The Bush Era Has Been an Eight-Year-Long Madoff-Style Ripoff

By Frank Rich, The New York Times. Posted January 12, 2009.

The last is not a rhetorical question. While our new president indeed must move on and address the urgent crises that cannot wait, Bush administration malfeasance can’t be merely forgotten or finessed. A new Justice Department must enforce the law; Congress must press outstanding subpoenas to smoke out potential criminal activity; every legal effort must be made to stop what seems like a wholesale effort by the outgoing White House to withhold, hide and possibly destroy huge chunks of its electronic and paper trail. As Johnsen wrote last March, we must also “resist Bush administration efforts to hide evidence of its wrongdoing through demands for retroactive immunity, assertions of state privilege, and implausible claims that openness will empower terrorists.”

As if to anticipate the current debate, she added that “we must avoid any temptation simply to move on,” because the national honor cannot be restored “without full disclosure.” She was talking about America regaining its international reputation in the aftermath of our government’s descent into the dark side of torture and “extraordinary rendition.” But I would add that we need full disclosure of the more prosaic governmental corruption of the Bush years, too, for pragmatic domestic reasons. To make the policy decisions ahead of us in the economic meltdown, we must know what went wrong along the way in the executive and legislative branches alike.

As the financial historian Ron Chernow wrote in the Times last week, we could desperately use a Ferdinand Pecora, the investigator who illuminated the history of the 1929 meltdown in Senate hearings on the eve of the New Deal. The terrain to be mined would include not just the usual Wall Street suspects and their Congressional and regulatory enablers but also the Department of Housing and Urban Development, a strangely neglected ground zero in the foreclosure meltdown. The department’s secretary, Alphonso Jackson, resigned in March amid still-unresolved investigations over whether he enriched himself and friends with government contracts.

The tentative and amorphous $800 billion stimulus proposed by Obama last week sounds like a lot, but it’s a drop in the bucket when set against the damage it must help counteract: more than $10 trillion in new debt and new obligations piled up by the Bush administration in eight years, as calculated by the economists Linda J. Bilmes and Joseph E. Stiglitz in the current Harper’s Magazine.

If Bernie Madoff, at least, can still revive what remains of our deadened capacity for outrage, so can those who pulled off Washington’s Ponzi schemes. The more we learn about where all the bodies and billions were buried on our path to ruin, the easier it may be for our new president to make the case for a bold, whatever-it-takes New Deal.

© 2008 The New York Times

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