Bloomberg Wrong About 2008 Housing Crisis

In a recent clip of presidential candidate Michael Bloomberg explaining what happened to cause the 2008 housing crisis and subsequent economic crash, he was a lot more wrong than right. His simplistic explanation gives us a view into his simple mind.

While he was semi-correct about banks issuing risky loans in red-line districts, claiming that to be the cause is like blaming the stove for burning your steak. The steak burns because someone puts the heat on, and then does not watch it.

Here is what really occurred, and how it was Barack Obama, Bill Clinton and Janet Reno, along with a complicit Congress and the incompetence of Barney Frank and Chris Dodd who all played their parts like good little Soros' puppets:

Anyone who kept up with the news is aware that the major cause of the financial meltdown was caused by worthless mortgages issued to people who simply were not capable of paying for the homes they bought. But what many people do NOT know is that those mortgages were created thanks in part to Barack Obama, Dodd, Frank, Reno and Clinton - all Democrats.

As detailed in the American Thinker, Obama represented ACORN in a 1994 suit against redlining. In other words, banks would not issue mortgages to poor people or minorities living in a "redline" district. ACORN was also a driving force behind a 1995 regulatory revision pushed through by the Clinton administration that greatly expanded the Community Reinvestment Act and helped spawn the current financial crisis by forcing banks to issue mortgages to people who could not afford them.
Obama was one of the attorneys representing ACORN in this effort. In a speech to Acorn, Obama said, “I’ve been fighting alongside ACORN on issues you care about my entire career.” Indeed he has. Obama was and is fully aware of what ACORN was doing with the money and expertise he provided. He was the attorney representing ACORN in the lawsuit against Citibank that eventually resulted in the financial meltdown.

Case Name
Buycks-Roberson v. Citibank Fed. Sav. Bank Fair Housing/Lending/Insurance
Docket / Court 94 C 4094 ( N.D. Ill. ) FH-IL-0011
State/Territory Illinois
Plaintiff’s Lawyers:
Alexis, Hilary I. (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Childers, Michael Allen (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Clayton, Fay (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Cummings, Jeffrey Irvine (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Love, Sara Norris (Virginia)
FH-IL-0011-9000
Miner, Judson Hirsch (Illinois)
FH-IL-0011-7500 | FH-IL-0011-9000
Obama, Barack H. (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Wickert, John Henry (Illinois)
FH-IL-0011-9000

Under the Clinton administration, federal regulators began using the Community Reinvestment Act to combat “red-lining,” a practice by which banks loaned money to some communities but not to others, based on economic status. “No loan is exempt, no bank is immune,” warned then-Attorney General Janet Reno. “For those who thumb their nose at us, I promise vigorous enforcement.”
 
The Clinton-Reno threat of “vigorous enforcement” pushed banks to make the now infamous loans that many blame for the current meltdown. “Banks, in order to not get in trouble with the regulators, had to make loans to people who shouldn’t have been getting mortgage loans.”

In short, Obama sued the banks and forced an end to redlining. Clinton and Reno pushed it to the hilt, insuring every poor person the chance for home ownership. These risky mortgages forced lenders to bundle them into the now infamous "derivatives" and sold to Fannie Mae & Freddie Mac, overseen (not) by Sen. Chris Dodd & Sen. Barney Frank. The mortgages did not get paid, resulting in the meltdown that we are still suffering from.

And then what did America do? The attorney who was responsible for the meltdown was elected President of the United States to "fix" the problem.

Obama stated in yet another speech that "We tried our plan and it worked." And he's correct - his plan DID work. His plan, according to what he had done over the previous three decades and what he promised to do ("fundamentally change America") was to destroy capitalism and free markets so a quasi-socialist nanny state could take over. And his plan IS working.

If you need proof, since Obama was inaugurated:

* the unemployment rate jumped from 7.2% to 8.3 %, and has stayed above 8% his entire term of office - his plan "is working"
* the median income in America dropped from $58,000 to $50,000 - his plan "is working"
* the national debt has increased a whopping 51%, from $10 trillion to $16 trillion - his plan "is working"
* gasoline went from $1.85 to nearly $4.00 a gallon - his plan "is working".



For Democrats, it has always been about the government ruling the people instead of vice-versa, and to be the ones in power when that happens. And that is STILL their objective.

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