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Gene Frenkle's avatar

In Bush’s defense the proximate cause of the Subprime Mortgage Crisis was elevated CPI from 2005-2008 due to an energy crisis. The elevated CPI eroded lower income household spending power and subprime mortgage defaults were a leading indicator of larger economic dysfunction. So Bush invaded Iraq in order to liberate their oil from Saddam’s mismanagement and an optimally performing Iraqi oil industry would have added enough supply to keep the oil price low during the China Shock commodity super cycle. Lower energy prices would have resulted in CPI closer to 2% which would not have eroded household income to the degree 5.6% CPI peak did leading up to July 2008.

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