Democrats to Blame for Freddie and Fannie Mess
A lot of people, including Obama, are pointing their fingers at Bush for making the Freddie and Fannie mess. This video tells the true story:
http://hotair.com/archives/2008/09/23/video-whos-responsible-for-the-fannie-and-freddie-mess/
To summarize, this sad story started during the Clinton era when laws were passed to force banks to make risky loans for the purpose of getting more poor people into houses and reduce racial disparities. One huge consequence was the housing boom that strangely kept pace right through the 9-11 economic slowdown. I correctly guessed at the time that this overbuilding would eventually result in prices falling.
Fannie and Freddie changed their regulations to allow them to back these risky loans. Then there were the loyal Democrats who ran Freddie and Fannie who cooked the books to increase their bonus pay (and many of those names are currently working on Obama's campaign staff. For example, Jim Johnson, former Fannie Mae Chairman who had to resign as head of Obama’s Vice Presidential search team, and Franklin Raines, an Obama financial adviser, was CEO of the Fannie Mae from 1999-2004.
And for some odd reason, these two quasi-government agencies, Fannie and Freddie, were allowed to contribute to political candidates. How's that again? There is a list on the web showing Chris Dodd, Kerry, Obama, and Hillary Clinton to be the top four recipients.
http://pfds.opensecrets.org/092408.html . Yup, the same Chris Dodd who just today sat on the Senate committee reviewing the mess.
This whole stack of cards worked fine as long as those low income borrowers had jobs and could sell their houses for more than they paid for them when they needed to. But the stack of cards collapsed when housing prices dropped, as we all knew they would, and the risky borrowers defaulted on their loans.
For what it is worth, John McCain also tried to fix the mess in 2005:
http://hotair.com/archives/2008/09/17/mccains-attempt-to-fix-fannie-mae-freddie-mac-in-2005/
posted by Pedicularis @ 5:12 PM
3 Comments:
Democrats have been lining their pockets with the money from the slack in the mortgage lending market.
I think the fact that McCain tried to fix the mess in 05' should be made more publicly known... he had the foresight and intelligence to point out the problem, attempt to fix it. He even labeled it the "ruin of our economy".
I am confident that no Republicans are at fault in this mess. My liberal friends are all saying there is plenty of blame on all sides. Those are code words for admiting they cannot blame the Republicans. Also (as pointed out by caller on the Rush Limbaugh show), the Democrats in Congress have not started any hearings, as they did for 9-11, Enron, high oil prices, and other great opportunities for them to attack Republicans.
Exactly. This is on their plate and they know it, but they don't want to admit it.
Who would want to admit to a series of mistakes that led to the greatest governmental intervention since the great depression?
Personally I like John Gibson on Fox News (XM Radio). He played a tape for a dem caller (who was saying it was a bipartisan mistake) of several democrats addressing the senate for the need of Freddie and Fannie Mac to buy up loans in order to provide for the middle class.
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