I saw an article in a local paper here (in Dayton, OH), and the author accuses Pres. Clinton of partially setting the stage for the housing crisis by essentially forcing banks and lenders to provide mortgages to lower income areas, typically minority areas, based on the perceived existence of mortgage discrimination.
Here's a quote from the article, which is itself quoting an article in the LA Times from Dec 9, 1993:
Now, on its face, this strikes me as a Republican attack against the Clinton legacy, but on the other hand, if the federal government pushed lenders into deals with lower income folks, perhaps there's a kernel of truth. In Baltimore, there are many, many foreclosures in lower income sections of the city, causing the current mayor to accuse lenders of targeting racial minorities (and ignoring the fact that inner city Baltimore is predominantly black and poor, and poorer folks with lower incomes are more likely to default on loans).
The article continues into greater depth about other things the government did to encourage the housing crisis (artificially low interest rates, tax breaks for interest payments on loans) and references as a cause but does not really discuss the bundling of subprime mortgages with prime mortgages into CDOs (which is not a gov't activity). So, the article isn't an attack piece on Clinton, is what I'm getting at -- the gist is that government intervention into the free market caused the mess.
Anyway, I haven't seen anything about this initiative on Clinton's part in reference to the housing crisis. Any truth to it? I did some digging, but it's difficult to search for past issues involving Bill with Hillary running for President now. Curious about what others know on the subject.
Here's a quote from the article, which is itself quoting an article in the LA Times from Dec 9, 1993:
WASHINGTON -- The Clinton Administration, hoping to generate billions of dollars in new loans for small businesses and residents in poor and minority neighborhoods, on Wednesday unveiled proposed new rules requiring banks and thrifts to aggressively seek new customers in all parts of their communities. Federal regulators will now be much tougher in demanding that financial institutions make crdit available to the poor as well as the affluent, said Comptroller of the Currency Eugene A. Ludwig...
Now, on its face, this strikes me as a Republican attack against the Clinton legacy, but on the other hand, if the federal government pushed lenders into deals with lower income folks, perhaps there's a kernel of truth. In Baltimore, there are many, many foreclosures in lower income sections of the city, causing the current mayor to accuse lenders of targeting racial minorities (and ignoring the fact that inner city Baltimore is predominantly black and poor, and poorer folks with lower incomes are more likely to default on loans).
The article continues into greater depth about other things the government did to encourage the housing crisis (artificially low interest rates, tax breaks for interest payments on loans) and references as a cause but does not really discuss the bundling of subprime mortgages with prime mortgages into CDOs (which is not a gov't activity). So, the article isn't an attack piece on Clinton, is what I'm getting at -- the gist is that government intervention into the free market caused the mess.
Anyway, I haven't seen anything about this initiative on Clinton's part in reference to the housing crisis. Any truth to it? I did some digging, but it's difficult to search for past issues involving Bill with Hillary running for President now. Curious about what others know on the subject.