milkchaser

Celebrating the 'Recovery': I'm Disgusted

Barney Frank was at the vanguard defending Fannie and Freddie against most of the reforms the Bush administration attempted to impose on them (e.g. an oversight regulator that uncovered its fraudulent bookkeeping). Thank goodness they were able to put at least some oversight in place, no thanks to Frank.
www.washingtonpost.com...

Perhaps GSEs were not the cause of the housing bubble, certainly were not the sole cause, but let us not rewrite history to put the blame on Bush administration and away from the opponents of reform (who are, ironically, now in charge). Bush's record is summarized here:
gatewaypundit.blogspot...


On Aug 25 10:28 AM diogeron wrote:

> I find it interesting that the "GSEs" are often cited as the core
> of the problem. Since Fannie was created in the 1930s (Freddie in
> 1970), it appears that the CONCEPT of a GSE to create a secondary
> mortgage market wasn't necessarily flawed. In fact, they worked quite
> well until their underwriting standards were lowered with the full
> support of the mortgage bankers, realtors, President Bush and the
> majority of members of Congress (yes, BEFORE Barney Frank took control
> of his committee in February of 2007). There is plenty of blame to
> go around, but people should stop implying that the creation of the
> GSEs somehow caused this meltdown.