Someone said to me yesterday that Bill Clinton was somehow responsible for the subprime mortgage crisis?

Is she and idiot, or does she have a valid point and I cant make the connection?Someone said to me yesterday that Bill Clinton was somehow responsible for the subprime mortgage crisis?
Tell her she is an idiot.





Clinton has been gone for 8 years now, long before this crisis emerged.





If you want to blame anybody, blame the one in charge now.Someone said to me yesterday that Bill Clinton was somehow responsible for the subprime mortgage crisis?
I think this has more to do with Clinton since he was the one that appointed the CEO of Freddie Mac. Bill Clinton made a lot of dumb decisions and this is just one

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She is definitely misinformed.....GW Bush had an awful lot to do with it.
In 1999,Bill Clinton repealed the Glass-Steagall Act (Banking Act of 1933) In doing so,Billionaire Sanford I. Weill was able to create Citigroup,one of the worlds most powerful financial institutions. For that ';small'; favor,Citigroup is a major contributor to guess which current Democratic Presidential candidate?


In the spring of 1987, the Federal Reserve Board votes 3-2 in favor of easing regulations under Glass-Steagall Act, overriding the opposition of Chairman Paul Volcker. He expressed his fear that lenders would recklessly lower loan standards in pursuit of lucrative securities offerings and market bad loans to the public. As time does tell, that is is exactly what happened....According to a December 2006 study by the Center for Responsible Lending, a nonpartisan research and policy organization:


More than 2 million people with subprime loans are facing foreclosure this year and nearly 20 percent of subprime mortgages issued between 2005 and 2006 are projected to fail. If he had not repealed the Glass-Steagall Act we would not be facing the mortgage crises..
She has a valid point. It's not his fault solely - not by a LONG way - but he certainly contributed.





Mortgages are bought and sold in batches on the open market. Lenders are not required by law to abide by the Fannie Mae guidelines for creditworthiness if they don't want to, but if they don't, those mortgages can't be included in resale bundles.





Under Clinton, Fannie Mae dramatically loosened their guidelines for creditworthiness, this allowing a lot more people (Hopefully, thought Bill, poorer people, more likely to vote Democrat) to qualify for mortgages.





This relaxation was a large part of what led to the increased demand for mortgages, and the battles for customers among banks that led to all the current issues.





Richard
The subprime thing is too big to blame on any single person or agency. Clinton did encourage lenders to bend their standards to get more ';minority'; homeowners, that's true. But Bush cut the SEC to the bone and let corporations go wild and predatory without any real regulation, which made things go wild.