on Meet the Press:
MR. RUSSERT: But, Senator, many people opted for those cheaper mortgages. They could’ve had a fixed mortgage at a higher rate, but they opted for a cheaper one. Should they not bear some responsibility?
SEN. CLINTON: Well, Tim, I think all of us should[1]. But I’d say three things about that. The bankers, the mortgage lenders, the brokers, all bear a lot of the responsibility, because many of the practices that were followed were just downright predatory and fraudulent. There is no doubt about that[2]. I started talking about this last March. A lot of people got into subprime loans who frankly could’ve been in a conventional fixed-rate loan. They were basically told that this was a better opportunity for them. Should they take responsibility? Yes, but [3] look at what will happen if we continue this cascade of foreclosures. Housing values are down. They’re down 6 percent[4]. That’s over $1.3 trillion in housing values in the last year. So everybody bears some responsibility[5].
[1] I, for one, bear no responsibility for any part of the subprime mortgage crisis, and I call shenanigans on Hillary Clinton for implying that I do. If anyone can prove otherwise, have at it.
[2] I think there is plenty of doubt in her claim that practices were predatory and fraudulent; sure, some may have been predatory, and some fraudulent, but I doubt that many were both. If they were fraudulent, borrowers should have no problem demonstrating as much and get back their losses plus damages.
[3] this “yes, but” clause is mixing issues; the state of nationwide housing values has no bearing on personal responsibility. Should I stop paying my car loan because the price of gas is over $3? Right.
[4] housing was a bubble anyhow, and the dramatic drops are more a function of that bubble than of 0.3% of houses being foreclosed (not that the foreclosures help the situation).
[5] Again, I refute this claim on it’s face, and object to any responsibility that Hillary is trying to project on me or my family. It doesn’t take a village to screw up a home loan.
