Monday, October 06, 2008

Economy, Housing and Continued Blame-Shifting

"...Unqualified home buyers were not the only ones who benefitted from Massachusetts Rep. Barney Frank’s efforts to deregulate Fannie Mae throughout the 1990s.

So did Frank’s partner, a Fannie Mae executive at the forefront of the agency’s push to relax lending restrictions.

Now that Fannie Mae is at the epicenter of a financial meltdown that threatens the U.S. economy, some are raising new questions about Frank's relationship with Herb Moses, who was Fannie’s assistant director for product initiatives. Moses worked at the government-sponsored enterprise from 1991 to 1998, while Frank was on the House Banking Committee, which had jurisdiction over Fannie.

Although Frank now blames Republicans for the failure of Fannie and Freddie, he spent years blocking GOP lawmakers from imposing tougher regulations on the mortgage giants. In 1991, the year Moses was hired by Fannie, the Boston Globe reported that Frank pushed the agency to loosen regulations on mortgages for two- and three-family homes, even though they were defaulting at twice and five times the rate of single homes, respectively.

"I think the responsibility that the Democrats have may rest more in resisting any efforts by Republicans in the Congress or by me when I was president, to put some standards and tighten up a little on Fannie Mae and Freddie Mac," Clinton said recently." (source)

Truthfully, I have no sympathy for Wall Street OR Main Street. The story about Addie Polk doesn't tug at my heart strings --it's not the standard. The "folks" on "Main Street" were just as irresponsible as the bigwigs on Wall Street IMO.

Who are the people that got loans that are now in jeopardy?
1) People that outright couldn't afford them and put no money down --so are basically where they started anyway.
2) People that were looking to "Flip that House" --the gamble didn't pan out.
3) People that already had a house but decided to upgrade to one they knew they couldn't afford.
Is it so wrong that I have sympathy for none of the above?

This is more American entitlement at play. I DESERVE a house because the Jones' have one. There should be a government program to get me that house regardless of whether I can afford it or not...

I'm just so sick of Obama getting a bounce from the economy woes when:

"Lehman Brothers collapse is traced back to Fannie Mae and Freddie Mac, the two big mortgage banks that got a federal bailout a few weeks ago.

Freddie and Fannie used huge lobbying budgets and political contributions to keep regulators off their backs.

A group called the Center for Responsive Politics keeps track of which politicians get Fannie and Freddie political contributions. The top three U.S. senators getting big Fannie and Freddie political bucks were Democrats and No. 2 is Sen. Barack Obama.

Now remember, he's only been in the Senate four years, but he still managed to grab the No. 2 spot ahead of John Kerry — decades in the Senate — and Chris Dodd, who is chairman of the Senate Banking Committee..." (source)

Wouldn't it be nice if Americans actually read more than headlines and commercial text?!

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