It’s time to end the lies concerning how we got into the economic crisis we are now in. It all started with the collapse of Fannie Mae and Freddie Mac, two private mortgage institutions backed by our federal government. I am not a huge fan of George W. Bush and his policies. However, he had nothing to do with any deregulations which set a series of events in motion that the Democrats are now trying to blame on him. Even Bill Clinton said, “The responsibility that the Democrats have may rest more in resisting any efforts by Republicans in the Congress, or by me when I was president, to put some standards and tighten up a little on Fannie Mae and Freddie Mac.” Bill did leave out any mention that The Community Reinvestment Act also played a vital role in getting us where we are today.
President George W. Bush and Senator John McCain warned Congress about the instability of Fannie Mae and Freddie Mac in 2003 and 2006, only to have Rep. Barney Frank (D-House Budget Committee Chairman) and Sen. Chris Dodd (D-Member of the Senate Committee on Banking) rebuke any attempts to even introduce regulations that could reign in these two government-sponsored companies. On September 11, 2003, President Bush proposed a new agency be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac. At the time, the two companies had more than $1.5 trillion in outstanding debt.
The bill never made it out of committee because Democrats blocked every attempt to move it along. Barney Frank said, “These two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis.” See, some Democrats in the House and Senate used Fannie Mae and Freddie Mac as a political tool to raise money and return the favor to their cohorts by limiting any real oversight of these agencies.
There is an eye-opening video of Rep. Maxine Waters (D-California), Rep. Gregory Meeks (D-New York), and Rep. Arthur Davis (D-Alabama) all defending their cash cow during the hearings over Fannie Mae and Freddie Mac’s mismanagement. The video of this debate clearly shows the Democrats opposing any attempts to head off the crisis and the Republicans clearly supporting regulations to bring the two faltering businesses under control. All of the Democrats at the hearings were hostile toward the regulator for uncovering the shady bookkeeping. The name of the video is: “Democrats in their own words covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis.” The URL-Address is: http://www.youtube.com/watch?feature=player_embedded&v=_MGT_cSi7Rs
The former CEO of Fannie Mae, Franklin Raines, had to pay $3.8 million in Federal Election Committee fines due to shady campaign and lobbying paperwork in 2004 and 2005. Guess who got the biggest legal and illegal donations from the government-backed company? Yes, that’s right, Christopher Dodd, Barack Obama, and John Kerry. Is it any wonder that Obama hired Raines as a campaign finance adviser? Oh, did I mention that Raines made $50 million from Fannie Mae mismanagement, most of it in bonuses.
The collapse of Fannie and Freddie led to the collapse of Lehman Brothers and AIG. The snowball grew bigger and bigger. But to blame the Republicans for causing this fiasco is like saying the Democrats are the cause of world hunger. Sound minds know better.
Also, you don’t hear about the true facts about all this because companies like G.E., whose CEO Jeff Immelt is a good friend of President Obama, support keeping things the way they are today. GE is the parent company to NBC and all its media affiliates. Mr. Immelt is currently heading up Obama’s job creation committee. Good thing he’s not heading up the tax committee, since his company avoided all federal taxes last year.