Question by Barbara J. M: Bill Clinton and the mortgage crisis?
How did he contribute?
Ideal answer:
Answer by Probs 7
http://www.consumersrightsleague.org/uploadedfiles/ACORN_AHC_Report.pdf
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Question by Richard RIGHT: Since a new economists’ study traces the roots of the Recession to the 90s, is Clinton more to blame than Bush?
This study says it all comes down to there being nothing to back inter-bank loans: “The REPO market of interbank loans had always existed but it grew dramatically in the 1990s to support securitization. But since there was no deposit insurance for institutional loans measured in hundreds of millions of dollars, counterparties demanded collateral to back these overnight REPO loans that generally replaced demand deposits in the banking system.”
http://www.housingwatch.com/2010/02/26/it-wasnt-a-mortgage-recession-after-all-so-why-dont-we-feel-b/?icid=main|main|dl1|link3|http%3A%2F%2Fwww.housingwatch.com%2F2010%2F02%2F26%2Fit-wasnt-a-mortgage-recession-after-all-so-why-dont-we-feel-b%2F
Best answer:
Answer by Paul Grass™
Absolutely he is, so is the Democratic controlled congress
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Question by ideogenetic: Why did the Clinton and Bush deregulation regime lead to misallocation of capital ending in financial collapse?
Is it now obvious that markets do not know best how to allocate capital?
“And what I’m saying to you is, yes, I found a flaw. I don’t know how significant or permanent it is, but I’ve been very distressed by that fact.” – Alan Greenspan, finally realizing the flaws of capitalism that Marx understood in the 19th century.
Best answer:
Answer by Bo Bo
What they called deregulation wasn’t.
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Question by ortisthetortoise: When and how did the Clinton administration allow for the securitization of subprime mortgages?
Please cite sources (specific legislation, executive order, etc. – not just “CRA changes in 1995”)
I can’t seem to find these “CRA changes of 1995” in any law or order. Trying to figure out if they are fact or folklore
….changes specific to subprime securitization that is…
Best answer:
Answer by rhsaunders
It didn’t; securitization has been legal from the beginning. Which did not mean that it was smart, or that there were mechanisms in place to appropriately value such securities.
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issue by ortisthetortoise : Is the Clinton administration to allow the securitization of subprime mortgages? If so, how?
I can not find anything specific to the securitization of subprime mortgages in the “CRA 1995 changes” that everyone parle.Essayer to understand whether this accusation is made or folklore.Y there a specific law or order Executive which refers to this Best answer:
response by Chris J
http://www.miscellanynews.com/opinions/don_t_blame_the_guiltless_for_economic_crisis
What do you think? Answer below!
