The Clinton Library performed a massive behind-the-scenes document dump last week that contains every last detail of how Democrats forced banks into lowering their lending standards and wrecked the housing market…only to turn around and blame not enough government when their disastrous policies finally imploded the economy.
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.’
The Clinton Administration is now on the record openly bragging about manufacturing the housing bubble, and explaining exactly how they did it. They confirm in specific detail how Democrats spent years falling over each other to force banks into lowering their lending standards at gun point while federally insuring their overwhelming and inevitable losses at taxpayer expense.
The article continues:
Other documents reveal how the community-activist group ACORN and other organizations met with Rubin and other top Clinton aides on ‘improving credit availability for minorities.’
Clinton’s changes to the CRA let ACORN use the act’s ratings to ‘target merging firms with less-than-stellar records and to get the banks to agree to greater community investment as a condition of regulatory approval for the merger,’ White House aide Ellen Seidman wrote in 1997 to Clinton chief economist Gene Sperling…
…Seidman later boasted that Clinton’s 1995 CRA revisions created not only the subprime mortgage market but also the subprime securities market. Of course, subprime loans and their high default rates ruined minority neighborhoods when the market crashed.
Again, let’s review:
-No one was making bad loans to unqualified people until Democrats came along and threatened to drag banks into court and have them fined and branded as racists if they didn’t go along with the left’s Affirmative Action lending policies. Even the New York Times warned in the late 1990s that Democrats continuing to force banks into lowering their standards would lead to this exact meltdown.
-As I have demonstrated, studies directly connect the collapse of the housing market to these Democrat policies.
-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.
-John McCain also co-sponsored urgently critical reforms that would have prevented the housing market collapse, but Democrats shut that down as well, along party lines, and even openly ridiculed anyone who suggested reforms were necessary…to protect their taxpayer-funded campaign contributions as the economy raced uncontrollably toward the cliff.
-Democrats are even on the record helping sue one lender (Citibank) into lowering its lending standards to include people from extremely poor and unstable areas, which even one of the left’s favorite blatantly partisan “fact-checkers,” Snopes, admits (while pretending to ‘set the record straight’).
-Even The New York Times admitted that there is “little evidence” of any connection between the “Republican” deregulation measures Democrats blame, like the Gramm-Bleach-Liley Act (signed into law by a Democrat), and the collapse of the housing market.
Democrats endlessly exploiting, manipulating and bribing the black community down the toilet of paranoid bigotry, nanny state dependence, and professional victimhood for personal gain is what destroyed the economy. It is an undeniable fact at this point.
But the news media will continue to repeat the blatantly false Democrat narrative that Bill Clinton’s racist wealth redistribution policies weren’t the problem, that Republicans simply allowed the free market (not enough government) to ruin the economy, and that Democrats just inherited their economic mess—the exact opposite of the truth.