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How Clinton Helped to Create the 2008 Financial Crisis (Video)

Posted by FactReal on September 6, 2012

Via NY Post:

It’s an absurd distortion of reality that the Bush-era tax cuts or spending on Iraq were even remotely responsible for the 2008 banking collapse and the Great Recession — though both claims are now core to the left’s talking points in defense of President Obama’s failures as president (and largely unchallenged by a sympathetic media).

Yet the reality of what caused the banking collapse has the fingerprints of tonight’s keynote speaker all over it. Consider two Bubba boo-boos that trace straight to the housing bubble and the 2008 financial crisis.

The first is his obsession with pushing homeownership to new highs via government coercion. The second is his unleashing of Wall Street risk-taking.

Clinton charged his Housing secretaries, Henry Cisneros and Andrew Cuomo, with driving homeownership rates up to about 70 percent of households from around 64 percent in the early ’90s.

How did they do this? Through rigorous enforcement of housing mandates such as the Community Reinvestment Act, and by prodding mortgage giants Fannie Mae and Freddie Mac to make loans to people with lower credit scores (and to buy loans that had been made by banks and, later, “innovators” like Countrywide).

The Housing Department was Fannie and Freddie’s top regulator — and under Cuomo the mortgage giants were forced to start ramping up programs to issue more subprime loans to the riskiest of borrowers.

We know how that turned out: Fannie and Freddie help stoke a housing bubble that actually made homeownership less affordable unless borrowers took out ever-more-risky loans. Eventually, both agencies imploded (along with the housing market); bailing them out since 2008 has already cost taxpayers more than $100 billion.

(And, yes, Bush continued Clinton’s policies — but did try to rein in Fannie and Freddie in his later years, before the meltdown. But Democratic barons in Congress like Rep. Barney Frank balked at stopping the train before the wreck.)

How The Democrats Caused The Financial Crisis
Democrats like Bill Clinton, Jimmy Carter, Obama, ACORN, Andrew Cuomo used policies and mandates like the Community Reinvestment Act to force banks to give high-risk loans to low income borrowers who had bad credits. That was unsustainable and in time all that led to the mortgage meltdown and the economic crash in 2008.
Bill Clinton’s Tax Increases Slowed Growth
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Bill Clinton’s Victim – Juanita Broaddrick Said Clinton Raped Her (Videos)
Summary: How Clinton and Democrats Created the Economic Crisis

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One Response to “How Clinton Helped to Create the 2008 Financial Crisis (Video)”

  1. […] IGNORED THESE FACTS FINANCIAL CRASH ● Clinton and Democrats Created the Financial Crash (More here.) ● Democrat Barney Frank’s Legacy: Housing Crisis and Prostitution Ring ● How Democrats […]

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