Who Was Behind Fannie, Freddie Financial Meltdown?
Franklin Raines, Chief Executive Officer of Fannie Mae
Since the “mainstream” media has and continues to work very hard to keep this truth buried, it is worth revisiting again which political party is primarily responsible for the financial meltdown of 2008.
Consider what we find in just a few video clips below:
- In 2004, Rep. Richard Baker (R-LA) warns of the dangers of a huge failure in hearings on Fannie Mae and Freddie Mac book-cooking, calls for greater oversight of these government-created agencies
- Rep Maxine Waters (D-CA) complains about these hearings, that we are “trying to fix something that isn’t broke”
- Rep Gregory Meeks (D-NY) gets mad at those attempting to exert some regulatory oversight over the government entities of Fannie Mae and Freddie Mac (“There’s nothing wrong”)
- Rep Ed Royce (R-CA) calls for new regulatory structure for government lending institutions
- Rep Lacy Clay (D-MO) says the investigation which found Fannie Mae CEO Franklin Raines engaged in illegal activity “a lynching”
- Rep. Chris Shays (R-CT) said Congress passed Sarbanes-Oxley to try and get the government financial agencies under control, and then he realized Fannie and Freddie play by different rules and don’t even fall under it
- Rep. Arthur Davis (D-AL) dismisses regulators and defends those recklessly managing the government financial institution
- Rep. Barney Frank (D-MA) says there is no evidence of safety and soundness problems
- Rep. Waters says everything is “just fine” and says the GSEs have exceeded their goals (of making reckless loans)
- Rep. Clay calls the warnings about the GSEs “a rush to judgment”
- Rep. Don Manzullo (R-IL) points out the outrageous bonuses received by the people running these government entities (e.g. Raines getting a $1.1 million bonus on a $526k salary; Jamie Gorelick getting a $779k bonus on a $567k salary)–this shameful waste of taxpayer dollars spent on running goverment entities into the ground is just fine with Democrats, but oh my!, up in arms over bonuses at the private company of AIG (that AIG had a contractual obligation to pay)
- Rep. Shays questions Raines on why the GSEs are operating under more risky practices than private banks, and Raines defends this recklessness with taxpayer money
Republicans tried to head off this mess at the pass, and were repeatedly blocked by Democrats. Democrats now throw around the blamed that “deregulation” caused this mess…implying deregulation of private industry–when the truth is, it was their own efforts to deregulate that which rightfully and constitutionally deserved the most regulation–government agencies.
When one takes just a few moments to look at the evidence, it becomes painfully obvious just who is to blame here. But thanks to the Democrats’ propaganda machine at ABC, NBC, CBS, PBS, NPR, CNN, MSNBC, the New York Times, the Washington Post, the LA Times, et al, few Americans realize this.
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