Every one has their theories on what caused the mortgage crisis. Fannie and Freddie, greedy Republicans, aggressive first-time homeowners, even Former President George W. Bush. President Obama repeatedly mentioned the failed policies of the past eight years that put us in the present economic hard times.
A good friend of mine circulated an old newspaper article from the NY Times. The Steven Holmes article from September 30, 1999 highlights economic decisions made in the White House and Capital building that shed much needed light on the current housing crisis.
Below is an excerpt from the Steven Holmes article:
“Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
…‘Fannie Mae expanded home ownership for millions of families in the 1990’s by reducing down payment requirements,’ said Franklin D. Raines, Fannie Mae’s chairman and CEO. ‘Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called sub-prime market.’
…In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.”
WOW. So this is not Bush’s fault??? I’m perplexed. President Obama thinks it is. I heard him say so at his first press conference. If he said it then his statement must be true right? I think not.
Coming in the near future…I take on golden parachutes paid for by taxpayers.
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4 comments:
I know it's only been 6 weeks but I am wondering when the problems stop being Bush's problems inherited by this administration and become Obama's problems.
Of course it depends on the media and right now they are still experiencing chills down their legs when he speaks so it might be a while.
Gene (Hangar Dogs)
Anyone who served in the military knows that when you agree to relieve the watch or post, the problems become your problems, not the previous guys. Obviously, the President doesn't have the benefit of that experience. BTW, wasn' the President a member of the Senate when they those bad policies or laws were implemented? What did he do about it?
AJ
If I remember correctly he was campaigning for most of his time in the senate.
This old database suggests he did not vote very often. A very busy man no doubt.
...and BTW we need not worry. Barny Frank has the FBI all over this.FBI all over this. He has initiated the search for the guilty. This should not take Sherlock to find the guilty.
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