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Sensible – [sen-suh-buhl] – having, using, or showing good sense or sound judgment

Who’s Really Responsible for the Present Financial Crisis?

with 2 comments

With all the finger-pointing and blame-casting going on and pundits spinning their opinions of who THEY think is responsible for the financial mess we’re in right now, and it’s inevitably the members of the opposing party. But… I think someone (or some bunch of people) is being conspicuously overlooked…

In a Sept. 30, 1999 article in the NY Times, it is clear that there are several culprits involved in the financial blowout of Fannie Mae and Freddie Mac, and it’s NOT the Bush administration.

During their eight years in power, the Clinton administration stepped up the pressure on Fannie Mae to provide loans to lower income households and to those with less than perfect credit, which on the surface looks like a really nice thing to do. Help those who normally can’t catch a break.

In retrospect, it doesn’t seem like it was such a great idea, does it? Not considering the fallout happening now.

People, let’s give “credit where credit is due”. So-To-Speak.

If you read the third paragraph of the NY Times article, it’s clear that the Clinton Administration pushed Fannie Mae to ease the requirements. However, I’m pretty sure the administration didn’t have to put a gun to Fannie Mae’s head… you can be sure they saw dollar signs piling up. It was in 1995 that Clinton began to press for the rewriting of rules regarding mortgage lending – a move to try and socially engineer our economy, and truly the government had no business getting involved in that kind of market manipulation. And was it coincidence that Franklin Raines, President Clinton’s former budget director, became Fannie Mae Chief executive officer and chairman?

On September 10th, 2003, Barney Frank said Freddie Mac and Fannie Mae were not in a crisis… and calling the Republicans (who were warning of a fallout because of these practices) “Chicken Littles”. Even after accounting issues were uncovered, democrats blocked legislation in 2006 that would have placed more oversite on these huge entities… co-sponsored by none other than John McCain.

The Bush administration, Snow, Greenspan, McCain, and others warned of this long ago. Apparently this time… Chicken Little was right.

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To be fair, democrats are not the only ones beholden to these mortgage institutions because of campaign contributions, but top 3 recipients of money were all Democrats, including Senator Barack Obama.

Here is another video reporting about the bailout:
(Related Post: You Tube video of republican hearings on illegal book-keeping of fannie mae and freddie mac in 2004.

Who’s responsible for the Freddie/Fannie mess?

ANOTHER RELATED POST:
Interesting Media Relationships with Fannie Mae and Michael Chertoff

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  1. […] POST: Who’s Really Responsible For The Present Financial Crisis Possibly related posts: (automatically generated)Who’s Really Responsible for the Present […]

  2. […] Who’s Really Responsible for the Present Financial Crisis […]


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