Clinton Foundation for 2008-9 Home Mortgage Delinquency & Default Crisis

The deregulation measures signed in to law by President Bill Clinton enabled the era of home mortgage delinquency and default that hit with a vengeance in 2009. The Clinton administration inherited a nation with fewer than 1% home mortgage delinquency of more than 90 days,  yet when the mortgage crash arrived in 2008-9 the home mortgage default rate rose to more than 10% and better than 46% of home mortgages lost significant value. How did that history of home mortgage delinquency arrive?

http://www.youtube.com/watch?v=x0k2PmF-o5Q&feature=related Who Killed Glass-Steagle

http://www.ots.treas.gov/_files/19710.html

http://www.npr.org/blogs/money/2009/11/mortgage_defaults_hitting_reco.html

President Clinton sign into law a measure that allowed mortgages to be traded like commodities. That was a devastating corruption  of the more direct relationship between home mortgages by a single owner and a lender. It supported the inflation of a housing market wherein homes were built for speculation and profit as commodities with share derivatives sold globally.

During the Clinton years the C.I.A. continue to have its field ops division gutted as it had since the Colby downsizing. It was blind to the Islamic terror threat and ineffectively concerned itself with traditional threats. Additionally the Clinton administration downsized the military and allowed the sanctions on Iraq to fester while also neglecting Afghanistan following the Soviet era. An ethos of Elvis and greed developed with boomer empowered irresponsibility. The home mortgage flim flam foundation was set as a virtue.

It wasn't simply wealthy corporate banks and quantitative high rollers that stimulated the home mortgage expansion, the middle class seeking to take advantage of a home mortgage rise in prices borrowed and leveraged home mortgage purchases too as a way to safely increase their wealth. Many middle class Americans bought several houses because they could. Developers could borrow to build many home not for individual home owners with a directly financed mortgage from a local bank, but on speculation with global financing. Derivatives swaps and insurance of derivatives proceeded to fuel the housing construction for future buyers and under-qualified purchasers in many cases.

Fundamentally the Obama administration hasn't done anything to prevent recurrence of another home mortgage boom and bust should the economy recover a little. Its not the 60's housing expansion that occurred because individual Americans with larger families actually had jobs a needed a single home for themselves and family. In the present deregulated mortgage environment with global financing getting anyone to agree to occupy a home and take legal responsibility for paying the mortgage is all many people require to take their cut even if the money to pay off the mortgage won't be there down the road. In some cases the illegal aliens that are imported cheap labor to build a significant portion of homes and are sometimes the home owner too will just walk out and return to Baja or Cancun in a few years.

President Bush's war in Iraq and protracted nation rebuilding was a stress test on the U.S. economy that it failed. Sure the Iraq reconstruction was badly planned and quite expensive yet a healthy regulated U.S. economy would have survived without recession. The ethic of  middle-class greed to become millionaires and billionaires is the unaccredited engine driving the Wall Street bunk. The greed nicely provides smoke and mirrors for the corrupt sharks thriving in a deregulated home mortgage environment. It allows Wall Street globalization and deconstruction of  U.S. economic independence while transitioning into abstract international control. 

The lawyers that are Democrat President just don't seem competent at economic management and mostly just benefit themselves while leaving the poor and the electorate holding the bag.