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

Bill Clinton, Usher fundraiser for Dem

In the latest instance of Democrat-celebrity coupling, former President Bill Clinton and singer Usher will join forces at a September 13 fundraiser for Democratic candidate for Senate in Georgia Michelle Nunn.

Eric Roberts: Bush killed James Foley

Actor Eric Roberts on Twitter Monday accused former President George W. Bush of killing American journalist James Foley, who was beheaded by an ISIS terrorist in a video posted to YouTube in August.

Palin asks fans to pray for Joan Rivers
Sarah Palin and her daughter Bristol are asking their fans to show support for comedian Joan Rivers, an unlikely pal of the Palins. Rivers,81, has been unconscious in the hospital since Thursday after she went into cardiac arrest during a procedure. Palin posted on her popular Facebook page Friday directing fans to a blog post by Bristol. […]
Grover Norquist loved Burning Man
It’s official: Grover Norquist absolutely loved this year’s Burning Man festival. Before the blaze with co-founder of Burning Man Larry Harvey.He has created a wonderful festival/movement/Brigadoon pic.twitter.com/3iq5UzcPYG — Grover Norquist (@GroverNorquist) August 31, 2014 Burning Man. 65,000 participants. 1000s of works of art. Anyone who walks through BM and only notices nudity tells you only […]
Celebs gin up youth votes for midterms
THE HILL – With young voters more apathetic about voting and government than ever, several organizations are trying to woo the “selfie generation” to the polls this fall. “About half of those who vote in presidential elections do not vote in midterms,” explained Andy Bernstein, executive director of HeadCount, a non-partisan organization that partners with musicians […]

White House

Obama notifies Congress of airstrikes in Iraq
WASHINGTON (AP) — President Barack Obama has sent official notification to Congress of his order for last week’s airstrikes and humanitarian aid drops to help Iraqis threatened by Islamic State militants. The White House on Monday released a letter formally letting Congress’ leaders know that Obama approved the mission that repelled Sunni fighters in the northern Shiite […]
Obama: The world seems really messy because of ‘social media’

President Barack Obama, speaking at yet another fundraiser with a script that's been recycled more than a Hollywood romantic comedy, had an unlikely culprit for the world's problems.

White House scrambles to control the fallout from Obama’s ‘We don’t have a strategy yet’ comment
It’s hard to imagine that there was any other reaction than full panic from White House staffers after President Obama uttered a fateful gaffe Thursday afternoon, “We don’t have a strategy yet.” The line quickly exploded on Twitter and on television — though not quite as much as the president’s tan suit — as it […]
GOP: ‘He’s not a king’
THE HILL – Whether lamenting the so-called vacationer-in-chief’s swing of a golf club or criticizing his handling of the healthcare rollout, Republicans are getting in the habit of comparing President Obama to a monarch. “It’s one thing after another. You know he says he has no choice but to act. He says he has a pen […]
Obama’s Democratic fundraising just might ruin Labor Day weekend for the rest of us

Barely having returned from a 15-day vacation on Martha's Vineyard, Massachusetts, Obama will spend is Labor Day weekend traveling to support his Democratic friends. The problem is, this means that Americans planning to take seaplanes to East Hampton, Montauk, Martha's Vineyard or Nantucket won't be able to travel themselves.

Congress

Dem candidate: Republicans 'worse than ISIL'

Jesse Smith, a Democrat running for Alabama's 3rd Congressional district, compared Republicans to ISIL (or ISIS) militants on Twitter Monday, asserting that the GOP is "worse" than the terrorists that have wreaked havoc in Syria and Iraq.

When Congress was popular
THE HILL — If you’re not a paid staffer or blood relative, as the joke goes, you probably hate Congress. The institution is so unpopular that voters were more positive about brussels sprouts, head lice and root canals in one recent survey. But there have been a handful of times over the last 100 years […]
Cruz highlights issues for 2014, 2016 elections
Sen. Ted Cruz (R-Texas) elicited huge cheers from the audience at the Americans For Prosperity’s “Defending the American Dream Summit” Saturday when he vowed Republicans would take back control of the U.S. Senate and “retire” Senate Majority Leader Harry Reid. “I’m convinced we’re going to win in 2014 and 2016 is going to be even better,” […]
IRS says Lerner's Blackberry 'destroyed'

A senior IRS lawyer has said in a sworn declaration that Lois Lerner's BlackBerry was intentionally destroyed after Congress had begun to investigate her involvement in IRS targeting of conservative groups.

Youth impact reason enough to pass jobs bills
The U.S. House Committee on Ways and Means is in the midst of releasing 40 reasons over the course of 40 days that the Senate should take up the 40 jobs bills the House has already passed. While most of their reasons have focused on general unemployment and economic growth statistics, they turned their attention […]