Living in a World Where Everything is Backwards

HT: NC Renegade


2 thoughts on “Living in a World Where Everything is Backwards

  1. This is the 2008 sub prime mortgage crisis in the making all over again..

    “Bill Clinton sowed the seeds of the Great Recession by helping to inflate the housing bubble, a key part of the financial debacle of 2007. But this wasn’t because he (not George W. Bush) signed two financial deregulation .

    Why is Clinton culpable? Because his secretary of housing and urban development, Andrew Cuomo, accelerated easy-housing policies and inflated the housing bubble, setting the stage for its collapse.

    The meltdown was the consequence of a combination of the easy money and low interest rates engineered by the Federal Reserve and the easy housing engineered by a variety of government agencies and policies. Those agencies include the Department of Housing and Urban Development (HUD) and two nominally private “government-sponsored enterprises” (GSEs), Fannie Mae and Freddie Mac. The agencies — along with laws such as the COMMUNITY REINVESTMENT ACT (passed in the 1970s, then fortified in the Clinton years), which required banks to make loans to people with poor and nonexistent credit histories — made widespread homeownership a national goal. This all led to a home-buying frenzy and an explosion of subprime and other non-prime mortgages, which banks and GSEs bundled into dubious securities and peddled to investors worldwide. Hovering in the background was the knowledge that the federal government would bail out troubled “too-big-to-fail” financial corporations, including Fannie and Freddie.

    The housing boom could last for a while, but the bust was inevitable. When the Fed raised interest rates, things went kaboom. The Great Recession was on; we’re still suffering its effects. Without these government housing and monetary policies, the crisis would never have occurred. ”

    YUP.. Bill Clinton:

    1. It is interesting how the errors of one president sometimes cause a meltdown during a subsequent administration. And you are right– this is precisely what the Biden mortgage policy invites.

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