Why the Clinton administration put us into recession?

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PLEASE …… if you disagree, please read below Link1999 “Fannie Mae, the largest insurer in the country mortgages, increasing pressure to extend the Clinton administration, on mortgages to people with low and middle income were, and felt pressure from shareholders to maintain its phenomenal growth in profits “Read the rest of http:/ /. query.nytimes.com / gst / res 9C0DE7DB153EF933A0575AC0A96F958260 fullpage.html = & n = Top%%% 20% 2FReference 2FTimes 2FMinorities 2FSubjects 2FM%%% 20 (U.S.)

19 Comments
  1. Reply
    a bush family member
    February 21, 2011 at 4:03 am

    He pushed for home loans to poor people. The question is was it to make lobbyists happy or was it to get votes?

    shawnLac… : Clinton left with a recession. It is called the “Clinton Recession” http://www.washingtonpost.com/ac2/wp-dyn/A38826-2004Jan22?language=printer “Bush inherited Clinton’s recession – iReport.com” http://www.ireport.com/docs/DOC-80312

    Federal Reserve chart
    http://www.frbsf.org/publications/economics/letter/2006/el2006-30a.gif

    Also, Clinton ignored a government report that said bank derivatives were dangerous to the economy. He also threatened to fine banks that were not giving loans to poor people.

    In 1997 Clinton “actively sponsored ” risky home loans :
    “”…rapid growth in affordable-loan programs and subprime lending…”
    “The growth in these [special loan] programs has been actively sponsored by the Clinton administration ”
    “The currently strong housing market is due in part to the initiation of a wide variety of affordable home-loan programs. These programs are intended to benefit low-income and minority households and neighborhoods through more flexible underwriting policies. These policies include low-downpayment requirements, higher acceptable ratios of debt payment to income, the use of alternative credit history information such as records of payments for rent and utilities, flexible employment standards, and reduced cash reserve requirements. The growth in these programs has been actively sponsored by the *** Clinton administration *** in a concerted effort to raise home-ownership rates.”
    Mortgage Banking [News] – Aug 1, 1997

    Clinton’s Freddie Mac changes:
    “Freddie Mac, one of the primary government-sponsored enterprises involved in the purchase of mortgages, recently announced plans to enter the secondary market in subprime loans by purchasing significant numbers of “A minus” subprime mortgages by 1998 and the higher-risk “B and C” loans by 1999.(20) ”

    One of Clinton’s changes to foreclosure insurance ( that protected banks ).
    “On June 6, 1996, President Clinton announced that he had directed FHA to reduce the up-front mortgage insurance premium (UFMIP) for first-time homebuyers who receive housing counseling”

    Since 2001, President Bush warned of the problem and put forward plans to fix Fannie Mae and Freddie Mac:
    http://www.whitehouse.gov/news/releases/2008/09/20080919-15.html
    In 2003, “Spurred by worries that Fannie and Freddie were cooking their books and taking too many risks, Treasury Secretary John Snow proposed placing the companies under Treasury oversight with strict controls over risk and capital reserves. The NYT labeled the proposal “the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago””
    http://www.usnews.com/blogs/sam-dealey/2008/9/10/barney-franks-fannie-and-freddie-muddle.html

  2. Reply
    The Original Shirazz!
    February 21, 2011 at 4:27 am

    the Clintons are evil

  3. Reply
    gowylde
    February 21, 2011 at 5:01 am

    lol, here we go. the guy has been out for 8 years and you still blame him.

  4. Reply
    wdx2bb
    February 21, 2011 at 5:12 am

    It would be a gross oversimplification to blame the Clinton Administration for the entire housing mess. There are far more many villains than that.

  5. Reply
    Phil M
    February 21, 2011 at 5:49 am

    Wow…I don’t even have an answer for you…

    Oh, yeah I do…

    repub congress from 1996-2006, repub President from 2001-2009…

    Why didn’t you guys address this during this time? Why did Bush champion this exact type of effort for homeownership?

    We were screwed by lenders and borrowers.

  6. Reply
    Nomo
    February 21, 2011 at 6:20 am

    I thought people were still blaming Carter for everything.

  7. Reply
    ubermench_2000
    February 21, 2011 at 6:30 am

    yes the most certainly did
    thank you for digging too bad more of us aren’t willing to spread the facts

    more interesting fact
    http://www.youtube.com/watch?v=8sj91NH5fvw

  8. Reply
    Yes
    February 21, 2011 at 6:44 am

    You’re blaming Clinton for Bush’s mistakes? Why not take it a step further and blame Bush Sr or Reagan? Or do you only blame Democrats?

  9. Reply
    Brown9489
    February 21, 2011 at 7:39 am

    Republicans are irresponsible. Do YOU want an irresponsible government?

    Pass the buck time is over…time to fix things.

    Obama/Biden

  10. Reply
    jack spicer
    February 21, 2011 at 8:25 am

    no. no. no! you’re all wrong it’s andrew jackson’s fault! god forbid it’s the a**holes in power today!

  11. Reply
    shawnLacey
    February 21, 2011 at 9:01 am

    Don’t try to hide the truth. I am not a Clinton follower, but he left us in the black with no deficit. Your homeboys, the republicans, have ruined this nation’s economy.

    For anyone and everyone who borrowed or lend money, he or she is responsible for his/her own greed. Put the blame where it goes and stop intentionally overlooking that crook, Bush!

  12. Reply
    Papa Bear
    February 21, 2011 at 9:44 am

    Wow this is priceless. So let me get this straight, it’s Clinton’s fault that these idiots shunned something called accountability, which is in fact what got us into this mess in the first place? The truth is both parties are responsible for contributing to this mess. End of story.

  13. Reply
    I'm always right.
    February 21, 2011 at 10:15 am

    They expand and contract. Nothing can grow forever.

  14. Reply
    tom buck
    February 21, 2011 at 10:53 am

    You know, the Clinton administration also was embroiled in Whitewatergate, Lewinskygate (the Lewinsky scandal), the death of Vince Foster, among others….nothing good came out of that little miserable excuse of a president.

  15. Reply
    bonsai
    February 21, 2011 at 11:48 am

    Why not blame Adam for eating the apple from the snake (or was it the snake bit Eve in the foot and the apple hit Adam on the head?)

    McSame wrote the deregulation bill and pushed it in 1999 through a majority Republican congress with Bill already impeached and powerless.

  16. Reply
    Mr. Mister
    February 21, 2011 at 12:00 pm

    But there were warnings during Bush’s tenure to stop Fannie Mae and other banks from their illegal practices, and he didn’t do anything. Fannie Mae wasn’t making illegal loans when Clinton was in office, because the Federal Reserve crooks knew they couldn’t get Clinton to go along with their crimes of illegal loans that they knew the taxpayers would have to bailout those who made them.

    It’s the conservative’s and Republican’s trickle down, phony free market, no govt regulations and just no govt, period, BS that they have tried to foist on and attack America with since Reagan.

  17. Reply
    ColleenIsBack
    February 21, 2011 at 12:06 pm

    Oh I see, the almost eight years of the Bush Administration never took place? We were teleported in a time machine to 2008 from 1999? The Bush Administration’s appointees at the Treasury Department were shackeled and chained by the Clinton Administration and THAT’s why they failed to regulate derivatives such as Credit Default Swaps and the like during the entire term of the Bush Administration and that’s why those derivative instruments that Warren Buffet called weapons of mass financial destruction in 2003 were invested in so heavily by Wall Street and AIG to the point of bringing the entire investment banking system down? Bush was never President and the Republicans didn’t run Congress from 1994 to 2006! Wow, I didn’t realize there was a black hole in history!

  18. Reply
    birdie
    February 21, 2011 at 12:51 pm

    The Derivatives market did not explode until 2005 and 2006. Fannie and Freddy together make-up less than 15% of the mortgage derivatives market. Look towards the CEO of Lehman Brothers and Alan Greenspan’s continuing to lower the interest rates to heat up the markets and to provide the fuel for that fire. The deregulation and dismantling of the regulations that led to Enron’s debacle and the lowered capital to risk ratios that allowed the financial institutions to buy and sell these phony instruments are to blame. Look to the Phil and Wendy Gramm collusion for that blame…(Wasn’t there about 1 million bucks worth of campaign donations from Lehman Bros to Gramm’s campaign coffers…seems like Citibank had similar numbers.)

    Paulson’s leadership at Goldman Sachs put them at the top of aggressive activity and risk in this arena, also. Bill clinton signed that Commodities Modernization Act in his last few weeks as President. It was a Republican bill through and through and obviously done for personal future self aggrandizement. Clinton started making the first real money in his life after that.

    If we only had to deal with all the sub-prime mortgages, there would be no world-wide banking crisis! mortgages are backed (obviously) by a real commodity. The derivatives and insurance products were only paper and were not backed by real property or capital. It was simply a Ponzi scheme that had to collapse when the real estate market ceased to expand.

  19. Reply
    Silas
    July 3, 2011 at 12:56 am

    America’s politicians “inherit” recessions???

    That’s ridiculous! Most of them are millionaires and have inherited everything good in the country.

    I think I have inherited the recession myself. It is still unenviable to be an American engineering graduate of 2002, even 9 years later.

    In my world, the technology crash from back then is a recession which still has yet to enter a recovery. The American public blithely ignored the aggressive outsourcing which ensued, and neither demanded tariffs on foreign goods nor any reasonable limit on temporary professional visas from the incumbent politicians.

    The public concluded that the way to make money, from that time on, was to take all of their investment money out of manufacturing and technology ventures to buy real estate with it.

    And the rest is history. Now the economy has seized, and America doesn’t make anything anymore. Its primary exports are jobs and trash.

    Most of the run-up to this situation happened under Republican hegemony, so it’s them that I really blame.

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