Posted on 09/24/2008 10:15:47 AM PDT by tatown
Edited on 09/24/2008 10:54:50 AM PDT by Admin Moderator. [history]
WASHINGTON (AP) - President Bush is thinking of giving a speech to the nation on the ailing financial markets, the White House said Wednesday, amid persistent criticism of a $700 billion bailout plan and the Federal Reserve chairman's warning that economic growth depends on it. Ben Bernanke, the Fed chief, told Congress' Joint Economic Committee that the Federal Reserve will "act as needed" to minimize disruptions to business life. His appearance came a day after he and Treasury Secretary Henry Paulson heard withering criticism of the Bush administration's proposed $700 billion bailout plan and not long after Bush said he was confident an agreement would be reached soon on a "robust" plan to relieve the stress.
(Excerpt) Read more at breitbart.com ...
It looks like this is going to happen tonight at 9pm eastern.
Very Predictable
I hope it only makes people madder about this bailout.
I couldn’t care less who is at fault. My house is paid off due to my own responsible behavior and I have no obligation to pay for anyone elses failures.
I wonder if GW will mention that David Gregory’s wife was a lawyer for Fanny Mae till one week ago. Probably not.
let him talk but open it up to questions from the Citizens...not the mad-dog press!
“Sure hope he uses this to lay blame where it belongs.”
That has never been in Mr Bush’s nature.
This just going to be a speech about how important this bailout is to protect the economy and all of us sheeple.
What it really is, is a transfer of our wealth to the bankers.
http://gatewaypundit.blogspot.com/2008/09/bush-called-for-reform-of-fannie-mae.html
Bush Called For Reform of Fannie Mae & Freddie Mac 17 Times in 2008 Alone... Dems Ignored Warnings
For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted.
Unfortunately, these warnings went unheeded, as the President’s repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.
** 2001
April: The Administration’s FY02 budget declares that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.”
** 2002
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
** 2003
January: Freddie Mac announces it has to restate financial results for the previous three years.
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that “although investors perceive an implicit Federal guarantee of [GSE] obligations,” “the government has provided no explicit legal backing for them.” As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. (”Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO,” OFHEO Report, 2/4/03)
September: Fannie Mae discloses SEC investigation and acknowledges OFHEO’s review found earnings manipulations.
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact “legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises” and set prudent and appropriate minimum capital adequacy requirements.
October: Fannie Mae discloses $1.2 billion accounting error.
November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any “legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk.” To reduce the potential for systemic instability, the regulator would have “broad authority to set both risk-based and minimum capital standards” and “receivership powers necessary to wind down the affairs of a troubled GSE.” (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)
** 2004
February: The President’s FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: “The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator.” (2005 Budget Analytic Perspectives, pg. 83)
February: CEA Chairman Mankiw cautions Congress to “not take [the financial market’s] strength for granted.” Again, the call from the Administration was to reduce this risk by “ensuring that the housing GSEs are overseen by an effective regulator.” (N. Gregory Mankiw, Op-Ed, “Keeping Fannie And Freddie’s House In Order,” Financial Times, 2/24/04)
June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying “We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System.” (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)
** 2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying “Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system.” (Secretary John W. Snow, “Testimony Before The U.S. House Financial Services Committee,” 4/13/05)
** 2007
July: Two Bear Stearns hedge funds invested in mortgage securities collapse.
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying “first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options.” (President George W. Bush, Press Conference, The White House, 8/9/07)
September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.
September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.
December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying “These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I’ve called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon.” (President George W. Bush, Discusses Housing, The White House, 12/6/07)
** 2008
January: Bank of America announces it will buy Countrywide.
January: Citigroup announces mortgage portfolio lost $18.1 billion in value.
February: Assistant Secretary David Nason reiterates the urgency of reforms, says “A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully.” (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)
March: Bear Stearns announces it will sell itself to JPMorgan Chase.
March: President Bush calls on Congress to take action and “move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages.” (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)
April: President Bush urges Congress to pass the much needed legislation and “modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes.” (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)
May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.
“Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans.” (President George W. Bush, Radio Address, 5/3/08)
“[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator.” (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)
“Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans.” (President George W. Bush, Radio Address, 5/31/08)
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying “we need to pass legislation to reform Fannie Mae and Freddie Mac.” (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)
July: Congress heeds the President’s call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.
In 2005— Senator John McCain partnered with three other Senate Republicans to reform the government’s involvement in lending.
Democrats blocked this reform, too.
More... Not only did democrats not act on these warnings but Barack Obama put one of the major Sub-Prime Slime players on his campaign as finance chairperson.
UPDATE: The media is not reporting that the failed financial institutions are big Obama donors.
what a dumb move....
Someone needs to show leadership, and explain this entire fiasco to the American people.
Tell us the options on what to do to solve it, and let the people decide.
But to have BUSH come out to tell us we need to quick right the check to Paulson, and give him more power, and tell us not to worry our pretty little heads about the details- just trust it is “bad. very very bad”
nah— that just won’t cut it.
Passing this crisis on to the next president and our kids is irresponsible....oh wait.....so was lending gobs of money to folks who couldn’t pay it back....
yeah— we want to listen to BUSH tell us how HE has the best answer.......I will trust him when I see Jamie Gorelick in chains behind bars....
Maybe he’ll call for a repeal of the Community Reinvestment Act and its attendant regulations, which made it difficult for banks not to lend money to unqualified people.
Naaaaaah...
Does it strike anybody else that if “economic growth” depends on a massive government bailout, then there’s something wrong with “economic growth”?
Maybe, if there is no giant infusion of capital, the ensuing disruption to the capital markets will force a wide reorganization of capital, instill prudence and efficiency, and thus allow real growth to begin anew.
He's going to mortgage the future of this country on a trillion dollars worth of worthless paper and he "MAY" give a speech explaining why?
He should have given this speech before he sent his lackies out to make asses of themselves in front of congress. But instead he authorized these clowns to go to congress and beg them to give them the power to nationalize our entire market system and even they could not explain what the plan was or how it will work and how we can make sure that the money is properly spent.
Yes he needs to give a speech, but it better be one hell of a speech.
He won't do that. This will be some form of we all need to pull together, the dire need for quick, comprehensive action, etc. He won't place blame. He particularly won't be partisan. Congress's role in setting up all the incentives and penalties that pushed the country into this mess won't be mentioned IMO.
This seems like an election year deceptive fix having maybe 3 months life. The AIG situation really scares me, because this article says the credit derivatives market is 50 times the mortgage problem.
To paraphrase Genesis the passage should read: “When the financial trader saw that the credit derivative was good for bonuses and brought delightful acclamation and power, then he wrote contracts with ever smaller risk assumptions to book ever larger accrued incomes, demonstrating a wisdom far exceeding his competitors”. Here is a link to an article explaining this financial instrument: http://www.safehaven.com/article-11267.htm.
He knows everyone is ticked and he'll try and explain that there is no other alternative than "the bailout". It will be a calm, soothing, "trust me" type speech.
Why didn’t GW give one of these speeches about Fannie and Freddie way back then?
As far as the donor thing. I heard that Obama received the 2nd highest contributions from these investment banks. And the republicans are not using that. I heard that the one who received the most was Senator Chris Dodd on the banking committee(and you wonder why the bear sterns hearing was such a joke). I suppose that since republicans are even on the list then don’t want to open that can of worms. Dumb in my opinion because the democrats hit with all they have.
I just heard that McCain said something in a speech about not taking money from Fannie and Freddie for the last two years. Turns out he was taking money from them right up until they went bust. The dems are all over it already. The republicans better learn to deal it back.
I’d love it if he just introduced his “staff logician,” who proceeded to explain that just because two events are coincident in time doesn’t mean one caused the other. That’s about how far the left’s reasoning goes as they conclude that this is all Bush’s fault.
Which speech? I can’t find any that mentions what you stated. Could you direct to the speech or at least when and where you heard this? Thank you.
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