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Repeal of Glass-Steagall not to blame for crisis
Date published: 10/9/2008 Repeal of Glass-Steagall not to blame for crisis Gary Olsen's Oct. 1 letter about the Glass-Steagall Act requires a response to set the record straight ["Repeal of Glass-Steagall Act is what fueled the crisis"]. Glass-Steagall is the latest Barack Obama campaign talking point to misdirect the blame for the current financial crisis toward Phil Gramm, a McCain campaign adviser. This is a red herring. Repeal of Glass-Steagall wasn't a classic act of deregulation, as the Democrats like to describe it. It sailed through the Senate on a 90-8 vote, which included "yes" votes by such notable Democrats as John Kerry, Chris Dodd, John Edwards, and Joe Biden. Bill Clinton, far from being "heavily influenced," as Mr. Olsen puts it, by then-Treasury Secretary Bob Rubin, said in a recent interview on this matter: "I have really thought about this a lot. I don't see that signing that bill had anything to do with the current crisis." The current mess has nothing to do with Glass-Steagall and everything to do with Fannie Mae and Freddie Mac promoting loans to unqualified buyers and repackaging them as securities that they then sold to investment banks. When the Clinton and Bush administrations tried on multiple occasions to reform and more closely regulate Fannie and Freddie, they were blocked at every turn According to the Center for Responsive Politics, the top five recipients of campaign contributions from Fannie Mae and Freddie Mac employees and PACs are Democrats, and Barack Obama managed to rank third on It's in Obama's best interest to direct accusing fingers elsewhere. Eric Hennessey Spotsylvania
Date published: 10/9/2008
And if look even further than that, you'll find
(posted by
Progressive
, Oct. 9, 2008 3:17 pm)
George W. Bush in 2002 saying in one of his now-infamous 'Ownership Society' speeches: "If a down payment is a problem, there's a way we can address that. And when Congress funds the program, this should help 200,000 new families over the next five years become first-time home buyers... If you put your mind to it, the first-time home buyer, the low-income home buyer can have just as nice a house as anybody else." In other words, let's use federal money to help people buy houses they can't afford.
Look past Glass-Steagall even further
(posted by
stormwatcher
, Oct. 9, 2008 12:51 pm)
Why were banks forced to give loans to the bottom of the financial crop? How about Jimmy Carters Neighborhood reinvestment act which forced lenders to give these bad loans out to "unqualified" borrowers to which if they didn't give a certain percentage out were penalized by the gov. and other intrest groups, and then their buddies i.e. Fannie and Freddy took these junk loans and sold them to the private sector ans an investment. Oh yeah there's plenty to go around, no wonder Obama stays quiet--> $$$
Larryg
(posted by
AtackDuck
, Oct. 9, 2008 11:42 am)
sources, please? Just to back up your portrayal of the Dems as angelic and the Repubs as satanic. Just how did the Obamesiah get to be #2 on the largesse list of Fannie Mae?
the truth
(posted by
larryg
, Oct. 9, 2008 5:45 am)
The Dems wanted to stop redlinning - the practice of
mortgages being denied to QUALIFIED folks who lived in
areas that the mortgage companies did want to lend in.
The Republicans and Corporate guys saw this as a good
excuse to sell predatory loans to unqualified people.
these homes were not modest, affordable homes but rather
500K upscale homes that they did not have 20% down on
and who planned to "flip" the house in the hot real estate
market. Loans for second homes, RVs, time-share condos,
etc.
thanks
(posted by
sixfeetunder
, Oct. 9, 2008 5:30 am)
for sharing the truth. obama supporters, do some research.
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