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LETTER: Bush raised red flags about Fannie and Freddie
South Coast Today ^ | 3/14/08 | Peter D. Friedman

Posted on 03/15/2009 4:23:34 AM PDT by Libloather

LETTER: Bush raised red flags about Fannie and Freddie
March 14, 2009 6:00 AM

Bush raised red flags about Fannie and Freddie

In its editorial, "Protect homeowners: It's job No. 1 for Congress" (March 8), The Standard-Times proclaimed that Rep. Barney Frank has been a victim of unfair criticism and that he was actually among the voices "warning that disaster loomed" at government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. Having an entirely different recollection of the facts, I did a little digging. Here is what I found.

Starting with the 2002 budget request in April 2001, the Bush administration raised red flags about Fannie Mae and Freddie Mac. In 2003, the White House warned that financial problems with the organizations could spread well beyond the housing sector and proposed to Congress that they create a new regulatory agency to supervise Fannie and Freddie.

On Sept. 10, 2003, Rep. Frank objected, stating, "Fannie Mae and Freddie Mac are not in a crisis"¦ The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the treasury, which I do not see. I think we see entities that are fundamentally sound financially"¦ But the more pressure there is, then the less I think we will see in terms of affordable housing."

In 2005, Alan Greenspan stated, "If we fail to strengthen our GSE regulation, we increase the possibility of crisis."

To that end in 2006, Sen. John McCain cosponsored regulations to tighten oversight, stating, "The GSEs need to be reformed without delay." The bill passed the Republican-controlled committee on a party-line vote, with all Democrats voting in opposition. But knowing that they did not have sufficient votes to overcome a Democrat filibuster, the Republicans withdrew the legislation.

If you are unsure which version of the facts to trust — mine or The Standard-Times' — you can see a video of Rep. Frank speaking his own words at http://www.youtube.com/watch?v=cMnSp4qEXNM&NR=1.

Peter D. Friedman
Dartmouth

Editor's note: The Standard-Times said Rep. Frank "warned several years ago that not everyone could afford to own a home and that Fannie Mae and Freddie Mac should encourage more multifamily and apartment houses." We made no mention of his take on the financial well-being of the agencies. At a Financial Services Committee hearing Feb. 18, 2002 regarding the proposed 2003 budget, Rep. Frank said, "I am in favor of trying to help lower income people get the advantages of homeownership"¦ But almost by definition, the large majority of poor people are going to need rental housing. And we will never alleviate the terrible housing crisis that affects so many people in this country if we do not do a much better job of building decent, affordable rental housing."


TOPICS: Crime/Corruption; Editorial; Government; News/Current Events
KEYWORDS: barneyfrank; bush; fannie; fanniemae; frank; freddie; freddiemac; gse; mccain
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1 posted on 03/15/2009 4:23:34 AM PDT by Libloather
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To: Libloather

The note added at the end is interesting—it doesn’t even appear to be related to the letter itself. (My coffee hasn’t kicked in).


2 posted on 03/15/2009 4:27:57 AM PDT by 1rudeboy
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To: Libloather

They meant well. That’s there excuse.


3 posted on 03/15/2009 4:28:31 AM PDT by Darwin Fish (God invented evolution. Man invented religeon.)
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To: Libloather

And thus the problem with the Bush admin. Raising the flag was the first step but he and his admin did not do the next bigger and more important step of demanding reform and using his bully pulpit to expose the fraud. Maybe one day we’ll find out why Bush was so nonchalant about certain things key to conservative ideology and so gung ho about being a big government Rino like his Daddy.


4 posted on 03/15/2009 4:30:15 AM PDT by MAD-AS-HELL (Hope and Change. Rhetoric embraced by the Insane - Obama, The Chump in Charge)
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To: Darwin Fish

Man also invented spell check.


5 posted on 03/15/2009 4:33:58 AM PDT by PeaRidge
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To: Libloather

Well, Barney, in full democrat mode, says opposite things, therefore, covering his butt for all purposes.


6 posted on 03/15/2009 4:41:13 AM PDT by patj
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To: Libloather
This is the paragraph in question in the 3-8-09 SOUTHCOAST TODAY. The newspaper uses a crude literary slight-of-hand to try to trick the reader into thinking Barney Frank tried to warn Congress about the Democrat-run time bombs, Freddie and Fannie:

[This has been no secret for years, although there have been voices warning that disaster loomed. Among them was U.S. Rep. Barney Frank, who has been a target of much unfair criticism as the head of the House Banking Committee. He warned several years ago that not everyone could afford to own a home and that Fannie Mae and Freddie Mac should encourage more multifamily and apartment houses.]

You can read the whole column of bullsh*t at:

http://www.southcoasttoday.com/apps/pbcs.dll/article?AID=/20090308/OPINION/903080321

7 posted on 03/15/2009 4:47:16 AM PDT by Brad from Tennessee ("A politician can't give you anything he hasn't first stolen from you.")
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To: MAD-AS-HELL
And thus the problem with the Bush admin. Raising the flag was the first step but he and his admin did not do the next bigger and more important step of demanding reform and using his bully pulpit to expose the fraud. Maybe one day we’ll find out why Bush was so nonchalant about certain things key to conservative ideology and so gung ho about being a big government Rino like his Daddy.

I think 'big tent' republicanism got so big there were no distinguishing features between republicans and liberals. Liberals knew republican moderates through that seniority system would allowed self interested, get mine while the getting is good individuals filled the GOP leadership positions. Liberals did their part in research and with their MSM 24/7 painted, deservedly so Republicans the image of power, greed, and corruption, knowing full well the majority of Americans would turn these people out come election.

The GOP did not 'regulate' itself and hence we got lord McCained, Foleyized and Cunninghamed right out of the majority. When the opportunity to send Brawny Frank packing back to the land of Mass the GOP went 'compassionate' and covered over his nakedness. And not even a whisper is to be heard from elected Republicans about who knew what and when they knew it when Brawney Frank stuck his pin in his over inflated balloon.

IF Brawney was a Republican we all would know every dime he had collected in his private bank account since the day he was elected.

8 posted on 03/15/2009 4:54:27 AM PDT by Just mythoughts
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To: Libloather

In before the Bush knew so it is his fault post.


9 posted on 03/15/2009 4:55:17 AM PDT by WakeUpAndVote (Fump!)
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To: MAD-AS-HELL
And thus the problem with the Bush admin. Raising the flag was the first step but he and his admin did not do the next bigger and more important step of demanding reform and using his bully pulpit to expose the fraud.

By the time he and the GOP did anything it was too late. In 2002 W was pushing risky home loans just like everybody else.

10 posted on 03/15/2009 4:58:21 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: PeaRidge; Darwin Fish
They meant well. That’s there excuse.

Oh, I didn't know spell check could check for syntax errors. Uh, where's the misspelled word?

11 posted on 03/15/2009 5:06:44 AM PDT by raybbr (It's going to get a lot worse now that the anchor babies are voting!)
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To: MAD-AS-HELL
And thus the problem with the Bush admin. Raising the flag was the first step but he and his admin did not do the next bigger and more important step of demanding reform and using his bully pulpit to expose the fraud.

Exactly. Bush did exactly what what the democrats did vis-a-vis housing. He pushed for expansion of Fannie and Freddie's puchasing of mortgages. He appointed two minority cronies to head HUD with the purpose of being politically correct and expanding ownership among hispanics and "poor".

Bush's legacy will turn out to be one of a president that unlocked and opened the door for the socialist Obama.

12 posted on 03/15/2009 5:15:22 AM PDT by raybbr (It's going to get a lot worse now that the anchor babies are voting!)
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To: MAD-AS-HELL

It’s quite simple, really: congress had him by the short hairs in the U.S. Senate where, even when the GOP had the slim majority, the squishy moderate GOP senators could never be trusted. Why is this fact important? Well, because President Bush needed the Left to continue to authorize the funding for two conflicts in the Middle East. He knew that he had to leave certain things alone because he didn’t have the votes to continue the fight that was neccessary.


13 posted on 03/15/2009 5:17:51 AM PDT by LowCountryJoe (Do class-warfare and disdain of laissez-faire have their places in today's GOP?)
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To: MAD-AS-HELL
"he and his admin did not do the next bigger and more important step of demanding reform and using his bully pulpit to expose the fraud."

That right there is the point. He should have continually screamed those facts from the mountain tops until congress relented from public pressure. Not doing so gave the democrats a reason to "blame Bush" and it was his fault. When dealing with democrats, it has to be in their face type of contact 24/7 as Rush does.

14 posted on 03/15/2009 5:23:01 AM PDT by Old Badger (After this sorry election, boy do opportunities abound!)
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To: patj

“covering his butt” - poor choice of words when discussing Bwarney. LOL


15 posted on 03/15/2009 5:23:40 AM PDT by nobama08
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To: raybbr

there should be their


16 posted on 03/15/2009 5:27:16 AM PDT by dixjea
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To: 1rudeboy
The note added at the end is interesting—it doesn’t even appear to be related to the letter itself. (My coffee hasn’t kicked in).

The Lame Stream Print Media doing the cya for Bawney.

17 posted on 03/15/2009 5:36:57 AM PDT by Road Warrior 04 (I'll miss President Bush greatly! Palin in 2012!)
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To: PeaRidge
PeaRidge, official member of the spelling police, since 11/7/200.
18 posted on 03/15/2009 5:37:18 AM PDT by sausageseller (http://coolblue.typepad.com/the_cool_blue_blog/)
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To: sausageseller
11/7/200.

Is that AD or BC?

19 posted on 03/15/2009 5:40:39 AM PDT by Road Warrior 04 (I'll miss President Bush greatly! Palin in 2012!)
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To: Moonman62
By the time he and the GOP did anything it was too late. In 2002 W was pushing risky home loans just like everybody else.

Thank you. Blaming this on the Democrats when the Republicans had Congress and the White House is rediculous. There were Republicans on those Committees. What were they doing? Sleeping? The Republicans are just as guilty as the Democrats for not dealing with this, which is why they don't take advantage of the Barney and Maxine show.

20 posted on 03/15/2009 6:01:43 AM PDT by nicolezmomma (O is like Chauncey Gardener in "Being There")
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