Folks, do you remember that the banks wouldn’t lend to blacks and Hispanics ’cause they were racist? And then do you remember how Jimmy Carter and then Clinton and then, after that, Clinton came along and they passed something called the Community Reinvestment Act. And you remember what that did? The federal government forced banks to lend money to people who had no prayer of ever paying it back. Janet El Reno, the attorney general for Clinton, even threatened the big banks all over the country with investigations if they didn’t do this.

The Reverend Jackson was running around complaining about redlining, that people of color were not being given loans because of the racist policies of the banks. The American dream was defined as everybody should have a house, and the Democrats came along and said it’s not fair some people have houses and other people don’t. Well, we gotta put the people that don’t have houses in houses. Well, how do we do that if they can’t afford it? It’s simple. We make the banks loan them money at low-interest rates, and then the dirty little secret is they can’t pay it back, so it’s up to the banks. The banks are gonna eat it. That was the philosophy. The banks owed this because the banks had been screwing people for so long.

Remember all this? You remember then that Wall Street banks — after doing this under threat of investigation and threat of the use of force under the intimidation of federal government — then made these loans. And then what they did is they pooled them together. Worthless pieces of paper. Worthless mortgage after worthless mortgage. The banks pooled these things together in consort with Fannie Mae and Freddie Mac.

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