Quote:
Originally Posted by the_only_turek_fan
Was doing a little bit of digging....
http://en.wikipedia.org/wiki/Community_Reinvestment_Act
Do the provisions that the Clinton administration made in 1995 have anything to do with what his happening.....not trying to pin the whole thing on Bill Clinton, but just wondering if this was a contributer to the current predicament. |
A contributor - absolutely. Any time you screw around and force things, you are going to create new issues and not necessarily just the ones you expect. Although I'm not surprised a "right win think tank" would want to lay the whole issue at the feet of a Democratic president. Definitely a contributor, but doubtful that it is the sole reason.
But there are also issues with how the risky mortgages were being packaged and re-sold in order to hide the amount of risk.
There were also issues with some of the safety mechanisms put in place (limits on the amount of leverage you were allowed to do), which were waived.
There were issues with how low the interest rates have been kept for so long. This has made sense for traditional measures, but the effects on financial markets seems to have created a whole house of cards dependent upon low interest rates, a house now collapsing.
Lots of reasons, lots of blame.