Democrat’s Failed Financial Policies Led To Meltdown
by Big Dog on Sep 16, 2008 at 21:54 Political
Barack Obama has been on the campaign trail telling everyone that the failed policies of George Bush and his the Republicans are the reason for the economic problems and the financial meltdown of major investment companies. Nancy Pelosi is calling for an investigation into the crisis and she wants administration officials questioned to see why this happened and see if new regulation is needed. Pelosi is trying to make political hay with this but it will be a welcomed investigation because the Democrats are responsible for this. When she digs into which members of Congress are in the hip pockets of these companies she will see some familiar names at the top of the lists; names like Barack Obama, Christopher Dodd, and Hillary Clinton.
House Speaker Nancy Pelosi has ordered a broad, swift investigation of Wall Street and will demand testimony from Bush administration officials and captains of finance, congressional officials said.
House Democrats plan an aggressive look at the administration’s role in this weekend’s meltdown, and explore further regulation and government structures that would be taken up under the new president. Politico
Let’s be clear here. Nancy Pelosi wants Henry Waxman and Barney Frank to investigate this matter. She is trying to pin these problems on the Bush administration but the truth is the Democrats have caused this problem. Fannie Mae and Freddie Mac were run by Clinton cronies who received millions of dollars from the organizations. Democrats were in bed with these companies and refused to listen to George Bush when, in 2003, he “recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.” [New York Times]
The same Times article states:
Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.
The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.
The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac — which together have issued more than $1.5 trillion in outstanding debt — is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.
”There is a general recognition that the supervisory system for housing-related government-sponsored enterprises neither has the tools, nor the stature, to deal effectively with the current size, complexity and importance of these enterprises,” Treasury Secretary John W. Snow told the House Financial Services Committee in an appearance with Housing Secretary Mel Martinez, who also backed the plan.
The administration recognized the problems in this industry and tried to take action to keep problems from arising. This story is from 11 September 2003 which indicates that the President was on top of this more than five years ago. Instead of working with President Bush to make this happen and provide better oversight, the issue was OPPOSED by Congressional Democrats.
Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.
‘‘These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”
Representative Melvin L. Watt, Democrat of North Carolina, agreed.
”I don’t see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,” Mr. Watt said. [emphasis mine]
Let us take a look at this. Congressional Democrats opposed the plan and they were worried that it would reduce the commitment to low income, affordable housing. The problem is, this morphed into no income you can have a house anyway. The Democrats came up with plans that allowed people to buy houses they could not afford and this is why there are so many foreclosures. Add the greed of companies who wanted to make a buck (and were afraid of penalties if they denied loans) and you have a recipe for disaster.
Look at who said that the companies were not facing any kind of financial crisis. Barney Frank, the same guy Pelosi wants to look into this mess (I guess it would be wrong to say Frank will get to the bottom of it). This guy could not find his ass if his hands were in his back pockets and she wants him to investigate. I guess we know how that financial crisis issue turned out.
The last part discusses the whole poor family/affordable housing issue. I have no issue with people buying a house. I think that is a great thing to do but people should never buy more than they can afford. Democrats were so worried about helping out poor people that they failed to enact regulation (that Pelosi now calls for) that would have helped keep this meltdown from happening.
Nancy Pelosi was asked today if Democrats have any responsibility in this mess and she quickly answered “NO.” The mantra of the left is “don’t blame us for this.” Well the fact of the matter is, it is all their faults. They have been using Fannie Mae and Freddie Mac as ATM machines for their friends for a long time and they have been reaping the benefits of large cash donations from those very friends who controlled the companies. The Democrats opposed tighter control because they wanted to allow anyone, credit worthy or not, to buy a house and they wanted the money to flow to them and their friends.
Keep this in mind when Barack Obama (the second biggest recipient of Lehman Brothers and Fannie/Freddie money1) tells you that it is failed Republican policies that led to this. It was the Democrats who caused this problem because they refused to work with President Bush to get it solved. The President saw it and tried to put a plan in place and the Democrats decided that they would rather keep their friends and themselves rolling in dough rather than address the problem.
Now, they want you to put them in charge of everything.
Nancy Pelosi is a liar. She and her Democrats bear most of the responsibility for this. They are all squawking now and they are saying the same things over and over. They are all blaming this on the Republicans because if they say it often enough, people will believe it. They are trying to cover their tracks because they are neck deep in this mess. This could, and should, cost them the election.
Here is an idea. Instead of wasting time and money investigating this why doesn’t the Speaker launch a full scale investigation into the tax evasion of Charlie Rangel. There is some real corruption to handle. I already solved the who caused the financial problem mystery (and saved the taxpayer millions of dollars) so let’s get busy and investigate Rangel. Anyone want to bet that this jackass criminal gets reelected?
1 The figures are from 1989. John McCain has received $117,500 ($13,055/year) from Lehman Brothers since then. Barack Obama has been in the Senate for just under four years and he has received $395,600 ($98,900/year).
Tags: barney frank, corruption, democrat's failed policies, fannie mae, freddie mac, lies, Obama, Pelosi
The Democrats have failed policies. Their BDS has come back to bite the country.
Do a google news search for “since the Great Depression” and you come up with 4,500 examples of the phrase used just the past month – – – the MSM wants to convince you the economy is in the tank, when in reality it is not. After an adjustment for inflation the economy grew 3.3 percent, .1 percent lower than the average growth since the Great Depression – – – hardly cause for panic.
Why is bush nationalizing financial firms like Freddie Mac & Fannie Mae? isn’t that ‘socialism’?
And why didn’t bush & the Republican controlled Congress push these regulatory changes thru when they controlled all of the necessary apparatus for 4 years?
Give it up Dog. Your pipe must be smokin hot. What have you folks been smoking. Got any A I G stock? wanna buy some.
Who runs the Federal branch of government? That is who owns this problem.Good thing your not a rocket scientist.
you guys own this disaster and many others. You will never escape from the truth. Blog all you want . Say what you will ,but you cant hide from the truth.
Billy Joe, the Democrats blocked all kinds of things. i know it is a slap in the fact to see that your beloved Democrats were not behind this when it was addressed 5 years ago. Pelosi said they had nothing to do with it but she LIED.
Bleech, there is no federal branch of government. There is an executive, Legislative, and judicial. Good thing you are not a rocket scientist.
The Democrats blocked everything Bush wanted and now, as Obama’s racist Pastor would say, those chickens are coming home to roost.
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How true, how true. The faithful will never get it and I’m sure this makes you a racist warmonger somehow….
your freaking insane. your propaganda won’t work on your right wing agenda site. everyone who’s not a sociopath knows that it was the over de-regulated policies of the bush administration that at least aided this mess. this doesn’t go past 2000 sir. typical narrow minded, one dimensional, agenda driven propaganda site. I bet you this won’t make it on your blog.
Wow, the rabid libtards are all over this one. Sorry folks the truth is there in black and white. Too bad they aren’t teaching basic civics anymore, maybe we wouldn’t have people thinking there is a “Federal” branch to the government. They might also be able to understand how even a Congress that has a R or D majority can still block legislation if they want to. Math might also help since that might help them understand that 51% still constitutes a “majority” but might not be adequate to pass the bill. Also riders can be attached to perfectly good bills that will have people vote against them. So you might have a bill on Medicare that also legalizes crack cocaine, while the intial premise of the bill seems logical and sound nobody will vote for it.
Hummmmm lets see…
The Dem’s chair 2 committees with financial oversight…Where were they looking?
With this fiasco going on didn’t Mr. Obama just hire the two CEO’S of the failed Fanny/Freddy to be his economic advisers????
Hummmmmmm!!
Watching the Clinton News Network 10:15am pst/9/17, Mr. Obama just said he introduced legislature for regulating the banks andin july he introduced legislation to regulate other financial instutions!!!!
When was he in Washington to introduce this legislation? Hasn’t he been on the campaign trail for about 18 mos.???
Obama also said the other day that he introduced the legislation that got everyone stimulus checks (they stopped calling them rebates when people like me pointed out they were giving the money to people who paid no taxes and not sending any to people in my income bracket. It can’t be a rebate if you never paid in. It was socialism).
Richard,
Everyone who is not a sociopath knows this:
[Barack] Obama… blamed the shocking new round of subprime-related bankruptcies on the free-market system, and specifically the ‘trickle-down’ economics of the Bush administration, which he tried to gig opponent John McCain for wanting to extend. But it was the Clinton administration, obsessed with multiculturalism, that dictated where mortgage lenders could lend, and originally helped create the market for the high-risk subprime loans now infecting like a retrovirus the balance sheets of many of Wall Street’s most revered institutions. Tough new regulations forced lenders into high-risk areas where they had no choice but to lower lending standards to make the loans that sound business practices had previously guarded against making. It was either that or face stiff government penalties. The untold story in this whole national crisis is that President Clinton put on steroids the Community Redevelopment Act, a well-intended Carter-era law designed to encourage minority homeownership. And in so doing, he helped create the market for the risky subprime loans that he and Democrats now decry as not only greedy but ‘predatory.’ Yes, the market was fueled by greed and overleveraging in the secondary market for subprimes, vis-a-vis mortgaged-backed securities traded on Wall Street. But the seed was planted in the ‘90s by Clinton and his social engineers.” —Investor’s Business Daily
Oh, Man! I love it when the libs get mad. and it’s all because their party messed up but they will NEVER admit to it. I totally agree wt you Big Dog. If one can not afford to buy a house do not buy it. it’s just that simple! i want a lot of nice things but if i can not afford it i’m not gonna ran my credit high-sky. No one put a gun to any of those people’s heads and said ‘you better sign on the dotted line’. It was their OWN decision. they got greedy & bought a house they KNEW they could not afford. We, the working people, who actually think before we do something, will be stuck wt the bills from the bail outs. on top on wellfare bill.
I agree with Alena.. And I would also like to say a few other things if I may.. There is talk of Pelossi having some of the Republican’s in Congress investigated~ The Democratic Party are the people that got us into this mess and she want’s to investigate the Republican’s. The people that should be removed from their jobs are Pelossi,Frank,Paulson,Dobbs and may more. I would also like to see the people that took money from Frannie Mae and Freddie Mac give the money back into our econony (O’bama and Bidden). There are alot of American voters out there that don’t get all the facts as they should with the Media always portraying the Republicans at fault with everything that goes on with our economy. How is McCain/Palin suppost to get a fair chance at this election. McCain/Palin are down in the polls by 7% McCain/Palin need to do something on their campaign to get the truth out about Obama. We can’t afford O’bama as our next President. Remember our National Anthem:
The Land of the Free and the home of the brave…
Obama’s theory.
The Land of the Free – NOT He wants to raise taxes..
The Home if the Brave- NOT He wants to talk to the terrorists
McCain’s theory.
The Land of the Free – NOT raising our taxes
The Home of the Brave – He is a Veteran~ He fought for our freedom~
So if we all still believe in our National Anthem. Than McCain/Palin are your candidates!! Vote McCain/Palin