Recently, former President George W. Bush defended his decision to approve the $700 billion bailout that helped General Motors and Chrysler Group pass the 2008 U.S. financial crisis.
He also declared that his decision was influenced by Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, who advised him that lack of action would mean a full-fledged depression.
“I’d do it again. I didn’t want there to be 21 percent unemployment. If you make a bad decision, you ought to pay. Sometimes, circumstances get in the way of philosophy,” declared Bush.
In December 2008, in the closing weeks of Bush’s presidency, the former President decided to afford a $17.4 billion bailout for Chrysler and GM, from the $700 billion fund for failing banks (Troubled Asset Relief Program). Obama administration raised the sum to $62 billion.
His decision was criticized by the Republican Party members, who considered that it was wrong to rescue the automakers and that this contributed to the national deficit.
“They needed to move into a managed bankruptcy process rather than getting money up front by President Bush or President Obama,” Romney said.
“They wasted a lot of money.”
“I didn’t want to saddle my successor with an additional economic crisis,” Bush said, extending the loan long enough for Obama “to get his team on the ground and deal with it.”