Before Dems Try to Get Cuomo to the White House, They Might Remember He Caused the Last Recession

Governor Andrew Cuomo had his eye on the White House a decade ago. And he seemed to be off to a good start.

The former Clinton administration member got his daddy's old job in Albany through a legendary stealth campaign against a blind black governor, waged covertly through the media, and by the time the job was done, the media was begging Cuomo to take the job.

But, oddly, Cuomo seemed to have forgotten that the governorship is a thankless job and not a path to the White House.

New York governors have limited executive authority, a lot of headaches, and very little positive feedback. Cuomo's main selling point was that, unlike his predecessors, he didn't melt down in a spectacular way. He just took the job and got old doing it.

New York is still badly mismanaged, but Cuomo didn't have a Spitzer-sized scandal. But he had no path to the White House.

The old master plan that was supposed to take Cuomo from Albany back to D.C. had stalled. And then the Wuhan Virus arrived and suddenly there's talk of taking Cuomo, an obnoxious, graceless, and crooked pol, as the new Dem nominee.

But there's a minor little detail everyone forgot about.

New York Attorney General Andrew Cuomo is the "father of the subprime crisis" and his aggressive attacks on Wall Street could make him dangerous to the banking sector if he becomes the next governor of New York, well-known banking analyst Dick Bove told CNBC.

"One of the key reasons why [Fannie Mae and Freddie Mac are] bankrupt today, and why the government is spending hundreds of millions of dollars in supporting them, is because of the edicts pushed through by Mr. Cuomo," said Bove, of Rochdale Securities, in a live interview.

"It's also thought by many that the hundreds of thousands of people who are losing their homes, are [doing so] to a great degree because of the actions taken by Mr. Cuomo at HUD," Bove added.

Cuomo, who was secretary of Housing and Urban Development from 1997 to 2001, has been blamed in some quarters for helping to trigger the financial crisis by pushing Fannie and Freddie to buy more subprime mortgages to increase home ownership among the poor. Many of those homeowners eventually defaulted, and the mortgage-backed securities market later collapsed.

It would take an even bigger crisis to get people to forget that one. Fortunately one may have come along. But how long will it last?

Share