Quote:
Originally Posted by mitchbr47
........OK. Then who gets this going? Reduce regulations, cut taxes, sanction China on Currency, and weaken unions more to cut wages? How does that provide a pent and jelly sandwich for a 7 year old? Or pay the rent? There needs to be a demand for products and services. We need a healthy middle class.
Where are the banks who made out like bandits in the and businesses investing in our country?...........
|
How "compassionate" was it for democrats to push for
anybody--regardless of ability to pay--to buy a home and get a mortgage KNOWING they were unqualified and prone to default on the mortgage??
How "compassionate" was it to let Fannie Mae and Freddie Mac go on as they were, with democrats claiming there was no problem with them?!?!?
New York Times
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By STEPHEN LABATON
Published: September 11, 2003
WASHINGTON, Sept. 10 — The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac , the government-sponsored companies that are the two largest players in the mortgage lending industry.
The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.
The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac — which together have issued more than $1.5 trillion in outstanding debt — is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.........
.......Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.
"These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."
Representative Melvin L. Watt, Democrat of North Carolina, agreed......"
http://www.nytimes.com/2003/09/11/bu...pagewanted=all