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« The Freedom Count in Bush’s U.N speech: 16, high | Main | Could this bailout save Social Security? »

September 25, 2008

Comments

Bill

I wonder why you and everyone else are so intent on placing blame. It is certainly not incorrect to characterizes the GOP as anti-regulatory. Nor is it incorrect to characterize the Democrats as complacent. Both sides of the aisle have failed to act. There have been various efforts in the past couple of years, both before and after the 2006 elections and neither party has done its part.

George

You can blame the Republicans for many problems but this isn't one of them. The problem lies squarely with the Democrats who blocked every attempt to reign in Fannie Mae and Freddie Mac. They even went as far at to call Republicans racist for "inventing" problems that needed to be fixed to deprive their constituency of loans.

You can call the GOP "anti-regulatory" in the sense that they support the free market system. This was a situation where bad laws actually required banks to make bad loans. This would be the opposite of "regulate" which, by definition, means to control. Republicans clearly sounded the alarm but Democrats thwarted their attempts to reign in the problem.

The Democrats truly deserve the blame on this one and the are the party most financially enriched by Fannie Mae and Freddie Mac. How much did Obama get? $125,000? That's a lot of money from a guy who says he isn't influenced by lobbyists.

Understanding the root cause of the problem helps us prevent it from happening again. Democrats need a wake up call. Most of them need to be voted out of office.

Watch these two videos for more information supporting my point:
https://www.youtube.com/watch?v=3p1Wc2NFa3w
https://www.youtube.com/watch?v=NU6fuFrdCJY

George

Here is more evidence that McCain warned of the looming Fannie Mae crisis:
https://www.powerlineblog.com/archives2/2008/10/021750.php

In a letter, McCain warned the Democratic majority and the letter is contemporaneously signed by 19 other Senators proving its authenticity. The letter also notes the Treasury and the Federal Reserve had provided testimony calling for improved regulation of these government sponsored enterprises.

Fast forward to September, 2008. Obama claims he wrote a letter to Fed Chairman Bernanke and Treasury Secretary Paulson on March 22, 2007. There are no contemporaneous signatures vouching for its authenticity. And why is he telling them and not Congress? The Treasury and the Fed already told Congress that more regulation was necessary. Why simply repeat back to them what they already told you? Was this an attempt to shift blame from the Democratic Congress? Was this letter even real?

Frank Warner

The letter doesn't matter. By 2007, Fannie Mae and Freddie Mac already were a lost cause.

Obama said to McCain in the debate, "you talk like the war started last year." At least McCain didn't wait until 2007 to call for the surge; he was calling for the surge in 2003.

Fannie and Freddie's big problems started around 1991 and became obvious by 2002. Coming up with a complaint about them was too easy in 2007. The two lending companies were in the midst of huge scandals. And almost all of their $1 trillion in high-risk loans already had been made.

Kirt Grayson

Frank & his ilk have been abusing the power that this great country has allowed them to have. He's lucky that he, and his involved male lover did not live in biblical times. They'd have been taken to the public square, and the people would have been gathering stones.

George Bush

Hey dummy. The republicans were in control of congress and the executive branch. How could they not get something so obvious passed? This is a great summary you put together, but it ignores the fact that the Bush administration backed away from the desire to regulate Fannie and Freddie. This all happened in the same week you reference in the articles above. Of course you only show what supports your hair-brained argument. Dummy, both parties are guilty. You know it. ANd to leave out the fact that Fannie and Freddie only account for 18% of the sub prime mess is convienent. Wall St. had giant pools of this crap long before the Fannies and Freddies got involved. So be it. The republicans lost control of everything, so I guess there is a God. Nice try Dummy.

Frank Warner

Fannie Mae and Freddie Mac bought off members of Congress on both sides of the aisle. Freddie Mac even had Newt Gingrich on a retainer a few years ago. I've had posts about it.

The point is, the Democrats not only took money from Fannie Mae and Freddie Mac, they actively encouraged Fannie and Freddie to back the bad loans and drive the economy into the ground.

As far as the Republicans controlling Congress in the early 2000s, that's true to a point. But Barney Frank in the House knew he had Chris Dodd in the Senate using the filibuster threat to prevent passage of any Bush proposal to reform Fannie and Freddie.

Why did The New York Times mention Barney Frank's opposition to regulating Fannie and Freddie in 2003 if it was meaningless? Or didn't you notice?

The Democrats also had control of the Congress in the early 1990s, and that's when the default time bomb started ticking.

Fannie and Freddie may appear to account for only 18 percent of the subprime mess (where do you get that 18 percent figure? 18 percent of what? For what years?), but it was their Barney Frank-approved practices and high-risk loans that set the bad example and infected investments at most other institutions.

At least until recently, Fannie Mae and Freddie Mac owned or guaranteed about half of the $12 trillion U.S. mortgage market.

About $1 trillion in loans backed by Fannie Mae are bad loans. $1,000,000,000,000. Defaulting on $1 trillion is enough to destroy the economy. Barney Frank should be paying that $1 trillion back.

Read a little more, GB.

CJW

Why does everyone ignore the fact that the Dems controlled the Senate in the first two years of the first George W. Bush administration? I am sure Tom Daschle was the Senate leader and he was (and still) is a Democrat.
Too bad about his tax problems.

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