How we got here

Democrats want to blame deregulation for the market meltdown, but the policies that led to the meltdown were anything but laissez-faire. Ed Morrissey highlights a fascinating, anti-prophetic article from the LA Times in 1999. The article touts the great “successes” of Bill Clinton’s interventionist housing policies, including:

  • Requiring banks to lend more to low-income communities.
  • Directing Fannie and Freddie to buy up mortgages and turn them into securities.
  • Directing Fannie and Freddie to buy up high-risk mortgages, thereby encouraging banks to make more high-risk loans.

Does any of this sound familiar?

(Previous post.)

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