Wednesday, November 3, 2010

Housing and Bank Crisis - We Had Regulation

Many lame aspersions have been cast at the Republicans and the Bush administration for the housing/banking crisis.

There are lots of factors that went into this crisis. But one of the biggest is how Fannie Mae and Freddie Mac pumped trillions into the housing market by buying loans from lender originators.

The person put in charge of overseeing Fannie and Freddie did his job. He was shot down by Barnie Frank and the Democrats. Why? Why didn't the Democrats care about all those that would be harmed by the ensuing fallout? Because Fannie and Freddie and their liberal CEO's were powerful, rich donors to the Democrats.

Get what happened? Government-created monsters in Fannie and Freddie owned the government that created them, and their CEO and democrat board members made hundreds of millions in income.

And... here's another one where we can pretty much say Barney Frank is guilty as charged.
Keep in mind the below video quotes Frank at the peak of the housing bubble. And, he's dead wrong - the housing bubble was worse than the dot-com collapse. The bubble involved billions in loads that should have never been made, a radical relaxation of lending standards, and all sorts of shenanigans.

and.. a little more background...

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