I think the President that needs to answer questions is Bush.
Some important facts to remember regarding the start of the financial crises:
• Dow Jones dropped over 5500 point over the past year (2007)
• Bear Stearns & Lehman Brothers had melted down
• Unprecedented some of money was being poured into AIG to keep it afloat
• The value of peoples 401K’s lost over a third of their value (2.8 trillion dollars between September 2007 and December 2008)
• Foreclosures - 2.3 million properties received filings in 2008 alone (81 percent increase from 2007 and 225 percent increase from the year before that)
These all took place during Bush’s administration. You also have to remember when all this was boiling, McCain came out and told everyone; “The fundamentals of the economy are strong.” This was shortly before everything went to hell…
However, honestly it was everyone’s fault. The “Boom in building” you describe was due to the relax standards in lending. Not because builders just started to arbitrarily building or the government just wanted to start helping poor people?
Let me over simplify, but the problem was complex. After 911, the amount of attention paid by government regulators was reduce in this industries so that resources could be allocated elsewhere. Little attention was given to those banks that conducted predatory lending. Hence, real estate started raising at alarming rates. But we just credit that to a “good economy” even though we didn’t have the GDP to back it up. Banks & Lenders decided to packages these loans in securities like CDO (collateralized debt obligation) and started selling them to Wall Street. All the while the credit ratings bureaus was granting “AAA” ratings on all the bonds insuring that they were enticing to investors.
After the bubble exploded, President Bush signs in October 2008, a bill creating CPP (Capital Purchase Program) so that your friends on Wall Street can have a safety net at your expense. Congress at the time considered the package “too generous” because they contain little in regards to how the money can be used. If you remember that even with the bailout, borrowers found it hard to get a loan because banks were not lending. Instead, they were buying other banks.
I can go on, many of my of my clients work in the financial sector…