America cannot fully recover until the housing market recovers. Banks are sitting on a huge inventory of foreclosed homes which are withheld from the market.
make of that what you will, but if those homes were on the market, banks would sustain a huge loss.
Anything that we can do to assist homeowners in crisis to allow them to stay in their homes rather than increasing foreclosed bank inventories is a good thing.
Shocking Video Unearthed Democrats in their own words Covering up the Fannie
Mae, Freddie Mac Scam that caused our Economic Crisishttp://www.youtube.com/watch
Bush Proposed Fannie Mae / Freddie Mac Supervision In 2003
Under the plan, disclosed at a Congressional hearing today, a new agency
would be created within the Treasury Department to assume supervision of
Fannie Mae and Freddie Mac, the government-sponsored companies that are the
two largest players in the mortgage lending industry.
The new agency would have the authority, which now rests with Congress, to
set one of the two capital-reserve requirements for the companies. It would
exercise authority over any new lines of business. And it would determine
whether the two are adequately managing the risks of their ballooning
The plan is an acknowledgment by the administration that oversight of Fannie
Mae and Freddie Mac - which together have issued more than $1.5 trillion in
outstanding debt - is broken. A report by outside investigators in July
concluded that Freddie Mac manipulated its accounting to mislead investors,
and critics have said Fannie Mae does not adequately hedge against rising
But Democrats in Congress, also known as "the caucus perpetually on the
wrong side of history," were having none of this "responsibility" stuff.
"These two entities - Fannie Mae and Freddie Mac - are not facing any kind
of financial crisis," said Representative Barney Frank of Massachusetts, the
ranking Democrat on the Financial Services Committee."The more people
exaggerate these problems, the more pressure there is on these companies,
the less we will see in terms of affordable housing."
Representative Melvin L. Watt, Democrat of North Carolina, agreed.
"I don't see much other than a shell game going on here, moving something
from one agency to another and in the process weakening the bargaining power
of poorer families and their ability to get affordable housing," Mr. Watt
The proposal worked its way around Congress for a couple of years. Efforts
at reform of the kind proposed by President Bush were shot down by Democrats
During this period, Sen. Richard Shelby led a small group of legislators
favoring reform, including fellow Republican Sens. John Sununu, Chuck Hagel
and Elizabeth Dole. Meanwhile,[Democrat in bed with the mortgage industry
Chris] Dodd - who along with Democratic Sens. John Kerry, Barack Obama and
Hillary Clinton were the top four recipients of Fannie and Freddie campaign
contributions from 1988 to 2008 - actively opposed such measures and further
weakened existing regulation.
According to OpenSecrets.org
, between 1988 and 2008 Dodd received $133,900,
Kerry $111,000, Clinton $75,550, and Obama - in only 143 days in the
Senate - received a whopping $105,849 from Fannie Mae and Freddie Mac.
Pennsylvania Democrat representative Paul Kanjorksi, who also opposed new
Fannie Mae and Freddie Mac regulations, was given more than any other member
of the House of Representatives. He was paid $65,500 by representatives of
And, in case you were wondering, John McCain co-sponsored a bill requiring
greater Fannie Mae / Freddie Mac regulation in 2005. It was also blocked
procedurally by Democrats.
The 2003 New York Times article was unearthed by a Free Republic poster.http://www.bucksright.com/bush-proposed-fanni