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.<quoted text>
Karl Rove: President Bush Tried to Rein In Fan and Fred - WSJ.com
online.wsj.com/article/SB123137220550562585.h ... ;
Jan 8, 2009 - President Bush Tried to Rein In Fan and Fred ... Fannie and Freddie are "government-sponsored enterprises" (GSEs), chartered by Congress.
The White House Warned Congress About Fannie Mae Freddie Mac ...
nicedeb.wordpress.com/.../the-white-house-war ... ;
Sep 21, 2008 - Fannie and Freddie stating that “nothing's wrong”. The Bush Administration tried 17 times to reign in Fannie and Freddie (Note: I tried to quote ...
Fact Check: Obama Had More to Do With 2008 Economic Meltdown ...
www.thegatewaypundit.com/.../fact-check-obama ... ;
Sep 5, 2012 - Moreover, Fannie and Freddie acquired “more loans .... Institute tried this CRA nonsense back in 2007 when Bush saw the Recession coming ...
No forced subprime mortgages, no crisis.
Thanks Dodd, Frank, Carter, Clinton, et
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."