You might not know this if you don’t go outside the mainstream media for your news, but guess who is really responsible for the Fannie Mae/Freddie Mac mess that started this whole economic breakdown?
The media would have you believe that it is the Bush administration’s fault, but that is false. In fact, it was Bush who attempted, in 2003, to warn Congress about the situation and call for oversight and changes in the way these companies operated.
You see, they were giving so many loans to people who had bad credit that the administration feared a meltdown could occur. Why were these companies giving all these loans? They were pushed into it by the Clinton administration back in the 1990s. Former Clinton officials then took over the reins of these companies, the most conspicuous being Franklin Raines and Jim Johnson.
When Bush tried to regulate them, his primary opponent in this attempt was Rep. Barney Frank, who famously stated,
These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.
This is the same Barney Frank who now blames the Republicans for lack of oversight.
Here are some interesting statistics: The top three recipients of campaign contributions from Fannie Mae and Freddie Mac over the past ten years are Chris Dodd, current chairman of the Senate Banking Committee; Barack Obama; and John Kerry. Dodd, along with Frank, are now positioning themselves as the saviors of the American economy, frustrated by Republicans who voted against the bailout.
Note that Obama is the second highest recipient of contributions over the past ten years, even though he has been in the Senate only since 2005. That, by itself, is remarkable. Oh, by the way, both Raines and Johnson have been advisors for the Obama campaign.
I don’t want to come off here as the typical political commentator who vents. Yet I believe it is essential to make these facts known. Biblical integrity requires that we speak the truth, and truth is what our country needs desperately at this moment.