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Many will say Yes.
How many of us know, that in 1993, Clinton pass a piece of law that planted the seed for today's financial disaster.
It is call "Community Reinvestment Act" or CAR.
The intention is simple, Banks are encourage to lend to low income group and each banks are given a CAR Ratings base on that, a low ratings will be disadvantage when it comes to mergers, expansion or even applications to open more branches, Banks need a good CAR ratings so they started lending to people they would normally disapprove.
IN the mid 90s, as long as one can produce proof of US$15K deposit in a bank, you can get a US$500K housing loan.
Many low income individual borrowed from friends and relative to make up the $15K to qualified for the loan.
After the loan approval, they can return them the money.
Eventually, bank don't even need that $15K to approve the loan, New home owners form Blacks and Mexican community in US shot up to 2 million.
The is the start of the sub prime bubble we talk about often today.
Bush is partially to be blame because he choose to ride on this bubble till it burst at the end of his 8 years term in office.
What is worrying is the next Democrat President, Obama's battle cries during the campaign is "Change" which captivated so many voters. Change what? He never go into details unfortunately.
This is the same "Change" that Clinton sold to his voters in the 90s.
How many of us know, that in 1993, Clinton pass a piece of law that planted the seed for today's financial disaster.
It is call "Community Reinvestment Act" or CAR.
The intention is simple, Banks are encourage to lend to low income group and each banks are given a CAR Ratings base on that, a low ratings will be disadvantage when it comes to mergers, expansion or even applications to open more branches, Banks need a good CAR ratings so they started lending to people they would normally disapprove.
IN the mid 90s, as long as one can produce proof of US$15K deposit in a bank, you can get a US$500K housing loan.
Many low income individual borrowed from friends and relative to make up the $15K to qualified for the loan.
After the loan approval, they can return them the money.
Eventually, bank don't even need that $15K to approve the loan, New home owners form Blacks and Mexican community in US shot up to 2 million.
The is the start of the sub prime bubble we talk about often today.
Bush is partially to be blame because he choose to ride on this bubble till it burst at the end of his 8 years term in office.
What is worrying is the next Democrat President, Obama's battle cries during the campaign is "Change" which captivated so many voters. Change what? He never go into details unfortunately.
This is the same "Change" that Clinton sold to his voters in the 90s.
