bills and Bush signed them. Most of it was the action of the Fed and the Treasury, which is Bush’s responsibility”

    Are you suggesting the Fed and the Treasury under Bush’s supreme lawful guidance spent money without Congressional oversight or approval? If that is so, then what exactly was Congress doing involved at all?

    I personally think they should have let the house crumble, and pick up the cards once it finished. No bailouts, no stimulus, no nothing, Sink or swim. But then again, if you think that way, welfare would not exist – a program I trust you intimately defend. I get no help from anyone, and pay taxes to the higher power who ultimately spends that money as it sees fit – just like you. Stimulus (all of them) are a joke and never should have happened.

    • [I find that interesting that you blame Bush for everything until you are confronted, then make childish stabs to deter from the original theme.]

      Actually, that’s not true, but you right-wingers want to blame Obama for everything. And you complain about the spending, but the Republicans are just as responsible.

      That was my point.

      [Stimulus (all of them) are a joke and never should have happened.]

      The problem with the Obama stimulus is it had to be watered down to garner a few Republican (and conservadem) votes. 1/3 of the it was tax cuts. Had that been spent on worthy projects instead, we would have gotten more bang for the buck.

  4. Who passes actual legislation, The President or the Congress?
    And who was in control of the Congress in 2008?
    Hmmm…

  5. Ben Hoffman…The GM bailout was only handled correctly once Obama took over. Bush failed to act immediately to put the company into Chapter 11, which meant that everything given to them in the interim disappeared down the rabbit hole.

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