In Part 2 of this 6 part series, Bill Whittle flips Hillary’s claim that the 2008 financial crisis was caused by tax cuts for the wealthy, and explains who the REAL villains are…
CLINTON: Well, let’s stop for a second and remember where we were eight years ago. We had the worst financial crisis, the Great Recession, the worst since the 1930s. That was in large part because of tax policies that slashed taxes on the wealthy, failed to invest in the middle class, took their eyes off of Wall Street, and created a perfect storm.
You left out a few things here. Back in 1977, Democrat Jimmy Carter passed the Community Re-Investment Act, designed to put money back into poorer communities. Now in short, the government eventually passed laws FORCING banks to write mortgages to people whose credit and income would not otherwise have qualified them, back in the days of sound risk / reward calculations. When the government essentially guaranteed bad mortgages, they completely changed the incentive structure of banking. Banks no longer cared about making SENSIBLE LOANS to people who could pay them back; since the government was going to pay off even bad loans then the smart play is to write AS MANY MORTGAGES AS POSSIBLE. When Republicans repeatedly pointed out this growing danger in the mid 2000’a, Democrats called them racists who hated the poor.
So. Democrats caused the problem, then Democrats took credit for solving it. Which as near as I can tell is the entire history of the Democratic Party.