Roots of the crisis: Freddie Mac & Fannie Mae

“Enabling these institutions to increase in size . . . we are placing the total financial system of the future at substantial risk.”

Testimony of Fed Chairman Greenspan, 2.17.05, before the House Financial Services Committee.

Barney Frank and the Democrats were warned over and over for years that mismanagement at Freddie and Fannie, left unchecked, would throw our financial system into chaos and crisis.

Barney Frank said Freddie and Fannie were “fundamentally sound financially.”  He knew it was a lie.  “And even if there was a problem . . . the federal government doesn’t bail them out.”  Really? 

September, 2008, Reuters:  The immediate reaction to the U.S. government’s commitment of up to $200 billion to support the two giant mortgage lenders, which together back about half the country’s $12 trillion in mortgages, was positive.

Barney Frank and Chris Dodd and the Democrats ignored serial warnings and resisted numerous efforts to reform, and so, here we are.

Republicans tried over and over, Democrats cutoff all warnings, efforts to reform  SHOCKING VIDEO REPORT HERE

And what is the response of this Administration? More of the same: tax, spend, rig the economy with government domination and interference, bailouts, social engineering, repudiation of sound business practices.

One is left to conclude one of two things: either this Administration is woefully ignorant and accidentally taking us to hell, as many European leaders are now saying, or this economic devastation is being encouraged purposefully in order to destroy economic freedom and centralize all power in D.C.

Either way, it is criminal.

[ECONOMY IN PERSPECTIVE: an historical overview]



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