BTTT!
Brilliant thread !
“However, the ultimate effect was to create a mortgage tsunami that wrought devastation on the American people and economy,” says the report. “While government intervention was not the sole cause of the financial crisis, its role was significant and has received too little attention.”
Ping
http://republicans.oversight.house.gov/
In The News
Report: The Role of Government Affordable Housing Policy in Creating the Global Financial Crisis of 2008
Tuesday, July 07, 2009
WASHINGTON. D.C. – A report released today by the House Committee on Oversight and Government Reform finds that the housing bubble that burst in 2007 and led to a financial crisis can be traced back to federal government intervention in the U.S. housing market. The report’s findings are particularly significant and relevant since President Barack Obama’s announced financial reform initiatives do not include reforms to address flawed government housing initiatives.
http://republicans.oversight.house.gov/media/pdfs/20090707HousingCrisisReport.pdf
The current meltdown in the mortgage industry is a direct result of giving mortgages to people who could not pay them back, a practice protected by Congressional Democrats.
Barack Obama the largest recipient of political funds from mortgage giants Freddie Mac, Fannie Mae.
The talking heads on the MSM will be all over this.NOT
With the rats in control of everything, nothing will be done to rectify this, nothing, it will continue open loop until all the wealth of the people is gone..
Well, finally some truth from our Washington politicians about what actually happened. From the Introduction (below), it looks like this is a report very much worth reading.
Bear in mind that this is detailed Congressional report about the underlying infractions of Freddie, Fannie, and pols like Barney Frank.
It’ll be interesting to see how much coverage it has gotten or will get int he MSM this week.
Prediction: none.
http://republicans.oversight.house.gov/media/pdfs/20090707HousingCrisisReport.pdf
The Role of Government Affordable Housing Policy in
Creating the Global Financial Crisis of 2008
STAFF REPORT
U.S. HOUSE OF REPRESENTATIVES
111TH CONGRESS
COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM
JULY 7, 2009
INTRODUCTION
The housing bubble that burst in 2007 and led to a financial crisis can be traced back to federal government intervention in the U.S. housing market intended to help provide homeownership opportunities for more Americans. This intervention began with two government-backed corporations, Fannie Mae and Freddie Mac, which privatized their profits but socialized their risks, creating powerful incentives for them to act recklessly and exposing taxpayers to tremendous losses. Government intervention also created “affordable” but dangerous lending policies which encouraged lower down payments, looser underwriting standards and higher leverage. Finally, government intervention created a nexus of vested interests – politicians, lenders and lobbyists – who profited
from the “affordable” housing market and acted to kill reforms. In the short run, this government intervention was successful in its stated goal – raising the national
homeownership rate. However, the ultimate effect was to create a mortgage tsunami that wrought devastation on the American people and economy. While government
intervention was not the sole cause of the financial crisis, its role was significant and has received too little attention.
[snip]
In recent months it has been impossible to watch a television news program without seeing a Member of Congress or an Administration official put forward a new recovery
proposal or engage in the public flogging of a financial company official whose poor decisions, and perhaps greed, resulted in huge losses and great suffering. Ironically,
some of these same Washington officials were, all too recently, advocates of the very mortgage lending policies that led to economic turmoil. In a number of cases, political officials even engaged in unethical conduct, helping their political allies, family members
and even themselves obtain lucrative positions in the mortgage lending industry and other benefits. At a time when government intervention in private markets has become
alarmingly common, government “affordable housing” initiatives offer important lessons about the dangers of government efforts to manipulate or conjure outcomes in the market.
Obama must have got it. But he wasn’t born yet so it’s not his fault. Dictatorship is the only remedy. /sarc
Hit a few links and you can get the PDF report of about 26 pages, print that sucker off and pass it out.
bookmark
Ping
for later
Fire up the crickets!
“Fannie Mae and Freddie Mac were the chief culprits in the housing crisis...” and in other breaking news water is wet.
Has anyone seen barney lately?I think we need to have a little talk.
bttt
What we've been saying all along. Maybe now some of those that excoriated us will finally believe.
BTTT.
Thanks for the thread. Great information that confirms what many of us thought.
ping