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Thursday, September 06, 2012

How Bill Clinton's Balanced Budget Destroyed The Economy

Bill Clinton is giving the keynote speech at the Democratic National Convention tonight.

The idea is to make people feel nostalgic for the last time when the economy was really booming, and hope that some of that rubs off on Obama.

However, in the New York Post, Charlie Gasparino uses the occasion to remind everyone that the seeds of our current economic malaise were planted during the Clinton years.

Basically, it was under Clinton that Fannie and Freddie really began blowing the housing bubble, issuing epic amounts of mortgage-backed debt.

The story that Gasparino tells is basically: Liberal Bill Clinton thought he could use government to make everyone a homeowner and so naturally this ended in disaster.

Gasparino specifically cites the controversial Community Reinvestment Act, a popular conservative bogeyman:

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.

That's interesting. But the truth is far more complicated. And more interesting.



John Aswell said...

Bill Clinton is now and always has been not a keynote speaker,but a keynote of record ASS. He was a smiling Arkansas crook and a world class liar who was 'outed' by Monica Lewinski. If I was OweBama and I couldn't find an ally stronger than an old outlaw fossil such as Clinton I'd have a barbecue rather than be in the wings watching my reputation such as it is go down the drain at the hands of a washed up has-been. Wow what a hoot. The blind leading the Dumb!

Anonymous said...

If anyone abused women it was Bill Clinton and his cronies but where's the outrage among women?

Anonymous said...

I could never believe anything Clinton says and I voted for him twice. It was just over four years ago when Hillary and Obama were in the primaries, Clinton wasn't speaking highly of Obama then, so why should I believe him now?

Clinton's speech was to sell Hillary and "The party" for 2016. There's no way Clinton would have spoke unless he didn't think there was something in it for him in the future.

Clinton lied to congress, again, why should I believe him now?

Bill said...

Clinton is full of lies, I can't believe a word he says anymore.

He's most probably trying to make some kind of advertisement for Hilary.

Anonymous said...

Clinton knew that in order to make a perfect omelet he had to break a few eggs.No change is without consequences somewhere.Regardless of what our mission is in life we do what we have to do when the need arises.

Anonymous said...

This country is in a hand-basket and we all know the destination.

When you have government officials making the amount of money, getting the benefits, amassing power and making deals inside of office and outside of office, what would be the incentive of leaving 'public service'?

If we had people in office who didn't want to be there, and not making this kind of money, we would have things getting down in record time.

They would want to get back to their lives and family and their OCCUPATIONS.

Drop the pay and benefits and I bet there would be less of people spending tens of MILLIONS to get elected.

Being in office should be more like community service and less of a CAREER.