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Financial Credit Market Mess Makers

October 7, 2008

Why won’t the Dems in Congress call up Fannie and Freddie for hearings? Read below, the fault lies at their feet.

-AP

Leo Patterson for the Pittsburgh Tribune-Review:

Seconds into the vice-presidential debate, Sen. Joe Biden regurgitated the lie about the current administration’s failed “economic policies” being responsible for the financial mess.

To date, not one Democrat has clearly defined which policy they’re talking about (they can’t, because there isn’t any). Furthermore, Congress (not the White House) is responsible for investigation and oversight and Nancy Pelosi and Harry Reid ignored warnings from both candidates.

The truth being obscured by mainstream media is that the financial mess began with Jimmy Carter’s 1977 Community Reinvestment Act.

Next, in 1992, a majority-Democrat Congress mandated that Fannie Mae and Freddie Mac increase mortgages for low- and medium-income borrowers.

In 1995, it was Bill Clinton’s Treasury Department using the CRA to lower lending standards, followed by HUD Secretary Andrew Cuomo strong-arming Fannie and Freddie (investigating them for discrimination and proposing that 50 percent of their business include low-to-moderate-income mortgages by 2001).

Then there’s the bipartisan 1999 Financial Services Modernization Act (more deregulation without oversight), which Clinton signed into law.

The media also ignore how Clinton teamed up with the Federal Reserve to demand that banks treat welfare payments and unemployment benefits as qualifying income for mortgages (threatening lawsuits), or how the liberal radical group ACORN threatened banks and lobbied for loans to low-income mortgage applicants.

Rep. Barney Frank (D-Mass.) also gets honorable mention for his tireless efforts to deregulate Fannie Mae throughout the ’90s.

And Joe Biden was there the whole time.

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