Just how did the American economy get shaken at the roots.
According to the U.S. Speaker of the House, Democrat Nancy Pelosi, it was caused by “Eight years of weakened regulation of our nation’s financial system — including a failure to regulate risky, and often predatory, lending practices — by the Bush administration and Republicans in Congress have led us to this point, and could further erode our nation’s economic health.”
Senate Majority Leader, Democrat Harry Reid said, “What we are seeing on Wall Street is the legacy of the Bush-McCain economic policies that have failed this nation.”
(WHISTLE BLOWS! REFEREE TOSSES BULLSHIT FLAG ONTO THE FIELD!) Watch the replay tapes!
Democrats probably won’t believe the Fox News report. At this point, they probably won’t believe the New York Times, USA Today, the Boston Globe, or any other prominent U.S. news sources from across the United States. But history has been written, and the reality of how America got to the current economic crisis is a matter of record, and that record clearly shows that the culprits were democrats.
The articles below are a small sample of the thousands of articles published between 2002 to 2006. And in each of them, democrats fought to prevent stricter regulation/financial accountability of Fannie Mae and Freddie Mac.
In 2002, the following information was reported by the New York Times.
“Proposals on Mortgage Agencies”
Published: May 30, 2002
The Bush administration is urging new rules to require Fannie Mae and Freddie Mac, the government-sponsored companies that are the largest purchasers of home mortgages, to make financial disclosures similar to those of other publicly traded companies. (Read the full story)”
Another New York Times article in 2003 indicated the Bush administration sought “significant regulatory overhaul”, while Democrats Barney Frank and Melvin L. Watt disagreed with the president and said, “Fannie Mae and Freddie Mac — are not facing any kind of financial crisis…”
By STEPHEN LABATON
Published: 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.
”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.
In 2005, USA Today reported:
Fannie Mae regulator says more problems could be found
Published: April 26, 2005
At a hearing in October by a House panel, after Fannie Mae’s accounting woes came to light, Democratic lawmakers still staunchly defended the two companies against Republican attempts at tighter government regulation and turned their criticism against Falcon, who testified.
“This hearing is about the political lynching of Frank Raines,” declared Rep. William Lacy Clay, D-Mo., referring to former Fannie Mae chief executive Franklin Raines. Raines and chief financial officer Timothy Howard were ousted by the company’s board in December.
In the interview, Falcon recalled several years of political struggle.
“It’s not easy to get up in front of a congressional committee and have them accuse you of everything from having improper motives to poor judgment to being poorly qualified,” Falcon said. “It was difficult at times, having to deal with all that, especially from people who I’d worked with over the years.”
The people, notably Democratic lawmakers who benefited from housing investments by Fannie Mae and Freddie Mac in their districts, became Falcon’s harshest critics.
Now there is a drive in Congress, endorsed by the [Bush] administration, to tighten the government’s hand over Fannie Mae and Freddie Mac and create a new regulator with broader powers, including reducing their combined $1.5 trillion mortgage portfolios.
On December 27, 2004, Realty Times Kenneth R. Harney wrote:
Published: December 27, 2004
Fannie’s year ahead on Capitol Hill looks grim. The Bush administration, along with Federal Reserve chairman Allan Greenspan, have long been critics of Fannie’s government-subsidized growth and high profits. Critics also have worried that a financial crisis at Fannie, with nearly $1 trillion at stake, could trigger seismic repercussions in the banking, housing and international capital markets.
By early Spring 2005, according to the House banking committee, legislation should be well underway to create a new, more powerful oversight agency for Fannie, Freddie Mac and the Federal Home Loan Banks.
Whereas as late as this past October Fannie had passionate defenders among House and Senate Democrats — plus a handful of Republicans — those ranks were sharply depleted after the SEC found Fannie’s hedge accounting noncompliant with federal rules. Democrats, especially ranking House banking committee minority member Rep. Barney Frank (D-Mass.), had helped stymie the Bush administration’s efforts to create a new regulator for over a year, arguing that Fannie’s housing mission could be compromised by too many restrictions.
On December 4, 2006, the Boston Globe reported:
Byline: Susan Milligan
Dec. 4–WASHINGTON — Democrats plan to use their new majority status in Congress to expand the mortgage market for tens of thousands of home buyers in Massachusetts and other states where high housing prices are limiting use of federally regulated mortgage programs, according to Capitol Hill lawmakers.
Representative Barney Frank, a Newton Democrat set to become the chairman of the House Financial Services Committee in January, said he will aggressively push legislation to ease current restrictions on the amount of a mortgage that can be held by Fannie Mae and Freddie Mac, two private mortgage companies chartered by the federal government.