Previously unpublished court documents reveal that as a young lawyer from Chicago, President Obama’s lawsuit against big banks started inflating the housing bubble that created the mess he says he inherited.
We have often written that the true roots of our current economic crisis lay in the excesses of the 1977 Community Reinvestment Act as redefined under the Clinton administration. We have explained how community outreach by banks, under pressure from groups such as Acorn, was transformed into the mandatory credit issuance based not of creditworthiness, but on the basis of “fairness.”
“Redlining,” the activists argued, was the antithesis of the American dream of owning a home. Moreover, they insisted, everyone had the “right” to own a home. So the banks were forced to issue loans to people who couldn’t afford to pay them back. The banking system was forced to inflate a housing bubble that set us up for a near-catastrophic economic collapse.
This did not occur by accident, but by design at the hands of disciples of the Cloward-Piven strategy of overwhelming the system, causing it to collapse, then to be replaced by a worker’s paradise of redistributed income with the individual totally subservient to the greater good.
Presidential candidate Barack Obama called it the “fundamental transformation” of America, and he was there when the seeds of collapse were planted.