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Uh, Hillary, Your Hubby Caused the 2008 Recession
American Thinker ^ | September 28, 2016 | Jack Cashill

Posted on 09/28/2016 5:12:01 AM PDT by detective

On the debate stage Monday night, Hillary Clinton smugly repeated the big lie that Democrats have been telling with something close to impunity since 2008.

“We had the worst financial crisis, the Great Recession, the worst since the 1930s,” said Hillary. “That was in large part because of tax policies that slashed taxes on the wealthy, failed to invest in the middle class, took their eyes off of Wall Street, and created a perfect storm.”

(Excerpt) Read more at americanthinker.com ...


TOPICS: Business/Economy; Government; Politics/Elections
KEYWORDS: clinton; cra; hud; recession
This is an excellent article about how the Clintons and their friends created the subprime mortgage crisis which caused the recession of 2008.
1 posted on 09/28/2016 5:12:01 AM PDT by detective
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To: detective

Well the Shrub administration gets a super large assist. they did nothing to enforce the laws.


2 posted on 09/28/2016 5:14:42 AM PDT by Founding Father (The Pedophile moHAMmudd (PBUH---Pigblood be upon him); Charles Martel for President)
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To: detective
Deciding,in the 80's,to give a mortgage to anyone who had a pulse caused the recession.People with a horrible credit rating and *no* income were allowed to lie on the application and voila! they got 110% financing.IIRC they were affectionately called “liar loans”.

The only mortgages I ever applied for (the most recent being in the early 80's) required 20% down and confirmation of income from a W2.

3 posted on 09/28/2016 5:21:18 AM PDT by Gay State Conservative (Proud Member Of The "Basket Of Deplorables")
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To: Founding Father
The Bush Administration, and Alan Greenspan for that matter, warned us. But we were too busy sitting on our fat asses to do anything about it. The WSJ would have an article every other day about the risk, and I would post it here. Three comments, tops. So I stopped posting them.

Interesting what a hindsight of ten years can do.

4 posted on 09/28/2016 5:21:37 AM PDT by 1rudeboy
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To: detective
IIRC shrill demands by "progressives" that "people of color" were being discriminated against when applying for mortgages and legislation that followed cause banks to eliminate reasonable checks on applications.And IIRC Janet Re No publicly declared that any lender who denied a mortgage to "people of color" would have the entire Department of Just Us land on top of them.

Lenders got the message.And then,although it took a while,the house of cards came tumbling down when it was realized that the bonds backed by these liar loans weren't worth half of what was claimed.

5 posted on 09/28/2016 5:26:52 AM PDT by Gay State Conservative (Proud Member Of The "Basket Of Deplorables")
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To: detective
Effects of legislation rarely happen overnight.

The housing meltdown, and corresponding global financial crisis, was started by who is now the SECOND worst president ever, Jimmuh Carter.

Carter signed the “fair housing act”, which languished for years and years until the mediocre president Bill Clinton pushed the issuse.

Clinton had Andrew Cuomo sue banks for failing to make bad loans, a process they called ‘redlining’ (Democrats can make any good thing sound bad- like ‘profiling’- with their willing media propagandists)

Cuomo won what was at the time the biggest judgment in history.

The rest of the banks then fell in line. They realized that they would get sued if they didn't make bad loans, and the government would guarantee the loans if they did, so they were between a rock and a hard place.

So they made the bad loans. Millions of them. And they were allowed to use welfare checks as income. And imaginary income. And your second cousins uncle's promise that he had money for you in his other pants pocket... Etc.

Then, and here is where the real magic happened... These bundles of bad loans were packaged up into ‘derivatives’.

They were magical in the sense that they turned billions of dollars of bad loans into good securities.

And people flipped houses back and forth between each other. I buy your house for $100K, you buy it back from me for $200K, I buy it again for $300K, and so on, until we finally 'prove' it has a market value of $500K because that is what 'someone' was willing to pay for it. So the whole neigborhood of formerly $100K houses must be similar, and you happen to own all of them too... So you mortgage them all to some bank for several million dollars, and walk away... The bank bundles them into a 'derivative' and it walks away. When the crap finally hit the fan, taxpayers bailed everyone out, while the people who managed this decades long scam pocketed $Trillions.

Then the government started even more magic: Quantitative Easing. Which literally means creating money out of thin air. You put a $100 bill on a copy machine and let it run and run and run, and call the copies money too.

We are STILL not seeing the full effect of that disaster but it is looming.

We do see food and grocery bills being over double what they were when Odumbass became president (who took over the title as THE worst president ever), but there is no daily reporting of the ‘consumer price index’ as there usually is when a Republican is President and things are going really bad.

6 posted on 09/28/2016 5:42:54 AM PDT by Mr. K (<a href="https://imgflip.com/i/1adpjl"><img src="https://i.imgflip.com/1adpjl.jpg" title="made at im)
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Comment #7 Removed by Moderator

To: detective
I still remember Bawny Fwank and his pals in 2002 making fun of the folks Bush sent to testify in Congress and explain that the government and banks were just pumping up a housing bubble and that something had to be done to avoid exactly what happened in 2008.

Bawny said something like, "I don't see any problem other than Republicans now trying to keep people from owning homes"

8 posted on 09/28/2016 6:18:12 AM PDT by Rashputin (Jesus Christ doesn't evacuate His troops, He leads them to victory !!)
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To: detective

The culprit was the Community Reinvestment Act which forced lending institutions to abandon their otherwise government regulations regarding the guidelines of lending. It was a typical example of schizophrenic bureaucracy legalisms.

In other words, use our guidelines when lending except when the applicant has brown skin and curly hair - then be sure to have a portfolio with the perfect % of minority borrowers, and forget whether they can ever repay the loans.


9 posted on 09/28/2016 6:20:23 AM PDT by Gumdrop
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To: 1rudeboy
Three comments, tops

People weren't boycotting your threads. They were boycotting you. Your screen name is very appropriate.

10 posted on 09/28/2016 6:33:17 AM PDT by LouAvul (The most High ruleth in the kingdom of men, and giveth it to whomsoever he will.)
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To: detective

I remember the last year of Clinton’s mis- administration.
The economy was doing great due to the policy carryover of George Bush and Clinton took the credit.
Then March or April 2000, the stock market went into free fall and Clinton ignored it. The economy struggled to recover and was on an upswing when 9-11 sent it into another tumble.


11 posted on 09/28/2016 6:40:04 AM PDT by Ruy Dias de Bivar (HANDGUNS; You don’t need it until you need it. And when you need it you NEED IT!”)
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To: Ruy Dias de Bivar
Then March or April 2000, the stock market went into free fall

That was triggered by the lawsuit filed against Microsoft by the federal government ... to the day .... check the historical charts for confirmation.

12 posted on 09/28/2016 6:47:49 AM PDT by bankwalker (Does a fish know that it's wet?)
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To: detective

Also, everybody forgets that the Democrats took over Congress in 2006 and accelerated the process of running the economy into the ground.


13 posted on 09/28/2016 7:10:20 AM PDT by RatRipper (The biggest threat to US national security is our government and those in it.)
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To: Founding Father

Wrong...

Go back and check the data: At the very beginning of July 2008 oil prices per barrel were nearing $150 and the exchange rate of the euro to the dollar was nearing 150. During the first week of July both concurrently began to drop sharply. When oil suddenly goes from the 150’s down to the 30’s that’s a huge drop in value. If a bank is holding a lot of oil and euro as assets and both take a hit simultaneously than billions can turn into millions.

“That” is what triggered the banking crisis. Now the question remains: what caused oil and the euro to bubble and burst? Some say micro-economic turbulence caused by the disparity between the dollar and the yuan...


14 posted on 09/28/2016 7:20:36 AM PDT by MichaelRDanger
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To: Mr. K
That was an excellent summary of what happened. The book, "The Big Short" gives an excellent account; the movie of the same title doesn't go into enough detail (because it's too difficult to fully describe what happened).

Hillary (and the Democrats) try to ascribe the financial crisis that happened in 2007-8 to Republican economic policies, but at best, the events that led up to the meltdown were shared. At worst, you could say that Democrats were primarily responsible for policies that led to bad loans.

Some Democrats say that one reason the financial crisis happened was because there wasn't enough regulation. I disagree. The rating agencies Moody's and Standard & Poor's--neither of them really knew what was happening. They counted on the financial institutions to properly vet their borrowers. A legislative solution, even a regulatory one, certainly would not and could not have helped.

15 posted on 09/28/2016 8:01:29 AM PDT by Lou L (Health "insurance" is NOT the same as health "care")
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To: detective

Great read. Thanks.


16 posted on 09/28/2016 8:57:19 AM PDT by Jaded (Pope Francis? Not really a fan... miss the last guy who recognized how Islam spread... the sword.)
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To: RatRipper
Actually to be precise, it was in January of 2007 and the reason was that so many on our site wanted to teach the GOP a lesson. And what did that bring us? The economy went down and unemployment went up.

This is all factual.

17 posted on 09/28/2016 10:52:36 AM PDT by Kaslin
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To: LouAvul

Well, that would explain why people didn’t hear of the looming sub-prime crisis.


18 posted on 09/28/2016 12:47:45 PM PDT by 1rudeboy
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To: 1rudeboy

I remember GWB wrote to Bawney Franks - Chair of the house Financial Services Committee - about his concern over subprime mortgages.

Bawney poo-pooed it and subsequently, of course, tried to blame Bush for something Bubba and that former SA mayor who was running HUD, Cisneros?, had cobbled together originally.


19 posted on 09/28/2016 12:55:57 PM PDT by Let's Roll ("You can avoid reality, but you cannot avoid the consequences of avoiding reality" -- Ayn Rand)
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