Well, it looks like the Bush Administration did warn – and attempted to do something – about the Fannie Mae and Freddie Mac debacle. Here is the real deal about these entities in 1 paragraph.
Fannie Mae and Freddie Mac are the two largest mortgage lenders in the industry. The problem is that they primarily back loans to lower-income families. In short, they allow people to borrow beyond their means.
In 2003, the Bush Administration sought to overhaul the regulation of the housing finance industry which was shot down by ranking Democrats. In 2005, legislation in the House to overhaul the 2 quasi-agencies was so toothless that it was opposed by the White House and pulled by the legislation’s backer, Mike Oxley.
In case you were wondering, John McCain also supported more oversight of Fannie Mae and Freddie Mac.
At every turn, the liberals who gained the most from Fannie Mae and Freddie Mac opposed regulations. Now, they want to try and play the blame game and want us to pick up the tab? I’m not really fond of my tax dollars subsidizing the loans for poor people to afford housing that is beyond their means. I’m also not in favor of paying again to bail them out, while certain legislators and executives pocket a sweet deal.
Republicans For – Democrats Against
Who does Clinton Blame?
References:
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By STEPHEN LABATON
Published: September 11, 2003
http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B63
House Approves Overhaul at Fannie Mae and Freddie Mac
By STEPHEN LABATON
Published: October 27, 2005
http://www.nytimes.com/2005/10/27/business/27fannie.html
Where Was Sen. Dodd?
Playing the Blame Game On Fannie and Freddie
By Al Hubbard and Noam Neusner
Friday, September 12, 2008; Page A15
http://www.washingtonpost.com/wp-dyn/content/article/2008/09/11/AR2008091102841.html
Fannie Mae and Freddie Mac Invest in Democrats
http://www.opensecrets.org/news/2008/07/top-senate-recipients-of-fanni.html
S. 190 [109th]: Federal Housing Enterprise Regulatory Reform Act of 2005
*McCain co-sponsored a reform bill by Sen. Charles Hagel R-NE
http://www.govtrack.us/congress/bill.xpd?bill=s109-190
Credit Canard
Claim: E-mail reproduces a 1999 newspaper article warning about potential troubles with Fannie Mae.
Status: True.
http://www.snopes.com/politics/business/easescredit.asp
