Posted on 09/29/2008 4:19:58 PM PDT by jazusamo
Nothing could more painfully demonstrate what is wrong with Congress than the current financial crisis.
Among the Congressional "leaders" invited to the White House to devise a bailout "solution" are the very people who have for years created the risks that have now come home to roost.
Five years ago, Barney Frank vouched for the "soundness" of Fannie Mae and Freddie Mac, and said "I do not see" any "possibility of serious financial losses to the treasury."
Moreover, he said that the federal government has "probably done too little rather than too much to push them to meet the goals of affordable housing."
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Earlier this year, Senator Christopher Dodd praised Fannie Mae and Freddie Mac for "riding to the rescue" when other financial institutions were cutting back on mortgage loans. He too said that they "need to do more" to help subprime borrowers get better loans.
In other words, Congressman Frank and Senator Dodd wanted the government to push financial institutions to lend to people they would not lend to otherwise, because of the risk of default.
The idea that politicians can assess risks better than people who have spent their whole careers assessing risks should have been so obviously absurd that no one would take it seriously.
But the magic words "affordable housing" and the ugly word "redlining" led to politicians directing where loans and investments should go, with such things as the Community Reinvestment Act and various other coercions and threats.
(Excerpt) Read more at jewishworldreview.com ...
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Do y’all think this man will ever write something with which I disagree? I know it has to happen some day...I just haven’t had that day as of yet.
ping
So I was thinking about this today and why W would push so hard for this and wanted to toss this out: What if China is blackmailing us into this? What if they are threatening to cash in their T-Bills, Notes, and Bonds? Just a thought - no tin foil hat or anything. Just trying to figure out if there is something they aren’t telling us. Would rather just believe the Demonrats are behind it all though.
In reality, President Bush tried unsuccessfully, years ago, to get Congress to create some regulatory agency to oversee Fannie Mae and Freddie Mac.
And there you have it!!
Nail on the head.
Dr. Sowell has a talent of taking complex issues and distilling them down to their raw elements. Short, sweet and to the point.
Barney Frank, Chris Dodd, and many others ought to be frog marching on their way to the pen but instead are being alowed to lead an effort at cleaning up the mess THEY had a very large hand in creating! ASTOUNDING!
Very true, but everyone knows that government programs are the only true immortals.
Amen to that...would that it were he that was our candidate.
A worthy sequel to the "9/11 Commission."
Good one, Phil. That’s exactly where Barney and some of his RAT friends belong.
I think we all know who caused this, but sitting and lamenting on whose fault it is isn’t solving it.
Gah! Why am I so frustrated at this? I keep seeing fingers going in all sorts of directions on every issue, but I am getting worried that there will be fingers pointing while the ship is sinking.
Oh I have no doubt there is stuff they aren’t telling us. I fear the iceberg effect. We can see something really bad, but what’s under the water is bigger and worse.
Has anyone noticed that the new talking point is to tell us all that this is not a bail out. Do they really think that people are that stupid?
Allowing Freddie and Fannie to go unchecked, then wanting to bail them out just shows how stupid and corrupt Congress has become.
I've never disagreed with Dr. Tom. But it appears that most FReepers who have commented on the bailout are very much anti-Sowell, whether or not they realize it. I say this because Sowell basically supports having some kind of bailout -- while most of what I see from commentors here on FR verges on irrational hatred of any and all bailout plans, coupled with the inability to understand the terrible economic consequences that await continued inaction.
A few days ago, Sowell said that we do need a bailout and we do need it quickly.
Quote:
Speed is important, not just to protect the financial markets but to protect the taxpayers from having more of their hard-earned money squandered by politicians. Regardless of what Barack Obama or John McCain may say they are going to do as president, after a trillion dollars has been taken off the top there is going to be a lot less left in the federal treasury for them to do anything with. . . .
Financial institutions are not being bailed out as a favor to them or their stockholders. In fact, stockholders have come out worse off after some bailouts.
The real point is to avoid a major contraction of credit that could cause major downturns in output and employment, ruining millions of people, far beyond the financial institutions involved. If it was just a question of the financial institutions themselves, they could be left to sink or swim. But it is not.
Source:
Five years ago, Barney Frank vouched for the “soundness” of Fannie Mae and Freddie Mac, and said “I do not see” any “possibility of serious financial losses to the treasury.”
Where is the enemedia now...?
/s
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