Posted on 09/24/2008 6:19:14 AM PDT by Obamalujah
One of the things you keep hearing in Obama's campaign stump speeches is how the failed philosophy of George Bush (deregulation and lack of oversight) caused the current crisis. Obama has been bashing free market philosophy in a situation that does not even come close to meriting it. Fannie Mae and Freddie Mac were government created and regulated, shielding them from market competition. The government guaranteed this lack of competition, which virtually ensured there would be financial hackery. This is what led to the "corruption" on Wall Street, or what we like to call crony capitalism.
(Excerpt) Read more at blog1.thejtandbearshow.com ...
Barney Frank spent too much time concentrating on Freddie’s Fannie than on Mae or Mac.
Bingo. Now, I hate the NY Times as much as anyone here, but, IMO, when they are not in campaign mode as they are now, they do report some interesting things. From 2003:
September 11, 2003
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By STEPHEN LABATON
The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.
The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.
The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac — which together have issued more than $1.5 trillion in outstanding debt — is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.
... Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.
‘’These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,’’ said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee.’’The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.’’
Representative Melvin L. Watt, Democrat of North Carolina, agreed.
‘’I don’t see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,’’ Mr. Watt said
I have seen at least 4 major stories this morning about how the Democraps are full of ...well...democrap (again) on this issue and how it is THEIR policies and government intervention that caused this mess.
Look up ‘redlining’ and see the truth. Democraps forced banks to give up the simple process of making sure people qualify for a loan, calling it ‘redlining’ and making sure it was named a bad bad thing.
Democraps succeed in demonizing all that is correct.
McCarthy set out to root out communists, but McCarthyism became a bad word.
“Swift-boating” came to mean unfair assault on character when it actually was fair assessment of character.
“profiling” is a bad word that you just can't do, so therefore we waste MILLIONS of dollars to be sure we don't offend certain groups by making sure we offend everybody else (i.e. you must search 90 year old grandma's to be sure young Muslim males do not blow up the plane)
Killing babies is a ‘choice’ but putting murderers on death-row is bad
Liberalism is a mental disease.
DUDE! that deserves ITS OWN THREAD!!!!!!!
Would you be so kind as to do the honors?
I need to know where you found it!!!
illegal alien loans fraud enough to wreck them
Do you have a link to the original story? (before they pull it)
If he were a Republican we'd never hear the end of it.
I linked it from this:
http://astuteblogger.blogspot.com/2008/09/fannie-mae-fiasco-what-white-house-knew.html
Would some freepers please post this to California papers and ask Nancy Pelosi to please apologize to the American people on behalf of her colleague, Barney Frank?
I have sent it to my local newspaper in response to two Democratic moonbats, Carol Porter and Paul Hodes, who are spinning this as Bush’s fault.
Oh, I’m dd. ;-)
I hate my stupid screen name, but I feel kinda stuck with it. Thank you for the direct link.
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