Blaming Clinton?

[dkf]

By Barry Ritholtz - May 28th, 2009, 4:30PM

Interesting Sunday Times Magazine article on Bill Clinton. The part I found most intriguing was about the regulatory acts that the Clinton administration was responsible for:

“One thing that thrived during Clinton’s presidency, the economy, has wilted of late. The economic boom of the 1990s created nearly 23 million new jobs during his eight years, but today, the economy is shedding hundreds of thousands of jobs a month. While this has stoked nostalgia for the prosperity of the Clinton era, it has also focused new scrutiny on his record. What role did Clinton’s policies play in creating the conditions that led to the Great Recession?

When the subject came up during our conversation in Chappaqua, Clinton calmly dissected the case against him and acknowledged that in at least some particulars his critics have a point. In almost clinical form, as if back at Oxford as a Rhodes scholar, he broke down the case against him into three allegations: first, that he used the Community Reinvestment Act to force small banks into making loans to low-income depositors who were too risky. Second, that he signed the deregulatory Gramm-Leach-Bliley Act in 1999, repealing part of the Depression-era Glass-Steagall Act that prohibited commercial banks from engaging in the investment business. And third, that he failed to regulate the complex financial instruments known as derivatives.

http://www.ritholtz.com/blog/2009/05/blaming-clinton/

[cherokeeprogressive]

1. About the only thing I blame Bill Clinton for is wasting a good cigar.

No self-respecting cigar affecionado would do that to a genuine Cuban Cohiba.

[dkf]

3. We only hope he wasted it.

Ugh.

[cherokeeprogressive]

4. Surely you don't think he... nah.

I used to like a cigar named Carbonel, which had a leaf soaked in molasses.

Oooh I'm so not going there.

[NYC_SKP]

2. The publisher of truthdig was on KGO tonight saying the same thing...

The Clinton's deregulation (with Summers in Treasury) launched this mess and, combined with "welfare reform" lays much of California's mess at the former president's feet.

"Stuff the Bankers, Starve the Kids"

http://www.truthdig.com/report/item/20090526_robert_scheer_may_27_column/

http://www.truthdig.com/

[dkf]

5. How does welfare reform fit into this mess?

[NYC_SKP]

11. As California faces budget cuts including ending programs for kids and the poor...

The argument was made that the Fed should step up with moneys that were removed during the Clinton years, that the kids and the poor would be in better hands under these circumstances if Clinton hadn't cut off federal funding at left it to the states.

Just what I heard, not that I'm confirming it.

The overarching question was whether or not the state should be bailed out, the associated context was why the economy has tanked.

[sandnsea]

7. That's what a large number of people wanted

at the time, so it really isn't fair to dump it all on him.

[NYC_SKP]

12. No, it isn't.

The two topics were why the economy tanked and should the fed bail out California.

[sandnsea]

6. That is a terrific article

I don't think I've ever read an article where Clinton was so candid. It's still hard for me to believe a Rhodes Scholar didn't see what would happen when banks were allowed to become so large, which he recognized would happen, and repeal Glass-Steagall anyway. I think his need to win over people that hate him might be more at play in some of his policy decisions than anybody recognizes. His foundation is doing fantastic work though, and hopefully he can do something positive for Haiti which would practically be a miracle. Anyways, I forgive the old lug some of his callous comments during the primary. No wonder Hillary keeps taking him back.

[dkf]

8. I'm sure he made so many decisions during his Presidency

that he didn't realize the significance of certain ones. I know the Obama crew started learning about unintended consequences during the bailouts.

And that was a great writeup on him, very humanizing. Its kind of a kick to hear about the role reversals too.

[marmar]

13. "The Obama crew"

:wtf:

What are they, mob enforcers?

[DFW]

9. Check out tracks 1 and 5. Even Clinton laughed at these!

http://cdbaby.com/cd/freedomtoastdem

I sent him a pair of these (D & R) CDs and he wrote back to say how much he liked them!

Some of the songs are now outdated, but the right still blaming Clinton for everything still applies.

[eridani]

10. CRA was one thing that Clinton did NOT screw it. It was enacted in 1979 ferchrissakes!

For 20 years is isn't a problem, and then all of a sudden it is?

[KharmaTrain]

14. So He Signs A Bill Sponsored By Three Rushpublicans...

...passed by a Rushpublican House & Senate and it's ALL his fault? Especially that piece of shit legislation. If he is to be faulted (and I have plenty of bitches with President Clinton's economics) it was he didn't VETO the thing. He knew it would turn Wall Street into a gambling casino. I guess he just didn't care as most of the dirty work was done in his final days.

Also, remember, in Freeperville, booooshie didn't become chimperor 9/12/01...so anything that went on prior to that day is Clinton's fault, too...

[Winterblues]

15. What was attached to it I wonder?

Clinton must have gotten something out of the deal, he is not that stupid unless his dick is involved.

[underpants]

16. I thought it was Carter's fault

:shrug: