That they started…
They created the environment of unaccountability beginning with Jimmy Carter and the original Community Reinvestment Act. They reauthorized the CRA under Bill Clinton and continued to ignore the dangers signs each and every time they were warned.
History cannot be whitewashed. The Democrats with their blind ambition for social engineering, their pandering to class warfare, and their corrupt association with Fannie Mae and Freddie Mac, have led us to the crisis we find our nation in today. Yes, there are also going to be a handful of Republicans to skewer over this as well, no one is immune from guilt. But the Republicans are guilty by omission, not commission. They should have been more forceful and public in expressing their concerns over these matters.
A quick look at the history of warning signs paints a clear picture on who bears resposibility:
- As early as 1992, alarm bells were going off on the threat Fannie and Freddie posed to our financial system and our economy.
- Treasury Secretary Lawrence Summers warned Congress in 1999 of the “systemic risk” posed by Fannie and Freddie, Congress held hearings the next year.
- In November 2000, Clinton's HUD hailed “new regulations to provide $2.4 trillion in mortgages for affordable housing for 28.1 million families.” It made Fannie and Freddie take part in the biggest federal expansion of housing aid ever.
- In 2003, President Bush proposed what the New York Times called “the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.”
- After regulators in 2003 uncovered a scheme by Fannie and Freddie executives to overstate earnings by $10.6 billion to boost bonuses, Democrats killed reform.
- In 2005, then-Fed Chairman Alan Greenspan told Congress: “We are placing the total financial system of the future at substantial risk.”
- John McCain, one of three sponsors of S.190, a Fannie-Freddie reform bill, said: “If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system and the economy as a whole.”
- The Democrats were always quick to comment on the reform efforts made by the Republicans.
- North Carolina Democrat Melvin Watt accused the White House of “weakening the bargaining power of poorer families and their ability to get affordable housing.”
- “Fannie Mae and Freddie Mac are not facing any kind of financial crisis,” said Rep. Frank, then-ranking Democrat on the Financial Services Committee.
- Sen. Harry Reid — now Majority Leader — accused the GOP of trying to “cripple the ability of Fannie Mae and Freddie Mac to carry out their mission of expanding homeownership.”
- Following the money trail also leads to the guilty parties. It has taken Barack Obama only three years to accumulate slightly less than Chris Dodd's thirty years worth of donations from Fannie Mae and Freddie Mac.
Even the president has placed blame on the Democrats,as he recently said, Democrats have been “resisting any efforts by Republicans in the Congress or by me . . . to put some standards and tighten up a little on Fannie Mae and Freddie Mac.”
Oh, by the way, that was not President George Bush, it was Bill Clinton.
With the MSM continuing to cheerlead for the Democrats and echo the false cries of blame towards Republicans, one thing will be assured. If we once again ignore history, it will be repeated.