Why do so many say that Bush tried to "reign in" Fannie/Freddie as if he wanted harder terms on home loans?
The conservative line has been that the big bad Democrats forced banks to give bad loans which led to the housing bubble bursting. However I beg to differ. I think that the economy was so sick, that the Bush Administration saw housing as a form of artificial life support, that since we don’t actually manufacture things anymore, everything would be okay if we just kept people building houses which no one would have the money to buy. It produced false "economic growth" for a couple of years, but sooner or later that strategy’s going to catch up to you, as it did last year.
Just to show that there was no conservative opposition to no money, no income loans, check out this news story from 2004.
http://www.cnn.com/2004/ALLPOLITICS/03/26/bush.homes/index.html
oops I meant "rein in"
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20 comments
Linda K Texan for Life on July 26, 2010 at 2:25 pm
Just because Bush supported his house (unlike Obama) doesn’t mean he supported letting fannie and freddie do low income loans. The interest should have been frozen at 3 to 4 percent. If families can’t pay rent how can they afford a higher house payment than their neighbor.
LoveYa! on July 26, 2010 at 2:25 pm
The mortgage bankers are Bush’s friends.
That’s why in the bailout, there were no rules about giving themselves Christmas bonuses with taxpayer money.
DOOM on July 26, 2010 at 2:25 pm
Ah, and I suppose you know what Bush wanted.
Rocket34 on July 26, 2010 at 2:25 pm
Great point. Good stuff.
Dicentra on July 26, 2010 at 2:25 pm
Those guys just parrot whatever rush says – I would be willing to bet a paycheck that perhaps 3% of rush listeners read a paper or watch real news. If that much.
JEFF S on July 26, 2010 at 2:25 pm
He saw it coming
Brianne on July 26, 2010 at 2:25 pm
Why did the democrats block the investigations int all of this? Three times he wanted this all to investigated and then it comes out the 3 leading democrats were getting kick backs.
Lurch on July 26, 2010 at 2:25 pm
Here you go:
http://www.cafemom.com/journals/read/1220833/White_House_warned_congress_about_Fannie_Freddie_17_times
And this was Barney Frank’s response:
http://www.usnews.com/blogs/sam-dealey/2008/9/10/barney-franks-fannie-and-freddie-muddle.html
Dice: Most of us don’t listen to Rush Limbaugh. That answer is getting sooo old.
skonch01 on July 26, 2010 at 2:25 pm
The headlines would have screamed: "Bush Proposes Limiting Home Ownership for the Poor!"
Lady B on July 26, 2010 at 2:25 pm
CNN the Home to Barrack Obama?
I don’t listen to much to CNN anymore – Lou D is about the only one who has their head screwed on right.
One would have to find out who the Journalist is to see if they report the news or make it up.
Rev-'em-up Wright *rerun* on July 26, 2010 at 2:25 pm
http://blog.beliefnet.com/reformedchicksblabbing/2008/09/maxine-waters-we-do-not-have-a.html
http://www.digitaljournal.com/article/260301
If ya don’t believe Republicans then check out the two links and see what the dems were all about.
Btw, the second link is Bill Clinton SAYING it was the dems.
Kwanzaa Baby on July 26, 2010 at 2:25 pm
Carter, Clinton, Frank and Dodd <– they proudly broke America
Rachel M on July 26, 2010 at 2:25 pm
absolute lies, that the governing bodies didn’t see this coming, There were and are so many hedge funds that saw this bubble coming. Why did they know and not the "regulators" that are supposed to watch this stuff? Bernie Madoff? Republicans like Bush (not all) were looking to loot this country.
bluechristy12 on July 26, 2010 at 2:25 pm
And now there will be plenty of conservatives Republican Politicians with their hand out for a piece of the Stimulus package as well. It is crazy how hypocritical Republicans have become .
TEH TYME KITTEH =^..^= on July 26, 2010 at 2:25 pm
you’re entitled to your own opinions, but not your own facts
realst1 on July 26, 2010 at 2:25 pm
Eliot Spitzer tried to stop the predatory lending practices and the Bush junta wiretapped him and caught him in a hooker scandal.
Bush was in on the scam all the time. He was touting that "home ownership is at an all time high" as an example of how well his junta was working.
Earth: The Connected Home on July 26, 2010 at 2:25 pm
Serious efforts to "reign in" Fannie and Freddie began based on a 2004 report to the House by then OFHEO Director Armando Falcon warning that the housing industry, including Fannie and Freddie were in crisis, and needed regulation. In the year 2000, we would have been jumping the gun.
WE SHOULD HAVE LISTENED TO ARMANDO FALCON
Had Frank, Clay, Meeks, Waters etc. listened to him instead of fought him, we wouldn’t be in this mess right now. That was the seminal moment–the time to act.
McCain cosponsored legislation the following year to regulate Fannie and Freddie.
In McCain’s own words:
"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 ONLY OPOSITION TO SAVING OUR ECONOMY CAME FROM DEMOCRATS.
Suck it up. Each party makes mistakes from time to time, and you guys made a big one. We’ll survive this, but please try to be more careful in the future!
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EDIT
RealST1 Your Spitzer story is biased commentary by a radical liberal that was already in the habit of lying to those closest to him, and to the people. We averted a witch hunt with that move by the administration, plain and simple.
non exsisto ovis on July 26, 2010 at 2:25 pm
The subprime mortgage debacle is directly rooted in Democratic strong arm tactics.
http://tsfiles.wordpress.com/2008/09/
Anyone who believes that wealthy Democrats truly care about the common man, is in for a rude awakening.
The democrats only want to own them by taking control over every aspect of their lives so that it becomes easier than ever to continue to hoodwink the masses.
Natasha b on July 26, 2010 at 2:25 pm
Nice try,
Doesn’t meet up with fact.
He did try, blocked by Barney Frank.
ab dominance on July 26, 2010 at 2:25 pm
your link only mentioned a how Bush pointed to record homeownership. which is not germane to the issue of lowered standards for mortgage requirements under freddie mac and fannie mae (subprime loans). this was a liberal policy promulgated by the democrats since 1992, and pushed by HUD secretary Coumo and Pres. Clinton, and expanded under the congressional oversight comittees, which were ruled by liberals for the last 20 years, and voted on by both parties.
i agree anyone who opted or pushed for the subprime legislation should be run out of office or fined. Bush is gone, after stating his case for rejection of the subprime decrees. so let’s focus on who is still in office and run them out on a rail.
but you just want to blame Bush, so your bias is showing.