What Bill Clinton won’t say Tonight about His Role in Creating the Economic Mess

President Clinton likely will be silent this evening during his speech nominating President Obama for a second term about the role he played in setting the stage for the economic collapse that ensued a decade later.

He will likely pin the blame for the current economic mess on his successor, George W. Bush, and claim that Mitt Romney and Paul Ryan want to take Americans back to the failed policies of the past, while dodging his personal role.

The former President currently appears in an ad that the Obama campaign has running in Virginia and other battleground states. In it, he states that the GOP ticket wants to “cut taxes and go back to deregulation, which is what got us into trouble in the first place.”

Clinton perhaps is the worst of all Democrats for the Obama team to have deliver those lines because his administration set the stage for the subprime mortgage crisis and the banking crisis that ultimately collapsed the economy in 2008.

Not to mention, the economic boom of the second Clinton administration was created in part by a cut in capital gains taxes that overwhelmingly benefitted entrepreneurs and the wealthy, many of whom collect their earnings in stock options rather than salaries.

And that includes Romney.

Responsibility for the economic crisis falls more squarely on Clinton’s shoulders than it does on Bush’s because he signed the repeal of the Depression-era Glass-Steagall Act in 1999, which many analysts say precipitated the banking crisis. The old law barred banks from combining their investment and commercial banking activities.

“What happened over the next eight years was an almost exact replay of the Roaring Twenties. Once again, banks originated fraudulent loans and once again they sold them to their customers in the form of securities,” US News wrote in an Aug. 27, 2012 editorial .“The bubble peaked in 2007 and collapsed in 2008. The hard-earned knowledge of 1933 had been lost in the arrogance of 1999.”

As if that was not enough, the Clinton administration eased Fannie Mae lending requirements among minorities and low-income consumers in Sept. 1999 – a move that when combined with the Glass Steagle repeal resulted in the bank bailouts and the elevated unemployment of the Obama era.

Conservatives railed against Clinton, warning the banks would have to be bailed out eventually.

”From the perspective of many people, including me, this is another thrift industry growing up around us,” Peter Wallison a resident fellow at the American Enterprise Institute, told the New York Times in Sept. 1999. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.”

Clinton is the most popular of all living former presidents, and Chicago Mayor Rahm Emanuel told CBS’s Charlie Rose this morning that Clinton and Obama have the “same values, same policies and the same goals.”

But this means that by hitching himself to Clinton’s wagon, Obama loses any credibility he might have in being able to blame the Republicans for creating the economic conditions he inherited.

Comments

Polititainment

WH responds to 'Deport Justin Bieber' petition

Despite the pleas of more than 270,000 Americans to deport Justin Bieber, the White House has chosen not to weigh in on the issue. However, the Obama administration did use a petition calling on the White House to revoke the pop artist's green card to plug President Barack Obama's plan for immigration reform.

Secret Service once threatened Mr. Met's life

Mr. Met sure has a lot of fans in New York. But the larger-than-life mascot definitely doesn't have one in the Secret Service, who threatened to shoot and kill him if he approached President Bill Clinton, according to a firsthand account.

Jill Biden on Joe: "I fell in love with the boys first"

Second Lady of the United States Dr. Jill Biden didn't marry Vice President Joe Biden for his sense of humor -- instead, she "fell in love" with his two sons first.

Joe Biden's first Instagram photo

Ladies and gentlemen of this great nation, rejoice! Vice President Joe Biden has joined Instagram -- and his first post is everything you ever dreamed it would be.

Celebrate Tax Day with this ditty

What better way to celebrate curse Tax Day than with a little toe-tapping, finger-snapping ditty that perfectly describes how we all feel about the Internal Revenue Service?

White House

PETA is peeved with Michelle Obama and used little girls to tell her about it

First Lady Michelle Obama has earned the ire of three young girls. But they're not upset with her less-than-filling "Let's Move!" school lunches. Instead, these youngins are upset about the real eggs used in the White House Easter Egg Roll.

Jay Carney: “Never been a more transparent administration”

Despite consistent objections by journalists that the White House overly restricts press access, Press Secretary Jay Carney believes that there has "never been a more transparent administration."

Jay Carney: Toughest interview for Obama in 2012 was with Jon Stewart

Give comedian Jon Stewart a gold star sticker. The host of The Daily Show was President Barack Obama's toughest interviewer during the 2012 election cycle, White House Press Secretary Jay Carney said on Thursday.

The most powerful selfie in the world

Joe Biden — he's just like you, and he takes selfies, too.

Obama: Republicans a threat to the right to vote

President Barack Obama slammed Republicans on Friday for supporting voter identification law and labeled the GOP as a threat to the right to vote.

Congress

Rep Black: GOP budget makes a path to a bright future

Our nation is $17.4 trillion in debt and out of control Washington spending has no end in sight. In fact, the nonpartisan Congressional Budget Office estimates that on our current trajectory we will return to $1 trillion annual budget deficits by the year 2022.

Cruz: Impeach Holder

Sen. Ted Cruz (R-Texas) pulled no punches when criticizing Attorney General Eric Holder on Thursday, as he called on Congress to impeach the Department of Justice head.

Pelosi: GOP not acting on immigration because of race

House Minority Leader Nancy Pelosi (D-Calif.) pulled the race card when speaking about Republicans' inaction in passing comprehensive immigration reform and said "race has something to do" with the GOP not bringing such legislation to the House floor.

House passes Ryan's budget plan

The House on Thursday passed a 10-year Republican spending plan drafted by Budget Committee Chairman Paul Ryan.

Read more at The Washington Examiner.

Harry Reid's Koch-fueled meltdown

Senate Majority Leader Harry Reid (D-Nev.) has been in a Koch-fueled rage, seizing moments left and right (mostly from the left) to bash Charles and David Koch.