Are they friggin’ kidding me? Increasing taxes on large banks to recoup financial “losses” is not going to put one dime into your pocket. They want to sell it to you as putting the screws to big-bank and putting money back in your pocket, but President Obama and Vice President Biden are lying.
The Center for Freedom and Prosperity charges ahead with another economics video to push back basic economic ignorance. The video describes what happened and how Congress, big-bank, and Fannie Mae and Freddie Mac combined forces to create a foreseen financial collapse.
One of the biggest problems that caused the mortgage “crisis” was lending money to people who could not afford to pay it back. Fixing that problem required lenders to pay attention to income, credit scores, savings habits and debt ratios. Guess what happens?
Who says the Republicans in Congress are not doing anything? Even though you could call it old news, members of the GOP House Oversight Committee put together a report in review of the Fannie Mae and Freddie Mac diabolical.
So why is this important? As Michelle Malkin reminds us, Rep. Barney Frank (D-Mass.) wants to proceed down the same path as before. I guess he has not learned anything from history. On July 2 I wrote about Frank using the “profits” from the bail out for his own personal slush fund to fund as-yet unfunded federal housing entitlement programs.
The Hill reports that Republicans are attempting to refocus the blame back onto the governments direct involvement and pressure on the government-sponsored enterprises (GSEs) of Fannie and Freddie.
The report continues the theme of Republicans seeking to pin the housing crisis on Fannie and Freddie, now completely owned by the government. The GOP sees the two mortgage giants as having pumped air into the housing bubble by offering and subsidizing high-risk loans in an effort driven by Democrats and the Clinton administration to increase homeownership, particularly among minorities and low-income households.
To be fair, the Bush administration in my opinion did not do enough to stop all of this from happening, and publicly President George W. Bush was promoting home ownership as well. We’ve covered all of that over and over…
I’ve uploaded the full report – it’s only 26 pages or so – for your convenience. Highlights include…
- Political pressure led to the erosion of responsible lending practices
- Lower down payments led to housing prices that outpaced income growth
- Members of an “affordable housing” coalition shared profits with political allies to help legitimize their business practices
- The Government Sponsored Enterprises led the way into the housing crisis
Nothing that we have not already known is in the report, therefore the only reason for spending the time and money on the thing is to prevent it from happening again. With Frank on the hunt to spend more cash on pet projects, it’s good timing.
Isn’t this how we got into the mortgage mess? Democrats in Congress are asking Fannie Mae and Freddie Mac to relax mortgage standards again.
Barney Frank now says he wants criminal charges laid against “the people who caused the country’s financial meltdown.”
I’m guessing that Barney gets his shaves in a barber shop… he certainly doesn’t look much at the man in the mirror. From CNBC…
Earlier in the day, Frank, who is chairman of the U.S. House Financial Services Committee, told reporters that he plans to move legislation this month on mortgage origination, predatory lending and credit cards.
Vowing to turn his focus from stabilizing the financial system to reshaping it, Frank said he will hold hearings to examine creating “a strongly empowered systemic risk regulator.”
Once upon a time, I seem to recall Barney telling us that Fannie Mae and Freddie Mac were “fundamentally sound.” Now he’s out there telling us “happy endings are still possible despite economic mess.”
At the risk of playing with a loaded double entendre, I think Barney is a little too hung up on fairy tales…
Now, Barney isn’t exactly the most conventional market watcher. A year ago, Barney was out there doing his regulatory dance, much in the same fashion a South Pacific cannibal, capering around the big black pot, saying:
“I am not talking about the holders of the loans taking a haircut,” the Massachusetts Democrat said. “I am talking about them having lobotomies.””
The obvious question — if the Cambridge head-hunter gets his way, either in his original model or in the currently proposed judicial model, who in their right mind is going to want to write mortgage loans? Be it a swing of Barney’s axe or the rap of a judge’s gavel, who would want to work in this market, if your investment disappears, not due to poor research or bad timing, but out of some misguided notion of the purpose of government?
Glenn Beck joins in on the fun. Where are the Chris Dodd (D-Countrywide) mortgage papers? Ya know all of this fun could easily be avoided if he just came clean. My guess is, much like Tim Geithner and Tom Daschle and Bill Richardson and Eric Holder … he made a mistake.
Beck is joined by Rick Green of the Hartford Courant.
Hat Tip to RVO readers Donna and Rick.
I’m fully on board with blaming Democrat lawmakers in Washington for contributing to the mortgage crisis that started with Freddie Mac and Fannie Mae. Republicans introduced legislation that would more closely regulate the government sponsored entities (GSEs). Democrats – including Barney Frank (D-Mass.) – blocked that legislation, all but calling those asking for the changes racist.
Fox News and bloggers brought those stories to light, and now the Associated Press has written a story targeting former Republican lawmakers and staffers who were hired in 2006 by the GSEs to help keep Congress off their back. I’m willing to hear the evidence from 2006, but remember that the damage was already done by this time.
As I walked through the living room just now, I heard talk of a 4.5 percent fixed rate mortgage on Fox News. Financial industry lobbyists are knocking on Hank Paulson’s door at the Treasury Department with a plan in hand to lower interest rates to help “stabilize” the housing market. Will everyone be able to refinance their mortgages at 4.5 percent?