If I had to pick the POTUS most to blame, I would pick Reagan. I have a column already written that explains the problem in broad strokes and sets out the non-Bush part of the blame. However, Bush is absolutely responsible for moving anti-trust enforcement from Justice to Commerce and appointing people to the SEC and the CFTC who did not believe in the regulatory mission. This led directly to the non-enforcement of the naked short rule and the repeal of the uptick rule and a failure in the CFTC to privilege the users of commodities over the speculators. Bush is absitively, posolutely the individual who made the immediate decisions that caused this particular crash. However, it's fair to say it was Reagan who set up the philosophy that "government is the problem" and began undoing the New Deal securities regs that had served us so well all these years.
Wednesday, October 26, 2011 - 22:47