Presidential hopeful Herman Cain admitted today on MSNBC’s The Daily Rundown he made a mistake when it came to predicting the economic collapse of 2008 and the housing market crash.
“I’m very quick to say I made a mistake, or I missed it,” Cain said this morning.
Cain, former CEO of Godfather’s Pizza, was referring to two articles he wrote, one in 2005 on the housing bubble and another in 2008 on the economy. In both articles, Cain had said the government’s poor predictions of the economy were just tactics used by Democrats to scare Americans, and were wrong.
“Coverage of the Bush economy reads like a collection of Democratic Party press releases, calling a strong economy everything from struggling to volatile or dicey. ...That kind of ignorance makes homeowners fear that their most expensive possession could turn worthless overnight. That won’t happen,” Cain wrote in an article for Media Research Center’s Business and Media Institute on Aug. 17, 2005. At the time, Cain was the group’s national chairman. Three years after publication, the housing market collapsed.
Cain defended himself saying he didn’t know how bad the housing bubble situation was in 2005. “I honestly did not realize just how bad it was,” he said. “Just how bad the whole bundling and derivatives thing was and that we were on the brink of a total financial meltdown.”
On Sept. 1, 2008, Cain wrote, “The supposed failure of Bush's economic policies has been a constant theme of the Democrats since the 2006 elections, when the Democrats regained control of the House and Senate by convincing enough of the voters that the economic sky was falling, and that the war in Iraq could not be won. Based on all of their convention speeches, they plan to continue those themes right through Election Day on November 4.”
Fifteen days after Cain’s article was released Lehman Brothers declared bankruptcy. Soon after the Federal Reserve bailed out AIG.
Cain, who does not have any political experience, takes pride on his extensive business background. In addition to serving as CEO of Godfather’s Pizza, he was also chairman of the Kansas City Federal Reserve Bank in the 1990s. But in light of those two articles, NBC’s Chuck Todd asked Cain how would he reassure primary voters he’s the right fit to be president.
Cain replied saying he’d rely on his advisers, a comment he’s used more than once so far on this campaign. “Well, it's real simple, Chuck,” he said. “I have economic advisers working with me now who spend time studying these various analyses.”
NBC's Natalie Cucchiara contributed to this report.