Bush drive for home ownership fueled housing bubble<quoted text>
In case you weren't paying attention, here's what really happened in Congress with the obviously failed CRA and how the Democrat program collapsed our economy:
Here's the link to read the Democrats negotiating for no effective oversight of the Democrats' idiotic subprime housing mortgage underwriting program that collapsed our economy. In the article you also see the Director of OFHEO citing Fannie Mae and Freddie Mac for cooking the books to hide the massive CRA failures that were a known threat to our economy as early as 2003.
Now, let's look at a time line. After the Republicans gave to the Democrats what they wanted, no effective oversight of the Democrat program that collapsed our economy, the Democrats supported the Iraq operation. That's when they were for the Iraq front before they were against it.
Barney Frank doing... how did you put it?
"...lessen the housing GSEs' commitment to low-income homebuyers."
Wow. What bullshit. Let's get a real Barney Frank quote on the subject:
Barney Frank - " I do think I do not want the same kind of focus on safety and soundness that we have in OCC [Office of the Comptroller of the Currency] and OTS [Office of Thrift Supervision]. I want to roll the dice a little bit more in this situation towards subsidized housing."
That kind of blows a hole through the keel of your bullshit, doesn't it?
From his earliest days in office, Bush paired his belief that Americans do best when they own their own homes with his conviction that markets do best when left alone. Bush pushed hard to expand home ownership, especially among minority groups, an initiative that dovetailed with both his ambition to expand Republican appeal and the business interests of some of his biggest donors. But his housing policies and hands-off approach to regulation encouraged lax lending standards.
Bush did foresee the danger posed by Fannie Mae and Freddie Mac, the government-sponsored mortgage finance giants. The president spent years pushing a recalcitrant Congress to toughen regulation of the companies, but was unwilling to compromise when his former Treasury secretary wanted to cut a deal. And the regulator Bush chose to oversee them - an old school buddy - pronounced the companies sound even as they headed toward insolvency.
As early as 2006, top advisers to Bush dismissed warnings from people inside and outside the White House that housing prices were inflated and that a foreclosure crisis was looming. And when the economy deteriorated, Bush and his team misdiagnosed the reasons and scope of the downturn. As recently as February, for example, Bush was still calling it a "rough patch."
The result was a series of piecemeal policy prescriptions that lagged behind the escalating crisis.
"There is no question we did not recognize the severity of the problems," said Al Hubbard, Bush's former chief economic adviser, who left the White House in December 2007. "Had we, we would have attacked them."
Looking back, Keith Hennessey, Bush's current chief economic adviser, said he and his colleagues had done the best they could "with the information we had at the time." But Hennessey did say he regretted that the administration had not paid more heed to the dangers of easy lending practices.
And both Paulson and his predecessor, John Snow, say the housing push went too far.
"The Bush administration took a lot of pride that home ownership had reached historic highs," Snow said during an interview. "But what we forgot in the process was that it has to be done in the context of people being able to afford their house. We now realize there was a high cost."