John Fund: “Partners at the Destruction”
John Fund: “We will look back on THE FAILURE OF CONGRESS TO REFORM THE GOVERNMENT-SPONSORED ENTERPRISES AT THE HEART OF THE MORTGAGE MELTDOWN AS ONE OF THE MOST EXPENSIVE DERELICTIONS OF ITS DUTY EVER. Fannie Mae and Freddie Mac used their LOBBYING CLOUT, POLITICAL CONTRIBUTIONS AND EVEN CHARITABLE LARGESSE to charm or bully anyone demanding reform in their lending practices.”
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“But the administration at least tried to warn Congress that the GSEs should be reined in. Gateway Pundi t notes that President Bush publicly called for GSE reform SEVENTEEN TIMES THIS YEAR before Congress finally passed a bill increasing oversight of Fannie and Freddie — though byi then it was too late.”
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“Rep. Barney Frank, who now vilifies Republican House members for questioning a policy of throwing another $700 billion on the bonfire, insisted to the New York Times during the 2003 accounting scandal: “
Barney Frank: “THESE TWO ENTITIES — FANNIE MAE AND FREDDIE MAC — ARE NOT FACING ANY KIND OF FINANCIAL CRISIS. THE MORE PEOPLE EXAGGERATE THESE PROBLEMS, THE MORE PRESSURE THERE IS ON THESE COMPANIES, THE LESS WE WILL SEE IN TERMS OF AFFORDABLE HOUSING.”
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John Fund: “When the history of this debacle is written, Washington’s failure to supervise and rein in Fannie and Freddie will be seen as the original sin.” — John Fund.