Lessons from a President

By Ed Hoffman

Last week, I attended an annual conference for loan originators known as the Mastermind Summit. Rather than inform us on the latest and greatest news or bore us with updates to industry policy, this summit is designed to help mortgage professionals like me deal with the chaos we encounter every day, like new regulations on our business. Of course, there is also a motivational aspect – as there often is at professional conferences – with big-name speakers on hand to fire up the crowd and share their insight. At this year’s Mastermind Summit, one of those speakers just happened to be the esteemed 43rd President of the United States.

Yes, I heard George W. Bush speak and he had plenty to say. In fact, I had the privilege of meeting him in person (more on that in a moment). First, I want to make this clear: He got an outstanding reception. Maybe it’s that this particular audience is disenchanted by the current administration’s ever-expanding regulations on our industry – or, maybe it’s just that people are finally realizing we had a humble, competent and smart (yes, smart!) President from 2001 to 2009. In any case, I want to make sure this is noted: People miss George W. Bush. You’ve heard for several years that this day would come, right? Well, it’s here. When I met the President, I told him this and his humble reply was, “Oh, you’re being kind.” No, I was being honest; I know I’m not the only one who misses a President who was proud to represent the United States of America.

During his speech, President Bush shared this insight: “You have to know what you don’t know.” He elaborated that one way he lived up to that adage was by putting the right people in his cabinet, one of which was Hank Paulson. About two years into Paulson’s tenure as Secretary of the Treasury, our nation was suddenly immersed in an economic meltdown. Reflecting on that time, President Bush told us that while he did understand the economy (yes, he did!), he knew he was not equipped to set fiscal policy on his own – so naturally, he asked Paulson for his insight. Paulson advised him that America could be lapsing into a depression, and one of the most viable options for preventing it would be the legislation we now know as the Troubled Asset Relief Program or TARP.

Bush wasn’t crazy about the idea initially, telling us that as a free market capitalist, he didn’t want to be the “bailout President.” Regardless, he listened to Paulson and he’s glad he did because today, the government has recovered all of the money it poured into TARP. By December 2012, the Wall Street Journal reported, TARP revenue totaled $441.7 billion with $426.4 billion invested. Even President Obama has acknowledged the success of TARP, saying, “We got back every dime we used to rescue the banks.” So of all the bailouts the government did during the financial crisis, my opinion is that TARP was the most legitimate and it looks like I’m in good company.

But that’s not the point here. The point is that you have to surround yourself with people who know what they’re doing, and you have to listen to them. Period. It doesn’t make you “stupid” or incompetent – quite the opposite. It makes you smart enough to focus on your strengths, and let other people help you where you have a weakness. Some of the greatest leadership experts in the world today say this, and our former President is in sync with them. So remember that the next time you hear someone say, “Bush got us into this mess.” The truth is, he knew how to get us out – and that’s the part he doesn’t get credit for.

Ed Hoffman is the host of the Main Event on AM590, which airs Saturday 9:30AM- 10:30AM and Sunday 4:00PM- 5:00PM. Follow him on Twitter @EdHoffman, and like him on Facebook by searching The Main Event 590.