The Bush/Obama Experience with Congressional Leaders

Posted by Terri McCormick On November - 21 - 2013

WallStreetAs you may recall, President George W. Bush’s final days in office in 2008 were marked by a burgeoning banking crisis, caused in large part by the collapse of the real estate and housing market, which led to record foreclosures and bankruptcies, which further broke the banking industry, which had overleveraged and overvalued homes, and gave what some consider unethical home loans on balloon payments to people who could not afford them.

This led to the collapse of Wall Street, due to the fact that stocks and bonds were tied to home values and the housing markets. The inflated valuations of homes that led to the silent hyperinflation of prices and relative commissions would all come back to bite the banking industry and Wall Street as they depended on home sales, home builds and the values of homes to continue to go up and up, despite people’s inability to pay for these things.

The banking industry, as of this writing, has tightened all capital (paying only its own debts) to the point that small businesses and manufacturers in America don’t have access to the capital they need to run their businesses, which then collapsed many small businesses as well as hitting large businesses wired into the same supply chain in the American economy. There were 71,400 job losses reported on one day: January 26, 2009.

What is the impact of this domino effect? Take a look at the policies below.


The policy answers that the Bush administration presented were denial, silence and then a $700 billion blind stimulus package, with no details provided to the U.S. Congress. Congress was given just days to pass this package for fear that the collapse of Wall Street was imminent. Half of the monies—$350 billion—was released to members of the banking community. No explanation, no transparency and no discussion or debate was offered on this massive stimulus. In fact, the stimulus package proposal appeared in the middle of the 2008 presidential campaign in October.


John McCain, 2008 Republican candidate for president, halted his campaign to fly back to Washington, pledging that he would get the votes needed to get the $700 billion Republican stimulus passed. The Republican leadership, now in the minority, continued to support their president’s policies. Republican leaders, while in the majority from 1996 to 2006, had a history of record spending and record earmarks. Democrats in 2008 and 2009 became the guardians of the purse, calling for transparency and accountability for the 2008 President Bush stimulus package.

The monies went to AIG, Citicorp, Wells Fargo and others in the banking industry. The American people were increasingly dissatisfied with this “taxpayer bailout,” due to the fact that people were losing their jobs, losing their homes and still didn’t see an end to the economic crisis. To make matters even more controversial, scandals broke that exposed excesses within the very industry being bailed out. AIG was caught using its bailout money on a luxury getaway for its executives. Citicorp was ready to buy a $50 million corporate jet, the exact amount of its bailout check. “Where is my bailout money?” was the response from middle America. Demonstrations broke out from Republicanleaning constituents in the form of “Taxpayer Tea Party” revolts.

Now turn the dial forward on the clock one month….To continue reading this book, get your copy of “What Sex is a Republican” in paperback or Kindle edition on Amazon.

About the Author:

Terri McCormick is an author, policy expert, educator, and former state representative to the Wisconsin State Legislature. Today, she offers her expertise in public and government relations through McCormick Dawson CPG Ltd., a trusted consultancy of independent contractors.

Ms. McCormick serves as president and CEO of the company, drawing from more than two decades of professional experience, a strong educational foundation, a host of industry-related publications, and a multitude of accolades, awards and formal recognitions. Holding a Master of Arts in administrative leadership from Marian University, and a Bachelor of Science in political science and public administration from the University of Wisconsin, Ms. McCormick received both degrees with high honors.

“What Sex is a Republican?” is sold on Amazon in both the paperback edition as well as Kindle editionRead reviews on Amazon here.

Terri McCormick honored for excellence in government relations by Cambridge's Who's Who industry experts