It is a well known fact that Republicans have been in office during all three stock market crashes, President Herbert Hoover in 1929, who had easily won the republican nomination in 1928 (The White House), Ronald Regan during the crash of 1987 where the market lost twenty-two percent and costing investors five hundred billion dollars (Unknown), and George W. Bush in the week long crash in October, 2008 from where we are still trying to dig ourselves out.
Deregulation is a policy of the Republican Party. Herbert Hoover, in his final 1932 campaign speech stated; “We are part of a world, the disturbance of whose remotest population affects our own financial system, our markets, our employment, and the prices of our farm products. And we have many problems of our own growing out of the Great War--the inflation of values during the war and the stupendous increase of our debt, the failure of foreign countries to respond to their debt obligations to us. Finally, with the desperate crisis abroad, the whole world scrambled to convert their property into gold and thus withdrew from us suddenly over $2,400 million of exchange and gold. These fears spreading to our own citizens caused them to withdraw $1,600 million in currency from circulation. The effect of this was to withdraw vast sums of gold from our own use, as we must protect the gold convertibility of our currency, with further repercussions of credit stringency, unemployment, and dropping prices.” (Woolley).
A few days after the Supreme Court made George W. Bush president in 2000, Texas senator Phil Gramm stuck a deal called the Commodity Futures Modernization Act into the budget bill. This act was designed to keep regulators from controlling new financial tools described as credit "swaps." These were instruments like sub-prime mortgages bundled up and sold as securities. Under the Gramm law, neither the SEC nor