How'd We Get Here?

President Clinton was a good president; I used to think so too.

President Clinton signed two pieces of legislation into law that would become the root cause of the housing market collapse and the economic crisis in 2008; the Gramm–Leach-Bliley Act (aka Financial Services Modernization Act of 1999) and the expansion of the Community Reinvestment Act. No news organization or media outlet I am aware of is currently connecting the dots between both of these legislative events and the fallout in 2008. Some news/media outlets will point to one of these two events. Not surprisingly left leaning news organizations point to the Gramm–Leach-Bliley Act and right leaning news organizations point to the Community Reinvestment Act. But no mainstream news media organization possess the integrity to cite both as root causes of the 2008 economic crisis and subsequent recession.

President Clinton is still revered as a great president on the economic front due to a fiscal surplus during his tenure and being the first president to actually make a payment on the national debt since Eisenhower. By themselves these two achievements are noteworthy and if the subject is quickly changed it is easy to assume that Clinton was a very good president in his handling of the economy. However, when the future impact of the Gramm–Leach-Bliley Act and the expansion of the Community Reinvestment Act are fully considered this is comparable to elevating the arsonist to the position of Fire Chief. These two pieces of legislation set the wheels in motion that would all but destroy the housing market and cause the greatest recession in more than 75 years. Because the damage would not be felt for 9 years, Clinton is given a pass by the short sighted mainstream media.

IE: it’s ok to shoot somebody as long as the bullet takes 10 years to get there.

Sources:

Gramm–Leach-Bliley Act

Community Reinvestment Act