FINANCIAL ABYSS

How did we get in such a mess? Look no further than Democrat Barney Frank and his friends. While on the House Banking Committee in the late 1980's and 1990's, congressional democrats began a social 'do-gooder' experiment where they encouraged lenders to reduce their qualification requirements. Mortgage lenders were coerced into giving a certain percentage of their loans to disadvantaged and under qualified recipients. Fannie Mae and Freddie Mac then began buying these mortgages in the secondary market. It was a slippery path.

President Clinton's department of Housing and Urban Development saw what was happening and attempted to impose stricter regulations. Barney Frank and other Democrats thwarted this effort. Clinton now blames such Democrats for planting the seeds of today’s economic crisis. "I think the responsibility that the Democrats have, may rest more in resisting any efforts by Republicans in the Congress or by me when I was president, to put some standards and tighten up a little on Fannie Mae and Freddie Mac," Clinton said recently.

In 2003, the Bush administration foresaw what could happen and attempted to put additional controls on Fannie Mae and Freddie Mac. House Democrats also thwarted this effort. Frank was quoted as saying, "These two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis." He added, "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."

(Now housing has become so affordable that the value of property has fallen up to 20% and there is no money available to buy it. Nice job.)

With all this as his resume, when the Democrats took control of the House of Representatives again in 2007, Frank became chairman of the House Financial Services Committee. Oh yes, vote for more Democrats so that they can continue to engineer a new and better society for us.
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