Fannie Mae / Freddie Mac Rescue
We as a nation are close to making the wrong decisions at the ballott box next month due to lack of knowledge, understanding, and in many cases just ignoring historical facts. The recent collapse of the financial markets was not, in great part, of this administrations doing. President Bush is far from the fiscal conservative that Ronald Reagan was, but he is not to blame for the failing of Fannie Mae and Freddie Mac. Both have been overseen by the Democrats since their inception. But President bush did call for a tightening oversight of Fannie Mae and Freddie Mac his first year in office.
Both of these organizations were founded as governmnet sponsored entities, GSE's. So, they are far from the free enterprise status many believe. The government helped get them in the mess they are in, and that is why I said on August 8th, that it would be the right thing to do for the government to back them up and steady our economy, and try to prevent as many foreclosures as possible.
What got us here was the Clinton Administrations insistence on providing more home ownership among minorities, regardless of income or credit standing. Pressure came upon Fannie Mae and Freddie Mac to back the loans financial institutions were being encouraged to write. All the time, and against the warnings of Senator John McCain, the Democrat power brokers close to these institutions were telling investors that both were financially stable and had no problems. All the while, Frank Raines, CEO of Freddie Mac was amassing over $100 million dollars in compensation, while Democrats, Maxine Waters, Barney Frank, Charles Schummer, and the Charlottes own Mell Watt were insisting there need not be any reform of these two institutions. Barney Frank has resisted reform since 1992.
Rep. Richard Baker, R-Louisiana, in a Government Sponsored Enterprises Subcomittee, redicted the collapse of Fannie Mae if nothing was done to reform its practices. Former President, Bill Clinton even stated on Good Morning America, September 25, 2008 that his party (Democrats) responsibility may rest more on their resisting efforts of Republicans in Congress, or by him when he was president, to put those standards in place to tighten up on Fannie Mae and Freddie Mac.
Another interesting fact in all this is who in Congress has benefitted from the lobby of these entities. The top four are Sen. Christopher Dodd, D-CT, #2 Barack Hussein Obama (and the activist organization ACORN which he used to lead) D-IL, #3 Sen. Charles Schummer, D-NY, and #4 Rep. Barney Frank, D-MA. This is why there was so much reluctance to reform.
Can you imagine how they were all scrambling to fix the problem last week, and try to side-track a full investigation into their activities. That shoe is yet to drop.
The Federal Housing Enterprise Reform Act was sponsored by Senator John McCain, R-AZ, was not supported by any of the four Congressmen above, was basically blocked by Democrats, and never made it out of committee. None of the politicians return any of the money which is very possibly tainted by fraud. At least two of the leaders and primary financial benefactors of Fannie Mae and Freddie Mac are key finacial advisors of Presidential Candidate Barack Hussein Obama.
We are getting ready to put the fox in the hen house.