Posted on 06/17/2011 4:07:25 PM PDT by neverdem
Most political scandals involve people who are not really enmeshed in the Washington establishment — people like Representative Anthony Weiner or Representative William Jefferson. Most scandals involve spectacularly bad behavior — like posting pictures of your private parts on the Web or hiding $90,000 in cash in your freezer.
But the most devastating scandal in recent history involved dozens of the most respected members of the Washington establishment. Their behavior was not out of the ordinary by any means.
For that reason, the Fannie Mae scandal is the most important political scandal since Watergate. It helped sink the American economy. It has cost taxpayers about $153 billion, so far. It indicts patterns of behavior that are considered normal and respectable in Washington.
The Fannie Mae scandal has gotten relatively little media attention because many of the participants are still powerful, admired and well connected. But Gretchen Morgenson, a Times colleague, and the financial analyst Joshua Rosner have rectified that, writing “Reckless Endangerment,” a brave book that exposes the affair in clear and gripping form.
The story centers around James Johnson, a Democratic sage with a raft of prestigious connections. Appointed as chief executive of Fannie Mae in 1991, Johnson started an aggressive effort to expand homeownership.
Back then, Fannie Mae could raise money at low interest rates because the federal government implicitly guaranteed its debt. In 1995, according to the Congressional Budget Office, this implied guarantee netted the agency $7 billion. Instead of using that money to help buyers, Johnson...
--snip--
People may not like Michele Bachmann, but when they finish “Reckless Endangerment” they will understand why there is a market for politicians like her. They’ll realize that if the existing leadership class doesn’t redefine “normal” behavior, some pungent and colorful movement will sweep in and do it for them.
(Excerpt) Read more at nytimes.com ...
From the New York Times? Pinch me!
comments about Bachmann excluded, i’ve been asking this since 2008 and this is yet another example of the feeble GOP fighting like little girls...
1- james johnson- $90million salary in 6 years as head of Fannie...
2- james johnson- cooked the books at Fannie....
3- Fannie Mae- huge contributors to the campaigns of obama, dodd & frank....
4- james johnson- economic advisor to obama during the 2008 campaign....
a horse the GOP should beat daily but they don’t because they are pu$$y’s....
btw- where is harold raines, another obama crony and Fannie/Freddie criminal, as well???
These jerks are still rich and powerful. They should be in jail.
And of course, when you check the comments section from the mentally ill leftists who comprise 97% of the Times’ readership, you get a steady stream of delusional “Bush's fault!” and “evil corporations!” diarrhea.
Saw the authors of “Reckless Endangerment” on CSPAN Book TV last weekend. They expose Fannie and Freddie as major culprits behind the economic meltdown. I agree that this is heavy artillery the Republicans should be using against Obama and the Democrats (and big government in general).
You’re right. You’ve just named the poster children for smaller government, lower taxes, and fewer Democrats.
No ... it hasn't cost taxpayers anything ... zip .. zero .. nadda. It has cost our children and grand children untold billions. It's like I knew when I was 19 years old ... ANY form of government will WORK or will NOT work depending upon only one thing ... and that one thing is the CHARACTER OF THE PEOPLE BEING GOVERNED! What does it say about the character of people who will dump fifteen+ TRILLIONS of debt on their children ?
Remember the House Bank scandal? They all did it.
Yes. The GOP (elected officials) are pu$$ies, and we need the revolution to continue—Palin, Cain, Bachmann. The Fed govt must be put back into its Constitutional straight jacket. End the market distortions created by the “regulation of commerce aka socialist progressive clap trap that is foreign to the Constitution.
Except...they won't.
The sad fact of the matter is that the GOP majority knew what was going on. And they mounted the Financial Reform Act of 2005 to correct the building problems at Fannie Mae and Freddie Mac.
The GOP House passed the bill. The GOP Senate failed to pass it...because of a threatened Democrat filibuster. Thus, it failed.
Whereupon the Republican majority (and President Bush) decided to join what they couldn't defeat -- yielding "the ownership society".
Yes, the Democrats were the perpetrators. But the Republicans were the enablers.
At bottom, both parties were responsible for the economic collapse. All well and good as far as assigning blame.
BUT THE FACT IS: IT WAS THE FEDERAL GOVERNMENT THAT IS TO BLAME FOR OUR ECONOMIC DISTRESS!
a horse the GOP should beat daily but they don’t because they are pu$$y’s....
Fannie Mae and the Vast Bipartisan Conspiracy
It's a lot more rats than pubbies, but pubbie insiders were there as well.
i don’t doubt for a second the GOP has skinned their knees w/FANNIE/Freddie yet the largest donations and the biggest criminals are with the rats....
GWB works with a buddy= cronyism....
Zero works with a criminal buddy = deafening silence...
Leave it to faux Conservative David Brooks to carefully airbrush the facts to avoid embarassing his political masters.
Factually incorrect but I know, so much easier and safer to sell a comfortable lie then ever hold the Democrat Party accountable.
Really want to try and argue that 99% Democrats+1% Republican equals a “bi-partisan scandal
How about some of you supposed “Conservatives” grow a set and actually start holding the Democrats accountable for their actions?
As usual, Brooks tries to blue the lines between the parties.
But the book charges the Democrats very clearly. I hope the buzz this book generates gets some legs.
Really want to try and argue that 99% Democrats+1% Republican equals a “bi-partisan scandal
It's cite as in a citation.
Besides Kit Bond, Robert Zoellick and Ken Starr mentioned by Brooks, the Slate story mentions these pubbies: John Buckley, the nephew of Bill Buckley, Ray McGrath, R-N.Y, former Reps. Vin Weber, R-Minn., and Susan Molinari, R-N.Y, "McCain campaign manager Rick Davis and Arthur B. Culvahouse Jr., who helped in McCain's veep search," and "McCain economic adviser Aquiles Suarez worked as Fannie Mae's director of government and industry relations, and McCain finance co-chairman Frederic V. Malek spent time on the Freddie Mac board." At least three other pubbies were mentioned including Ken Duberstein, Reagan's chief of staff.
I found the story looking for Franklin Raines first name. I entered "fannie mae" "jamie gorelick" raines into Yahoo. It's not surprising the pubbies ruling class are gun shy. We need more Tea Party members to take over the GOP.
I just started reading this book. In chapter 1 Johnson does not come across too good. Seems like a selfish jerk.
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