TWO PRESIDENTS 

December 1, 2008

The economic crisis in the United States is so huge that one president isn't enough to handle it. It needs two. 
After winning the election, Barack Obama tried to be diplomatic and said that in the United States we had only one president at a time. George W. Bush appreciated the gesture and quickly invited him and his wife, Michelle, to the White House. 
But the economic crisis kept growing exponentially and Bush, once again, could not deal with it alone. The Dow dropped below 8,000 points. And several pivotal companies that are the backbone of the nation -- AIG, Citigroup, Ford, General Motors and Chrysler -- had slipped precariously close to the edge of doom. 
What seems unbelievable and outrageous is that the CEOs of some of these companies were so clever in making multimillions for themselves but so stupid when it came to doing the same for their businesses. This is a crisis that had been in the making for years and nobody saw it coming. 
Bush, meanwhile, was leading the country in the dark. His administration has been characterized by its almost total lack of financial oversight. The Bush administration's message to Wall Street was absolutely clear: Do whatever you want, because we're not watching. And so, investment instruments were invented based on mortgage loans doomed to fail. The festivities went on until it came time to pay up. 
When John and Sandra couldn't pay the bank their monthly mortgage premiums for the big house they had bought, a crisis began to unfold. After John and Sandra, the same happened to Alberto and Alejandra. Then, little by little, investment instruments few people understand -- based on the mistaken assumption that John, Sandra, Alberto and Alejandra were going to pay their mortgages -- began to evaporate. It was a serious mistake. And the resulting house of cards collapsed. 
More than 3 million people have lost their homes. More than 7 million owe their banks more than their homes are currently worth. This year, more than 1 million people have lost their jobs. Many more will follow. And the truth is that Bush doesn't seem to know what to do. All he wants is to run back to his Texas ranch. 
Well, his short-term solution to fix the problem has been to throw money in all directions. It reminds me of those arrogant, complaisant dads who, when their sons get into trouble with the law, appear at the police station with checkbook in hand to free their offspring. 
Bush's formula for the bailout is quite simple. Did you lose money? Don't worry. I will give it to you. Or I will lend it to you and then somehow you'll find a way to pay me back. The problem is that Bush's bailout plan doesn't address the source of the crisis or directly help the people losing their homes. And in the same way that insurance company AIG and Citigroup have been on the verge of going under, other companies, big and small, run the risk of following down the same dark road. 
However, the gravest thing is that Bush is spending literally tons of money as if it were his own. In fact, it belongs to everyone in the United States who pays taxes. Not only that. He is leaving behind a huge debt for our children's children. When he can't figure out where to get more funds, he starts printing more green backs as though they were simply paper. His legacy is papered with mistakes. 
Bush won congressional approval to spend the staggering amount of $700 billion for the financial bailout, and it didn't work. Then he said he would spend another $800 billion more (for loans and small business) and it is still doubtful that it will be enough. That was the point when Obama came to the rescue. 
Even if he said he didn't want there to be two presidents presiding at the same time, Obama had to step onto the stage. If he waited till January, he might inherit a country in pieces. 
It is not that Obama is some kind of prophet or magician, but he does have a special knack for political timing. He proved that during the presidential campaign when he beat Hillary Clinton and John McCain, and he has done it again in this financial crisis. 
Obama told us, in three consecutive press conferences, what he will do when he takes office, and he presented us with financial experts who know much more than he does and who will help him get us out of this mess. What Obama sold us was trust. 
And only then did the financial markets settle down. People listened and believed him. 
Credibility. That is what Obama has and Bush hasn't. How could anyone believe Bush after he invented a war saying there were weapons of mass destruction in Iraq that never appeared? How could anyone believe Bush when he insists his administration doesn't condone torture and then we see pictures of abuses at Abu Ghraib prison? How can we believe Bush when he allowed New Orleans to drown? 
For many Americans it is impossible now to believe a single word uttered by the most unpopular president in modern U.S. history. That's why, even if Obama isn't sworn in until Jan. 20, this country has today two presidents, acting and making decisions in tandem. 
And we need two, because one of them is almost useless.