'This Sucker Could Go Down' – Warren Buffett Says George W. Bush Uttered The 10 Most Important Words In Economic History In 2008

During the darkest days of the 2008 financial crisis, Warren Buffett, one of the most respected voices in the business world, pointed to an unlikely hero: George W. Bush. While many might credit economists or central bankers for stabilizing the global economy, Buffett singled out a single sentence from the former president as pivotal.

"If money isn't loosened up, this sucker could go down!" Bush reportedly declared during a meeting with his top advisors on the White House lawn. For Buffett, these words weren't just colorful – they were critical. At a Detroit Homecoming event in 2014, Buffett called them "the 10 most important words in the history of economics." 

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Laughing, he added, "That is a great, great economic statement." He joked that while economists like Adam Smith in 1776 had introduced concepts like the specialization of labor and the invisible hand, Bush's bluntness had a proud simplicity that cut straight to the heart of the crisis.

What made Bush's observation so significant wasn't just its timing, though that was crucial. It came at a moment when the financial system was teetering on the edge of collapse. Buffett explained the sheer scale of the panic: "Thirty-five million Americans at the start of September [2008] thought $3.5 trillion of their money was safe in money market funds. Then, in one week, they got worried about it."

Once considered among the safest investments, money market funds had become a source of fear. This sudden loss of confidence was emblematic of a larger problem – liquidity in the financial system was drying up rapidly. Bush's words offered clarity during the complex crisis, offering a stark and urgent directive: decisive action was needed immediately or the entire economy would unravel.

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During the event, Buffett was also asked whether the government made the right call to bail out General Motors. He didn't hesitate. "Yeah, I was publicly asked that question on CNBC and I wouldn't have guessed I'd have given that answer, but it was so clear to me in 2009," he said. Buffett explained that allowing GM to collapse would have been disastrous: "It would have been a death blow if Washington thumbed its nose at the car companies."

While acknowledging the years of financial missteps that led to the crisis, Buffett stressed that quick action was essential when the economy hit its breaking point. "You can argue about how we got into all the trouble we did, but once September 2008 hit, Bush did the right thing," Buffett said. Though he wasn't a Bush supporter, Buffett gave credit where it was due, explaining that saving GM wasn't just about a company – it was about protecting an entire industry and the economy.

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For Buffett, Bush's words carried weight not because of their elegance but because of their clarity. They empowered key figures like Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke to act boldly and without hesitation. Those actions included unconventional moves like quantitative easing, lowering borrowing costs and massively expanding the money supply. 

The impact of these measures is still debated, but there's no denying they helped stabilize a collapsing financial system. For Buffett, though, the real turning point wasn't a policy paper or a carefully calculated model – it was Bush's straightforward declaration. 

Now, 17 years later, Buffett's comments serve as a reminder of the role clarity and urgency play in navigating crises. "If money isn't loosened up, this sucker could go down" might not belong in an economics textbook, but it shaped the course of modern financial history. And for Warren Buffett, that's what made it unforgettable.

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