The Credit Crisis

Isn’t it interesting how, five years ago, President Bush and his administration had recognized the risk inherent in the practices of Fannie Mae, Freddie Mac and others. They recommended an overhaul to tighten oversight with a new regulatory board, and they were blocked by the Democrats. Ed Morrissey at Hot Air has the details.

Yet here we are today, and the Democrats are blaming the Bush administration for this debacle.

Let’s establish the truth. The problem was recognized, but the cure was blocked by Democrats. Just like Democrats are doing their best to make sure nobody drills for oil on American soil or continental shelf.

Draw your own conclusions. But don’t blame Bush for this one.

ADDENDUM: Excerpt from Are We Lumberjacks:
John McCain, from the Congressional Record, May 25, 2006:

For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac–known as Government-sponsored entities or GSEs–and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.

I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.

I urge my colleagues to support swift action on this GSE reform legislation.

Now, that’s interesting. McCain was on the ball 2 1/2 years ago, and before. Read the rest of the article here.


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