ProgressiveDem: Bushites Control of US Treasury Helped Cause Fannie & Freddie Crisis - Result Taxpayer Bailout
Bushites Control of US Treasury Helped Cause Fannie & Freddie Crisis - Result Taxpayer Bailout
Doing nothing while the damage was being inflicted on the American people. Closing the barn door after the horses got out. Too little, too late.
This is the hallmark of the Bush regime, whose deregulatory and non-regulatory policies, enabled the greedy mortgage lenders to make money any way they could, and this included Fannie Mae and Freddie Mac.
Now, Bush's politicized, failed Treasury Department is trying to make public forget it helped cause this catastrophe with its reprehensible hands off Bushite policies.
The NYTimes reports: "The Treasury Department seized control of Fannie Mae and Freddie Mac, the nation's giant quasi-public mortgage finance companies, and announced a four-part rescue plan that includes an open-ended guarantee from the Treasury Department to provide as much capital as they need to stave off insolvency.
"At a news conference on Sunday morning, Treasury Secretary Henry M. Paulson Jr. also announced that he had dismissed the chief executives of both companies and replaced them with two long-time financial executives. Herbert M. Allison, currently chairman of TIAA-CREF, the huge pension fund for teachers, will take over Fannie Mae and replace the chief executive, Daniel Mudd. David M. Moffett, currently a senior adviser at the Carlyle Group, one of the country's biggest private equity firms, will replace Richard Syron as chief executive of Freddie Mac.
" 'Fannie Mae and Freddie Mac are so large and so interwoven in our financial system that a failure of either of them would cause great turmoil in our financial markets here at home and around the globe,' Mr. Paulson said. 'This turmoil would directly and negatively impact household wealth: from family budgets, to home values, to savings for college and retirement. A failure would affect the ability of Americans to get home loans, auto loans and other consumer credit and business finance. And a failure would be harmful to economic growth and job creation.'
Duh! That has already been happening to regular Americans, you deliberately stupid, Bushite loyalist twit!
The article continued: "Mr. Paulson refused to say how much capital the government might eventually have to provide, or what the ultimate cost to taxpayers might be.
"The companies are likely to need tens of billions of dollars over the next year, but the utlimate cost to taxpayers will largely depend on how and how fast the housing and mortgage markets recover from their current crisis.
"In a possibly unprecedented move into ther private markets, the Treasury Department will also buy up billions of dollars in Fannie and Freddie mortgage securities on the open market. This move is likely to make it much easier for the companies to finance somewhat riskier loans."
And Sid and Sarah, the Bush regime's D&H (dishonest and hypocritical) clones, and their flunkies like Phil Gramm, insist the economy is doing fine and the American people are whiners except for McSame supporters.
So, Nancy Pelosi, tell the American people again why you took impeachment off the table.
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