The Clinton administration helped create the financial crisis we are experiencing today. The Clinton administration with the usual Democrat players botched the economy beginning in the early 1990’s.
From IBD:
Fannie Mae and Freddie Mac, even into the early 1990s, weren’t the juggernauts they’d later be.
While President Carter in 1977 signed the Community Reinvestment Act, which pushed Fannie and Freddie to aggressively lend to minority communities, it was Clinton who supercharged the process. After entering office in 1993, he extensively rewrote Fannie’s and Freddie’s rules.
In so doing, he turned the two quasi-private, mortgage-funding firms into a semi-nationalized monopoly that dispensed cash to markets, made loans to large Democratic voting blocs and handed favors, jobs and money to political allies. This potent mix led inevitably to corruption and the Fannie-Freddie collapse.
Despite warnings of trouble at Fannie and Freddie, in 1994 Clinton unveiled his National Homeownership Strategy, which broadened the CRA in ways Congress never intended.
Addressing the National Association of Realtors that year, Clinton bluntly told the group that “more Americans should own their own homes.” He meant it.
Clinton saw homeownership as a way to open the door for blacks and other minorities to enter the middle class.
Though well-intended, the problem was that Congress was about to change hands, from the Democrats to the Republicans. Rather than submit legislation that the GOP-led Congress was almost sure to reject, Clinton ordered Robert Rubin’s Treasury Department to rewrite the rules in 1995.
The rewrite, as City Journal noted back in 2000, “made getting a satisfactory CRA rating harder.” Banks were given strict new numerical quotas and measures for the level of “diversity” in their loan portfolios. Getting a good CRA rating was key for a bank that wanted to expand or merge with another.
Loans started being made on the basis of race, and often little else.
What a load of crock. You guys continue to blame Clinton for everything even though Bush has been in office nearly 8 years. You want us to believe that because blacks are paying for a mortgage instead of rent it’s their fault and the Dems because they made it easier for them to qualify by reducing the down payment. So, you’re saying it doesn’t have to do with the greed of wall st. and the fact that Bush has deregulated nearly everything, that there is no oversight on govt. programs which let them get away with extending mortgages to people whether they could pay, not just this year but next year too because of unclear realty speak, adjusted ARMS, etc.
This column hits the nail on the head. Affirmative action defies logic and common sense when applied in its purest form. Why should people work hard if they’ll be handed something just because of their immutable traits? What’s wrong with doing something to encourage productivity and the ability to save and earn so that you can invest in a home? That’s what we did and we’ve never missed a payment. That’s what people are supposed to do when they are responsible adults. This coddling of the “I want it now” crowd is what led to this disaster. I am ashamed of the country’s ignorance on this subject.
Let’s get real!!!……This was a program to get minority votes….Never let a democrat run anything…..The democrats have had the wool pulled over minorities for years…..They are the slaves…..If they did not vote you would see the concern for them go down the tube….
I am actually a Clinton fan but the Dems need to aknowledge responsibility for this one so that it doesn’t happen again. To blame Bush for it shows ignorance. Although Clinton’s intentions may have been good, it starts with HUD and Freddie/Fannie.
Fannie and Freddie led to meltdown
http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_hassett&sid=aSKSoiNbnQY0
HUD and FANNIE
http://www.villagevoice.com/2008-08-05/news/how-andrew-cuomo-gave-birth-to-the-crisis-at-fannie-mae-and-freddie-mac/1
The Real Culprits In This Meltdown
http://yidwithlid.blogspot.com/2008/09/bill-clintons-role-in-sub-prime.html
Obama Hearts Fannie
http://www.youtube.com/watch?v=usvG-s_Ssb0
How Obama will bankrupt
http://savagepolitics.com/?p=1865
Penny Pritzker
http://uppitywoman08.wordpress.com/2008/09/16/obamas-finance-chair-failed-bank-owner-penny-pritzker-and-wall-street-today/
Obama’s biggest donors: So much for the small contributor
Goldman Sachs $691,930 University of California $611,207 Citigroup Inc $448,599 JPMorgan Chase & Co $442,919 Harvard University $435,769 Google Inc $420,174 UBS AG $404,750 National Amusements Inc $389,140 Microsoft Corp $377,235 Lehman Brothers $370,524 Sidley Austin LLP $350,302 Moveon.org $347,463 Skadden, Arps et al $340,264 Time Warner $338,527 Wilmerhale Llp $335,398 Morgan Stanley $318,070 Latham & Watkins $297,400 Jones Day $289,476 University of Chicago $278,885 Stanford University $276,038
Andrew Cuomo and Fannie and Freddie
How the youngest Housing and Urban Development secretary in history gave birth to the mortgage crisis
By Wayne Barrett Village Voice published: August 05, 2008
http://www.villagevoice.com/content/printVersion/541234?ref=patrick.net
In 2003 the Bush Admin tried to increase oversight of Fannie and Freddie. The democrats in Congress said NO.
In 2003 Treasury Secretary John Snow, and Housing Secretary Mel Martinez told the House Financial Services Committee that we need a new agency to supervise Freddie Mac and Fannie Mae. But, the National Association of Home Builders and Congressional Democrats opposed it.
”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”
Source: NY Times: September 11, 2003 New Agency Proposed to Oversee Freddie Mac and Fannie Mae
Speaking of Bill Clinton:
It is opined that Bill Clinton committed racist hate crimes, and I am not free to say anything further about it.
Respectfully Submitted by Andrew Y. Wang, J.D. Candidate
B.S., Summa Cum Laude, 1996
Messiah College, Grantham, PA
Lower Merion High School, Ardmore, PA, 1993
(I can type 90 words per minute, and there are probably thousands of copies on the Internet indicating the content of this post. Moreover, there are innumerable copies in very many countries around the world.)
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“If only it were possible to ban invention that bottled up memories so they never got stale and faded.” Off the top of my head—it came from my Lower Merion High School yearbook.