Today we are paying for the Clinton attempt at “social justice”, a Clinton effort to make things fair for everyone. How did it start, well in begun in the 1977 when Jimmy Carter sing into to law the Community Reinvestment Act. This law forced lenders to provide credit in mortgages, and small business loans to low income families. The social justice theory was that each bank had to consider the community needs of the entire community in their lending policies. Lenders were evaluated as to their community responsibility before they could expand their business. Community organizations were allowed to file complaints with government over banks lending policies. In 1995 the Clinton Administration revised the CRA regulations. They began to complain about “Red Lining”. “Red Lining” was described as the limit lenders put on loans, above the “red line” you received a loan or mortgage, below the line no money. The administration and members of congress cried unfair and forced lenders to make even more loans to people under the “red line.” Banks, in order not to get in trouble with the government regulators, and community group, had to make loans to people who did not qualify for mortgages. In order not to be caught with bad loads, banks bundled the loans with good loans and sold the other lenders. Fannie Mae, and Freddie Mac were required, as semi-government organizations, to help lenders by buying these ill regular loans. As long as housing values increased these ill-regular loans were still “good paper”. When housing prices began to fall, these loans became bad investment. Though only about 2.7% of home mortgages default, nobody is sure which lenders have the bad loans. Therefore, all lenders stopped lending money and they couldn’t determine the value of the loans they held. Now the President is suggesting that to free up the credit market, the government buy these ill-regular loans. Taxpayers will pick up the Clinton effort at “Social Justice.” So when other candidates suggest that it’s only fair for government to… We need to remember the price we’ll pay today.