Skip to comments.VIDEO: Timeline shows Bush, McCain warning Dems of financial and housing crisis; meltdown
Posted on 09/28/2010 2:17:46 PM PDT by Nachum
The Bush Admin and Senator McCain warned repeatedly about Fanny Mae and Freddy Mac and what thus became the 2008 financial crisis -- starting in 2002 (and actually even earlier -- in the Clinton and Carter White Houses. Democrats resisted and kept to their party line, extending loans to people who couldn't afford them -- just like you would expect of socialists.
(Excerpt) Read more at youtube.com ...
This video has been around for a long time. Too bad the GOP and RNC don’t use it.
Show it in Bwannies’ district 24/7.
The dems have been wrong on pretty much every issue. They are worse than the business types who can only understand reaction reflexes if technology is involved.
While Bush may have been decrying F and F in 2006 HUD increased the percentage of loans they would buy.
I wish people would learn the truth. Bush and his admin were just as much a part of this as anyone else.
Thanks for posting it
it needs to be shown over and over
As angry as I get that the Bush and company didn’t try harder I understand how they would have been taken down by Dems and media if they had tried harder. If we think we get called racist now think how loud the calls would have been.
mean ol GOP denying poor black folk houses
Now though we need to keep this spinning around the Net
remind people who really caused the crisis
“During the 2004 election Bush INCREASED the buying percentage of F and F from 50% to 54%. “
Do you have a source for that?
I am not saying it didn’t happen, I am asking to learn more.
From what I understand, Bush set the increase as a goal, but not as a mandate. He did come out against the reckless way F&F were going about it.
It is too bad, since the MSM seems to have no memory of it. It would be nice as well to have clips of the Democrats as “the party of NO” for years—especially during 2004—2008
Isn’t asking for an increase in mortgages F&F underwrite quite differnt than asking for more regulation and you can have both, underwriting more loans BUT making sure the loans are not shaky
Did Bush say, ok increase it to 54% on risky loans?
It seems like they are apples and oranges
That June Post story focused its critical reassessment of HUD's affordable-housing goals on the department's 2004 decisionduring the Bush re-election campaignto juice them up again, pushing the target to 56 percent by 2007. Though the story never mentioned Cuomowhose three-year, eight-point goal hike exceeded Bush's more gradual six-point increaseit did quote his top aide William Apgar, who helped craft the 2000 policy, saying: "It was a mistake." Apgar, who now teaches at Harvard, conceded, "In hindsight, I would have done it differently."
It's a long article that lays the blame on Cuomo and partly on Bush.
The whole housing mess is on the federal govt shoulders from start to finish.
Attempts by President Bush to reform Freddie Mae and Freddie Mac since he took office in 2001.
Unfortunately, Congress did not act on the presidents warnings:
April: The Administrations 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.
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)
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 OFHEOs 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)
February: The Presidents 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 Freddies 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)
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)
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 Ive 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)
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 Presidents call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.
I saw “goal”, but not “mandate”. I saw nothing to mandate that F&F go about it in the reckless way they did.
thanks for that
the question is would raising the per centage mean you couldn’t also regulate F&f?
In other words just raising the amount they underwrote isn’t saying, give out more shaky loans.
Of course the Feds are to blame
and it was chickenshit of the GOP to not want the give Dems the race card to use
I don't ever recall seeing those goals written as a mandate. Go to this thread and watch linked video. A good explanation.
If what you say is true then Cuomo cannot be blamed either. After all, it was just a "goal". Also, Bawney could use the same excuse.
Nope, because he and the Dems ran interference for F&F's reckless ways against the GOP.
Sure, but the goal was to increase the purchase of shaky loans.
(from the article: "Cuomo's predecessor, Henry Cisneros, did that for the first time in December 1995, taking a cautious approach and moving the GSEs toward a requirement that 42 percent of their mortgages serve low- and moderate-income families. Cuomo raised that number to 50 percent and dramatically hiked GSE mandates to buy mortgages in underserved neighborhoods and for the "very-low-income." "
Those were the same goals that Bush increased.
If you really want some good info on this go to "Ol' Dan Tucker's" page to see his links and info.
It's a real eye opener.
marked for later