In complete honesty, this is a joyous occasion for African Americans and the Obamas. For African Americans to come this far and be able to hold the highest office in the land is great. I really wish it would have been a different African American though, but this is who the American people have chosen and I respect that. Barack Obama has the most liberal voting record of any other President, but it did not seem to matter, maybe because he ran on a centrist platform. As the Commander-in-Chief, I wish him the best of luck, and Congratulate him.
Obama's election reinforces what us Conservatives have been saying for some time about this country. ANYONE who puts their mind, soul, and hard work into accomplishing something in this country, can. People from all backgrounds, all races, and all economic situations can rise up and become anything they put their mind to. For some this mentality was just rhetoric. I hope that the election of the First African American President makes them aware that this is not just rhetoric, but a reality of life in this great country.
Do I fear what Obama and the Democrats might legislate and do in the next 2-4 years? I do, but I have faith that the American People will, through the election process, correct the problems that we might encounter. I do not believe that this is a far-left liberal country. I am a bit disturbed by the reelection of John Murtha though after all of what he said about his constituents.
So what do we conservatives do now? Michelle Malkin has a great post on that. And she states it so well, "We do not apologize for our beliefs. We do not re-brand them, re-form them, or relinquish them. We defend them." I believe part of the problem is that, we as conservatives, in the past 4 years have tried to appease people and apologize for our beliefs. There is no reason for us conservatives to ever stand down from our moral beliefs and values.
This is not me being gracious at defeat. I do appreciate the fact that an African American was elected, but that is where it stops. My values and morals will not be changed due to this, my conservative nature, and my opinion of which direction this country should go will still remain the same. There is a part of me that sees this as an opportunity for the true conservatives to reinforce our beliefs and filter out the liberals and pushovers that claim to share our ideals. There were many so called conservatives and Republicans who voted for Obama, I can only imagine because of his speaking ability. There is not an ounce of bipartisanship or conservatism in Obama's policies and stances, and any person who begs to differ must first remove the blinders and see him for what he really is, a far left radical, who can possibly run this country into a place it should not be. Begin countdown to voter's remorse...
Showing posts with label democrats. Show all posts
Showing posts with label democrats. Show all posts
Wednesday, November 5, 2008
Tuesday, November 4, 2008
Midday Moments...
Black Panthers are intimidating voters in Philadelphia. One is quoted as saying "A black man is going to get elected no matter what."
Also, Democrat Jim Moran stated that "we have been guided by a Republican Administration who believes in the simplistic notion that people who have wealth are entitled to keep it." What else are they to do with the money THEY WORK FOR? If this is not Communism/Socialism, I do not know what is. This is where this country is headed.
Also, Democrat Jim Moran stated that "we have been guided by a Republican Administration who believes in the simplistic notion that people who have wealth are entitled to keep it." What else are they to do with the money THEY WORK FOR? If this is not Communism/Socialism, I do not know what is. This is where this country is headed.
Tuesday, October 28, 2008
Democrat Control...
The Democrats are dying to control everything and have the filibuster proof 60 seats. Nancy Pelosi had the gall to say "Elect us, hold us accountable, and make a judgment and then go from there. But I do tell you that if the Democrats win and have substantial majorities, Congress of the United States will be more bipartisan." Seriously, seriously, more bipartisan? This coming from the "Do as I say not as I do" party? This from the party who does not respect your ideals, or morals, does not respect the Constitution, or your religious beliefs, or gun rights, yet expects you to be compassionate and understanding of their beliefs? This "Compassionate Party" who feels it is their right to murder unborn babies, or those partially born? The same ones who believes that you have the right of freedom of speech, that is unless you are saying that does not agree with their beliefs. Seriously, more bipartisan. I'll take a pass.
Wednesday, October 22, 2008
A Great Article by a Democrat...
This article is a great read, it is written by a Democrat with journalistic integrity as an open letter to all journalists. Orson Scott Card sees the truth. http://www.ldsmag.com/ideas/081017light.html
Thursday, October 2, 2008
The Housing Bill Passed which was approved by the Senate
With two candidates, one for so called "Change," and the other a supposed Maverick, I expected to see at least one them come out against this bill, but they both voted for it. It would have been a great time for McCain to have stepped up and said "This bill does not do anything for the American People, and quite honestly might not even fix the economy." Nobody is sure, but the free market COULD HAVE corrected itself, and if the House passes the bill, then I guess we will never know. Companies that still have Capital are acquiring other companies and growing, so the economy as a whole has not stopped, and nor will it. McCain has spoken out against earmarks and pork barrel spending, and Obama loved those two things until he announced he was running for President. In a way, Obama lives up to his, well, ears, when it comes to earmarks.
I skimmed through the entire 451 Bailout plan, which from my understanding started off at 3 pages some time last week. This bill will pretty much make the U.S. the biggest landlord in the world. The bill itself mentions that the Federal Government will, hold, control or own the mortgages. If they own the mortgage, then they pretty much own the house until it is paid off, this is scary. Within the contents of the bill were, some items which I honestly am not quite sure how they would help the economy. I have listed these interesting bits below:
-The FDIC Insurance does go up, this helps out the people more psychologically than anything else, but only through 12/31/2009. I thought the whole reason for the increase was to account for inflation since the coverage has been $100K since the 1970's.
-There are tons of Energy Tax Credits, but really nothing about drilling or our energy Independence, so it is just a waste of time and pages.
-They extended the FUTA Surtax for two years, this is a surtax that costs employers roughly $14 per year, per employee. Aren't we trying to create jobs here? (Sec. 404)
-The "Oil Spill Liability Trust Fund Tax" was increased, don't we have a "energy crisis?" They raised the tax by 3 cents per barrel through 2016, and 4 cents after that. I mean it is only pennies, but doesn't every penny count? (Sec. 405)
-The extended an Economic Development Credit for American Samoa. I don't even know what to say. (Sec. 309)
-They extended the tax credit for mine rescue team training and the election to expense advanced mine safety equipment. I am all for safety, but why is this inserted into this bill? (Sec. 310 &311)
-There is a section on railroad track maintenance which is not too specific, but again I have no idea why this is in this bill. (Sec. 316)
Now it starts to get interesting:
-Seven year cost recovery period for motorsports racing track facility. Seriously? Someone decided they had to appeal to their Nascar fan constituents? (Sec. 317)
-(By far my favorite) Extension and Modification of Duty Suspension on Wool Products, and Wool Duty Refunds. This also helps the Wool Research Trust Fund. This one is priceless. I was not aware that wool products and their research had a trust fund. Everyone run and get your wool sweaters, now Duty Free! (Sec. 325)
-I wonder which party put this in the bill? (Please note the sarcasm) They have tax deductions for film and television productions. I did not know that liberal hollywood and the media was hurting. (Sec. 502)
-Another good one. There is an excise tax exemption, and this is how it is worded, "for certain wooden arrows designed for use by children." This applies to the shaft only, and they cannot be larger than 5/16 of inch in diameter. (Sec. 503)
-There is also a section regarding taxpayers who receive qualified settlements from the Exxon Valdez oil spill. It states that when they pay taxes, the income source "shall be treated as engaged in a fishing business." (Sec. 504)
-There are 57 pages on Natural Disaster Relief and funding for Special Projects on Federal Land, which honestly I did not read because, again it was 451 pages.
-The last item I noticed bothered me, it was 34 pages, these 34 pages were titled the "Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008." I see the importance of a bill like this (Relating more to the mental health than to the addiction aspect of it). According to this insertion into the bailout plan, health care insurances must treat mental health and addictions equal to regular medical care. They cannot make payments higher and cannot offer stricter treatment limitations than to ordinary medical coverage. This does not belong in this bill, this is something that they knew would not be passed on it's own, therefore they shoved it into the bailout. So health care costs will now rise, because of addicts, that is how I see it.
We were in such "dire need" to pass this bill quickly otherwise we would go into a depression, this according to Congress and the President. Well they have taken a week longer than expected and nothing, we are still here. The bill passed the Senate, and the Dow is still down close to 300 points. Both Republicans and Democrats are wrong on passing this bill, and the pork shoved into it goes to show you, that maybe these are the wrong people to oversee and control the economy. These are the same people who got us into this mess. Chris Dodd and Barnie Frank are front and center on this bailout, yet they were the two leading the economy on this downward spiral. How can we expect THEM to fix this?
Update: I guess I missed one earlier, there is also a tax brake for people who ride their bicycles to work.
I skimmed through the entire 451 Bailout plan, which from my understanding started off at 3 pages some time last week. This bill will pretty much make the U.S. the biggest landlord in the world. The bill itself mentions that the Federal Government will, hold, control or own the mortgages. If they own the mortgage, then they pretty much own the house until it is paid off, this is scary. Within the contents of the bill were, some items which I honestly am not quite sure how they would help the economy. I have listed these interesting bits below:
-The FDIC Insurance does go up, this helps out the people more psychologically than anything else, but only through 12/31/2009. I thought the whole reason for the increase was to account for inflation since the coverage has been $100K since the 1970's.
-There are tons of Energy Tax Credits, but really nothing about drilling or our energy Independence, so it is just a waste of time and pages.
-They extended the FUTA Surtax for two years, this is a surtax that costs employers roughly $14 per year, per employee. Aren't we trying to create jobs here? (Sec. 404)
-The "Oil Spill Liability Trust Fund Tax" was increased, don't we have a "energy crisis?" They raised the tax by 3 cents per barrel through 2016, and 4 cents after that. I mean it is only pennies, but doesn't every penny count? (Sec. 405)
-The extended an Economic Development Credit for American Samoa. I don't even know what to say. (Sec. 309)
-They extended the tax credit for mine rescue team training and the election to expense advanced mine safety equipment. I am all for safety, but why is this inserted into this bill? (Sec. 310 &311)
-There is a section on railroad track maintenance which is not too specific, but again I have no idea why this is in this bill. (Sec. 316)
Now it starts to get interesting:
-Seven year cost recovery period for motorsports racing track facility. Seriously? Someone decided they had to appeal to their Nascar fan constituents? (Sec. 317)
-(By far my favorite) Extension and Modification of Duty Suspension on Wool Products, and Wool Duty Refunds. This also helps the Wool Research Trust Fund. This one is priceless. I was not aware that wool products and their research had a trust fund. Everyone run and get your wool sweaters, now Duty Free! (Sec. 325)
-I wonder which party put this in the bill? (Please note the sarcasm) They have tax deductions for film and television productions. I did not know that liberal hollywood and the media was hurting. (Sec. 502)
-Another good one. There is an excise tax exemption, and this is how it is worded, "for certain wooden arrows designed for use by children." This applies to the shaft only, and they cannot be larger than 5/16 of inch in diameter. (Sec. 503)
-There is also a section regarding taxpayers who receive qualified settlements from the Exxon Valdez oil spill. It states that when they pay taxes, the income source "shall be treated as engaged in a fishing business." (Sec. 504)
-There are 57 pages on Natural Disaster Relief and funding for Special Projects on Federal Land, which honestly I did not read because, again it was 451 pages.
-The last item I noticed bothered me, it was 34 pages, these 34 pages were titled the "Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008." I see the importance of a bill like this (Relating more to the mental health than to the addiction aspect of it). According to this insertion into the bailout plan, health care insurances must treat mental health and addictions equal to regular medical care. They cannot make payments higher and cannot offer stricter treatment limitations than to ordinary medical coverage. This does not belong in this bill, this is something that they knew would not be passed on it's own, therefore they shoved it into the bailout. So health care costs will now rise, because of addicts, that is how I see it.
We were in such "dire need" to pass this bill quickly otherwise we would go into a depression, this according to Congress and the President. Well they have taken a week longer than expected and nothing, we are still here. The bill passed the Senate, and the Dow is still down close to 300 points. Both Republicans and Democrats are wrong on passing this bill, and the pork shoved into it goes to show you, that maybe these are the wrong people to oversee and control the economy. These are the same people who got us into this mess. Chris Dodd and Barnie Frank are front and center on this bailout, yet they were the two leading the economy on this downward spiral. How can we expect THEM to fix this?
Update: I guess I missed one earlier, there is also a tax brake for people who ride their bicycles to work.
Tuesday, September 30, 2008
The Rescue Package (Bailout)
Other than the blogs that I have published with who is to blame, and the videos on who is to blame, I have not really put my opinion out on this rescue package. I have heard countless so called "experts" say that it is needed, some say that it is not, I have heard some economists come out and say that it is needed, but we still might go into a recession, and others saying that we will be fine without it. So where could one stand on this, when in reality nobody has a clue if it will work or not? I have taken a few days to really think about this, and how we got here, and that is how I arrived at my decision.
I do not know of any large scale government program that has succeeded. It seems that the larger Washington is, and the more power they have, the more things get screwed up. Just look at Fannie and Freddie, Social Security, Welfare, Medicare and Medicaid, all of them pretty much bankrupt. The IRS was set up as a temporary organization, well it is still here. Why is the IRS still here? Because when the People simply give government the authority to have broader powers, even if only temporarily, they will never relinquish it. Roosevelt's New Deal, was a huge waste of money, and although some attribute us getting out of the Depression Era because of it, it was really World War II that got us out.
The market lost $777 yesterday, the biggest single day dollar amount loss, but it was the 17Th overall percentage loss (more importantly). Today the market has rebounded, and private citizens and enterprises are acquiring stock and companies at a bargain. The free market kind of corrects itself, without the real need for government intervention. The Treasury has already put so much money into the market, and banking institutions, is an additional trillion really necessary?
One thing that bugs me, if this was this big crisis that needed to be passed immediately, then how was Congress able to take 2 days off? It is all a matter of politics. Proof of it lies in the fact, as previously mentioned, that Pelosi told Democrats up for reelection that they did not have to vote in favor of the bill. She knows that the People do not want this. It is all political and the reason why Congress has a 9% approval rating.
I do not know of any large scale government program that has succeeded. It seems that the larger Washington is, and the more power they have, the more things get screwed up. Just look at Fannie and Freddie, Social Security, Welfare, Medicare and Medicaid, all of them pretty much bankrupt. The IRS was set up as a temporary organization, well it is still here. Why is the IRS still here? Because when the People simply give government the authority to have broader powers, even if only temporarily, they will never relinquish it. Roosevelt's New Deal, was a huge waste of money, and although some attribute us getting out of the Depression Era because of it, it was really World War II that got us out.
The market lost $777 yesterday, the biggest single day dollar amount loss, but it was the 17Th overall percentage loss (more importantly). Today the market has rebounded, and private citizens and enterprises are acquiring stock and companies at a bargain. The free market kind of corrects itself, without the real need for government intervention. The Treasury has already put so much money into the market, and banking institutions, is an additional trillion really necessary?
One thing that bugs me, if this was this big crisis that needed to be passed immediately, then how was Congress able to take 2 days off? It is all a matter of politics. Proof of it lies in the fact, as previously mentioned, that Pelosi told Democrats up for reelection that they did not have to vote in favor of the bill. She knows that the People do not want this. It is all political and the reason why Congress has a 9% approval rating.
Tuesday, September 23, 2008
Fannie and Freddie
As I have spoken about in my previous posts, I do believe that the Democrats had a big hand in what occurred with Fannie Mae and Freddie Mac. I would be ignorant to say that the Republicans had no part in it, which I believe that they did, just not to the degree of the Democrats. If the Democrats would be so sure that they had no part in this, they would, as they always do, launch countless investigations and Congressional hearings. They have not done so simply because they do not want to air their dirty laundry. McCain has been blamed, even though he tried to pass a bill in 2006 to correct these issues, and all the while Obama has just sat back and collected money from Fannie and Freddie. What really gets to me, what really bothers me is that the liberals are doing what they have done for the last 8 years, blame Bush. Never mind the fact that Clinton signed the laws into action that created this mess, but to blame Bush, now that is ridiculous. President Bush has tried 17 times over the last eight years to correct this issue, but the Democrats in Congress refused to pass any of them. Why? Because they were to busy fattening their pockets.
Here is a list of the times that President Bush tried to prevent what happened with Freddie and Fannie:
2001
April: The Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity."
2002
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
2003
January: Freddie Mac announces it has to restate financial results for the previous three years.
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that "although investors perceive an implicit Federal guarantee of [GSE] obligations," "the government has provided no explicit legal backing for them." As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. ("Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO," OFHEO Report, 2/4/03)
September: Fannie Mae discloses SEC investigation and acknowledges OFHEO's review found earnings manipulations.
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements.
October: Fannie Mae discloses $1.2 billion accounting error.
November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any "legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk." To reduce the potential for systemic instability, the regulator would have "broad authority to set both risk-based and minimum capital standards" and "receivership powers necessary to wind down the affairs of a troubled GSE." (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)
2004
February: The President's FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: "The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator." (2005 Budget Analytic Perspectives, pg. 83)
February: CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for granted." Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs are overseen by an effective regulator." (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And Freddie's House In Order," Financial Times, 2/24/04)
June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying "We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System." (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)
2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05)
2007
July: Two Bear Stearns hedge funds invested in mortgage securities collapse.
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, The White House, 8/9/07)
September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.
September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.
December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon." (President George W. Bush, Discusses Housing, The White House, 12/6/07)
2008
January: Bank of America announces it will buy Countrywide.
January: Citigroup announces mortgage portfolio lost $18.1 billion in value.
February: Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)
March: Bear Stearns announces it will sell itself to JPMorgan Chase.
March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)
April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)
May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.
"Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans." (President George W. Bush, Radio Address, 5/3/08)
"[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator." (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)
"Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans." (President George W. Bush, Radio Address, 5/31/08)
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)
July: Congress heeds the President's call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.
These are all aside from Bill S. 190 which John McCain co-sponsored. And no one is mentioning that these organizations were some of B.H. Obama's largest supporters. So who is really to blame here?
Here is a list of the times that President Bush tried to prevent what happened with Freddie and Fannie:
2001
April: The Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity."
2002
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
2003
January: Freddie Mac announces it has to restate financial results for the previous three years.
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that "although investors perceive an implicit Federal guarantee of [GSE] obligations," "the government has provided no explicit legal backing for them." As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. ("Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO," OFHEO Report, 2/4/03)
September: Fannie Mae discloses SEC investigation and acknowledges OFHEO's review found earnings manipulations.
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements.
October: Fannie Mae discloses $1.2 billion accounting error.
November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any "legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk." To reduce the potential for systemic instability, the regulator would have "broad authority to set both risk-based and minimum capital standards" and "receivership powers necessary to wind down the affairs of a troubled GSE." (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)
2004
February: The President's FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: "The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator." (2005 Budget Analytic Perspectives, pg. 83)
February: CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for granted." Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs are overseen by an effective regulator." (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And Freddie's House In Order," Financial Times, 2/24/04)
June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying "We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System." (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)
2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05)
2007
July: Two Bear Stearns hedge funds invested in mortgage securities collapse.
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, The White House, 8/9/07)
September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.
September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.
December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon." (President George W. Bush, Discusses Housing, The White House, 12/6/07)
2008
January: Bank of America announces it will buy Countrywide.
January: Citigroup announces mortgage portfolio lost $18.1 billion in value.
February: Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)
March: Bear Stearns announces it will sell itself to JPMorgan Chase.
March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)
April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)
May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.
"Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans." (President George W. Bush, Radio Address, 5/3/08)
"[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator." (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)
"Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans." (President George W. Bush, Radio Address, 5/31/08)
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)
July: Congress heeds the President's call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.
These are all aside from Bill S. 190 which John McCain co-sponsored. And no one is mentioning that these organizations were some of B.H. Obama's largest supporters. So who is really to blame here?
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