Now let’s all get on the same page. Nancy Pelosi, Harry Reid, Chucky Schumer, Barney Frank, and the cast of Democrats fighting for their political lives have been in power for how long? Their answer is “not long enough to fix the mess Bush left us”. The real answer is quite some time. Pelosi has been in Congress since 1987, Reid since 1883, Frank since 1980 (he succeeded a priest in MA go figure), little Chuckie Schumer also arrived in DC in 1980. But let’s not dwell on the distant past. Let’s focus on just the last few years.
Contrary to what they would have you believe the Democrats have been in power 4 loooooong years. That’s right, they were in power DURING George Bush’s last term. THEY were the obstructionist during Bush’s last two years. They were the ones who refused to reign in Fanny and Freddie even after an administration advisor, Gregory Mankiw ,TOLD them that the current system was unsustainable. In Nov. 2003, yes that would be 7 years ago, the administration was warning Congress that Fannie and Freddie couldn’t be trusted to police themselves.
Mankiw’s remarks to the Conference of State Bank Supervisors come as the administration and lawmakers push to overhaul the regulatory framework for Fannie Mae and Freddie Mac, which earlier this year admitted to understating its profit by $4.5 billion. See full story.
Due to the enormous size of the mortgage-backed securities market, any problems at Fannie Mae and Freddie Mac would have a ripple effect, Mankiw said.
“This risk is a systemic issue also because the debt obligations of the housing GSEs are widely held by other financial institutions,” he said.
In a 2009 appearance before Congress Barney Frank testified that
Congress will eventually want to change the model of the government-sponsored enterprises. But, he added that Democrats already have imposed major reforms requested by the Bush administration.
6 years between the time the Bush administration told Congress that something HAD to be done. 3 years since the Democratic takeover of Congress. What are they waiting for the moon to turn red, the Second Coming, Frank to tell the truth?
Then there’s the banking mess. While I’m sure there is plenty of blame to go around, this was one of the worst excesses of Congressional power it has been my misfortune to witness.
Schumer’s letter on June 26 said he was “concerned that IndyMac’s financial deterioration poses significant risks to both taxpayers and borrowers.” But after Friday’s statement, Schumer swiftly rejected any suggestions of responsibility for IndyMac’s collapse — and in a Sunday news conference, he said “everything” in his letter was already known to the public.
If this man is so stupid that he didn’t know what an incendiary letter like that would do to the reputation of a financial institution that’s already experiencing difficulties he has no business being a Senator, much less being on the Senate Banking Committee. I would ask if he had to take any history classes in college but as a Democrat they rewrite history to please themselves and prove whatever point they’re trying to make, so that doesn’t really apply. He should have been impeached, disbarred and arrested, just as someone yelling fire in a crowded theater would have been. His actions were irresponsible and reprehensible. They set the stage for the debacle now occurring. From the Wall Street Journal February 2009:
As far as commercial banks go, Federal Reserve data released last week show that their lending increased 2.36% during the last quarter of 2008. For all of 2008, commercial-bank lending rose by $386 billion, or 5.63%, even as the economy slid into recession. Over that 12-month period, business lending jumped $152 billion, or 10.6%, real-estate loans were up $213 billion, or 5.9%, and consumer lending rose $73.5 billion, or 9%. Other categories of bank lending such as loans to farmers, broker-dealers and governments, declined $53.2 billion, or 5.4%.
Fed data also show that during the first three quarters of 2008, the total amount of credit supplied to the economy increased $1.91 trillion, or 3.8%, with $540 billion of that amount coming from foreign lenders.
Nevertheless, Treasury recently demanded that the 20 largest recipients of government capital investments start providing detailed monthly reports about their lending and investment activities. This new requirement could lead to government lending mandates. That would not be a good idea.
So yet again. Who are these people scrambling for their political lives? Are they servants of the public trust or swine at the government trough. All of this information and more is just a mouse click away. Be aware, be informed, be smart. Vote them all out. The new people my be inexperienced but at least, unlike the current administration, they have a moral compass………
……..and even know where to find it.