Financial Crisis: Clinton's Role

Washington Post:

I think Bill Clinton makes a persuasive case that it was what he didn't do, rather than what did do, that contributed to the financial crisis. There aren't very compelling arguments out there that repealing the Glass-Steagall Act -- the law that separated commercial and investment banking -- contributed much to the crisis. Some, in fact, say it did the opposite, as it allowed commercial banks to help stabilize the system by buying investment banks, as happened when J.P. Morgan acquired Bear Stearns.

Read the whole story: Washington Post

Comments

[CAPTAINSKIPPY]

Were we not overdue for a financial crisis, when "prosperity" and Reaganomics only benefitted the top 5% for a generation?

[Spud777]

Absolutely he did. With his buddy Robert Edward Rubin, they were "republican lite" with their deregulation mistatakes. Rubin's "legacy" lives on in Geithner and Summers, both prodigies of Rubin, who by the way was a failure in business also. I am truly glad Clinton is no where near the White House, I supported Obama 110 percent.

[Truby]

"Did Clinton help cause the financial crisis?"

Yes.

[Bettysdad]

If the repeal of Glass-Steagal had little to do with our current calamity, why was it promoted by the very people who made billions, gaming the system into what we are now trying to recover from?

There's a piece of film of Clinton speaking to a business group about the repeal saying "I want this so badly I'll be happy to call it 'The Make Republicans Rich Bill" if that's what it takes to pass it."

[Shawn Drewry]

No way former U.S. President William Jefferson Clinton has anything to do with the current financial problems of America. Former prez Clinton is "good peoples" in my book, personally if you ask me :-)

http://www.ShawnDrewry.com

http://www.YouTube.com/DrewryOnlineLive

[DLBSR]

We have become nothing more than sheeple. We allow the banksters, Wall Street, and our government to take us for trillions because we are too divided and polarized to do anything about it. The crisis today is the offspring of seeds called "economic calamity" planted decades and presidents ago. Both parties eagerly participated in tending the garden. Reagan started this mess with deregulation, the first Bu*sh negotiated NAFTA while Clinton zealously pushed it and the China trade agreement through to ratification while approving additional deregulation, like repealing the Glass-Steagall Act. Graham comes along with that marvelous legislative gem know as the Commodities Futures Modernization Act of 2000 that legalized high stakes gambling in the financial markets and pushes it through Congress for Clinton to sign. The last Bu*sh Administration was nothing more than the previous 20+ years on steroids when it comes to fleecing America. Shame on all of us allowing this game to continue. Many of you partisans blog all day how this crisis is the fault of either the democrats or republicans. Both parties are culpable, both parties guilty of flee*cing America. You only perpetuate more of the same with your divisiveness. Our parents need to take us out behind the woodshed and give us a good whuppin for allowing this to continue.

[rich misty]

Reagan planted the seeds... Conservatives tended and watered the plot....

Resulting in a very tiny shrub which destroyed America.

[DLBSR]

With all due respect, this economy was crippled by the greed of the banking and investment industry and supported by the absolute ignorance, malfeasance, self-serving power hungry, dishonest, and corrupt members of our national government including former presidents, sitting and former congressmen and senators. To assign culpability for this crisis to a single political party is absurd. Both parties are guilty of abandoning their constitutionally mandated oversight duties to the American people.

[flossophy]

You're very misinformed.

Government intervention caused this financial crisis. Bush tried to regulate Fannie & Freddie multiple times, but the Dems blocked it.

If Bush was able to regulate F&F... we wouldn't even be here talking about it.

http://www.fed-soc.org/publications/pubid.1419/pub_detail.asp

[SimJack]

Nice theory kiddo. If it's the Post, it's always the dems fault. Sure, blame Clinton, Glass-Steagal, Gramm, whatever since it's been obvious for over 2 decades, that greed rather than ethical business management and leadership is the fasttrack to what is valued most in America, wealth. And the hell with anyone getting in the way. When we were attacked by the Japanese this country pulled together as a team; became the world's first non-colonial superpower; life was good. The next time an attack occurred on American soil, allegedly orchestrated by OBL and his ragtag assembly of jihaddists, against our multi-trillion dollar military, intelligence and satellite assisted networks), we froze like dear in the headlights. I want to know what the he!! is wrong with us? Not all of us though. Certain people saw opportunity to make a financial kiling and used every loophole at their disposal. Lawyer, politicians, etc. No-bid government contracts are the simplest example to illustrate the point. For the rest of the shleps, the salve for our pain, and shopping we went as we were told to do-upside down mortgages, etc. Why focus on the pain, that's what drugs and shopping are for. Too bad they are both short-lived phenomena. Too bad this once great nation was sucker punched by a man who was all hat and no cattle, who couldn't hold a candle to a turnip in a spelling bee, and his well connected and informed team of jihaddists.

[munki]

NOT well thought in the past...

[OKnight]

this the new gop economic recovery plan...

[toocoldout]

This explains why he's been afraid to show his face ever since the economy tanked.

[OKnight]

the eight years bush was in office, sure...

[MetalCanuck]

This is old news though.

[kasinca]

In 1980 an Alzheimer ridden B class movie star convinced the wingnuts that regulation of all forms should go away (any student of sixth grade American History knew about the problems we had before the regulations were put into place). The wingnuts ran with it for thirty years until they had destroyed every sector they could. Clinton literally had his hands full back in the day. The rethugs gave him a lot of homework assignments. No excuse but he did not always have a democratic majority to work with and Clinton was a little right wing for me. I never voted for him or that fake CA cowboy. We can all agree, our problems started with Raygunomics and the wingers are still praising the same.

[Emlyn]

Actually the CA cowboy was born in Illinois.

[rubinoff]

yup...and if bill wasn't having soooo much comedy with you know who, he could have done better.

[flossophy]

Fannie & Freddie = 10,000 Enrons or 100,000 S&L's

F&F have been Democrat-run for decades... Bush tried to regulate them multiple times, but the Dems blocked it each time on a party-line vote.

And this financial crisis is all Bush's fault, huh.

[OKnight]

u had a cigar didn't u...

[FogBelter]

Clinton thought that Phil Gramm's irresponsible deregulation legislation in 1999 was fine, and he signed it. Glass-Steagall prevented the Banks and Wall Street from destroying the US Economy for over 60 years ... the Gramm-Leach-Bliley Act vacated the regulations that kept Commercial Banks, Investment Banks, and Insurance Companies firewalled from one another and it led to where we are today.

Had Clinton vetoed Gramm's deregulation the bills would have likely still passed via override of his veto ... but Clinton would have had plausible deniability in terms of today's economic crisis. Bill Clinton is just as culpable for where we find ourselves as Reagan, Bush41, Bush43, Gramm, Rubin, Greenspan, Paulson, Summers, Geithner and Bernanke. Bill owns it.

[kasinca]

The rethuglicans had eight years after Clinton. What did they do to change what he allowed? Just asking. I agree with your statements but I cannot blame Clinton for what happened after he left office. There was a republican majority everywhere after W stole the 2000 election. They could have plugged the hole.

[sansego2000]

This thing did not happen overnight or as you put it after Clinton, it was a series of events that put us here. I still think it started with Reaganomics and each president after did nothing or as FogBelter has stated Clinton's knuckling under with the republican congress was a big even that made things worse. Reaganomics started the snowball rolling downhill.

[FogBelter]

By signing Gramm's handiwork into Law, Clinton left Bush a loaded gun, which Bush used to murder the economy.

[GeoLee]

Of course it was his fault...yo­u don't think people are going to blame the non regulation of the 2001-2009 gang do you? AT least not in the media owned by republicans.

[sansego2000]

I think this thing started with Reagan. The trickle down economics.­.. The presidents after that did nothing to stop the fire. Then George Bush came along and threw gasoline on the fire.