Clinton Library's Doc Dump Reveals CRA Fueled Subprime Bubble

Subprime Scandal: Newly released memos from the Clinton presidential library reveal evidence the government had a big hand in the housing crisis. The worst actors were in the White House, not on Wall Street. --During the 1990s, former Clinton aides bragged that more aggressive enforcement of the Community Reinvestment Act pressured banks to issue riskier mortgages, lending more proof the anti-redlining law fueled the crisis.

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When Will Our Progressive Corporatism Nightmare End?

HERITAGE/FOUNDRY, 10/22/2010 - $154 billion. That is the amount of taxpayer money that will be needed to bail out Fannie Mae and Freddie Mac according to a new "stress test" performed by the Federal Housing Finance Agency. And that is the good news. If the economy dips into a second recession and foreclosures rise, the Fannie and Freddie bailout could nearly double in size. The agency, which oversees Fannie and Freddie, released the numbers "to inform public debate about the future of the two companies" ahead of expected Obama administration proposals slated for early next year. But if you are hoping for major policy changes from this administration, don't hold your breath. Read more at the Foundry... Read More......

Who’s to Blame for the Housing Bubble?

WALL STREET JOURNAL, 11/16/2009 by James R. Hagerty - Many people argue about when the housing bust will end. ∴ But some seem at least as concerned about defining when the housing bubble began. ∴ Why should we care when it all began? It’s politics. If the housing bubble began during the Clinton administration, it can be blamed on the Democrats and their efforts to expand homeownership to people who, in some cases, may not have been quite ready for it. If it began under George W. Bush, then it can be imputed to the Republicans’ love of deregulation. ∴ Of course, as we all know, the causes of today’s mess are far more complicated than either of those hypotheses allow. But nuance rarely figures in the debates of our age. ∴ In the (perhaps vain) hope of gaining some calm perspective, let’s consult two people who are frequently quoted on housing and mortgage matters. Read the views of Edward Pinto, a mortgage-industry consultant and Tom Lawler, an independent economist... Read More......