Tuesday, February 24, 2009
The economic crisis Barack Obama "inherited"
Five years ago, Republicans proposed "the most significant regulatory overhaul in the housing finance industry [in a decade]." (Source: New York Times)
Democrats on the House Financial Services Committee blocked efforts at fixing Fannie and Freddie. Rep. Barney Frank (D-MA) said, "Fannie Mae and Freddie Mac... are not facing any kind of financial crisis,"
At least 18 times since 2001 Democrats blocked efforts at overhauling Fannie and Freddie even as accounting scandals and executive ripoffs became public.
Why? For starters, the top two recipients of Fannie and Freddie campaign donations were Democrat fatcats Chris Dodd ($165K) and Barack Obama ($126K) (Source: Open Secrets)
And Fannie Mae paid well. Clinton-era Democrats, serving as the CEO, CFO and Vice Chairman, paid themselves $200 million in only six years even while a $10 billion accounting scandal was exposed. (Source: Wall Street Journal)
And Democrats like Chris Dodd also got favorable loans under a "VIP program." Dodd alone saved over $75,000 on his mortgage payments. (Source: Conde Nast Portfolio)
So where are former Fannie Mae CEOs like Franklin Raines ($90 million in salary) and Jim Johnson ($21 million in salary in one year)? As you might expect, they've served as Barack Obama's key economic advisers. (Source: Washington Post)
With a track record like that, it should have been easy to predict the spectacular economic success of the Democratic Congress and the Obama administration.