Bush Bashing Lies
I’ve been waiting for a short article like this that tells the truth about the root cause and the more-immediate causes of the housing meltdown that destroyed an economy that had recovered from the Clinton recession, had recovered from 9/11, and was producing average unemployment figures of less than 5%. Don’t let the Democrats, who held both Houses of Congress during the last two years of the Bush presidency, tell their “blame Bush” lies.
The Housing Bubble? Clinton Helped Build That
by David Frum September 6, 2012 The Daily Beast
As Bill Clinton collects his accolades, let's recall: the key decisions that inflated the housing bubble of the 2000s - and that laid waste to the US economy in 2008 -- were taken under Bill Clinton's administration: the decision to leave derivative trading unregulated, the decision to allow deposit-taking institutions to engage in proprietary trading, the pressure on banks to relax mortgage lending standards, the decision to allow Fannie Mae and Freddie Mac to grow enormously large thanks to the implicit subsidy of the government guarantee of their bonds and borrowing.
If President Obama inherited a mess not of his own making, it should be remembered of whose making the mess was.
It was Janet Reno, Clinton’s Attorney General, the one who sent the tanks in to murder 76 Branch Davidians, including at least 20 children (“she killed them to save them from abuse”), who informed US banks that they had better start giving mortgages to deadbeats (my terminology) as required by the Community Reinvestment Act, passed by Jimmy Carter and strengthened by Bill Clinton, or she would prosecute them.
It was Barney Frank and Christopher Dodd who resisted 17 attempts by President Bush to strengthen regulation of CDO’s (collateralized debt obligations) and CDS’s (credit default swaps) – both commonly called “derivatives” – and to rein in Fannie Mae and Freddie Mac.
It was Democrat policies and Democrat actions that caused the housing bubble and the resultant housing crash. Again, don’t let the lying bastards get away with blaming Bush.