2008 Sub-Prime Financial Crisis (Clinton to Bush to Obama )

Watching the O’Reilly Factor talking points tonight (June 9, 2016), the host said (paraphrased) “The 2008 financial collapse was caused by greedy mortgage companies and bankers.”  (I am a former employee of one of those now defunct greedy mortgage companies.)

This is ultimately correct, but misses an important component which provided the fertile ground for this bad behavior to prosper: Government policies and aggressive government practices which got this messy sub-prime ball rolling.


Click this Link to a Subprime Financial Crisis Article on Wikipedia for a surprising decent, detailed (and long) entry on this topic touched on these points.   (I am saving a PDF for when someone catches wind that is a decent handling of this topic and decided to change it.)

Government Regulation / Legislation

I have frequently heard cited the Community Reinvestment Act as the true poison pill, and the Janet Reno under the Clinton Administration threatening banks with punitive actions if they didn’t change their “racist” lending ways.  Here are some supporting sources:

Combine that with 1982’s Adjustable Rate Mortgages and the Affordable Housing purchase mandate from 1992 (Housing and Community Development Act) we had a perfect storm seeded in the 1990’s that came to blow up in 2008.

Question of the Day

So please tell me …
  1. Why is it President Obama, the media, and many other government types continue to get away with saying it’s George W. Bush’s fault?
  2. Why do they like to conveniently forget President Bush called for Fanny Mae and Freddy Mac to be reigned in from their on-fire Sub-Prime Lending ways? (out of control, contributing HEAVILY to the problem) :
    1. US News and World Report:
      Democrats Were Wrong on Fannie Mae and Freddie Mac
      The White House called for tighter regulation 17 times.
Guess I could write about those questions separately, another time.

O’Reilly Factor Review – Context


Context Post

Occasionally I may want to respond to, or repeat/resonate something I heard on the O’Reilly Factor – a show I’ve been catching somewhat regularly lately.  These are the ground rules for my comments – put into one place so I don’t have to repeat them.
  • I am neither an apologist nor detractor of Bill O’Reilly on the Fox News Channel.   He is generally reasonable in discourse. He is occasionally strongly animated in debate, but generally (laughably) directed at Kirsten Powers, a contributor who once upon a time served in Clinton Administration.  (She also gets rather torqued at him through a pursed lip. Makes it fun to watch.)  This doesn’t always make him right, nor always wrong by my estimation.  I like the term “fair”.  He has a world view and “his” show reflects it.That said, there are times I like to write him and express an opposite view to his own.  But I don’t want to just do that here. I would also add support to anything I find agreeable.