Disingenuous Dems Lying About Credit Crisis

Is it just an odd coincidence that former Democratic Party big-wigs have been running Fannie Mae and Freddie Mac for the past 20 years?

I doubt it.

Both political parties had a hand in this crisis, but it is ultimately a Democrat problem–just ask Bernie Sanders, Chuck Schumer or Nancy Pelosi…

While the Dude is a former government reporter, he is certainly not an expert on Congress, so I’ll let Ed Morrissey over at the Greatest Website Ever, Hot Air, take it from here:

Barack Obama has made this point one of his major campaign themes, arguing that John McCain would provide more of the same failures that Bush did.  However, what many do not recall is that Bush wanted to tighten oversight with a new regulatory board for Fannie Mae, Freddie Mac, and other government recipients for the express purpose of addressing bad loan practices — and Democrats blocked it.

Here’s your chance, Dems, Defend yourself.

Take it away, Bernie Sanders:

”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

OK, i guess. What do you think, Rep. Melvin L. Watt?

”I don’t see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,” Mr. Watt said.

Hmmm. I’m not convinced. What do you have to say Jamie Gorelick (Former Deputy Attorney General under [No pun intended] Clinton and former vice president of Fannie Mae)?

We believe we are managed safely,” Gorelick said in 2002. “We are very pleased that Moody’s gave us an A-minus in the area of bank financial strength — without a reference to the government in any way. Fannie Mae is among the handful of top-quality institutions.”

You know who they are

The Dude’s confidence in human kind is forever shattered:(

From David Frum at the NRO:

The two institutions have long been run not by bankers but by retired political figures, predominantly Democrats. From 1991 to 1998, Fannie Mae was headed by James Johnson, a longtime aide to former Democratic vice president Walter Mondale. Johnson’s successor, Franklin Raines, had served as budget director to Bill Clinton. Jamie Gorelick, vice chair of Fannie Mae from 1998 to 2003, served as deputy attorney general in the Clinton administration.

These figures have paid themselves impressive private-sector salaries. Johnson earned US$21-million in just his last year at Fannie Mae. Raines earned US$90-million for five years’ work at Fannie Mae. Gorelick got US$26-million.

Yet the companies never had to meet the discipline of the private marketplace. They paid no taxes, and they had access to a line of credit at the Treasury department. More ominously for today’s crisis: They were not required to provide anything like the level of information about their internal operations expected of a privately owned company.

Here’s more from the Internet:

Malkin: The fit hits the shan on Wall Street

Jamie Gorelick, Mistress of Disaster

Jamie Gorelick’s ties to Fannie Mae and What She’s Doing Now

The Real Culprits In This Meltdown

Jamie Gorelick: A 9/11 Disaster in the Making

Thanks to jgapinoy on Hot Air for providing this list of recipients of Fannie Mae and Freddie Mac Campaign Contributions, between 1989-2008
Name,                       Party,               Grand Total
Dodd, Chris              D                     $165,400
Obama, Barack          D                     $126,349
Kerry, John                D                     $111,000
Bennett, Robert          R                    $107,999
Bachus, Spencer         R                    $103,300
Blunt, Roy H               R    $96,950
Kanjorski, Paul           D                    $96,000
Bond, Chris                R                     $95,400
Shelby, Richard          R                     $80,000
Reed, Jack                D                    $78,250
Reid, Harry               D                    $77,000
Clinton, Hillary           D                   $76,050
(McCain is not on the list!)

If you can’t trust the party of William Jefferson, Harry Reid, Charlie Rangel, Chuck Schumer, Joe Biden and Nancy Pelosi, then who can you trust?

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8 CommentsLeave a comment

  1. You quote two of the House Democrats and equate that to the democratic party response?

    Weak.

    you point to a little over 100,000 dollars in contributions in what will likely a half billion dollar campaign and try to insinuate Obama is in the pocket of big banks?

    Getting Weaker.

    Then you failed to mention the fact that McCain employs Phil Gramm, who authored much of the deregulation which got us in the subprime mess in the first place.

    Dude, you’re drowning, flailing your arms out there all alone.

    Listen, the fact of the matter is that both campaigns hire economic advisers, and most economic advisers are trained on wall street. Now that 3 out of the 5 major investment banks on Wall Street went under, and Freddie and Fannie have been bailed, it is impossible not to find an economic adviser without connections.

    But by playing hard and fast with that reality you really just doom your credibility and the relevancy of your arguments in the process.

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  4. […] not an expert on Congress, so I??ll let Ed Morrissey over at the Greatest Website Ever, Hot Aihttp://thedudesblog.com/2008/09/16/disingenuous-dems-lying-about-credit-crisis/Jamie GorelickThe next day, Deputy Attorney General jamie Gorelick, acting for an absent Janet Reno, […]

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  6. Thanks for the props.

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