In late 2004 there was a hearing in the House of Representatives about the fraudulent accounting, excessive executive compensation and increasing risks at Fannie Mae. This video shows how Democrats and Republicans responded to the warning contained in the regulator's report calling for reforms to be enacted by Congress. Needless to say, Republicans supported reforms, but House Democrats, led by ranking committtee member Barney Frank of Massachusetts, dismissed the report of dangerous risk as fiction, maintaining that in fact there were no problems at Fannie Mae.
It is Democratic opposition to reining Fannie Mae and Freddie Mac in that created the housing bubble and its inevitable collapse and the worldwide financial meltdown that has followed. All of the money lost in 401(k)s and other savings is due to the dereliction of duty on the part of Congressional Democrats more interested in currying favor with their special interest constituencies and obtaining campaign contributions and other goodies from Fannie Mae and Freddie Mac than protecting the economy of this country and the life savings of hard-working Americans. Even former president Clinton agrees that Democrats in Congress blocking Republican attempts at reform of Fannie Mae and Freddie Mac are responsible for this financial crisis.
To round out the sorry picture of Democratic malfeasance, the ten-minute video included in our earlier entry "History of the "Affordable Housing" Bubble and Collapse" is a fitting companion to this video.
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