Smoking Gun: The Government Caused the Subprime Mortgage Crisis
It is possible that we were talking about the subprime mortgage crisis as far back as 1998 because I remember Janet Reno, who was the attorney general at the time, threatening banks with investigations if they didn’t make these loans. Now, Investors.com today, Investor’s Business Daily has editorials, “Smoking-Gun Document Ties Policy To Housing Crisis.” Now, they act like it’s new, and it is to them, but I’m just gonna admit to you, folks, it gets frustrating sometimes being on the lead of this stuff. It really gets frustrating being years ahead of people, because when you’re years ahead they ought to catch up years ago. Anyway, I’m not ripping Investor’s Business Daily. Don’t misunderstand. This is just a generic thing.
“President Obama says the Occupy Wall Street protests show a ‘broad-based frustration’ among Americans with the financial sector, which continues to kick against regulatory reforms three years after the financial crisis. ‘You’re seeing some of the same folks who acted irresponsibly trying to fight efforts to crack down on the abusive practices that got us into this in the first place,’ he complained earlier this month. But what if government encouraged, even invented, those ‘abusive practices’?” Well, you and I know because you listen here every day that they did. You know that it was Jimmy Carter that started it. You know that it was Bill Clinton that really ratcheted it up and you know that it was Barney Frank and Chris Dodd and a number of other the Democrats throughout the 2000s which kept this program alive under the whole concept of affordable housing. (imitating Frank) “We must make sure that people who can’t afford houses are in houses, it’s only fair,” as Barney would say.