New Study Confirms Economy Was Destroyed by Dem Policies

This article first appeared at

A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left’s race-baiting attacks on the housing market (the Community Reinvestment Act–enacted under Carter, made shockingly more aggressive under Clinton) is directly responsible for imploding the housing market and destroying the economy.

The study painstakingly sorted through failed home loans that caused the housing market collapse and identified an overwhelming connection between them and CRA mortgages.

Again, let’s review:

-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.

-John McCain also co-sponsored urgently critical reforms that would have prevented the housing market collapse, but Democrats shut that down as well, along party lines, and even openly ridiculed anyone who suggested reforms were necessary…to protect their taxpayer-funded campaign contributions as the economy raced uncontrollably toward the cliff.

-No one was making bad loans to unqualified people until Democrats came along and threatened to drag banks into court and have them fined and branded as racists if they didn’t go along with the left’s Affirmative Action lending policies…all while federally insuring their losses. Even the New York Times warned in the late 1990s that Democrats continuing to force banks into lowering their standards would lead to this exact catastrophe.

-Obama himself is even on the record personally helping sue one lender (Citibank) into lowering its lending standards to include people from extremely poor and unstable areas, which even one of the left’s favorite blatantly partisan “fact-checkers,” Snopes, admits (while pretending to ‘set the record straight’).

-Even The New York Times admitted that there is “little evidence” of any connection between the “Republican” deregulation measures Obama blames, like the Gramm-Bleach-Liley Act (signed into law by a Democrat), and the collapse of the housing market.

But non-Fox media have spent years deliberately and relentlessly inoculating people against the facts, training them to mindlessly blame Bush for being in charge when Democrat policies destroyed the economy. So here we sit, to this day, still watching Obama excuse and shrug off endless economic failures, illegal government takeovers and utter national bankruptcy with zero accountability.

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  • AdinaK

    Dem policies are responsible for the fiscal meltdown, and they are intended to elicit said results. The failure to highlight their actual designs, ensures that their policies will implode, again and again.

    It is time to see the forest from the trees. To effectuate the above plans, the following has to take place, and the Dems are leading the charge –

    Nice to know the study exposes the Demsters handiwork, but stops short of calling it purposeful. It is.

    Adina kutnicki, Israel


  • Steeloak

    Good article. Here is a link to the original paper by the NBER:

    Unfortunately, it's not free, but a good summary can be found here in the article:

    I can't wait to slap around the lefty trolls with this one.

  • gerry

    You can lap them around,they are to stupid to realise that they are stupid.Don't give them a kick in the backside,this will result in brain damage.

    • ltcdmward

      One question: Were they dropped on their heads or their butts when they were babies…the non-aborted ones I mean?

  • pierce

    It is about time that some one else point out ,who and what, is destroying the economy.
    The man on the street knows that, and has known that for quite some time.
    Well I am sorry, but we have to live with this until 2016, when we can elect either Hilary, or Joe to screw it up even worse. I say Hilary or Joe because they both are waiting on each other to declare their intentions, this as of yesterday on the news casts. I cannot wait to see the victor, ho ho ho.

    • kasandra

      Honestly, I don't think the man in the street knows who destroyed and is continuing to destroy the economy. Maybe I'm just too pessimistic but I'll bet if you asked, the largest percentage would say "Wall Street Bankers," the second largest percent would say "Bush" and the overwhelming majority would never have heard of the Community Reinvestment Act. In the last two Presidential elections they put a supporter of the CRA into the White House, they put the party behind the CRA in charge of the Senate twice and the House once. And they elected one of the chief malefactors, Andrew Cuomo when he was the Secretary of HUD under Clinton, governor of New York State. So I'm not sure I have your confidence regarding what the man in the street knows.

      • ltcdmward

        Totally agree. Low Information Voters and High Disinformation Voters (or Highly Disinformed Voters). Don't know the difference between the CRA and the NHRA (National Hot Rod Assn).

      • Viet Vet

        I agree entirely with you kasandra, its what defines low-information.

    • luckyfreeman


  • Nancy

    Sad to hear it reported on CNBC yesterday afternoon: Obama said banks need to lend money for mortgages to low income people to stimulate the housing recovery. Here we go again.

    • Jack

      I heard that same thing and thought….damn, that's got be a lie. Then I did a bit of checking and found it to be true. Just a bit part of obama's dreams of his father to destroy the US.

  • Pat English

    The Dems continue to ruin the country economically with their loans to energy companies such as Solyndra. When will America wake up and start supporting solid economic measures such as Ryan;s budget. If not we will go the same way as Greece and Cyprus.

  • patron

    Obama also lobbied for more ACORN funding while voting present for housing reform in 2005 while Barney Frank slept with Fannie Mae board members he should have been regulating, and Chris Dodd pimped out favored loans from Countrywide.

    Then Former ACORN Lawyer Barak turns around in 2012 and blames low taxes and regulation for the housing collapse while getting townhalls packed with people who want Romney to explain how his different than Bush.

    As fraudulent as the past was, it pales in comparison to the current fraud, like the trillion dollar deficit and the $85 billion a month Bernanke printing press which is supposed to magically turn painters and roofers into welders and press operators.

  • hikerdude

    I believe it was CBS who ran a program on the housing collapse. The banks were giving loans to customers whose income was welfare. . The Demoncrats didn't listen to Bush . The only way to get anyones attention with a "D" in front of their name is to incarcerate them into Pelican Bay ( a maximum
    security prison in California) .

  • rbla

    Affirmative action, diversity and political correctness pushed by Democrats set the stage for the CRA and the great mortgage meltdown. HOWEVER, this was greatly added to by the Hispandering policies of Bush and Rove which aimed at buying Hispanic votes by adding large numbers of them to the subprime clientele. And now the same Republican establishment has joined in the amnesty conspiracy to flood the nation with even more third worlders.

  • Host

    Why is this thing just making the rounds everywhere now? It was an article in December, and I talked about it on my show. How did everyone miss this for 4 months?

  • Viet Vet

    I well remember when the democraps, Klinton and his HUD Secty Andrew Cuomo and AG Janet Reno put Karter's CRA on steroids. The press conference where Cuomo announced this may still be on YouTube. Their mantra then was 'discriminatory lending'. Charging the lending industry with racism, Of course the lending industry wasn't racist they were practicing good feduciary standards. That caused the housing bubble and when it burst in 2008, knowing their culpability, they turned on a dime and began to charge, 'predatory lending'.

    • objectivefactsmatter

      "That caused the housing bubble and when it burst in 2008, knowing their culpability, they turned on a dime and began to charge, 'predatory lending'."

      Amazing stuff. These people are world-class prostitutes.

  • Viet Vet

    The 2005 House Banking Committee meeting, carried by C-Span, may still be available to watch. The federal regulators testified that Fanny May and Freddie Mac were fast becoming insolvent, and that if they failed the economy would take a huge hit (Fanny May had bought up some $6 trillion of this bad paper). Republicans wanted to reform these two GSE's, but the democraps shouted them down with charges of racism, saying it was all about the lynching of Franklin Raines, Fanny's CEO, who was black (they also called the regulators racists). Raines was also a Klinton cronie. Other Fanny May managers who were Klinton cronies were Jim Johnson and Jamie Gorelick (former deputy AG). The regulators also testified that Fanny's managers were cooking the books in order to give themselves huge bonuses. Fanny May was also a 'cash cow' for democrap candidates. Giving huge campaign donations to democraps. Two of the highest monetary recipients were Barak Obummer and Chris Dodd.

  • Viet Vet

    Immediately after the fiasco developed in 2008, Klinton actually came out and said it was his party's fault for blocking republican efforts to reform Fanny May and Freddie Mac. Also, right when it happened, when asked what was the cause of the collapse (by CSN I believe), Barney Frank said it was a Sub-Prime lending problem. Their honestly of course soon evaporated. Klinton's knees are probably still bruised.

    • Viet Vet

      Oops, I meant by (CNS news)

      • Viet Vet

        It was an audio report, I listened to Barney say it.

  • κατεργάζομαι

    RE: New Study Confirms Economy Was Destroyed by Dem Policies.

    A Democrat died and a friend went around collecting for a fund for his funeral.
    A woman was asked to donate ten dollars.

    "Ten dollars?" she said. "It only takes ten dollars to bury a Democrat?
    ~ "Here's a hundred – go bury 10 of them!"


    • Viet Vet

      Unfortunately, that doesn't stop them from voting.

  • Red47

    Racists to even bring this up. What were they thinking?

  • Carl Stoll

    “New Study Confirms Economy Was Destroyed by Dem Policies”
    Nonsense, it says nothing of the sort.
    I just got through reading it on the site of the National Bureau for Economic Research (NBER). I had trouble finding it because for some reason, none of the articles published on this subject mentioned its URL or the names of the study or its authors. I shall now disclose the URL so that nobody pulls a fast one on us:
    Firstly, practically all economic crises have multiple causes. The only exceptions are economic crises caused by wars or natural disasters.
    Accordingly any sentence beginning with “Economy Was Destroyed by …” must end with either the name of a war, or a natural disaster, or several endogenous economic causes.
    I grant that the study proves that the CRA was indeed ONE of the causes of the subprime mortgage crisis. But it does not quantify the CRA’s effect. Nor does it even pose the question of what OTHER causes may have contributed to the crisis, let alone pinpoint the CRA as its principal cause.
    I have seen persuasive evidence that deregulation indeed played a major role in bringing on the crisis. See 5 disastrous decisions that got us into this economic mess, by Joseph Stiglitz,
    Moreover causes interact with each other. A given event, enactment of the CRA, for example, can foster conditions likely to lead to a crisis. But the actual occurrence of the crisis can usually be averted by timely government action, unless the cause is impervious to government action, like a huge balance of payments deficit, for example. If government fails to act promptly, the crisis breaks out in all its fury. However in that case the cause can just as fairly be called “government inaction” as “ CRA”.
    This is what happened in the years leading up to the 2008 financial crisis. The federal government signally failed to act. One aspect of this failure was described by the then Governor of New York, Elliott Spitzer, who wrote in the Washington Post that
    “In 2003, during the height of the predatory lending crisis, … [n]ot only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from … enforcing any of their own consumer protection laws against national banks.”
    Predatory lenders’ partner in crime, How the Bush administration stopped the states from stepping in to help consumers, by Eliot Spitzer, The Washington Post, February 14, 2008.
    Spitzer spilled the beans too soon. He soon lost his job as a result.

    • Viet Vet

      LOL@Spitzer's being your "credible" witness, it might as well have been Cuomo himself. In my post, I mentioned how the democrappers went from charges of 'discriminatory lending' as they forced subprime lending down the banking industries throat (ACORN was also involved in this), to 'predatory lending' as the fiasco unfolded. The regulators were on the job, but their warnings and republican efforts were thwarted. There was NO predatory lending crisis. The whole notion of 'predatory lending' is a democrap CYA, as your post illustrates. Spitzer, writing in the leftwing Wash Compost, was doing his part in pushing the CYA. The overwhelming evidence, including video evidence, supports the effort Mr Bush and republican lawmakers, including John McCain, exerted in trying to head off the economic disaster. It certainly isn't the first, or second time, political correctness, affirmative action and the race card, have screwed this nation up.

      The seminal work has been done on this fiasco: Reckless Endangerment, by NY Slimes business editor, Gretchen Morgenson.

  • Drakken

    It is way too late to save the whole rotten mess, an economic meltdown is coming that is going to make the great depression seem like a walk in the park, add to this you have ethnic/religious strife to add to the boiling pot. There will be blood and lots of it and no one will be immune. Hopefully there will be a few of the industrious to start over.

  • genemichael

    .I find it terribly misleading to link the "study", and really link a different article putting it's spin on the study, and not really linking the actual study for us to be able to look at the study and either come to the same conclusion or not. To quote a clearly editorial article as your source for what you are presenting as a factual accounting of the study is outside responsible journalism.

    I guess that is the point. This site is trying to present itself as journalism, when really it is just editorial commentary. That is scary and wrong. Tell the people what you are, don't pretend to be a true journalist.

  • cynthia curran

    Lending laws vary from state to state its harder to get a home loan in Texas than California. In lending money out to people without the proper income it was easier in California than Texas since I think during Richardson governorship Texas adopted a tougher lending law.

  • Fred Glass

    The Community & Reinvestment Act was enacted in 1977, 25 years before the beginning of the sub-prime bubble. Why did the CRA take so long to create the bubble? Were there other factors that caused the financial collapse in 2008? Such as for one example that 40% of all business profits in 2007 were coming from the financial sector. The historical percentage was less than 10%. So, to maintain its spectacular growth the financial sector eagerly participated in subprime mortgages. Another example: the securitization of mortgages that made sub-primes possible was a terribly flawed idea.
    With simplistic articles like this, conservatives will continue to be losers.

    • Viet Vet

      If you would have carefully read the Piece and the comments you would have then known that Klinton by way of his HUD Secty Andrew Cuomo and AG Janet Reno put Karter's CRA on steroids, and the force and threat of the federal government behind it. Banks had continued to practice good feduciary standards and for the most part had ignored the CRA, until Klinton forced them to go along with the program. Obummer's ACORN, flooded the lobbies of Banks in order to force banks to comply. The democraps forced this on the lending industry with charges of 'discriminatory lending'. When it all blew up in 2008, knowing it was they who had forced the subprime lending fiasco, they began to blame the banks for 'predatory lending'. Then they dreamed up 'derivatives', which was a method the banks had used (was left open to them) in order to try to recoup some of their losses.

  • Edward Koestner

    It is more than bad Dem policies that are destroying the economy.

    Economy is based on people, and people's behavior. So, there's a moral foundation to economy.

    If we don’t reign in our culture of unrestraint, we will crash. Stcokman used words frenetic fiscal policy, which reminds me of the new book Return to Order: From a Frenzied Economy to An Organic Christian Society by John Horvat II.

    After 20 years of research, Horvat coins the terms “frenetic intemeperance” to describe the deeper moral cause of our economic meltdown.

    What’s Really Wrong With Our Economy?

  • Rob Banks

    Yeah this whole con job is pretty much total BS. The Dems didn’t take banks to court for anything. Some people who denied mortgages did and they won. The banks were forced to do nothing but apologize and then help the people find ways to improve their credit.
    The Bush administration ordered the GSEs to purchase risky loans and increased the subsidies to the GSEs by the federal government 70%.
    And the Bush administration along with the GOP congress passed the American Dream Down Payment Act, which pretty much forced banks to lend to people who have very little income.
    The entire collapse is the GOP’s fault.

    • AW Sloman

      Lets see, should I listen to you or the National Bureau of Economic Research.

      • Rob Banks

        Well that’s only one aspect. Did you really think an idiot like Bush would blunder on a meaningless level? Don’t be naïve. The entire Bush collapse was based on the assistance for closing and downpayments, an initiative to court low income people to purchase and to fund GSEs to purchase bad LOANS by increasing subisdies to the GSEs.


        “The Congressional
        Budget Office (CBO) estimates that the total federal subsidy to

        the three housing
        government-sponsored enterprises (GSEs) rose to $23 billion in

        2003, an increase of
        nearly 70 percent”–CBO 2004

        GEORGE W BUSH June 18
        2002———“Well, probably the single barrier to first-time
        homeownership is high down payments. People take a look at the down payment,
        they say that’s too high, I’m not buying. They may have the desire to buy, but
        they don’t have the wherewithal to handle the down payment. We can deal with
        that. And so I’ve asked Congress to fully fund an American Dream down payment
        fund which will help a low-income family to qualify to buy, to buy. (Applause.)




        —June 19, 2003.–Committed to the Committee of the Whole House on the
        State of the Union and ordered to be printed


        This Act may be cited as the “American Dream Downpayment Act”.


        (a) Downpayment Assistance Initiative.–Subtitle E of title II of the
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12821) is
        amended to read as follows:

        “Subtitle E–Other Assistance


        “(a) Grant Authority.–The Secretary may make grants to
        participating jurisdictions to assist low-income families to achieve
        homeownership, in accordance with this section.—
        Perhaps next time, a bit more scholarship?

    • emmayus

      Case Name Buycks-Roberson v. Citibank Fed. Sav. Bank: FH-IL-0011 : Docket / Court 94 C 4094 ( N.D. Ill. ) State/Territory Illinois

      • Rob Banks

        Yes. I read the case. Do you know what the outcome was?
        No penalties were imposed and no deregulation was lifted. No regulation was put on banks.
        Citibank and all the other local banks were ASKED, to assist these prospective homeowner with cleaning up their credit and helping them get their finances in line to get a qualified mortgage.
        That’s all. So blaming a lawsuit, that changed nothing for banks? You might as well blame the Seahawks for not running it on 3 consecutive downs, for the giant Bush economic collapse.

  • wulff

    how’s all that kool aid washing down this fudged economy Rabbie boy. you seem to have some time on your hands. Unemployed eh? well let’s gander at what Bush did to bail out the dems (pardon the motor companies etc) Obama and dems asked Bush to collect all this money and bail everyone out (all their buds like AIG etc) so Bush gets oh what was it? 700 or 800 BILLION for bailouts. spent about half of it and gave the other half (about 350 Billion i believe) to Obama when he got in office. nice eh? then Obama asks for a few hundred billion more for shovel ready jobs etc etc etc (remember?) total togerther was like 800 Billion bux. and then the market crashed. then things went down fast. and where did that 800 Billion go? funny but nobody really seems to know where it all went? still don’t (but Moochie did spend 1.4 Billion bux on herself and her “possee” in just the first four years!) nice eh? the housing market? where is it now. you know how many empty houses there are? you know how many are on the market below market value. you know how many are in forclosure? wake up ad try some coffee instead of that dem kool aid. your lords and Massa Obama and the dems slold you a line of BS and you washed it down with their pi …kool aid! BTW seattle fan eh? how’s that 15 bux an hour dong ya’ll? LOL! lot’s of biz going down eh/LOL!!!

  • wulff

    oh BTW Rob. you seem to have forgotten just how long the dems controlled EVERYTHING. let’s see. oh yeah. when the market failed? dems in charge, when the housing market failed ?dems controlled congress and the money etc etc etc. now you fear the repubs may come in and make the dems look duh? LOL! remember Detroit? all dem all the time. LOL!