Saturday, March 7, 2009

Democrats Halted Crucial Regulations for Fannie and Freddie

Oy vey. This video, via  The Moderate Voice, is probably from around election time, but it never hurts to replay things like this so that certain parties and politicians cannot rewrite history, leaving them blameless for our current economic situation. You all know that the catalyst for basically all of the world's economic problems comes from the housing bust here, right? Watch and see the Democrats' reactions to Republicans' efforts to clean up Fannie and Freddie. Then get sick to your stomach and grab a barf bag when you realize that it's these same Democrats that are tasked with "fixing" the economy and so are in control of TRILLIONS of our dollars, with which they get spend where ever and however they choose. Depressing.


  1. Liberty,

    Hey, don't know if you saw this article yet, but it's unnerving, to say the least.

    Anyway, read it and if you think it has substance and fact behind it, you may want to post it on your blog here. I can't vouch for its factuality, but it seems to be, at the very least, an appropriate question to pose. And that is, would such a scenario be possible? Why does our country seem to be tanking so dramatically so quickly?

    Here's the article:

  2. These two "firms" were destined to fail from the beginning by virtue of the fact that they were GSEs (Government Sponsored Enterprises). I find it funny that much of the press now discusses Fannie Mae and Freddie Mac as if they were just another two private companies. In fact, they were congressionally chartered enterprises with implicit US Government backing on any risk they chose to take on (read: US taxpayer backing). This allowed them to take on much higher-risk debt than any private bank would be allowed to with much lower capitalization requirements. With the "paper profits" piling up on their balance sheets, is it any wonder private banks got in on the action? They were surely forced to by their shareholders! What we are now experiencing is a direct result of this and other government interventions into the free market. Period.


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