Obama’s Fannie and Freddie Amnesia

The assassin of Abraham Lincoln is known to every literate American.  Yet thanks to a conspiracy of silence between the Democrats in government and Democrats in the press, Fannie Mae and Freddie Mac, the financial assassins of the American financial systems is hidden away.

Writing in the Wall Street Journal, Wallison points out that in 2005 then-Senator Obama joined with his Democratic colleagues in stopping legislation that would have helped rein in the government-sponsored housing duo’s risky behavior:

The bill would have established a new regulator for Fannie and Freddie and given it authority to ensure that they maintained adequate capital, properly managed their interest rate risk, had adequate liquidity and reserves, and controlled their asset and investment portfolio growth.


These authorities were necessary to control the GSEs’ risk-taking, but opposition by Fannie and Freddie—then the most politically powerful firms in the country—had consistently prevented reform.


The date of the Senate Banking Committee’s action is important. It was in 2005 that the GSEs—which had been acquiring increasing numbers of subprime and Alt-A loans for many years in order to meet their HUD-imposed affordable housing requirements—accelerated the purchases that led to their 2008 insolvency. If legislation along the lines of the Senate committee’s bill had been enacted in that year, many if not all the losses that Fannie and Freddie have suffered, and will suffer in the future, might have been avoided.

Fannie and Freddie made it possible for banks and S&Ls to write "liar loans" to millions of borrowers by buying them as fast as they were created and re-selling them to unsuspecting investors.  They were told to do so by Liberals in congress and in the oval office.  Today the liars who still control the levers of government are shaking in fear lest their culpability should be brought out once they lose control of congress and the MSM loses control of the narrative.