Obama's complicity in two financial crises?
As America teeters on the brink of a second financial crisis, I think back to 2008, and the irony of a suprime mortgage fiasco propelling to the presidency a man who’d spent a career abetting the folks who’d caused the crisis to begin with. Despite releasing an Internet ad on ACORN, Obama, and the subprime meltdown, the McCain campaign was unwilling or unable to pursue the issue. The Clinton administration’s gutting of credit standards in the name of fair housing, in close cooperation with ACORN and Fannie Mae, laid the foundations of the mortgage crisis of 2008. Yet in the second presidential debate, McCain did nothing to combat Obama’s claims that the crisis was strictly a product of under-regulation. In the third debate, Obama flat-out lied about his longstanding ties to ACORN. The media, of course, let him get away with it.
While many conservatives know the real story well, the country as a whole has still barely heard it. The important new book by Gretchen Morgenson and Joshua Rosner has begun to break the fuller truth about the 2008 financial meltdown into public awareness, yet even there the focus is on Fannie Mae, while the ACORN connection is given short shrift. Fannie Mae would never have gone south if ACORN hadn’t pulled it into the subprime business in the first place. ACORN’s national banking campaign was coordinated by Obama’s close political allies at the group’s Chicago office, which Obama was heavily funding through two foundations at the time. . . .
I think of Bell Federal’s naive and noble–but doomed–resistance to ACORN, and Fannie Mae’s equally bitter battle to hold ACORN at bay–well before the horror story recounted by Morgenson and Rosner played out. It took a lot of heavy lifting by ACORN and its supporters to break down years of prudent business practice, embodied in the credit standards all sane bankers once rightly insisted on. Only after those standards were compromised did we reap the whirlwind. . . .
Obama was intimately familiar with the battle to undermine America’s credit standards, and in full philosophical sympathy with it. It took a one-two punch of Alinskyite intimidation and federal regulatory pressure to create the preconditions for the subprime crisis of 2008, and Obama was on board for all of it. . . .
Now we are flirting with a second crisis, brought on by overspending, debt, and excessive regulation. Dodd-Frank, a banking bill named for Barney Frank, another abettor of the Fannie Mae fiasco, depresses business. . . . .
Kurtz has this information here linking Obama to ACORN.
Gretchen Morgenson and Joshua Rosner's new book extensively discusses Jim Johnson's role in creating the mortgage crisis, but they also mention Obama's close ties with Johnson (e.g., see page 11, 54, 187). Many of Obama's important appointees had big roles in creating the financial crisis (e.g., Timothy Geithner, Tom Donilon).