The economic crisis that is now crippling the world clearly started in the U.S. And, as the Japanese owner of the company I work for acknowledged, it was specifically the failure of the subprime mortgages.
The question as to who is to blame for the subprime mortgage mess is constantly debated. The media has clearly tried to point the finger at President Bush and the Republicans.
In an attempt to provide a more complete picture, I am including the following.
First, an editorial which got me started on this, from Investor’s Business Daily, “The Subprime Lending Bias”.
The rest of these links help support the statements made in the above article.
CRA Regulatory Change – 1995
First Union Press Release – October, 20, 1997
Andrew Cuomo – Affirmative Action “lending” – April 6, 1998
HUD Press Release 00-45 – March 2, 2000
It is clear from the above that the problems started during the tenure of President Clinton. However, it is also clear that President Bush did very little, if anything, to prevent the impending crisis.
But, more importantly, it doesn’t matter who is at fault. In the end, we will pay!!! Whether it is bailing companies out for making bad decisions or, as stated in the previous article, it is bailing out Legislatures who fail to manage the State’s budget, it is the taxpayer who will lose!!!
Tags: affirmative action lending, Andrew Cuomo, Bear Stearns, Community Reinvestment Act, CRA, Fannie Mae, First Union Capital Markets Corp, Freddia Mac, Housing and Urban Development, HUD, President Bush, President Clinton, subprime mortgage, taxpayer
