THE FACTS: Clinton is counting on voters to recall the 1990s wistfully and to cast a vote for Obama in hopes of replicating those days in a second term. But Clinton leaves out the abrupt downward turn the economy took near the end of his own second term and the role his policies played in the setting the stage for the historic financial meltdown of 2008.
While the economy and markets experienced a record expansion for most of the rest of Clinton’s two-term presidency, at the start of 2000, there were troubling signs. Then-Federal Reserve Chairman Alan Greenspan warned in February 2000 that ‘‘we are entering a period of considerable turbulence in financial markets.’’
Sure enough, the tech-heavy Nasdaq composite stock index and the Dow Jones industrial average both peaked in March 2000. The bursting of the high-tech bubble dragged down the economy and markets through the rest of the year. From September 2000 to January 2001 when Clinton left office, the Nasdaq dropped 46 percent. Even now, in 2012, the Nasdaq has not returned to its 2000 peak. By March 2001, the economy toppled into recession.
Also, as president, Clinton supported the 1999 repeal of the Glass-Steagall Act, a law dating back to the Great Depression that separated banking from high-risk financial speculation. Robert Rubin, who had been Clinton’s first treasury secretary, helped broker the final deal on Capitol Hill that enabled the repeal legislation to pass. Some financial historians say the repeal of the law paved the way for banks to invest in risky investments like mortgage-backed securities and collateralized debt obligations that played a role in the 2008 financial meltdown.
CLINTON: ‘‘Their campaign pollster said, ‘We’re not going to let our campaign be dictated by fact checkers.’ Now that is true. I couldn’t have said it better myself — I just hope you remember that every time you see the ad.’’
THE FACTS: Clinton, who famously finger-wagged a denial on national television about his sexual relationship with intern Monica Lewinsky and was subsequently impeached in the House on a perjury charge, has had his own uncomfortable moments over telling the truth. ‘‘I did not have sexual relations with that woman, Miss Lewinsky,’’ Clinton told television viewers. Later, after he was forced to testify to a grand jury, Clinton said his statements were ‘‘legally accurate’’ but also allowed that he ‘‘misled people, including even my wife.’’
Associated Press writer Ricardo Alonso-Zaldivar contributed to this report.
EDITOR'S NOTE _ An occasional look at statements by political candidates and how well they adhere to the facts