Bill Clinton on the Mortgage Crisis

The former president blames Wall Street alchemy for rising foreclosures.

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With the housing crisis becoming an increasingly central campaign issue in the race for the White House, former President Bill Clinton provided his two cents on the issue while stumping for his wife in North Carolina.

From the Wall Street Journal:

Mr. Clinton blamed the foreclosure problem on mortgage payments that increased because brokers sold loans that were packaged into "stocks."

"All these families were told in fairness that they could be charged higher interest if the economy changed," Mr. Clinton told a crowd in Jacksonville. "None of these families were told in total fairness—none of them, I've read these agreements—that these mortgage companies would package all their mortgages up and turn them into stock and let people bid on them. They thought it was a bird's nest on the ground. They thought that housing would go up."

Full article here.