The True Villians behind the Current Financial Crisis

Most experts say that the current financial crisis began when the federal government had to bail out Fannie Mae and Freddie Mac.    Fannie Mae, Freddie Mac, and the 12 Federal Home Loan Banks are mortgage finance Government Sponsored Enterprises or GSEs.  When the housing market crashed, mortgage defaults were epidemic and the worth of the mortgages held by these GSEs declined rapidly to the point where Fannie and Freddie were on the verge of bankruptcy.

Today, Democrats, headed up by Nancy Pelosi, are blaming the Bush administration and Republicans for being anti-regulation.

They lie!

Use this link to see a montage of videos, beginning in 2004, where Republicans attempted on numerous occassions to warn that both Fannie and Freddie were in serious jeopardy due to lack of monitoring and regulation.  Watch in awe as Democrats, including Barney Franks, the chairman of the Finance Committee, belittle these concerns and defend the safety and security of both companies.  

I guarantee you that the next time you watch Senator Franks on TV, you will think differently of him, regardless of how you feel about him now.

http://www.youtube.com/watch?v=_MGT_cSi7Rs 

The link below provides information about GSEs.

http://en.wikipedia.org/wiki/Government_sponsored_enterprise

Change or Business As Usual?

The federal government bailed out Fannie Mae and Freddie Mac this week.  The bailout will cost tax payers billions of dollars.  Both companies have for years pursued a lobbying strategy to get lawmakers on their side that included pouring campaign contributions into the coffers of federal candidates. 

Notwithstanding the rhetoric from current and former presidential hopefuls, guess who is at the top of the list of recipients of these shameful and conflict-ridden campaign contributions?

Top Recipients of Fannie Mae and Freddie Mac
Campaign Contributions, 1989-2008

1. Senator C. Dodd, Democrat - CT $133,900

2. Senator J. Kerry, Democrat - MA $111,000

3. Senator B. Obama, Democrat - IL  $105,849

4. Senator H. Clinton, Democrat - NY  $75,550

Please consider that Senator Obama had to work very hard to position himself third on this list because unlike the other top recipients, he has only been a member of Congress for one term. Certainly something to remember when you receive the next dose of his sanctimonious oratory.

How did these two companies manage to get so deep in the hole despite the oversight of the federal government.  Only with a little help from their friends.