Last night at the first presidential debate, we were treated to the first face-to-face standoff between Donald Trump and Hillary Clinton. While it was somewhat lackluster and not as spirited as some of the primaries’ debates, it did prove some interesting things.
One not so startling revelation is Clinton proved to me without a shadow of doubt, she has absolutely no clue about how 2008’s Housing/Economic bubble occurred or its true origins.
When Trump said he was replicating the tax cuts of the Reagan era (which actually were done by John F. Kennedy in 1961), she scoffed and started talking nonsense about “trickledown” blah blah blah. All old memes that push false narratives that are full of big talk and little to no action.
Typical Democrat rhetoric they’ve been trying to shove down people’s throats for years – especially since 2008. They’re banking on you not getting yourselves informed on the real skinny!
Join me in the year 1998. Bill Clinton was President and Hillary Clinton was First Lady.
In some feel-good social justice theorem, Clinton thought it would be a grand idea to make buying a home much easier for folks whom, under traditional banking measures and standards, would not qualify for a mortgage. Therefore, as seen in this article on CNBC, he created an initiative where bankers were required under penalty of law to underwrite a certain percentage of their portfolios in what we term as ‘bad paper.’ This means loaning out money to high risk borrowers.
To make sure bankers fell in lock step, Clinton and his Attorney General, Janet Reno, went as so far as to threaten criminal prosecution (yes, you read that right – CRIMINAL PROSECUTION) to any bank(er) not adhering to this 30% rule on high risk lending.
As the referenced article states, they literally pushed Fannie Mae and Freddy Mac into this risky lending practice and, as senator, Mrs. Clinton propped the two ailing banks up when things started going south around 2003. I’m sure most remember the big hubbub about Freddie and Fanny, so this isn’t new news.
What’s startlingly is Clinton’s obvious disconnect between cause and effect. Sure, while it was a decade later – that’s usually a cycle to show the results for sweeping policy like this that effects our entire lending/borrowing system.
The bubble came when these high risk borrowers started losing jobs after 9/11 when we went through a dot.com meltdown – which rippled throughout the employment strata in our economy. Many may not remember but that time was a tumultuous time with the Middle Class verging in some untried territory. Remember, many low income jobs are as a result of working for high income earners. At that time (and still today) many high income earners were in the dot com industry. Therefore, when they got laid off, they had to scale back their own lifestyles to meet their losses – which included many low income earners’ jobs.
As people lost their jobs, they also lost the ability to pay for the homes they bought with crazy balloon end payments and lower mortgage monthly payments because they had no job. See, that’s the funny thing that Democrats forget — people need jobs in order for everything else to fall into place.
Once the defaults started rolling in, so did the foreclosures. And the rest is history! History everyone voting in this election needs to get a handle on quickly because Obama is pretty much promoting the same failed policy under a new name. Affordable Housing. Yet now, the loans also encompass borrowing for big ticket items like cars and college education tuitions.
So when Clinton tries to blame Reaganomics on the 2008 bubble, she’s 10 years too late.
On the contrary, Reagan’s tax cuts (like JFK) produced an enormous wealth in America for all socioeconomic levels from the early Eighties clear through the Clinton era. It also didn’t just give rich people the big pushes like Democrats always claim.
Basic economic common sense is demonstrated through another historical event.
When John F. Kennedy did it in the early Sixties, the government raked in $1T in tax revenues. Now, think about this for a second, with our dollar values now verses 1961/2, that’s enough to pay off our National Debt of $20T in a matter of a couple years!
In fact, that economy was so strong even as distant as the Clinton era benefited from that great buying power produced from Reaganomics in spite of its horrible trade deals he made with China and Mexico – but the Clinton’s didn’t built that! Fact is, they built the 2008 disaster which followed and Bush shouldered all the blame even through the Obama years.
Hence, contrary to what Clinton would love for you to buy in her insidious objections, Trump’s tax cuts to both citizens and corporations will duplicate that success — and many economists, including Art Laffer have all said, his results will be the same as Reagan!
Clue: This Trump proposal is good for ALL Americans not just the rich as it’s always been more like trickledown wealth!
Now, I don’t know about you, but I’m personally never adverse to making more money and I’m certainly in favor of keeping most of what I earn. The government doesn’t need citizen’s taxes as they survived quite well long before 1913 without any income taxation at all! Somehow they managed to make it then – but again, they didn’t have the fraud and waste we have now! Trump’s planning to stop that whole nonsense, too!
More commentary on the debate to come…