Democrats, led by Barack Obama, are beating a path to any microphone they can find to blame Republicans for the financial “crisis” happening on Wall Street, but when it comes to solutions they, well, have none. How could they have none? Simple, the government can do little to make things better and is only really good at making things worse. For an example of this see The Forgotten Manby Amity Shales. Not that common sense or history has ever dissuaded a liberal from a bad idea, they do still seek to impose socialism, after all.
But the fact that Congress is ready to hit the road as soon as they can is an acknowledgement of the fact that they have no clue and/or no ability to make a difference. Bloated companies made bad loans and tried to cover it up, it’s that simple. Bills come due and people who should not have been given loans because they couldn’t pay them back couldn’t pay them back. The important question is why were those loans made in the first place. The answer is simple – liberals.
When the Bush Administration attempted to add oversight to Fannie Mae and Freddie Mac in 2003, Congressman Barney Frank said this:
”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.”
Frank is the Chairman of the Financial Service Committee! People like him pressured banks to loan money to low income people who have been “redlined” for living in certain areas, making it difficult for them to get a mortgage. What happened? Loans that never should have been made were made and people couldn’t pay them back. Bam, we have what we have now.
It’s never just this simple, but it’s important to remember that Democrats have blocked every attempt to privatize Fannie and Freddie, to oversee them to make sure something like this didn’t happen and basically hold them to account. Why would they block something like that? Could it be the campaign cash they’ve dished out? That would be a cynical accusation, especially since Barack Obama, after only 3 years in the Senate, has collected more money that 532 other Members of Congresshave from Fannie and Freddie has in the last 10 years. Chris Dodd, Mr. Sweetheart Mortgage himself and author of this year’s bill that got us to this point, got the most.