Someone pointed out to me that I have no right to endorse the US Ambassador criticising the EU as a regulation factory, when American bank deregulation caused the 2008 financial crisis.
Well it did. No-one is arguing that all regulation is bad, but social engineering is another factor.
The 2008 crisis had many fathers but one is Bill Clinton's Housing and Urban Development Secretary who gave banks higher ratings for home loans made in "credit-deprived" areas, i.e. bad parts of towns inhabited by Democrats. Banks were rewarded for loans to those who were at high risk of defaulting. These rules lowered down payments from the traditional 20 percent to zero in some cases by 2000.What Clinton was doing was social engineering to help his voters buy their homes. Such as the 'unemployed black man sitting on a crumbling porch somewhere in Alabama in a string vest" that John Wells mentions in a funny sketch. At 3 minutes 10 seconds.
Well it did. No-one is arguing that all regulation is bad, but social engineering is another factor.
The 2008 crisis had many fathers but one is Bill Clinton's Housing and Urban Development Secretary who gave banks higher ratings for home loans made in "credit-deprived" areas, i.e. bad parts of towns inhabited by Democrats. Banks were rewarded for loans to those who were at high risk of defaulting. These rules lowered down payments from the traditional 20 percent to zero in some cases by 2000.What Clinton was doing was social engineering to help his voters buy their homes. Such as the 'unemployed black man sitting on a crumbling porch somewhere in Alabama in a string vest" that John Wells mentions in a funny sketch. At 3 minutes 10 seconds.
George Bush did this as well. His administration prioritized home ownership above a lot of other considerations. Like Clinton, he was around for eight years.
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