Saturday, October 04, 2008

Timeline of Economic Crisis:

September 30, 1999 – The Clinton Administration (Democratic) pressures Fannie Mae to expand mortgage loans among low and moderate income people even after warnings that the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue.

September 11, 2003 - The Bush administration recommends a new agency be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac after a report by outside investigators concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates which together have issued more than $1.5 trillion in outstanding debt.

September 11, 2003 – Led by Democratic Representatives Barney Frank and Melvin Watt, the proposal is denounced by Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.

January 26, 2005 – Republican Senator Chuck Hagel sponsors Bill S.190 [109th]: Federal Housing Enterprise Regulatory Reform Act of 2005, which was cosponsored by Republican Senators John McCain, Elizabeth Dole and John Sununu which would have averted this economic crisis of 2008 by giving a regulator power to crack down, and would have required the companies to eliminate their investments in risky assets after Alan Greenspan told Congress, “If Fannie and Freddie ``continue to grow, continue to have the low capital that they have, continue to engage in the dynamic hedging of their portfolios, which they need to do for interest rate risk aversion, they potentially create ever-growing potential systemic risk down the road,'' he said. ``We are placing the total financial system of the future at a substantial risk.''

2005 – Democratic Senators including Barack Obama and Hillary Clinton opposed the Bill on a party-line vote in the committee making it impossible for the Republicans to get a vote on the Bill.

Democratic Senators who opposed Bill S.190 have received financial support from Fannie Mae and Freddie Mac including the following:

- Barack Obama - $125,000 in campaign contributions from employees and political action committees of Fannie Mae and Freddie Mac.

- Hillary Clinton - $75,000 in campaign contributions from employees and political action committees of Fannie Mae and Freddie Mac.

- Chris Dodd, Senate Banking Committee chairman - $165,000 in campaign contributions from employees and political action committees of Fannie Mae and Freddie Mac.

May 5, 2006 - Senator John McCain sends a letter to the Senate -- signed by nineteen other senators -- stating that it was "...vitally important that Congress take the necessary steps to ensure that [Fannie Mae and Freddie Mac]...operate in a safe and sound manner.[and]..More importantly, Congress must ensure that the American taxpayer is protected in the event that either...should fail."  Sen. Obama did not sign the letter, nor did any other Democrat. The full text of the letter appears at the address below.  

2008 – Barack Obama and the Democratic Party attempt to push blame on the Bush Administration, Senator John McCain and the Republican Party for the economic crisis. Am I missing something here?

May 5, 2011 - "Obama administration pushing banks to offer sub-prime mortgages again.

How can the Bush administration be blamed? Once is the Congress that has control over the budget and deficits, NOT the President.

Let's repeat what we learned from that last post shall we:

No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits. The president can only propose a budget. He cannot force the Congress to accept it.

The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes. Who is the speaker of the House? She is the leader of the majority party. She and fellow House member s, not the president, can approve any budget they want. If the president vetoes it, they can pass it over his veto if they agree to.

No comments: