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

Leave a Reply

Walker plays April Fools' prank
Now that the 2016 presidential candidate announcement season is in full swing, likely candidate Scott Walker was able to play an April Fools’ Day prank of presidential proportions Wednesday morning. The Wisconsin Governor tweeted out that he had a “big announcement” coming up, reminiscent of  Sen. Ted Cruz’s presidential announcement. Big announcement coming up at 10:00AM […]
Helen Mirren is absolutely 'anti-gun'
Well, you can add actress Helen Mirren’s name to the list of celebrities who love to shoot ‘em up on screen and rant about gun control off screen. Mirren gave a wide-ranging interview to Yahoo! Movies Monday where she spoke about everything from her love of Vin Diesel to her laundry style to her opinion […]
Tom Cotton objects to his SNL parody

Sen. Tom Cotton (R-Ark.) had a problem with SNL’s spoof of him—but only because the actor selected to portray him was too short.

Maher tells PC liberals 'shut the f up'

Bill Maher's politics are not always the greatest. But when it comes to knocking down the liberal PC brigade, he is on point like no other.

SNL parodies Starbucks' race campaign

What if another company--say, Pep Boys (or Girls! Or Whatever!)--took on their own campaign to talk about gender and sexual identity?

White House

Carly Fiorina says there’s a ‘higher than 90 percent chance’ she’s running for president

Carly Fiorina’s 2016 campaign is all but certain now—and she’s making no secret as to whom she’ll be targeting.

White House promises not to use legal loophole to keep NSA spying alive if Patriot Act expires
If the Patriot Act expires, it will stop the National Security Agency’s bulk spying too. The Obama administration promised this week that it will not take advantage of a legal loophole to keep the NSA spying alive unless Congress re-authorizes the Patriot Act, Reuters reported. Section 215 of the Patriot Act, which authorizes the NSA to collect data on […]
In honor of National Puppy Day, here are the top 10 cutest presidential puppies

Today is National Puppy Day! To celebrate, we give you the top ten cutest puppies to grace the White House Lawn.

Obama: ‘By hook or by crook’ I’ll push my agenda through
This is probably not the smartest phrasing to use. President Obama had an interview with Huffington Post over the weekend and while much of the interview was his oft-repeated lines about how Republicans are the reason nothing is getting done in Washington, he added a new phrase about his legacy that is bound to raise […]
Obama tells Prince Charles that Americans like the royal family better than their own politicians

President Obama has admitted what we all already knew: Americans far prefer the Duchess of Cambridge to Michelle.

Congress

Harry Reid doesn't care that he lied about Romney
Senate Minority Leader Harry Reid (D-Nev.) might have some regrets about his more than 30 years in Congress, but his baldfaced lies on the Senate floor about former presidential candidate Mitt Romney are not among them. Back in 2012, Reid accused Romney of not paying any taxes at all for the past 10 years without […]
Sen. Harry Reid will not seek re-election
WASHINGTON (AP) — Senate Democratic Leader Harry Reid, the wily Nevadan who dominated the Senate for a decade from the minority to the majority and back again, announced Friday he will retire after five terms. Reid, 75, who shepherded key Obama administration initiatives including the president’s health care law, lost his role as majority leader — […]
Schock: Lincoln faced challenges too
Embattled Rep. Aaron Schock (R- Ill.) gave his farewell speech on the House floor Thursday, promising that it was “not the end of a story, but rather the beginning of a new chapter.” While his own trials are more of the “Downton Abbey” decor and Katy Perry concert variety, Schock likened this tough time to that […]
Boehner, Pelosi read mean tweets
Taking a cue from Jimmy Kimmel’s famous “Mean Tweets” series, House Speaker John Boehner (R-Ohio), House Minority Leader Nancy Pelosi (D-Calif.), Sen Bernie Sanders (I-Vt.) and House Majority Leader Kevin McCarthy (R-Calif.) got in on the fun and read some mean tweets about themselves in a video for the 2015 Radio & Television Correspondents Association […]
GOP blocks Warren's student loan plan
THE HILL — Senate Republicans on Wednesday blocked an effort by Sen. Elizabeth Warren (D-Mass.) to attach an amendment aimed at lowering student loan rates to the budget. Senators voted 46-53 against Warren’s amendment to the Republican budget resolution. Warren’s amendment would have allowed people with college loan debt to refinance at interest rates from […]