Elizabeth Warren predicted the 2008 financial crisis years before it began — and her supporters have the receipts to prove it.
The presidential candidate was a professor at Harvard University in 2004 when she spoke out about household debt and the Federal Reserve.
Several clips from the interview were posted to Twitter this week in which Ms Warren criticised former Federal Reserve Chairman Alan Greenspan, saying at point, “Alan Greenspan, our national economic leader, stood up for the last 4 years and told Americans 'borrow against your house.' What frightens me is millions of Americans have taken that advice.”
She also went on to expertly breakdown how Americans who could not afford mortgages were borrowing under lowered standards.
“What a mortgage company will lend you to buy a house and what you can afford are two very different numbers … What they’re looking out for is to make a profit—God bless them, that’s what they’re there to do—they want to make a profit. The way they make the best possible profit is to put you in the largest possible mortgage that you, by scraping and scratching, can make just the few payments, and then they pass that mortgage off to someone else. Put it into a risk pool and move on. They’re off selling the mortgage off to the next guy.”
A Twitter user shared the clips Monday, writing, “In this '04 interview, @ewarren tried to warn us of the coming crash. Here are 4 clips.”
The resurfaced video has since gone viral.
In this second clip, the interviewer displays the widespread attitude that led to the '08 crash."The houses around… https://t.co/1AnpWUJSiA