Belt Auction

Did the Democrats & Barney Frank cause the financial mess? Was Bush too green to forcefully stop the LIBERALs?

http://www.kfor.com/global/story.asp?s=9080306 Excerpt: ------------- The Bush Administration, in April of 2001 warned congress of a potential financial crisis. In their 2002 budget requests they declared the size of Fannie Mae and Freddie Mac "A potential problem... and can cause strong repercussions in the financial markets." In 2003, the White House upgraded the warning on real estate mortgage loans. Their experts said that the way loans were being handled could spread beyond the housing sector. In fall of 2003 the Bush Administration was pushing congress hard to create a new federal agency that would monitor and supervise Fannie Mae and Freddie Mac; both are Government Sponsored Enterprises (GSE). John Snow, Treasury Secretary at the time called for regulations and supervision of GSEs. He said in September 2003 "We need a strong world-class regulatory agency to oversee the prudential operations of the GSEs and the safety and the soundness of their financial activities." Snow was pushed back from this position, by then ranking member, but the eventual Chairman of the Senate Banking Committee, Barney Frank (D) from Massachusetts. Frank denied there was any problem and was quoted as saying, "Fannie Mae and Freddie Mac are not in crisis." In fact, Barney Frank was encouraging the government to do more to get low income families into homes. "The more people, in my judgment, exaggerate the threat of safety and soundness, the more people conjure up the potential for serious financial losses.... [a problem] I do not see. We see entities that are fundamentally sound financially and would stand some of the disastrous scenarios. But, even if there were a problem the government wont bails them out. The more pressure we see there then there is less, I think, we see in terms of affordable housing," Barney Frank said in September of 2003. The creation of a regulatory agency to oversee GSEs was ultimately blocked.

Public Comments

1. Answer...NO Comment...Just like a CON to try to SPIN the facts! As I have said before, You can SPIN just so far before they SNAP BACK and break your back!
2. Way to go Senator Obama and Frank ! Change my azz Democrats The only only change I can smell coming is voting all your liberal azz out!
3. It's really sad to see the Republicans and Conservatives trying to survive the problem they either started or allowed to continue by claiming they weren't competent enough to stop it. I don't know who's going to win the election, but I know who should... The guy who isn't hiding behind the lame excuses.