Democrats charge that the policies of George Bush in particular and Republicans in general are the direct cause of our current economic problems. They are flat out lying through their teeth! Thanks to the Mark Levin Show, I found out about this NY Times article dated September 11, 2003.
The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
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 article goes on the detail how Republicans wanted to pass a reform bill after outside investigators found that Fannie Mae and Freddie Mac were cooking the books and misleading investors. Who would have been against such a bill? Home Builders and Democrats, that’s who. The same ones who pretend to be the champions of the poor and middle class.
”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.
The Democrats wanted these insitutions to lend money to uncreditworthy borrowers. In this instance the Democrats may want to be careful. Personally, I’d prefer to be tied to President Bush, who tried to prevent the mess from taking place, than the Democrats who caused it.
Update: Speaking of those Democrats, Nancy Pelosi is ordering a “broad, swift investigtion of Wall Street.” Further, “House Democrats plan to aggressively look at the administration’s role in the meltdown.” Talk about audacity. Curiously, Rep. Barney Frank “plans a forward-looking hearing with economists.” Talk about audacity!
