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Bill Clinton: Laying the Foundation for The House of Cards

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Published on Sep 8, 2012

In this PBS NewsHour video-clip from January 21, 1998 President Bill Clinton points to his accomplishment of having his 'regulators' force banks to grant loans to applicants to whom the banks wouldn't otherwise have granted loans.

In this video-clip President Clinton, claims that 85%+ of the loans issued under the guidelines of the (then 20 plus year old) Community Reinvestment Act were issued during his first five years in office.

Is it any wonder that the GSE's, Fannie Mae and Freddie Mac, under direction from Clinton and his HUD Chairmen, Henry Cisneros and later Andrew Cuomo (during Clinton's two Presidential Administrations) continued lowering the standards for the loans they would purchase from mortgage originators? And, is it any wonder that investment banking interests devised ways to 'package' large numbers of mortgage loans into "tranches" of different risk level in order to diversify the risk they were being forced, by regulatory pressure and political persuasion, to finance?

Notice that Clinton mentions that this activity was not necessarily an affirmative action or civil rights oriented activity, but rather that it had impact on the economy. . . .

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