I would think that most ot the readers of this blog would be aware that it was Democrat policies that were the catalyst for the financial meltdown in the US. The left tried hard to paint it as a banking regulatory failure, but the only people who brought that hopeless line were the gullible dupes who still watch read or listen to the left’s propaganda agents in the mainstream media. In fact it was poor management of The Federal National Mortgage Association, nicknamed Fannie Mae, and the Federal Home Mortgage Corporation, nicknamed Freddie Mac, by Democrat appointed staff that tipped the US into depression.
The two companies, that have their origins in President Hoover’s New Deal, are privately owned and operated by shareholders, but they are protected financially by the support of the Federal Government. These government protections include access to a line of credit through the U.S. Treasury, exemption from state and local income taxes and exemption from Securities and Exchange Commission oversight. Fannie and Freddie collapsed in 2008 because of unsustainable lending mandated by Democrat policy. Some estimates say the final cost to the taxpayer of the collapse will be more than $1 trillion.
Ann Coulter has written a great column calling for the managers of the two lenders, Franklin Raines and Jamie Gorelick, and the cronyist Democrat politicians who helped them in their fraud to be prosecuted. She’s right, and now that the Republicans control the house, they can do it.
As Peter Schweizer points out in his magnificent book “Architects of Ruin,” which everyone should read, Enron’s accounting fraud was a paltry $567 million — and it didn’t bring down the entire financial system. Those involved in the Enron manipulations went to prison. Raines and Gorelick not only didn’t go to jail, they walked away with multimillion-dollar payouts, courtesy of the taxpayer.
While they were cooking the books, Raines and Gorelick paid themselves huge multi-million dollar bonuses based on fudged performance figures. Ann wants these bonuses paid back too.
Its a great column. You can read it here. Its worth reading purely on the basis of providing an accurate summary of the real reasons for the financial collapse. An antidote to the worthless propaganda you might have read in the Democrat loving NZ mainstream media.