Subprime Scandal: Newly released memos from the Clinton presidential library reveal evidence the government had a big hand in the housing crisis. The worst actors were in the White House, not on Wall Street.
During the 1990s, former Clinton aides bragged that more aggressive enforcement of the Community Reinvestment Act pressured banks to issue riskier mortgages, lending more proof the anti-redlining law fueled the crisis.
A 2012 National Bureau of Economic Research study found "that adherence to that act led to riskier lending by banks," with "a clear pattern of increased defaults for loans made by these banks in quarters around the (CRA) exam, (and) the effects are larger for loans made within CRA tracts," or low-income and minority areas.
To satisfy CRA examiners, Clinton mandated "flexible" lending by large banks. As a result, CRA-approved loans defaulted about 15% more often, the NBER found.
Exhibit A in the 7,000-page Clinton Library document dump is a 1999 memo to him from his treasury secretary, Robert Rubin.
"Public disclosure of CRA ratings, together with the changes made by the regulators under your leadership, have significantly contributed to ... financial institutions ... meeting the needs of low- and moderate-income communities and minorities," Rubin gushed. "Since 1993, the number of home mortgage loans to African Americans increased by 58%, to Hispanics by 62% and to low- and moderate-income borrowers by 38%, well above the overall market increase.
"Since 1992, nonprofit community organizations estimate that the private sector has pledged over $1 trillion in loans and investment under CRA." Read the rest of the story HERE.
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8 comments:
Zero cred left for the MSM, but they don't care. They threw away whatever ounce of integrity they might have had left, by making Obama a savior, and then literally ignoring every Obama scandal, outrage, shortcoming and failure.
Nothing but pathetic lapdogs now, and into the foreseeable future.
-Martha
______________________________________
Long before the economic meltdown,
the story of one woman who tried to
warn about the threat to the financial system.
And she tried to sound the warning. Nobody listened.
Before the toxic assets poisoned the economy,
she warned of their danger.
And that made her the enemy of a very, very large number of people.
She would fight an epic battle with
one of the most powerful men in Washington.
It got pretty nasty pretty quickly.
A story from inside the highest levels of
the Bill Clinton administration.
They were all part of a very concerted effort
to shut her up and to shut her down.
And they did, in fact,
shut her up and shut her down.
______________________________________
______________________________________
Long before the economic meltdown,
the story of one woman who tried to
warn about the threat to the financial system.
And she tried to sound the warning. Nobody listened.
Before the toxic assets poisoned the economy,
she warned of their danger.
And that made her the enemy of a very, very large number of people.
She would fight an epic battle with
one of the most powerful men in Washington.
It got pretty nasty pretty quickly.
A story from inside the highest levels of
the Bill Clinton administration.
They were all part of a very concerted effort
to shut her up and to shut her down.
And they did, in fact,
shut her up and shut her down.
______________________________________
BROOKSLEY BORN, CFTC Chair, 1996 - 1999:
My law practice was in the derivatives area.
I'd practiced derivatives law for more than 20 years.
______________________________________
______________________________________
Clinton Library's Doc Dump
Reveals CRA Fueled Subprime Bubble
______________________________________
Articles Dump Reveals
TEAM Bill Clinton & Wall Street
Fueled FINANCIAL CRISIS of 2008
______________________________________
www.pbs.org/wgbh/pages/frontline/warning/etc/script.html
www.pbs.org/wgbh/pages/frontline/warning
Wall Street built a DOOMSDAY MACHINE
Turning Garbage into Gold
http://upstart.bizjournals.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-Wall-Streets-Boom.html?page=all
The True Story of the Financial Crisis
http://spectator.org/archives/2011/05/13/the-true-story-of-the-financia/print
Wall Street's Gullible Occupiers
Reckless government policies,
not private greed, brought about
the housing bubble and resulting financial crisis.
http://online.wsj.com/news/articles/SB10001424052970203633104576623083437396142?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052970203633104576623083437396142.html
Wallison: Government housing policy is the cause of 2007 financial meltdown
The 2008 Banking Collapse
and the Great Recession
Inside the Doomsday Machine
Michael Lewis
www.q-and-a.org/Transcript/?ProgramID=1277
Clinton's Subprime Souffle
Social Engineering: It's official:
Americans have lost their housing gains since 1995,
when Bill Clinton launched his homeownership crusade.
His lending rules artificially created demand
and a housing bubble that's still deflating.
http://news.investors.com/ibd-editorials/043014-699077-national-homeownership-rate-falls-back-to-clinton-era-levels.htm
http: //news.investors.com/ibd-editorials/042514-698502-clinton-library-doc-dump-reveals-role-in-subprime-bubble.htm?p=full
______________________________________
______________________________________
Long before the economic meltdown,
the story of one woman who tried to
warn about the threat to the financial system.
And she tried to sound the warning. Nobody listened.
Before the toxic assets poisoned the economy,
she warned of their danger.
And that made her the enemy of a very, very large number of people.
She would fight an epic battle with
one of the most powerful men in Washington.
It got pretty nasty pretty quickly.
A story from inside the highest levels of
the Bill Clinton administration.
They were all part of a very concerted effort
to shut her up and to shut her down.
And they did, in fact,
shut her up and shut her down.
______________________________________
BROOKSLEY BORN, CFTC Chair, 1996 - 1999:
My law practice was in the derivatives area.
I'd practiced derivatives law for more than 20 years.
______________________________________
NARRATOR:
She was determined that her agency would
investigate fraud at the first opportunity.
One are that caught her attention was a new and highly lucrative market,
over-the-counter derivatives.
She starts to realize that there's this
whole world out there of what are
called over-the-counter derivatives
that are essentially unregulated.
It's not even that they're unregulated,
it's that the government doesn't even know
what's going on.
NARRATOR: It was a $27 trillion-market
happening out of sight, inside a black box.
BROOKSLEY BORN:
We didn't truly know the dangers
in the derivatives market because
it was a dark market.
There was no transparency.
______________________________________
Procter & Gamble sued Bankers Trust, ...
The lawsuit set the stage for a stunning revelation.
It opened a window onto what was
really going on in the derivatives market.
NARRATOR:
And that's what frightened Born more than anything,
trillions of dollars and the biggest banks
in the country operating in secret.
If something went terribly wrong,
the high-stakes derivatives market could
take down the entire financial system.
As the market grew and morphed,
Born felt her agency would have to get involved,
but that would mean confronting Alan Greenspan,
Robert Rubin, Timothy Geithner and Larry Summers.
NARRATOR: Brooksley Born was contemplating
the regulation of OTC derivatives.
The pushback is visceral and immediate,
and that's one of the striking things about this.
Bankers just fall over themselves
calling Summers and Rubin and Greenspan and everybody,
saying, "Get this LADY off our backs."
But the harder they pushed, the more interested Born became.
BROOKSLEY BORN:
They were totally opposed to it. That puzzled me.
You know, what was it that was in this market
that had to be hidden?
Why did it have to be a completely dark market?
So it made me very suspicious and troubled.
Born's agency was legally independent.
She reported to the president.
Robert Rubin had no authority over her.
To stop her, he would call upon his allies who sat with him on a secretive council known as "the president's working group."
____________________________________
Born was taking the first steps
toward regulating OTC derivatives,
designing a document known as a "concept release."
In response, Robert Rubin acted, calling
an emergency meeting of the working group.
Read the Transcript: [ part 1 of 2 ]
www.pbs.org/wgbh/pages/frontline/warning/etc/script.html
_______________________________________
______________________________________
OBAMA's former Chief of Staff says:
Don't let the Financial CRISIS got to waste !!!
So they passed the ACA aka ObamaCare.
______________________________________
FINANCIAL CRISES of 2008 still Linger ON
and will take many more years dispate
it's Financial PAIN on the USA economy.
______________________________________
America’s liabilities indeed
loom massively on the horizon.
______________________________________
Clinton Library's Doc Dump
Reveals CRA Fueled Subprime Bubble
______________________________________
Articles Dump Reveals
TEAM Bill Clinton & Wall Street
Fueled FINANCIAL CRISIS of 2008
______________________________________
Wall Street built a DOOMSDAY MACHINE
Turning Garbage into GOLD
http://upstart.bizjournals.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-Wall-Streets-Boom.html?page=all
The True Story of the Financial Crisis
http://spectator.org/print/37680
______________________________________
Brooksley Born, Alan Greenspan, and The Warning
www.pbs.org/wgbh/pages/frontline/warning/etc/script.html
www.pbs.org/wgbh/pages/frontline/warning
______________________________________
Inside the Meltdown
www.pbs.org/wgbh/pages/frontline/meltdown/etc/script.html
www.pbs.org/wgbh/pages/frontline/meltdown
______________________________________
Free fall: How government policies brought down the housing market
www.aei.org/outlook/economics/financial-services/housing-finance/free-fall-how-government-policies-brought-down-the-housing-market
______________________________________
The 2008 Banking Collapse and the Great Recession
Inside the Doomsday Machine
Michael Lewis
www.q-and-a.org/Transcript/?ProgramID=1277
______________________________________
________________________________________
Mitt's Moment
He fixes problems; we've got 'em.
________________________________________
Mr. Romney never really fit his assigned part
as Gordon Gekko or Milburn Drysdale. ...
When other private equity pioneers were
turning their millions into billions,
he left to rescue the Winter Olympics.
America is headed only for a moment of recognition.
Like Greece.
Like the troubled businesses Bain overhauled.
Like the failing Salt Lake City Olympics.
There's no money to pay for bigger and bigger government.
There's no money to pay for the government
we've already promised ourselves.
________________________________________
bankrupting the nation to pay for health care
is not an option. If we do nothing,
if entitlements remain unreformed, the
money simply will be withheld to pay for them.
You'll still be entitled to that knee operation at taxpayer expense.
Good luck finding a doctor to perform it.
The waiting list will be long.
________________________________________
Our world that's coming is a world of narrowing,
not widening, choices.
It's a world that suits Mr. Romney's skills and history,
his knack for operating within constraints
and making choices based on data, data, data.
Mr. Obama lives in the same world, of course, but
is unequipped to deal with it ...
Also, given his inclination to seek refuge in
a clueless reverie of big new programs
at a time when the resources simply don't exist.
________________________________________
The consensus for painful reform comes
when the status quo hits the wall.
It's a myth that we don't know what our choices are.
That's the Romney moment.
His strong suit has always been
to do what everyone else has put off.
________________________________________
Wall Street Journal
______________________________________
What Caused the Financial Crisis?
______________________________________
The pursuit of higher rate of
homeownership through legislation,
incentives and relaxed loan standards:
» Pushing homeownership to new
highs via government coercion.
» Relaxed loan standards — no doc / no income
» Pres. Bill Clinton and Robert Rubin —
unleashing Wall Street risk-taking.
Bill Clinton signed into law in 2000:
The Commodity Futures Modernization Act,
which exempted over-the-counter
swaps and derivatives from regulation.
The idea was to distribute risk; unfortunately,
the effect was to magnify risk.
______________________________________
Banks lurched from caution to
bubble-inflating recklessness
______________________________________
The True Story of the Financial Crisis
The financial crisis of 2008 was caused
by government housing policies ——
which led to the creation of 27 million
subprime and other risky loans
http://spectator.org/print/37680
______________________________________
Barack Obama was a pioneering contributor
to the national subprime real estate bubble
____________________
With landmark lawsuit, Barack Obama
pushed banks to give subprime loans
to Chicago’s African-Americans
http://dailycaller.com/2012/09/03/with-landmark-lawsuit-barack-obama-pushed-banks-to-give-subprime-loans-to-chicagos-african-americans/?print=1
______________________________________
The Brass Standard
www.nationalreview.com/blogs/print/316725
______________________________________
About Those Policies That Got Us Into This Mess
www.BLOOMBERG.com/news/print/2012-09-12/about-those-policies-that-got-us-into-this-mess-caroline-baum.html
____________________
The misguided effort begun during
the Clinton administration
to increase home ownership
among low wage earners
____________________
Bubba & the Housing bubble — Bill Clinton
www.nypost.com/p/news/opinion/opedcolumnists/bubba_the_housing_bubble_8cUhYsqNdXVlWjflbbjiUO
____________________
The End of Wall Streets Boom
Michael Lewis — profiled Steve Eisman:
http://upstart.bizjournals.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-Wall-Streets-Boom.html?page=all
____________________
Free fall: How government policies
brought down the housing market
www.aei.org/outlook/economics/financial-services/housing-finance/free-fall-how-government-policies-brought-down-the-housing-market
____________________
Michael Lewis on the Hedge Fund Manager
Who Saw It Coming
www.fool.com/server/printarticle.aspx?file=/investing/general/2008/12/01/michael-lewis-on-the-hedge-fund-manager-who-saw-it.aspx
• "The Big Short"
www.fool.com/investing/general/2010/03/17/the-big-short.aspx
• Michael Lewis on the Financial Panic
www. fool.com/investing/general/2008/11/26/michael-lewis-on-the-financial-panic.aspx
____________________
Wall Street's Delusion — 60 Minutes
www.CBSNews.com/2102-18560_162-6292458.html
Eve of Destruction
www.nytimes.com/2010/04/18/books/review/Gross-t.html?pagewanted=print
______________________________________
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