And at that time the number of toxic subprime loans had exploded to create the unstoppable train wreak that was inevitable when home prices stopped going up. Home prices already started to top about the time the surge was approved.
I concur.
I talked about this with a few dems today. One of them said that it was Phil Graham’s fault for “deregulation” and another said that it was John McCain’s fault. I also told them that Congress did not do their job of oversight of Freddie and Fannie, and they blamed the Republicans, of course.
A timeline has been posted previously.
Here is a link:
http://gatewaypundit.blogspot.com/2008/09/bush-called-for-reform-of-fannie-mae.html
Bush was calling out a warning throughout his Presidency but he did nothing but pay lip service.
The democrats took control of Congress in January 2007. That is when the surge was approved. Bush could have drawn a line in the sand then about Fannie and Freddie but he did nothing except pay more lip service. He threatened other options but did nothing.
But the President got his surge funded. I would bet heavily the democrat scum got something in return and that would include a continued hands off policy regarding Fannie and Freddie.
And whistleblower Paul Gigot was sounding the alarm throughout the decade:
“My battles with Fan and Fred began with no great expectations. In late 2001, I got a tip that Fannie’s derivatives accounting might be suspect. I asked Susan Lee to investigate, and the editorial she wrote in February 2002, “Fannie Mae Enron?”, sent Fannie’s shares down nearly 4% in a day. In retrospect, my only regret is the question mark.”
http://online.wsj.com/article/SB121677050160675397.html?mod=opinion_main_commentaries
There was enough buzz about shady dealings at Freddie and Fannie to warrant a DOJ investigation.
But nothing N-O-T-H-I-N-G was done about it other than Bush making statements. There was no prosecution at all.
This is why the President can’t escape judgement and why Karl Rove appears impotent and vacuous in his ramblings.