Friday, March 21, 2008

Wall Street Journal Wisdom on the Bipartisan Failures to Regulate the Mortgage Market

Dems and Republicans share responsibility equally in the failures:

in hindsight, the failure stretches across government and across party lines. At bottom are two strong currents. From the Republican president to urban Democratic congressmen, homeownership was pushed as an overriding and unquestioned goal. And many significant attempts at regulation were obstructed by the prevailing belief that the economy did best when financial markets operated as freely as possible.

The Bush administration coupled cheerleading for homeownership with pressure on government-sponsored mortgage lenders Fannie Mae and Freddie Mac to provide funding for riskier mortgages. Both Democrats and Republicans stood by as Fannie and Freddie invested heavily in securities backed by subprime loans. Democratic congressmen pushed a federal law to restrain lending practices later discredited, but Republicans with some Democratic allies blocked or countered with weaker versions.

1 comment:

  1. This is the biggest piece of crap I have heard. CSPAN covered this investigation where you can clearly see the Republicans trying to investigate the GSE's and the Democrats blocking the investigation saying that nothing is wrong. Even President Clinton said that he and some Republicans tried to get the Democrats to create more oversight and regulation and they refused. Just get on YOUTUBE and type in GSE Investigation to watch the CSPAN clip. I'm not suprised that anyone has posted on this crap. I guess not many people read it!
    Funny how all the comments must be approved by the blog author!! lol