We recently wrote that the economy was juiced by the housing market , because the housing market was left to operate with little on no regulation on purpose to stimulate the econony. Why would the Bush Administration juice the economy?

The reason the Bush wanted to stimulate the economy was to cover up the impact of the cost of the Iraq War. The Bush administration juiced the economy with loose with mortgage lending to keep the economy strong during the Iraq War. The Iraq War has cost the taxpayers of the United States more than $650,000 billion. Congressman John Yarmouth stated that the economy was linked to the cost of war. It’s not logical to believe that the United States can wage a war and spend in excess of $650,000 billion and it would not have a negative impact on the economy.

This will be the first war that the United States whas fought and the citizens did not have to suffer. That doesn’t make sense. While the war was being and fought and paid for, the economy seemed to be strong. Citizens were seeing increasing home values. For many households, the increasing net worth resulted in increased credit card spending. Over all, things seemed to be pretty good. Until . . . . it all came crashing down, because the economy was strung out on the steroids of loose mortgage lending practices.

The economy was juiced with the loose mortgage lending practices with little or no regulatory oversight, because this kept the economy strong during war time. It’s totally ridiculous to wage a war and lower taxes at the same time. Something had to be done to strengthen the economy during the war. The solution was to let the housing market boil over with loose lending practices. Of course, the Bush administration did not expect that the economy would hit bottom and not be able to go any lower.

Just as a drug addict must hit bottom before they will admit they are not in control of their drug use and seek help, the Bush administration has hit bottom with the economy and now has admitted that they need help. The $700 billion bailout is the help and add this to the $650,000 spent on the Iraq War and this is the true cost of the war.

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