Eleanor Clift: Fannie and Freddie Didn't Cause Mortgage Collapse - It Was Bush and Wall Street
It is truly fascinating how liberal media members will do anything to protect the reputation of Fannie Mae and Freddie Mac.
On this weekend's "McLaughlin Group," Newsweek's Eleanor Clift revised history to largely absolve the two government-sponsored enterprises for last decade's mortgage collapse while predictably blaming it on Wall Street and of course George W. Bush (video follows with transcript and commentary):
ELEANOR CLIFT, NEWSWEEK: Because Wall Street wants to make it look like Fannie and Freddie were the drivers behind the mortgage collapse, when in fact Wall Street led the way and Fannie and Freddie basically caught up. I think, you know, Fannie and Freddie were the product of government policy, both parties, and President Bush championed the ownership society, and pushing low-cost mortgages were part of the Republican inroad into the Hispanic community.
So this wreaks of politics, but you cannot say that Fannie and Freddie led the way with all those financial instruments. Fannie and Freddie got into the act when they lost a great section of the mortgage market because Goldman Sachs and Merrill Lynch and everybody else was trading on these financial instruments, and, and, and the unregulation allowed them to go ahead. So, they were, they were part of the crowd, but they did not, they did not lead the way.
The "Wall Street" character Gordon Gecko famously said, "A fool and his money are lucky to get together in the first place."
I'd love to know what he'd say about this nincompoop.
To claim that Fannie and Freddie weren't leaders in expanding the mortgage market that led to the housing bubble and the eventual near collapse of the entire financial services industry is addle-minded even for Eleanor.
To quickly refute her claim, let's cite a source she trusts; in September 1999, the New York Times reported:
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
Readers are advised that this was months before the Financial Services Modernization Act of 1999 was enacted largely deregulating financial institutions to do virtually whatever they wanted, and roughly fifteen months before the Commodity Futures Modernization Act of 2000 deregulated derivatives.
As such, it is quite absurd to say Fannie and Freddie didn't lead the way in driving the mortgage bubble or that George W. Bush played a significant role.
But there's more in this Times piece that folks like Clift conveniently ignore:
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.'' [...]
By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.
Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.
So, back in September 1999, under pressure from the Clinton administration to make more loans to minority and low-income home owners with bad credit ratings, Fannie eased the credit requirements on loans it would purchase.
At the same time, someone familiar with the industry was cautioning that such a move would force a government rescue of the GSE if the economy slumped.
As we all now know, the rest is history except for folks like Clift who feel they need to revise it in order to protect the institutions and the Party they so deeply adore.
Nice try, Eleanor.
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Comments
I saw the others flinch
Submitted by Texndoc on Sun, 07/10/2011 - 10:05pm.
When she talks the others stare ahead or look at their shoes. Sort of like the crazy relative on Thanksgiving going on about something ridiculous. OK, you done now?
I was thinking along those
Submitted by motherbelt on Mon, 07/11/2011 - 6:54am.
I was thinking along those lines: it's time for someone to lead Eleanor away, back to her comfortable chair in the living room, with a nice cuppa tea.
Yes they DID............
Submitted by OldJarhead77 on Mon, 07/11/2011 - 3:46pm.
flinch when she said that! I think that they were being polite and trying not to upset kookie old aunt eleanor.... she has her lips so firmly planted on Obama's butt that when he eats the peas........ Elenanor will be digesting them for the second time. (A little Southpark Reference there.) I remember in 94 she predicted that the dems would game 5-10 seats even though everyone else predicted the dems to lose the house that year. and in fact Eleanor called the guy that got it right that year absolutely crazy for saying the Republicans wouuld take 54 seats. Eleanor Clift: When you look up Partisan hack up in the dictionary her picture is there!
It seens that. . .
Submitted by rickbren on Sun, 07/10/2011 - 10:06pm.
. . .Eleanor got pushed off a "Clift" and landed on her head! But then she's been that way for a while.
I know it's not polite to pick on the mentally challenged, but..
Submitted by wizardjr on Sun, 07/10/2011 - 10:18pm.
This woman is beyond stupid. As a supposed journalist does she NEVER read anything outside her usual sources? Does she never fact check with actual source data?
Liberalism IS a mental disease. Eleanor Clift. QED.
No, liberalism isn't necessarily a mental
Submitted by dr-go on Mon, 07/11/2011 - 8:49am.
disease it's just that so many of them are lazy because doing only a bit of research would then require them to think and thus, use what little is left of their minds.
(double post.... ooops)
Submitted by wizardjr on Sun, 07/10/2011 - 10:20pm.
(sorry for the double post but the editor got weird)
OMG
Submitted by bmac32 on Sun, 07/10/2011 - 10:21pm.
Stupid pills at work!
Illogical
Submitted by kiwikit on Mon, 07/11/2011 - 5:15am.
She's beyond contempt and equivalent on this show to Alan Colmes on FNC's Newswatch: the audience killer.
Why is noone emphasizing that the economy WAS a mess when BO took over and that was caused by the GimmeRats who'd been grabbing / spending / wasting money for two years by then. How was the economy in 2006 when the Pubbies ran the place? Much better than in 2008 and BO's party was responsible!
More villians
Submitted by Emil on Sun, 07/10/2011 - 10:37pm.
Besides Fannymae and Freddiemac, we need to add the congress, under the control of the Dems that ordered banks to make the American dream of home ownership available to more people. Consequently banks made loans to folks that couldn't really afford them in the event of a financial blip. Also they pushed the variable interest rate mortgages which were really bad if the interest rate goes up. However attempting to point this out to Dems/ Media and you will witness furious tap dancing, side slipping, stuttering and general statements that have no meaning. All to avoid accepting any responsibility.
Intelligence?
Submitted by Emil on Sun, 07/10/2011 - 10:38pm.
Clift dries her hair with her head stuck in a microwave oven.
She has kind hair. The kind
Submitted by ricklail on Mon, 07/11/2011 - 9:11am.
She has kind hair. The kind that grows on a horse arse.
Declining Subscribers
Submitted by bgirardo on Sun, 07/10/2011 - 10:42pm.
Her baseless assertions sure go a long way toward explaining News Weeks' decline in subscribers. No credibility.
Declining Subscribers
Submitted by bgirardo on Sun, 07/10/2011 - 10:43pm.
Her baseless assertions sure go a long way toward explaining News Weeks' decline in subscribers. No credibility.
Yep ZERO credibility.
Submitted by MaximusBraveheart on Sun, 07/10/2011 - 11:47pm.
Her shameless shilling is way, way, way beyond pathetic. She seriously must be a serial liar. How sad and damaging to our great country. People deserve the truth. These liberal "journalists" are failing our country in a huge way and THEY are key figures in our demise as a great country.
-- Maximusbraveheart -- Is TRUTH knowable? Moral Relativism is the abandonment of Truth. Truth is knowable. Truth conforms to Reality. Reality is observable by evidence & witness in this day & from history. Relativism is Sesame Street play land.
Eleanor, you are either a
Submitted by ant on Sun, 07/10/2011 - 10:46pm.
Eleanor, you are either a G-ddamned fool or a G-ddamned liar, either way...ah, nevermind... you ain't worth it.
I would say...
Submitted by zenman1661 on Sun, 07/10/2011 - 10:52pm.
of all the many responsible for the mortgage collapse, President Bush is way down the list. Perhaps he could have done more to stop the housing bubble from getting so big, but he really had nothing to do with creating it. Now, Wall Street would be near the top of my list along with Greenspan and Congress besides the afore mentioned Freddie and Fannie.
I agree. He tried to warn us, but he had the presidential...
Submitted by jawebster1 on Mon, 07/11/2011 - 3:38am.
podium and he should have screamed it from the mountaintops. Because he didn't, loopy Liberals like Clift can put the blame him. He was as much to blame as was "Mame". (Put the blame on Mame, boys, put the blame on Mame!) I believe the blame should be put where it belongs, in the laps of Dodd and Frank and others, who thought they were helping people, by putting them into houses they could not afford. Even Clift knows that and to call her "disingenuous" is being too nice. I can think of much better words to describe her.
Eleanor Clift is a Tireless Defender
Submitted by Comrade Jim on Sun, 07/10/2011 - 10:52pm.
Of the big government socialist progressive nanny state to be run by the Democratic Party. She isn't bothered at all by the corruption inside Fannie May and Freddy Mac where Franklin Raines and Jamie Gorelick (Clinton appointees) were cooking the books to pad their pockets. Using FM as a piggy bank for the pigs in congress (e.g. Barney Frank and Chris Dodd) is all for the good and glory of the Democratic Party and thus justified.
Bill-Gore Depression
Submitted by Zippy on Mon, 07/11/2011 - 12:11am.
Most people forget.
We are still in the "bill-gore depression".
The only thing that has changed is the unemployment numbers keep going up.
And 9/11.
Bill, Al gore, queen nancy, jamie gorlick, barney frank, Chris dodd, Chuck Rangel engineered the "Financial act of 1999" and the Act of 1998.
One to let low income people/no credit renters into houses. And one to let banks and Security Companies merge.
No. I did not read it. Same
Submitted by Zippy on Mon, 07/11/2011 - 12:13am.
No.
I did not read it. Same crap as always.
the E person is a loon.
Bill-Gore Depression
Submitted by Zippy on Mon, 07/11/2011 - 12:10am.
Most people forget.
We are still in the "bill-gore depression".
The only thing that has changed is the unemployment numbers keep going up.
And 9/11.
Bill, Al gore, queen nancy, jamie gorlick, barney frank, Chris dodd, Chuck Rangel engineered the "Financial act of 1999" and the Act of 1998.
One to let low income people/no credit renters into houses. And one to let banks and Security Companies merge.
You mean the DEMS engineered the Gramm-Leach-Briley Act
Submitted by Jer on Mon, 07/11/2011 - 12:45am.
[all three of whom are Republicans], otherwise known as the Financial Services Modernization Act of 1999 and overwhelmingly supported by the GOP?
Wow! How did they pull that off?
Jer
Typical Liberal. His side gets skewered and all he can do...
Submitted by jawebster1 on Mon, 07/11/2011 - 3:46am.
is mention some act no one has ever heard of. Not only that, he lists 1999 as the date of the act. Bush did not assume office until January 2001. What he has done, is what has become known as the Alan Colmes method of debate, but not even Colmes is dumb enough to blame Bush for something that occurred before he became President! (Or maybe not.)
Webster....
Submitted by Jer on Mon, 07/11/2011 - 4:23am.
Do you ever read the preceding posts which may be relevant to the comment being addressed, or do you just reflexively spout ignorant drivel without encumbering your brain with such complex tasks? It's quite evident in this case you chose the latter option.
Jer
Hey Jer Who voted for this in 1992?
Submitted by Samshile on Mon, 07/11/2011 - 5:48am.
Housing and Community Development Act of 1992 (106 Stat. 3672). Creates the Office of Federal Housing Enterprise Oversight to supervise Fannie Mae and Freddie Mac. Enacts the Residential Lead-Based Paint Hazard Reduction Act of 1992, to develop a national strategy to eliminate lead-based paint hazard in all housing, and the Removal of Regulatory Barriers to Affordable Housing Act of 1992, to identify and remove governmental barriers that increase housing costs and limit the supply of affordable housing. October 28, 1992.
Samshile: Here is the House roll call
Submitted by Jer on Mon, 07/11/2011 - 9:57am.
vote.
The bill was later signed into law Oct.28, 1992 by President George H. W. Bush.
Jer
The point IMO is that they
Submitted by amyshulk on Mon, 07/11/2011 - 6:04pm.
The point IMO is that they *all* bought into the "Make them homeowners, and the attendant traits will follow" not stopping to think it does NOT work that way!!! Just ask any teen who worked summers to buy his 1st car vs. those given a car for their sweet 16. The latter has no skin in the game and it does NOT make them responsible.
Ronald Reagan
And I think your point, amy...
Submitted by Jer on Mon, 07/11/2011 - 7:12pm.
is a very valid one.
Jer
jer - I think my views are in
Submitted by amyshulk on Tue, 07/12/2011 - 10:34am.
jer - I think my views are in line with the Tea Party, and that's why it's comprised of R's, D's, L's, & I's {Republicans, Democrats, (small/Blue Dog) liberals, and Independents.} We know the roots somewhat {who did what bill, and when} but feel it's only important to learn from, so we don't repeat their mistakes by getting lost in the weeds and losing sight of the big picture.
And that big picture is reducing gov't. - they have exceeded their mandate in that instead of being the overseer/final arbiter, they've morphed into a competitor/controller.
BOTH parties are fighting against reducing gov't, except for the Tea Party patriots elected last Nov., along with the R's & D's who see the writing on the wall, and who finally have support for dealing with the "3d rails"
They both {big gov't. R's & D's) lost, they just don't know it yet, but they'll catch on in 2012. And if not? They'll learn it in 2016...
Seems to me the elites only truly get it when someone publishes a peer reviewed study/statistic, while us "lowbrows" have lived it, so churn/turn-over is necessary to drive home the point.
Ronald Reagan
Hopeful thinking
Submitted by Jerry Mack on Sun, 07/10/2011 - 11:02pm.
By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.
They sure as heck got their wish! Be careful what you wish for*******************************************
Eleanor Clift: "23 Skidoo, Tippecanoe and Tyler too!"
Submitted by SickofLibs on Sun, 07/10/2011 - 11:03pm.
Zzzzzzz.
Eleanor is off her meds again!
Submitted by rono on Sun, 07/10/2011 - 11:40pm.
This woman is nothing more that a Stalinist Propagandist. Don't let reality get in her way, she'll just ignore it. She's nothing more than a joke now.
It all tanked after the GOP lost control of the house and senate
Submitted by hbnolikeee on Sun, 07/10/2011 - 11:43pm.
in 06. Sure the GOP screwed the pooch as well. But we had a near 5% unemployment until then and our debt hit 1.4 trillion on the transition of the Bush spending spree into the current Obama drunk with power spendathon. You can easily (unless they've been "cleaned" off of YOUTUBE) find video where cornered democrats were indignant that we even suggested that the mortgage industry was in big trouble. Notice how they reacted when we told them we needed to look at Fanny and Freddy.
We can see and hear lots of democrats acting indignant as they all lined their pockets. Between the pure greed and the pure wish to "remake" our country, this is where we now find ourselves. The same thieves are trying to continue on the spendathon now with not being willing to tie any more spending with an equal amount of deduction. They want the debt up which means the interest owed grows exponentially.
@hb
Submitted by Samshile on Mon, 07/11/2011 - 5:51am.
Are you not leaving out the 2/3 of the TARP money that was paid back reducing those Bush/Pelosi figures?
Pelosi Congress started in 2007
Would have liked to know....
Submitted by jdripper on Sun, 07/10/2011 - 11:45pm.
what the rest of the panel said about this. That was Mort Zuckerman he knows how this happened and I can't believe he said nothing.
Jack
There she goes again.......
Submitted by Herbster on Sun, 07/10/2011 - 11:53pm.
She is kept on the show for comic relief. That's got to be the only reason. This woman is beyond stupid.
Didn't a new book come out
Submitted by deerjerkydave on Mon, 07/11/2011 - 12:38am.
Didn't a new book come out recently by someone over at the NYT who said that the unholy alliance between government and private lenders is to blame. In other words big government is to blame.
------------------------
"The powers delegated by the proposed Constitution to the Federal Government are few and defined. Those which are to remain in the State Governments are numerous and indefinite. -James MadisonFannie
Submitted by Scott Trent on Mon, 07/11/2011 - 12:41am.
Wall Street was packaging toxic mortgages and selling them. They would never have existed if not for these GSE`s. Affordable Social Housing - root cause of the recession. Still is today. Democrats enabled this kind of lending even defending them up until the bitter end. Bush was warning of serious economic collapse as far back as 2001. Democrats in Congress SCREAMED at Republican regulators in hearings. Even Bill Clinton is on video saying the mistake the Democrats made was not paying more attention to Republican regulators. This lady is full of horse squeeze.
Timeline of George W. Bush warning Congress about Fannie and Fre
Submitted by Scott Trent on Mon, 07/11/2011 - 12:42am.
Over the past six years, the President and his Administration have not only warned of the systemic consequences of failure to reform GSEs but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. In fact, it was Congress that flatly rejected President Bush's call more than five years ago to reform the GSEs. Over the years, the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems with the GSEs.
2001
•April: The Administration's FY02 budget declares 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." (2002 Budget Analytic Perspectives, pg. 142)
2002
•May: The Office of Management and Budget (OMB) calls for the disclosure and corporate governance principles contained in the President's 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
2003
•February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market.
•September: Then-Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements.
•September: Then-House Financial Services Committee Ranking Member Barney Frank (D-MA) strongly disagrees with the Administration's assessment, saying "these two entities – Fannie Mae and Freddie Mac – are not facing any kind of financial crisis … The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing." (Stephen Labaton, "New Agency Proposed To Oversee Freddie Mac And Fannie Mae," The New York Times, 9/11/03)
•October: Senator Thomas Carper (D-DE) refuses to acknowledge any necessity for GSE reforms, saying "if it ain't broke, don't fix it." (Sen. Carper, Hearing of Senate Committee on Banking, Housing, and Urban Affairs, 10/16/03)
•November: Then-Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any "legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk." To reduce the potential for systemic instability, the regulator would have "broad authority to set both risk-based and minimum capital standards" and "receivership powers necessary to wind down the affairs of a troubled GSE." (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)
2004
•February: 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 calls 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." (2005 Budget Analytic Perspectives, pg. 83)
•February: Then-CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for granted." Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs are overseen by an effective regulator." (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And Freddie's House In Order," Financial Times, 2/24/04)
•April: Rep. Frank ignores the warnings, accusing the Administration of creating an "artificial issue." At a speech to the Mortgage Bankers Association conference, Rep. Frank said "people tend to pay their mortgages. I don't think we are in any remote danger here. This focus on receivership, I think, is intended to create fears that aren't there." ("Frank: GSE Failure A Phony Issue," American Banker, 4/21/04)
•June: Then-Treasury Deputy Secretary Samuel Bodman spotlights the risk posed by the GSEs and calls for reform, saying "We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System." (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)
2005
•April: Then-Secretary Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America … Half-measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05)
•July: Then-Minority Leader Harry Reid rejects legislation reforming GSEs, "while I favor improving oversight by our federal housing regulators to ensure safety and soundness, we cannot pass legislation that could limit Americans from owning homes and potentially harm our economy in the process." ("Dems Rip New Fannie Mae Regulatory Measure," United Press International, 7/28/05)
2007
•August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, the White House, 8/9/07)
•August: Senate Committee on Banking, Housing and Urban Affairs Chairman Christopher Dodd ignores the President's warnings and calls on him to "immediately reconsider his ill-advised" position. (Eric Dash, "Fannie Mae's Offer To Help Ease Credit Squeeze Is Rejected, As Critics Complain Of Opportunism," The New York Times, 8/11/07)
•December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon." (President George W. Bush, Discusses Housing, the White House, 12/6/07)
2008
•February: Assistant Treasury Secretary David Nason reiterates the urgency of reforms, saying "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)
•March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)
•April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)
•May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.
◦"Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow state housing agencies to issue tax-free bonds to refinance sub-prime loans." (President George W. Bush, Radio Address, 5/3/08)
◦"[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator." (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)
◦"Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans." (President George W. Bush, Radio Address, 5/31/08)
•June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)
•July: Congress heeds the President's call for action and passes reform legislation for Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.
•September: Democrats in Congress forget their previous objections to GSE reforms, as Senator Dodd questions "why weren't we doing more, why did we wait almost a year before there were any significant steps taken to try to deal with this problem? … I have a lot of questions about where was the administration over the last eight years." (Dawn Kopecki, "Fannie Mae, Freddie 'House Of Cards' Prompts Takeover," Bloomberg, 9/9/08)
Scott - the problem is that
Submitted by Gat New York on Mon, 07/11/2011 - 9:21am.
Scott - the problem is that liberal Democrats like Clift can simply lie and invent because they are not held accountable for their ignorance.
What I would like to see is a clause in each of these pundit's contracts that automatically deducts fines from their paychecks for every lie they say on air. It won't happen because then FoxNews would not be able to have a fair and balanced format since you have to pay liberals something.
Here is where this all started...
Submitted by Scott Trent on Mon, 07/11/2011 - 12:53am.
http://clinton6.nara.gov/1993/12/1993-12-08-briefing-by-bentsen-and-rubi...
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release December 8, 1993
CRA reform will generate billions of dollars in new lending and extend basic banking services to the inner cities and to distressed rural communities around the country.
The proposed reform package we are unveiling today follows the President's directive and fulfills the promise of the law. It will channel billions of dollars a year in new credit into America's distressed communities, while at the same time reducing unnecessary burdens on banks.
Q With regard to enforcement actions for an institution that's not applying for a merger, what specific enforcement actions might you envision being taken if it's in substantial noncompliance?
MR. LUDWIG: Well, we'll have the full panoply of all our enforcement armorarium, which includes cease and desist orders and civil money penalties in some cases.
Q So you could apply those, because you hadn't up until --
MR. LUDWIG: We have not, and it has not been part of the regulation. It will be part of this regulation.
Thank you very much.
Government FORCED our banks to open up BILLIONS of Dollars a year in new credit to people who PREVIOUSLY did not QUALIFY. Government spreading the nations wealth killed our economy. Government caused the mortgage foreclosure crisis. Bush was sounding the warnings as far back as 2001. Democrats fought REGULATORS every step of the way in the 2000`s including filibusters. Many of these hearings are on youtube and you can watch and listen to Democrats like Meeks, Frank bust on the regulators.
Wall Street firms technically
Submitted by big.league.slider on Mon, 07/11/2011 - 1:51am.
Wall Street firms technically did nothing illegal. They simply took maximum advantage of the federal regulations as written by Congress and signed into law by various Presidents.
Every President and member of Congress since the creation of Freddie Mac and Fannie Mae is at least partially responsible, and we should also include the members of the federal judiciary. There is no Constitutional authorization for Freddie/Fannie, and since our federal government's 3 branches have a responsibility for keeping each other in check and balance, they all have failed in their sworn obligations required by the oath of office, and are all responsible. While GW Bush may have squawked about Freddie/Fannie, in the end he did nothing to rectify the problem, even though he had the power to do so.
Until the federal government and its functionaries are held to the same legal requirements as the private sector, including all provisions of the US Constitution, then these types of financial debacles that leave taxpayers holding the bag will continue.
The group of people that can actually be prosecuted for the sub-prime debacle are the mortgage applicants that lied on their applications, and then defaulted on the Freddie/Fannie backed loans. Considering the dollar amounts involved, committing this type of fraud is a federal felony, so why doesn't the DOJ prosecute these deadbeats? The amount of money owed to federal taxpayers by these mortgage fraudsters is hundreds of billions.
Ok, I finally figured it out
Submitted by ironhead4099 on Mon, 07/11/2011 - 2:15am.
The question that I've asked myself many times,( every time I hear her screech that is) is why they keep her on this show. Well I've figured it out, it has to be for the comic relief, because you certainly can't take this NUTJOB seriously! I'm sure after they tape this thing, everyone (except her) gathers in the back somewhere and laugh their ass's off with the DUMBASS SHIT that comes out of her twisted little mind. Obviously she's the only one there that takes her seriously!
She is the female version of Alan Colmes.
Submitted by jawebster1 on Mon, 07/11/2011 - 3:51am.
Perhaps Alan Colmes is the male version (if you want to call him that) of this horrible woman. Everything is George Bush's fault! Even Obama's speech writers are starting to realize that blaming everything on George Bush doesn't work anymore. It's going to take awhile for this knowledge to sink into the run of mill Liberal's heads and Clift and Colmes are very "run of the mill" Liberals!
I watched this week
Submitted by docjohn52 on Mon, 07/11/2011 - 5:16am.
I watched this week and she was REALLY subdued. She barely broke in and it looked like she was biting her lip a few times.
I think they let her lead with that housing response, so she would get speaking time, but she really only spoke twice, and interrupted only once.
I think she's been told she's not to speak until called on. And I think they were told that would be her subject this week.
It was really funny to watch her literally chewing on her tongue.
poster children
Submitted by ohio granny on Mon, 07/11/2011 - 9:40am.
eleanor cleft and alan colmes are poster children for dumb and dumber.
Fannie and Freddie - minor factors
Submitted by alvin on Mon, 07/11/2011 - 2:41pm.
Freddie and Fannie - little to do with problems.
refer to:
The Big Short - Michael Lewis
All the Devil's are Here - Bethany Mclean
Too Big Too Fail - Andrew Ross Sorkin
Griftopia - Matt Tiabbi
Whenever I hear this I know it's right wing bs.
Freddie and Fannie
Submitted by Agnostic on Mon, 07/11/2011 - 2:58pm.
Fannie and Freddie are and were very corrupt and politically oriented organizations that paved the way for the crisis in the housing/mortgage markets. True, their part was more passive in that they were the enabler while others, including financial institutions (look where they are now and how they are tied to this administration), were the more active participants in creating the down fall.
'Too Big to Fail' was the premise that all the institutions counted on in order to do what they knew was wrong.
Clift
Submitted by jessieH on Mon, 07/11/2011 - 4:36pm.
Alzheimers sets in early for some morons. Everyone knows she's lying. Barney Frank is the real culprit behind Fannie & Freddie.
What struck me was the
Submitted by amyshulk on Mon, 07/11/2011 - 6:06pm.
What struck me was the response to her revisionist history "That's the Presidents position"
Ronald Reagan