In fact, Bush told them (a known fact that keep getting buried)that if they kept loaning money on homes people who could not pay for them, failing of the banks would happen.
Oh, you're SO smart. But HoT is correct. The Bush Admin had been warning about Fannie & Freddie. But your party of morons and the press called this racism. Remember that mensa member Maxine Waters testifying in 2004 and saying, Mr. Chairman, we do not have a crisis at Freddie Mac, and in particular at Fannie Mae, under the outstanding leadership of Mr. Frank Raines. Everything in the 1992 act has worked just fine.”<quoted text>
We're creating... an ownership society in this country, where more Americans than ever will be able to open up their door where they live and say, welcome to my house, welcome to my piece of property.- President George W. Bush, October 2004.
I guess that’s not on your DNC list of witty comebacks.
Of course the reason she was testifying was that beginning in April 2001, the Bush Administration’s FY02 budget declared that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.” And in May of 2002, the President called for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac.
This lead to Freddie Mac announcing in 2003, that it had to “restate” financial results for the previous three years. This was kinda like the shit hitting the fan, if you will. Indeed, in February, the Office of Federal Housing Enterprise Oversight (OFHEO) released a report explaining that “although investors perceive an implicit Federal guarantee of GSE obligations,”“the government has provided no explicit legal backing for them.” As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market.
Was anyone listening? No! We were too busy making fun of Bush to pay attention.
In September Fannie Mae disclosed the SEC investigation and acknowledged OFHEO’s review found earnings manipulations.
Uh, oh. Earnings “manipulations”. I like that term. It’s liberal for “We f_cked you over.”
In October, Fannie Mae discloses $1.2 billion accounting error. I mean manipulation. Just a small one.
In February 2004, the President’s FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator:“The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator.”
Well, that was too much for democrats. Barney Frank called the Bush admin “racist”, Maxine supported ole Franklin Raines, probably because she was getting part of the $90 million he took when he left.
One thing is for sure though, Obama will never be able to say,“We're creating... an ownership society in this country.” On the other hand, maybe he will. The government will own the people.