My beloved Washington Times had a pretty good story today about Alan Greenspan testifying to Congress about what really caused the crash of the housing market (See: Greenspan Deflects Blame for Crisis). It terrifies me that the people who caused this crisis are now in charge. They are going to beat up a succession of business leaders, but government created the circumstances, framed the laws, and made the regulations for the environment that cratered the economy.
As we continue to watch the inmates run the asylum, I continue to be reminded that there were plenty of calls for changes throughout 2003, 2004, and 2005 to prevent the train wreck of the economy. What we should remember is that the first high flying mortgage entities to impact the ground were Fannie Mae and Freddie Mac – both Government Sponsored Enterprises.
One guy in particular stood up to the Democrats to try and sound the alarm. The government regulator of Fannie Mae and Freddie Mac – Armando Falcon - was eviscerated by angry Democrats. Watch the nitwits attack him on Sweetness & Light.
Democrats want to tell us that Republican efforts to free the financial industry from needless regulation were to blame – that’s a lie and they know it. Republicans were trying to force Fannie Mae and Freddie Mac to increase reserves and cool the red hot housing market as early as 2003. The Democrat minority frustrated them then and the Democrat majority killed any chance of meaningful reform starting in 2006. We have to get rid of these guys.
Conservative Resistance – Day 520
Days until we can get rid of these guys - 208