Fact Check: Obama Had More to Do With 2008 Economic Meltdown Than Bush Ever Did

Here’s something you’ll never read about in the liberal media.
Barack Obama played a leading role in the mortgage crisis of 2008 that sunk the US economy.

In his early activist days, Barack Obama the community organizer sued banks to ease lending practices.

State Sen. Barack Obama and crackpot priest Michael Pfleger led a protest in Chicago in January 2000. (NBC 5 Week of January 3, 2000)

In 1994, Barack Obama was one of the plaintiffs in a class action lawsuit, alleging that Citibank had engaged in practices that discriminated against minorities. The lawsuit forced the bank to ease its lending practices.
The Daily Caller reported:

President Barack Obama was a pioneering contributor to the national subprime real estate bubble, and roughly half of the 186 African-American clients in his landmark 1995 mortgage discrimination lawsuit against Citibank have since gone bankrupt or received foreclosure notices…

…Obama has pursued the same top-down mortgage lending policies in the White House.

Obama’s lawsuit was one element of a national “anti-redlining” campaign led by Chicago’s progressive groups, who argued that banks unfairly refused to lend money to people living within so-called “redlines” around African-American communities. The campaign was powered by progressives’ moral claim that their expertise could boost home ownership among the United States’ most disadvantaged minority, African-Americans.

Then there’s Bush…
On the flip side, President George W. Bush warned the Democratic Congress 17 times in 2008 alone about the systemic consequences of financial turmoil at Fannie Mae and Freddie Mac and also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties.

Unfortunately, these warnings went unheeded, as the President’s repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.

To this day Barack Obama blames Bush for the 2008 economic meltdown.
The truth is, it was Obama not Bush who destroyed the economy.

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  • Finncrisp

    Darn facts, they just get in the way of the EMOTION of the typical lefty. Facts, who needs them? The party of death and eugenics has survived quite well without facts.

    The community redevelopment act that started this whole thing going was Jimmy Carter’s creation. How inconvenient.

  • Finncrisp

    “There’s no doubt that we’re going to be outspent, we’ve always believed that,” said Cutter. “But we’re going to have enough money to implement our strategy and just take a look at over the last several months: there’s been hundreds of millions of dollars spent in negative advertising against the president and the only numbers that have moved are Romney’s unfavorables.”

    “Another example of not needing facts. Romney has been savaged by Dems all Summer. Crapload. ” /Finncrisp

    Read more: http://www.foxnews.com/politics/2012/09/05/democrats-worry-about-money-as-romney-cashes-in/#ixzz25cmoOU3L

  • Nelle

    Oh, come on, Obama couldn’t have been a “student” of Alinsky trying to put his ideas into action. That would be evil.

  • Patty

    “On the flip side, President George W. Bush warned the Democratic Congress 17 times in 2008 alone about the systemic consequences of financial turmoil at Fannie Mae and Freddie Mac and also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties.”

    And it is few and far between when the Democrats and even the Republicans bring it up.

  • http://mychal-massie.com/premium/ bg


    September 4, 2012

    Obama suffers amnesia blaming Bush for economy

    Jamie Gorelick, Franklin Raines, and much more (#57)..

    [Sadly, this perception of political correctness is out of touch with reality.
    According to a September 2003 report by a GSE watchdog group, Fannie
    Mae Policy Focus, Fannie lags far behind the market in facilitating housing
    for minority and first-time buyers. As a matter of fact, the GSEs buy less
    than 10 percent of private sector loans to first-time African-American and
    Hispanic purchasers. Moreover, Fannie and Freddie acquired “more loans
    made to absentee landlords, vacation homes, and second mortgages than
    first-time homebuyer loans,” according to the report.]


  • bigkahuna

    I am sick of hearing liberals saying Obama somehow magically saved GM and that Romney would simply let GM go bankrupt as if all GM jobs would have been lost.
    I have news for you idiot liberals GM DID GO BANKRUPT. The called it a managed bankruptcy.
    From a CNN/Money mag article: After years of losses, the troubled automaker is forced into bankruptcy. GM is set to close a dozen facilities and cut more than 20,000 jobs. Another source says 17 plants.
    The government-orchestrated shrinkage will cost taxpayers billions. Some Republican lawmakers called the move another sign of the administration’s deepening incursion into the private sector. And the risk remains high that the administration or Congress could meddle in the company’s day-to-day affairs, an experience familiar to banks that took government bailout cash last fall… GM — which hasn’t made a profit since 2004 — declared in its filing that it had $172 billion in debt and $82 billion in assets.” It’s incredible that creditors would keep loaning GM money until its debts doubled its assets!
    “The government’s plan calls for 10% of the new GM to be owned by existing bondholders, while a United Auto Workers union health-care fund will own 17.5%. The Canadian government will own the remaining 12.5% [leaving 60% for US government ownership]. Next Monday, after 84 years, GM will cease being part of the Dow Jones Industrial Average [to be replaced by Cisco Systems].”

    Bankruptcies are inherently unfair since everyone involved is going to lose something. However, in prior years, at least the bankruptcy judge was supposed to follow fairly strict predetermined guidelines about who gets priority and who doesn’t. Now, even those guidelines, based in actual law, are being discarded so that the judge can arbitrarily pick winners and losers. Heretofore, the courts have always condemned any judicial action that was not governed by written standards, applicable to all. Now all that is gone. The Obama task force and the bankrupt auto companies have also maneuvered to disallow all existing product liability claims from victims of defective cars.

    Reuters reports that, “A U.S. bankruptcy judge on Sunday approved the sale of substantially all of U.S. automaker Chrysler’s assets to a group led by Italy’s Fiat SpA hours before an expected bankruptcy filing by General Motors Corp. Judge Arthur Gonzalez approved the $2 billion sale of the assets to a new company that will be 68 percent controlled by a healthcare trust aligned with the United Auto Workers union [Fiat was granted the exclusive right to bid on Chrysler and now we know why–Fiat, whose Chairman is on the Trilateral Commission, was the only bidder willing to make a secret deal with the Obama administration that would give the unions a controlling hand in the new corporate entity that Fiat would provide cover for]. Fiat will control 20 percent, the U.S. and Canadian governments will control the other 12 percent [leaving this new healthcare trust the bulk of the controlling stock].”

    Obama stole GM.
    1. Using approximately $78 billion TAXPAYER dollars he bailed out GM and Chrysler.
    2. He ignored 100 years of bankruptcy law that guaranteed preferred shareholders got paid in full first before other creditors spilt what was left and told them to F.O. and accept 20
    3. Obama also closed about 1000 GM dealers…35,000-100,000 jobs lost.
    4. Gave stock in new company to Unions
    5. Also against all other bankruptcy laws allowed GM to carry forward billions in previous losses that allowed GM to pay NO TAXES in 2010 and longer I believe on billions in profit.
    6. Romney wouldn’t have used taxpayer money but GM could have restructured just as many airlines and other companies have to become profitable


  • old one

    BHO represented some of the plaintiffs in this class action (ACORN members) as an attorney. He wasn’t an actual plaintiff.

    I understand your point, and actually, the attorneys for the class members are the most responsible for seeking court relief ordering the bank to issue loans for people who couldn’t afford the loans. The attorneys argued that turning down undeserving loan applicants was real-time discrimination, and not good banking practice.

  • brains25cents

    From that far right newspaper the NYT, the Bush administration effort to curtail Fan and Fred started much earlier than 2008 (and Clinton also tried without success):

    New Agency Proposed to Oversee Freddie Mac and Fannie Mae
    Published: September 11, 2003

    The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

    Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

    . . . (at the end of the article, the reader can recall why this attempt failed)

    “These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

    Representative Melvin L. Watt, Democrat of North Carolina, agreed.

    ”I don’t see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,” Mr. Watt said.

  • Chuck

    If your for smaller government go to https://apps.facebook.com/gerberps/detail.do?entry_id=87625

    and vote for Bella!

  • Fredrick Schwartz

    Once again you take a backdoor stab at trying to blame minorities for the housing bubble. The hacks at the Manhattan Institute tried this CRA nonsense back in 2007 when Bush saw the Recession coming and he was stuck having to talk about Iraq now that the economy was tanking. There aren’t enough minority homebuyers in the US to tank the US housing market, but there are enough greedy mortgage lenders who realize the game is rigged by credit default swaps to do the trick. There is a guy with a funny sounding name to blame for this mess but it’s not Obama– it’s Mozilo.

  • Militant Catholic

    Things are NOT going well in Liberal-land as the truth – like this story – continues to gain traction. Today, they announce the move from a 70K seat stadium to a 20K seat stadium when the chance of rain was 20-30%. Romney’s outraising Obama tremendously, prominent Liberals are whispering of defeat, and even the campaign is sounding more and more desperate in its emails. Finally, the flood of economic numbers are ALL BAD.
    Not looking good if you’re a Liberal. Not looking very good at all.

  • http://mychal-massie.com/premium/ bg
  • Militant Catholic

    Look what Drudge has on his site today…


    Not looking good if you’re a lying Democrat. Not looking good at all.

  • Pingback: Fact Check: Obama Had More to Do With 2008 Economic Meltdown Than Bush Ever Did|Politifreak()

  • dittogirl

    I’m a retired Realtor, and I can tell you that after Clinton “revised” the Community Reinvestment Act, we went from having strict guidelines for a mortgage to almost anything goes. From No-doc loans to people qualifying for a mortgage using food stamps as income, the banks were ordered to take loans that no one with a brain would of ever accepted. They were threatened with closure and fines if they did not obey, and the craziness began.

    Zero down, no documents neccessary, the housing market soared. FHA and other govt mortgages gave 3% to the govt right off the top to guarantee these mortgages which went to Fannie and Freddie which in turn became the cashcow of the Democrats that looted it.

    When the market started to crash, of course the govt could not and would not admit, ever!, that they owed these banks a whole lot of money for forcing them to take these bad loans, so they called it a bailout. Now everyone hates the banks, govt supposedly comes to the rescue with refinancing that almost no one qualifies for, and we get stuck with the bill because they spent it all.

    Bush and Cheney saw it coming, went to Congress 17 times just to be told to Eff Off. By the Democrats, of course. And he got the blame for it all, something that Carter, then Clinton, then Dodd and Frank and many more Democrats created all on their own.

    Americans in the Democrat party dont have much intelligence in the first place, so they believe it, never taking a few minutes to look it up and figure out the why’s and the who done its.

  • http://mychal-massie.com/premium/ bg


    re: #5 September 5, 2012 at 2:22 pm bg

    Crony Capitalism (#9)

    [The largest banks are actually bigger than they were when he took
    office. And earned more in the first two-and-a-half years of his term
    than they did during the entire eight years of the Bush administration.]

    [Democrats beat the market by 73 basis points per month, compared
    to 18 for Republicans. That’s a rout anyway you look at it. Senators
    fare even better than house members.]

    [Strict laws ban corporate executives from trading on their
    insider knowledge, but no restrictions exist for members of
    Congress. Lawmakers are permitted to keep their holdings
    and trade shares on the market, as well as vote on legislation
    that could affect their portfolio values.


  • FurryGuy

    I said the same thing about Barry being one of the root causes of the economic meltdown from the minute he became a viable candidate back in 2008 when his history of being a community organizer shaking down banks became public knowledge. I was soundly ridiculed for saying such things on other blogs I then frequented.

    Politicians creating a problem that then the same politicians use as campaign rhetoric that only they can fix the problems they created. The New Dems excel at that, and it works because so many voters actually fall for the con.

  • bobdog

    But…but…redlining…that’s bad, right?

    “You just tell me what you want to do. I’ll sell it to the American people.”
    — Barack Obama, 2008

  • Ariel

    Hmm…Swept into office by the collapse of the housing market which he helped precipitate, the very collapse that impelled John McCain to suspend his campaign and virtually hand the election to Obama. Wheels within wheels. Either Obama is extremely lucky, or extremely diabolical.

  • http://iopian.blogspot.com IOpian

    All of this was out there before he was elected the first time. This and much more. There is even a video of Clinton saying the Democrats were to blame for the meltdown… and guess who will introduce Obama at the conventions? The main Liar-In-Chief.

    Facts simply do not matter to a bunch of mental infants enthralled over jingling shiny objects.