Why Radicals Matter

June 1, 2010 18:07

Statism: Like that of termites, the full damage from suit-and-tie radicals manifests years after their “reforms.” Only now, for example, are we seeing the devastation caused by the last Oval Office infestation.

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Like Barack Obama, Bill Clinton also campaigned as a moderate. Once elected, however, he surrounded himself with some of the most radical leftists ever appointed to the Cabinet. (Many of them have re-enlisted with this administration.)

Behind the scenes, they worked furiously to undermine the system. And now, decades later, we’re seeing the results. Clinton’s policies — not just his unethical conduct — were recipes for disaster.

In 1995, he rewrote the Community Reinvestment Act to mandate “flexible” underwriting of mortgages, while broadening HUD’s power to regulate Fannie Mae and Freddie Mac.

By 2000, the mortgage giants were pushed into devoting half their lending to support affordable-housing goals. That meant accepting risky subprime loans to borrowers with low credit scores — something Clinton’s HUD.

It was also Clinton’s idea to give affordable-housing goal credits to Fannie and Freddie for securitizing subprime and other high-risk loans. The government-mandated risk soon spread to Wall Street.

Fannie is now the biggest mortgage risk holder in the biggest mortgage crisis — one that has cost the economy trillions in wealth and hundreds of banks (with one in 10 banks now in trouble).

It was Clinton, moreover, who first let mortgage lenders accept tax identification numbers as ID in lieu of Social Security numbers. The move put illegal immigrants into homes they couldn’t afford, triggering a wave of foreclosures in large immigrant states like California and Nevada.

Clinton also added teeth to a little-known health regulation known as EMTALA. The new rules mandated hospitals treat illegal aliens who can’t pay — even for nonemergencies. As a result, illegals flooded the ER.

EMTALA has cost hospitals billions in unpaid bills and contributed to today’s health care inflation.

That’s not all: As a sop to teacher unions, Clinton in 1994 broadened the definition of autism, a move that led to an explosion of autism cases. Alarmed parents searched for answers to explain the phenomenon, and found them in quacks like British doctor Andrew Wakefield, who blamed vaccines.

Concerned parents soon stopped immunizing their kids, leading to a sharp rise in measle cases.


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