Have you read this …….
WASHINGTON –said Saturday that current financial rules exploit consumers and he put critics of his proposed overhaul on notice: “While I’m not spoiling for a fight, I’m ready for one.”
Obama used his weekly radio and Internet address to defend his recent proposal, which is intended to prevent a repeat of the breakdown that has sent the U.S. economy reeling. But such major changes face a fight in Congress and opposition from some leaders in the banking and insurance industries.
In the address, Obama focused on a consumer watchdog office that he wants to set up.
“This is essential,” Obama said. “For this crisis may have started on Wall Street. But its impacts have been felt by ordinary Americans who rely on credit cards, home loans and other financial instruments. http://news.yahoo.com/s/ap/20090620/ap_on_go_pr_wh/us_obama_consumers
It is generally agreed that the current financial crisis started in the mortgage industry and the primary entities responsible for the collapse were Fannie Mae and the Federal Reserve. Yes, the same Federal Reserve Obama wants to give more power too.
Do you know how many “Federal Regualtors” were employed to “over see” Fannie Mae in the last deacade? Two hundred, full time regulators. Were they asleep at the wheel? Heck No! They did their jobs and then were ignored by Congress when they reported the misdeeds they uncovered.
The video below is a sample of one group of regulators reporting to Congress on this very issue ……
Franklyn Raines – CEO of Fannie Mae, later entered into a plea deal on charges of cooking the book …..
Note that a question was asked in the video, “why should Congress trust OFEO?” (the Regulatory Agency) who both discovered and alerted Congress to the misdeeds – The real question is can the people trust “politically motivated” Polticians who ignore the Regualtors who are already in place.
What did the Congress suggest – changes in Fannie Mae? Heck No. Listen to Congresswoman Maxine Waters – the Regulators were “to blame” for trying to stop Fannie Mae – yep tose are Rep. Waters word the Regulators were to balme for trying to Fannie from starting this crisis. Presented with evidence of the problem Barney Frank denies a problem existed – listen to his words above and listen to him later try to deny these very same words below …
Take this article, from the Boston Globe, as a uniquely honest example of reporting on the topic ….
‘THE PRIVATE SECTOR got us into this mess. The government has to get us out of it.”
That’s Barney Frank’s story, and he’s sticking to it. As the Massachusetts Democrat has explained it in recent days, the current financial crisis is the spawn of the free market run amok, with the political class guilty only of failing to rein the capitalists in. The Wall Street meltdown was caused by “bad decisions that were made by people in the private sector,” Frank said; the country is in dire straits today “thanks to a conservative philosophy that says the market knows best.” And that philosophy goes “back to Ronald Reagan, when at his inauguration he said, ‘Government is not the answer to our problems; government is the problem.’ “
In fact, that isn’t what Reagan said. His actual words were: “In this present crisis, government is not the solution to our problem; government is the problem.” Were he president today, he would be saying much the same thing.
Because while the mortgage crisis convulsing Wall Street has its share of private-sector culprits — many of whom have been learning lately just how pitiless the private sector’s discipline can be — they weren’t the ones who “got us into this mess.” Barney Frank’s talking points notwithstanding, mortgage lenders didn’t wake up one fine day deciding to junk long-held standards of creditworthiness in order to make ill-advised loans to unqualified borrowers. It would be closer to the truth to say they woke up to find the government twisting their arms and demanding that they do so – or else.
For a history of the Federal Reserves’ active participation and the Feds “active regulatory activity” that started this mess see this article: http://johnrlott.tripod.com/op-eds/FoxNewsMortgagesReg091808.html
The last thing America needs is more regulation from the same people who “regulated” the colapse into being in the first place. Amercia needs to get the Politican out of our wallets and 401ks and let America get back to work. Higher taxes and additional, corrupt regulation, won’t create more jobs. It will mean a weaker economy.
Additional Regulation won’t work if Congress can ignore the Regulators who are already in place …… while they take cash from the regulated ……..
and using their offices to work sweetheart deals (Senator Chris Dodd and Countrywide Bank) with those being regulated ….
Before you respond that Fox News is biased – check out this report from NBC …
Angello Mazillo, CEO of Countrywide has been charged with fraud and insider trading …..
We don’t need more regulations that the crooked Politicians refuse to enforce …. We need fewer crooked Politicians.
Filed under: Banking Crisis, Barack Obama, Countrywide, Fannie Mae, Financial Crisis, Financial Recovery Plan Tagged: | Obama, Obama's Call For Increased Regulation: A prescription for disaster, Obama's Proposed Finacial Regulation