The economy is like an oil tanker.You don't turn an oil tanker around within 10 feet. 20 feet... it takes Big ships cannot stop on a dime. In fact, these ships may require as much as 5 miles to sto
So then that means it wasn't Nancy Pelosi and Harry Reid gaining control of Congress and the Senate in January 2007 that caused the recession to begin that year!
Which means the actions that caused the economic collapse and recession were in the works before they took over. And who was in charge of Congress completely from 2003-2007?
CONSERVATIVES.
Let's see...
First Barney Franks admits:
Barney Frank Comes Home to the Facts By Larry Kudlow August 21, 2010
Can you teach an old dog new tricks? In politics, the answer is usually no. Most elected officials cling to their ideological biases, despite the real-world facts that disprove their theories time and again. Most have no common sense, and most never acknowledge that they were wrong.
But one huge exception to this rule is Democrat Barney Frank, chairman of the House Financial Services Committee.
For years, Frank was a staunch supporter of Fannie Mae and Freddie Mac, the giant government housing agencies that played such an enormous role in the financial meltdown that thrust the economy into the Great Recession.
But in a recent CNBC interview, Frank told me that he was ready to say goodbye to Fannie and Freddie.
"
I hope by next year we'll have abolished Fannie and Freddie," he said. Remarkable. And he went on to say that "it was a great mistake to push lower-income people into housing they couldn't afford and couldn't really handle once they had it." He then added,
"I had been too sanguine about Fannie and Freddie."
Barney Frank admits truth about Fannie
And the beginning was in 1995.......
in the Buycks-Roberson v. Citibank Fed. Sav. Bank, 1994 suit against redlining. Most significant of all, ACORN was the driving force behind a 1995 regulatory revision pushed through by the Clinton Administration that greatly expanded the CRA (Community Reinvestment Act) and laid the groundwork for the Fannie Mae, Freddie Mac borne financial crisis we now confront. Barack Obama was the attorney representing ACORN in this effort. With this new authority, ACORN used its subsidiary, ACORN Housing, to promote subprime loans more aggressively.
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In 1999, under pressure from the Clinton administration, Fannie Mae, the nation's largest home mortgage underwriter, relaxed credit requirements on the loans it would purchase from other banks and lenders, hoping that easing these restrictions would result in increased loan availability for minority and low-income buyers.
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Rham Emmanuel, NOW OBAMA CHIEF OF STAFF and Jamie Gorelick were employees and directors of Fannie and freddie took between the two took out over $20 million. Gorelick was appointed Vice Chairman of Federal National Mortgage Association (Fannie Mae) from 1997 to 2003. She served alongside former Clinton Administration official Franklin Raines During that period, Fannie Mae developed a $10 billion accounting scandal. Gorelick took home $26.46 million in the period from 1998 to 2002 (she left in that year, so she wasn’t there for the entire period under investigation). Of that figure, nearly $15 million came from EPS bonuses.
Fannie Mae and Freddie Mac Invest in Democrats - OpenSecrets Blog
Obama was part of the lawsuit. Fact. Acorn was going to make massive protests if the suit had not been settled out of court which included Obama!
Unqualified loans backed by Fannie/Freddie were supported by investors buying these loans KNOWING that this is what would happen:
Oct. 23,2008 (Bloomberg) --
Fannie Mae and Freddie Mac have an ``effective'' federal guarantee, not the "full faith and credit'' of the U.S. government, Federal Housing Finance Agency Director James Lockhart said after the hearing. That does give them effectively a guarantee of the U.S. government.''
http://www.bloomberg.com/apps/news?pid=20601087&sid=ajIEoZCommlk
So we had linkage between "flipping-homes-bad-loans" backed by Fannie/Freddie and coupled with the effort Bush tried to get the Democrat Congress to rein in Fannie/Freddie... Bush was laughed at and admonished by Franks/Dodd... facts:
Many prominent Democrats, including House Finance Chairman Barney Frank, opposed any legislation correcting the risks posed by GSEs.
* House Financial Services Committee Chairman Barney Frank (D-MA) criticized the President's warning saying:
"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."...
(Stephen Labaton, "New Agency Proposed To Oversee Freddie Mac And Fannie Mae," New York Times, 9/11/03)
* Senate Committee on Banking, Housing and Urban Affairs Chairman Christopher Dodd also ignored the President's warnings and called
on him to
"immediately reconsider his ill-advised" position.
Eric Dash,"Fannie Mae's Offer To Help Ease Credit Squeeze Is Rejected, As Critics Complain Of Opportunism," NYT, 8/11/07)
http://www.usnews.com/opinion/blogs/sam-dealey/2008/09/10/barney-franks-fannie-and-freddie-muddle
So over the years these subprime loans came to a head on 9/18/2008 again NOT mentioned widely by the biased MSM and I'm sure YOU've NEVER heard about this!
