Posted on 07/22/2010 5:48:34 PM PDT by mnehring
It is a well-known scandal that the Dodd-Frank financial "reform" bill could not find room in its 2,300 pages to address the government blunder at the center of the housing bubble, namely Fannie Mae and Freddie Mac. The current congressional majority and administration have announced they want to reform these two government-sponsored enterprises (GSEs) next year.
Fannie and Freddie's financial implosion will cost the taxpayers much more than did the infamous collapse of the savings and loan institutions in the 1980s. Both the S&Ls and the GSEs were favored in their sunshine days by government policy aimed at promoting housing finance. Both proved to be very costly mistakes.
Because members of the Democratic Party were Fannie and Freddie's principal promoters and protectors, the party's urge to postpone their reform is understandable. Yet one of the fathers of the Democratic Party, Andrew Jackson, understood what was wrong with GSEs as far back as 1832.
The GSE of Jackson's day was the Second Bank of the United States....
(Excerpt) Read more at online.wsj.com ...
Ping of inerest
oops, I seem to be “t” poor in that last post.
The very rats that coddled, nursed, protected and initiated this financial nightmare are now allowed to write the financial bill. And to our amazement no one has been seen in the streets screaming bloody murder. Here we sit watching American go down the toilet. Sadly by the time everyone wakes up, if they do at all, it may very well be bloody
LOL, I’m not a Jackson fan (he broke treaties with Native American nations faster than he drafted them), but the point of how he handled the GSE of the time does have some lessons for today.
It is simply more of the Cloward-Piven strategy of overloading the government in every respect with the intention of collapsing the whole thing. The refusal to stop spending, the overloading of SS with young healthy minorities who are getting disability benefits, Fran and Fred, the entire healthcare and financial reform deal, the very fact that each of those has so many pages to them so as to make it unintelligible until it is too late - all are Cloward-Piven!
Agreed. How Fan/Fred keep employees is beyond me. How could anyone work for such an unethical arm of Obama’s admin? Hell, I left a regular ol’ company because I could no longer morally support what they were doing. Not one regret about doing it, either.
Thanks for posting this.
Somebody finally tells the story correctly.
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