Posted on 11/01/2009 7:05:40 AM PST by sickoflibs
Every president will blame the past one, either directly or indirectly (using media commentators or spokesmen.) And many times it is valid to do that. Most Americans agreed that G.W. Bush could not be (entirely) responsible for the successful Sept 11, 2001 attacks or the 2001 market crash. Much of what he had to work with his first nine months was left over from the Clinton administration. But liberals (progressives) to this day still say that the "September 11, 2001 attacks were on Bush's Watch" after only nine months in office and that Bush was left a booming economy by Clinton. Yet they also claim that this is not yet Obama's economy even now in October 2009, unless there is good news. Good news is always the Obama economy.
(Excerpt) Read more at sickoflibs.blogspot.com ...
Considering that they're still blaming Herbert Hoover for the Great Depression, Joseph McCarthy for the Cold War, and Richard Nixon for everything else, I'd say it can continue to be the Republican's fault indefinitely.
To: jeffreylobo73@yahoo.comBush Called For Reform of Fannie Mae & Freddie Mac 17 Times in 2008 Alone... Dems Ignored Warnings
For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted.
Unfortunately, these warnings went unheeded, as the President’s repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.
The White House released this list of attempts by President Bush to reform Freddie Mae and Freddie Mac since he took office in 2001.
Unfortunately, Congress did not act on the president’s warnings:
** 2001
April: The Administration’s FY02 budget declares that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.”
** 2002
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
** 2003
January: Freddie Mac announces it has to restate financial results for the previous three years.
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that “although investors perceive an implicit Federal guarantee of [GSE] obligations,” “the government has provided no explicit legal backing for them.” As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. (”Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO,” OFHEO Report, 2/4/03)
September: Fannie Mae discloses SEC investigation and acknowledges OFHEO’s review found earnings manipulations.
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact “legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises” and set prudent and appropriate minimum capital adequacy requirements.
October: Fannie Mae discloses $1.2 billion accounting error.
November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any “legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk.” To reduce the potential for systemic instability, the regulator would have “broad authority to set both risk-based and minimum capital standards” and “receivership powers necessary to wind down the affairs of a troubled GSE.” (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)
** 2004
February: The President’s FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: “The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator.” (2005 Budget Analytic Perspectives, pg. 83)
February: CEA Chairman Mankiw cautions Congress to “not take [the financial market’s] strength for granted.” Again, the call from the Administration was to reduce this risk by “ensuring that the housing GSEs are overseen by an effective regulator.” (N. Gregory Mankiw, Op-Ed, “Keeping Fannie And Freddie’s House In Order,” Financial Times, 2/24/04)
June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying “We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System.” (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)
** 2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying “Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system.” (Secretary John W. Snow, “Testimony Before The U.S. House Financial Services Committee,” 4/13/05)
** 2007
July: Two Bear Stearns hedge funds invested in mortgage securities collapse.
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying “first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options.” (President George W. Bush, Press Conference, The White House, 8/9/07)
September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.
September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.
December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying “These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I’ve called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon.” (President George W. Bush, Discusses Housing, The White House, 12/6/07)
** 2008
January: Bank of America announces it will buy Countrywide.
January: Citigroup announces mortgage portfolio lost $18.1 billion in value.
February: Assistant Secretary David Nason reiterates the urgency of reforms, says “A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully.” (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)
March: Bear Stearns announces it will sell itself to JPMorgan Chase.
March: President Bush calls on Congress to take action and “move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages.” (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)
April: President Bush urges Congress to pass the much needed legislation and “modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes.” (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)
May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.
“Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans.” (President George W. Bush, Radio Address, 5/3/08)
“[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator.” (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)
“Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans.” (President George W. Bush, Radio Address, 5/31/08)
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying “we need to pass legislation to reform Fannie Mae and Freddie Mac.” (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)
July: Congress heeds the President’s call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.
In 2005— Senator John McCain partnered with three other Senate Republicans to reform the government’s involvement in lending.
Democrats blocked this reform, too.
More... Not only did democrats not act on these warnings but Barack Obama put one of the major Sub-Prime Slime players on his campaign as finance chairperson.
gatewaypundit.com
Don’t bother that poor chap whose email is listed. Not sure if he’s one of the characters on the forward list or what.
“This BS about the CRA is nothing more than BS, it was attached to a bill written by republicans and 90% of the republicans voted for it.”
—
Wrong. Further revisions to the CRA was attached to a bill written by Republicans.
Republicans played a role in this with the GLB-act. True. However, it was Clinton who refused to sign the GLB-act unless those institutions were subject to CRA-regulation.
CLINTON SIGNED IT. The whole point of my post was: how DEMOCRATS BLAMED BUSH.
Bush did ease some lending requirements later in ‘05 but at the same time they also did attempt some regulation on Fannie Mae. The bubble was already going to go either way.
CRA been around since 1977. Democrats controlled congress in 1977.
http://www.ffiec.gov/CRA/
And Obama DID SUE based on those laws.
http://www.freerepublic.com/focus/f-news/2101106/posts
Come to New Jersey
Liberals will give Corslime a pass and blame all our problems on Christie Whitman even though she hasn’t been in office since 2001 and even though there was even 2 other Rat govs before Corslime.
Delusion is a powerful thing
Perpetuity. Why aren’t you used to it yet?
Thanks, sickoflibs! Mr MC & I were just discussing this very subject.
As are fiscal conservatives who don't like his bailout/spend-spend-spend policies.
It’s important to remember that much of the “regulation-loosening” that Clinton’s people lobbied for in the waning days of his administration (yes, a Republican congress with TONS of Democratic help) was due to this fact:
They (Clinton’s people) knew they were no longer at the gov’t teat. These changes paved the way to ensure they could earn vast sums of money (which they did) once in the private sector.
You’ll also note that they rolled back to the taxpayer teat the minute Obama won the election, so they could suck a little more from us.
My sweetie used to be a far left lib whackjob. It took me 3 years, but I straightened his ass out. He’s a pariah in Chicago, but now, he’s a true believer....and one of US.
Didn’t Obambi appoint Bush as the Blame Czar????
Okay...I haven’t heard people blame Hoover for the length.
I find it sadly amusing that FDR spoke out against Hoover’s gubmint spending—until he was in office himself.
Let us not forget that although it was setup by big spending Repubs and their Dem cohorts, the “Bush” economy didn’t fully go to crap until the Dems took over Congress in 2006. Then Bush helped them along with the socialist TARP economic “solution” he helped push through the willing Dem Congress.
I never said the dems played no part in this mess...
I think the “Bush’s fault” is now at the end of its useful life, if Republicans simply start pointing out the election was now one year ago.
That’s a milestone, which most everyone understands.
To blame Bush at this point is just plain silly.
But ... Republicans need to start saying that. People won’t realize it by themselves, and Dems (or the media) certainly won’t point it out.
“It’s already been ONE YEAR, since the election”.
Just say that, and make a face like you think liberals are silly.
It’ll work.
Thank you for the ping. Fascinating question.
I don't know how long it'll be the fault of Republicans, but I can tell you this:
Until the Republicans come up with a cohesive plan to lead, and loudly voice a cohesive message of smaller government and less intervention, the childish blaming and name-calling by the Democrats will continue to be effective.
When the GOP embraces true fiscal conservatism, they'll be able to respond to the Democrats. Until then, they look like what they are: confused, mewling, spineless wimps.
We saw this last week when the GOP pours Heaven-knows how much money into Dede Scozzafava's coffers, all the while reassuring "the base" that she was conservative, and that they were the ones who were traitorous.
We saw prominent Republicans loudly whinging about the fact that a lot of conservatives were supporting the conservative in the race (fancy that, eh?).
Today, Dede Scozzafava has endorsed the Democrat and the GOP looks like a bunch of feckless imbeciles. It's easy to blame the guys who are always messing up, and that iss what the Democrats are doing.
As long as the GOP is constantly playing catch-up, is constantly confused, without a plan, and makes huge public mistakes in judgment and strategy, they are the Democrat's Whipping Boys.
So: How long will it last? As long as the Republicans maintain the public perception that they couldn't pour water out of a boot if the instructions were on the heel ( quote has been sanitized for your protection).
I wince whenever Hoover comes up.
The nation gave FDR 4 consecutive terms after Hoover, and FDR used his time to expand the role of the federal government in all directions.
Honestly, everyone who says that they GOP will win because the economy is terrible now must not have history books that go back to the mid-20th century.
In what may be a sign of the apocalypse, I agree 100%.
You’re so right.
I mean look who was running Fannie Mae!
Look who’s job it was to over see Fannie Mae!
Equals: DUH!
RE :”Let us not forget that although it was setup by big spending Repubs and their Dem cohorts, the “Bush” economy didn’t fully go to crap until the Dems took over Congress in 2006. Then Bush helped them along with the socialist TARP economic “solution” he helped push through the willing Dem Congress.”
I didnt want to get bogged down on the details in this specific post but we agree, plenty of blame to go around.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.