Since late May crony, crooked, incompetent Hillary (left) and Princess Lizzie Ticklefeather (right) have been blasting Donald Trump as a heartless cut throat businessman for saying in 2006 that if the housing market should crash he'd make a fortune. Though Trump won't disclose how much a profited he nevertheless owes every cent of it to Bill Clinton whose reckless affordable housing program for the poor underlied the crash. A great controversy stirring campaign tactic would be for Trump to publicly thank Bill for the crash that added to his wealth.
The credit/housing crash of 2008 that wiped out trillions in wealth for millions of Americans and nearly collapsed our financial system and caused a depression had many moving parts. But the prime mover of the crisis (the fountainhead and ultimate source) who set it in motion was Bill Clinton and his Government/Wall Street Housing Partnership to revitalize the flat housing market he inherited from George H. W. Bush.
Behold the great bubble maker who made Trump richer from the housing crash.
Called the National Homeownership Strategy (see) Clinton sort to quickly and dramatically boost the national home ownership rate from 63% to an astonishing historic 70% in just a few short years. Hoping to reach his ambitious goal by the end of his second term (and go down in history as the Great Home Ownership President) Clinton targeted millions of low-income families who dreamed of being home owners but couldn't qualify or afford mortgages for lack of good credit or income and savings. So compassionate, big-hearted Bill feeling their pain of wanting the American dream of home ownership but couldn't afford it decided to launch a new economic and financial social justice revolution: to instantaneously lift millions of low-income families out of poverty and into the middle class. It was Clinton's version of the War on Poverty by other means; instead of government handouts and growing the welfare state (which he reformed) costing tax payers billions banks and mortgage firms would issue millions of risky loans to poor folks giving them a short cut to the middle class and American dream; and for many years it worked like a dream, until it predictably became a national nightmare.
Indeed, Clinton with help from government sponsored mortgage firms (GSEs) Fannie Mae and Freddie Mac made mortgages affordable to the poor on a massive scale by democratizing credit and treating them as if they were creditworthy 700 FICA score borrowers: with little or nothing down and a small fee to the lender and wallah, a subprime mortgage for $100,000 plus homes would be theirs (see and see). It was only fair thought progressive compassionate Bill that they should be treated like richer folks; for
like most liberals believe all human beings (rich, poor, in between) have an equal right to home ownership. Now with Fannie and Freddie (headed by compassionate, caring, bleeding heart libs like Bill) massively buying and backing these loans from banks and mortgage firms (removing the risk and hazard of issuing them) Bill Clinton nearly reached his goal making him the greatest HOUSING BUBBLE KING of all. Indeed, when his presidency ended in 2001 the gigantic doomed to burst housing bubble (the homeownership rate) was at 68%-up 5 points when he took office in 93. No wonder the economy was surging during the Clinton years; and despite Monicagate and all the lies Bill left office flying high with a 66% approval rating-just beating Ronald Reagan.
From 1993 to 2006 the home ownership bubble grew from 63% to 69%-5% under Clinton 1% under Bush. This means that Clinton owned 5/6ths of the bubble-the majority of it.
Indeed, as Bill Clinton brags and boasts today (and Hillary is always reminding us) the country greatly prospered during the 90s, and especially the nation's poor as 7.7 million of them were lifted out of poverty-a historic achievement by any measure. But Clinton avoids like death mentioning his secret on how he achieved such astounding success: his Affordable Housing Program where recklessly discarding decades of safe, traditional, time-tested lending practices he subprime loaned his way to a housing boom that continued under a desperate, struggling George Bush (he saw a possible crash ahead and tried to prevent it, see) reaching 69% in 2006. Then the tide in home sales declined and two years later disaster struck as the Clinton/Bush bubble went bust with millions losing trillions in wealth and sinking into poverty reversing all the gains of the Clinton/Bush years. Indeed, millions of people defaulted on their loans and many of the 7.7 million lost their homes along with their middle class rank.
That part of the story the Clintons don't want you to know because Bill's blind, reckless, stupid liberal ambition (his feel your pain compassion to end poverty, share wealth and leave office with a booming economy using risky subprime loans) nearly wrecked the economy for all. The road to hell is paved with good intentions, and Bill Clinton was one of its most foolish travelers. Let the truth be known.
Hillary who tried and failed to reset US foreign policy (making it worse with her weak and feckless leadership and bad decisions) now promises to reset America after the disaster of the Obama years by continuing his failed policies.
And now with an anemic economy almost flat on its back of under 2% growth, and a disappearing middle class (which accelerated under Obama) Bill Clinton and the Mrs. want to return to the White House using him as her economic czar in charge of revitalizing the economy. God help us all if she beats out Trump this fall. For who knows what crazy reckless screwball schemes Clinton will dream up again.
Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon: Gretchen Morgenson,