Wednesday, September 24, 2008

The "American Dream" turns into the American Nightmare

It is being reported that the FBI has started an investigation into the failings of Fannie Mae/Freddie Mac/AIG. The investigation is said to be focusing on 26 people in the industry and may include more at a later time. The FBI investigations should include those at the very top of government that helped facilitate this crisis by there inaction.

President Bush proposed in 2003 the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis and was blocked by liberal Democrats on party line votes. Senator McCain partnered with three other Senate Republicans to reform the government’s involvement in lending two years later that was again blocked by Congressional Democrats.

You might be asking yourself 'why would the Democrats block such reform', and the answer would be they had their hand in the proverbial cookie-jar. The government in the 1990's (Clinton Admin) pressured the industry to grant loans to people that could not afford them and created the sub-prime mess. Rep. Barney Frank (D) is one of the leading culprits in the financial 9/11 that we now face. Not only has Frank blocked all attempts to reform Fannie/Freddie, he also stated "I do not regard Fannie Mae and Freddie Mac as problems."

In 2003, after the accounting scandal in Freddie Mac, Barney Frank stated "I do not think we are facing any kind of crisis." Franklin Raines, former Clinton staffer and one time Obama advisor, was ousted as CEO of Fannie Mae after the accounting scandal and after he "earned" close to $100 Million. Former Clinton Dept of Justice official Jamie Gorelick also pocketed $30 million as she served as Vice-Chairman of Fannie Mae and presided over a $10 Billion accounting scandal.

Senator McCain predicted this mess in 2006 when he stated "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 want the FBI to investigate this to it's natural conclusion and I want a 9/11 type of commission to hold hearings to root out all of the guilty. Senator McCain is again showing leadership with the suspension of his campaign to return back to Washington and cross party lines to help fix this mess. The mainstream media will not tell you about the Democrats that are responsible for this crisis, but they will
try to convince you that President Bush and the Republican leadership are at fault.
Thanks to Washington Democrats, the American dream has turned into an American nightmare.

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  1. Burning Down The House: What Caused Our Economic Crisis?

    A must watch video. Pass along...

    There are 2 links here as I've seen this video pulled already from some links.