[Rhodes22-list] Politics 08 - Welcome to the Republican Socialist Agenda

[Tootle]

Peter:

Here is some information.  You may not believe it because of the source, but
just lay your eyes on it:

White House warned 17 times about problems with Fannie and Freddie
September 22, 2008 - 11:07 ET

For many years the President and his Administration have not only warned of
the systemic consequences of financial turmoil at a housing
government-sponsored enterprise (GSE) but also put forward thoughtful plans
to reduce the risk that either Fannie Mae or Freddie Mac would encounter
such difficulties.  President Bush publicly called for GSE reform 17 times
in 2008 alone before Congress acted.  Unfortunately, these warnings went
unheeded, as the President's repeated attempts to reform the supervision of
these entities were thwarted by the legislative maneuvering of those who
emphatically denied there were problems.  

2001

April: The Administration's FY02 budget declares that the size of Fannie Mae
and Freddie Mac is "a potential problem," because "financial trouble of a
large GSE could cause strong repercussions in financial markets, affecting
Federally insured entities and economic activity."

2002

May: The President calls for the disclosure and corporate governance
principles contained in his 10-point plan for corporate responsibility to
apply to Fannie Mae and Freddie Mac.  (OMB Prompt Letter to OFHEO, 5/29/02) 

2003

January: Freddie Mac announces it has to restate financial results for the
previous three years.  

February: The Office of Federal Housing Enterprise Oversight (OFHEO)
releases a report explaining that "although investors perceive an implicit
Federal guarantee of [GSE] obligations," "the government has provided no
explicit legal backing for them."  As a consequence, unexpected problems at
a GSE could immediately spread into financial sectors beyond the housing
market.  ("Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO,"
OFHEO Report, 2/4/03)  

September: Fannie Mae discloses SEC investigation and acknowledges OFHEO's
review found earnings manipulations. 

September: Treasury Secretary John Snow testifies before the House Financial
Services Committee to recommend that Congress enact "legislation to create a
new Federal agency to regulate and supervise the financial activities of our
housing-related government sponsored enterprises" and set prudent and
appropriate minimum capital adequacy requirements.

October: Fannie Mae discloses $1.2 billion accounting error. 

November:  Council of the Economic Advisers (CEA) Chairman Greg Mankiw
explains that any "legislation to reform GSE regulation should empower the
new regulator with sufficient strength and credibility to reduce systemic
risk."  To reduce the potential for systemic instability, the regulator
would have "broad authority to set both risk-based and minimum capital
standards" and "receivership powers necessary to wind down the affairs of a
troubled GSE."  (N. Gregory Mankiw, Remarks At The Conference Of State Bank
Supervisors State Banking Summit And Leadership, 11/6/03) 

2004

February: The President's FY05 Budget again highlights the risk posed by the
explosive growth of the GSEs and their low levels of required capital, and
called for creation of a new, world-class regulator:  "The Administration
has determined that the safety and soundness regulators of the housing GSEs
lack sufficient power and stature to meet their responsibilities, and
therefore…should be replaced with a new strengthened regulator."  (2005
Budget Analytic Perspectives, pg. 83) 

February: CEA Chairman Mankiw cautions Congress to "not take [the financial
market's] strength for granted."  Again, the call from the Administration
was to reduce this risk by "ensuring that the housing GSEs are overseen by
an effective regulator."  (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And
Freddie's House In Order," Financial Times, 2/24/04) 

June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed
by the GSEs and called for reform, saying "We do not have a world-class
system of supervision of the housing government sponsored enterprises
(GSEs), even though the importance of the housing financial system that the
GSEs serve demands the best in supervision to ensure the long-term vitality
of that system.  Therefore, the Administration has called for a new, first
class, regulatory supervisor for the three housing GSEs:  Fannie Mae,
Freddie Mac, and the Federal Home Loan Banking System."  (Samuel Bodman,
House Financial Services Subcommittee on Oversight and Investigations
Testimony, 6/16/04) 

2005

April: Treasury Secretary John Snow repeats his call for GSE reform, saying
"Events that have transpired since I testified before this Committee in 2003
reinforce concerns over the systemic risks posed by the GSEs and further
highlight the need for real GSE reform to ensure that our housing finance
system remains a strong and vibrant source of funding for expanding
homeownership opportunities in America… Half-measures will only exacerbate
the risks to our financial system."  (Secretary John W. Snow, "Testimony
Before The U.S. House Financial Services Committee," 4/13/05) 

2007

July: Two Bear Stearns hedge funds invested in mortgage securities collapse. 

August: President Bush emphatically calls on Congress to pass a reform
package for Fannie Mae and Freddie Mac, saying "first things first when it
comes to those two institutions.  Congress needs to get them reformed, get
them streamlined, get them focused, and then I will consider other options." 
(President George W. Bush, Press Conference, The White House, 8/9/07)

September: RealtyTrac announces foreclosure filings up 243,000 in August –
up 115 percent from the year before.  

September: Single-family existing home sales decreases 7.5 percent from the
previous month – the lowest level in nine years.  Median sale price of
existing homes fell six percent from the year before. 

December: President Bush again warns Congress of the need to pass
legislation reforming GSEs, saying "These institutions provide liquidity in
the mortgage market that benefits millions of homeowners, and it is vital
they operate safely and operate soundly. So I've called on Congress to pass
legislation that strengthens independent regulation of the GSEs – and
ensures they focus on their important housing mission.  The GSE reform bill
passed by the House earlier this year is a good start.  But the Senate has
not acted.  And the United States Senate needs to pass this legislation
soon."  (President George W. Bush, Discusses Housing, The White House,
12/6/07) 

2008

January: Bank of America announces it will buy Countrywide.

January: Citigroup announces mortgage portfolio lost $18.1 billion in value. 

February: Assistant Secretary David Nason reiterates the urgency of reforms,
says "A new regulatory structure for the housing GSEs is essential if these
entities are to continue to perform their public mission successfully." 
(David Nason, Testimony On Reforming GSE Regulation, Senate Committee On
Banking, Housing And Urban Affairs, 2/7/08) 

March: Bear Stearns announces it will sell itself to JPMorgan Chase.  

March: President Bush calls on Congress to take action and "move forward
with reforms on Fannie Mae and Freddie Mac. They need to continue to
modernize the FHA, as well as allow State housing agencies to issue tax-free
bonds to homeowners to refinance their mortgages."  (President George W.
Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08) 

April: President Bush urges Congress to pass the much needed legislation and
"modernize Fannie Mae and Freddie Mac. [There are] constructive things
Congress can do that will encourage the housing market to correct quickly by
… helping people stay in their homes."  (President George W. Bush, Meeting
With Cabinet, the White House, 4/14/08) 

May: President Bush issues several pleas to Congress to pass legislation
reforming Fannie Mae and Freddie Mac before the situation deteriorates
further.  

"Americans are concerned about making their mortgage payments and keeping
their homes. Yet Congress has failed to pass legislation I have repeatedly
requested to modernize the Federal Housing Administration that will help
more families stay in their homes, reform Fannie Mae and Freddie Mac to
ensure they focus on their housing mission, and allow State housing agencies
to issue tax-free bonds to refinance sub-prime loans."   (President George
W. Bush, Radio Address, 5/3/08) 
"[T]he government ought to be helping creditworthy people stay in their
homes. And one way we can do that – and Congress is making progress on this
– is the reform of Fannie Mae and Freddie Mac. That reform will come with a
strong, independent regulator."  (President George W. Bush, Meeting With The
Secretary Of The Treasury, the White House, 5/19/08) 
Congress needs to pass legislation to modernize the Federal Housing
Administration, reform Fannie Mae and Freddie Mac to ensure they focus on
their housing mission, and allow State housing agencies to issue tax-free
bonds to refinance subprime loans."  (President George W. Bush, Radio
Address, 5/31/08) 
June: As foreclosure rates continued to rise in the first quarter, the
President once again asks Congress to take the necessary measures to address
this challenge, saying "we need to pass legislation to reform Fannie Mae and
Freddie Mac."  (President George W. Bush, Remarks At Swearing In Ceremony
For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)

July: Congress heeds the President's call for action and passes reform of
Fannie Mae and Freddie Mac as it becomes clear that the institutions are
failing.

(White House Press Release)


petelargo wrote:
> 
> Don't worry, I won't be voting for McBush and Bush-with-Lipstick. I wish I
> could just say that your party has lost it's way, but it's more like it
> fell into a hole and died there. We will all be dealing and paying for the
> stink.
> 
> No thanks. Fool me once.......
> 
> 
> 
> hparsons wrote:
>> 
>> Pete,
>> 
>> Surely you're not trying to say that John McCain "admitted" that the 
>> Bush administration has increased the "erosion of civil liberties mor 
>> than any other in history"?
>> 
>> I suggest that's a Pete Largo insertion.
>> 
>> And, I further suggest it shows your ignorance of history. The "abuses" 
>> by President Abraham Lincoln would make George W Bush look like a
>> liberal.
>> 
>> But, even if it were true, I'd make a suggestion to you.
>> 
>> Don't vote for Bush this time around.
>> 
>> petelargo wrote:
>>> On 60 minutes last night, John McCain admitted that the George Bush
>>> Presidency has increased the federal government more than any other
>>> administration in history.  Of course the same goes for the federal
>>> deficit,
>>> more than any other administration in history and erosion of civil
>>> liberties, more than any other in history.  This so-called conservatism
>>> of
>>> privatizing the profits and socializing the losses is disgusting. You
>>> call
>>> yourselves conservatives?! What a joke. No party has done more to shove
>>> a
>>> socialist agenda up our arses than you who support this 'brand' of
>>> republicanism.   
>>>
>>> Is Brad still handing out those $100 dollar bills? 
>>>   
>> __________________________________________________
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>> 
>> 
> 
> 

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