How the Democrats Created the Financial Crisis: Kevin Hassett

[The Paperboy]

Last night and this morning I listened to what I felt were two excellent analysis of the bailout. One was from Newt Gingrich. The other from Mitt Romney. Newt is totally against it. Mitt is tepidly for it.

The reason I thought McCain might come out against it would not be because of political reasons. However I was looking at the political pluses of it if he does come out against it.

Just as I can live with either Obama or McCain as the next President I can live with the bailout or I can live without it.

I know my Democratic friends out there will not agree or like this but I think the current economic situation benefits McCain because it takes the economic issue out of Obama's hands.

Neither Obama or McCain are really players in the BIGGEST economic decision of our times. Not good for Obama.

If McCain comes out for the bailout he and Obama will essentially share the same position. Not good for Obama.

If McCain comes out against it he shows his maverick side and further distances himself from Bush. Not good for Obama.

On top of that McCain is on the winning side of the energy debate. Not good for Obama.

If you look down the road 2-3 weeks the economy as far as the candidates are concerned could be a non issue in that neither would have had much to do with the biggest economic decision in 50 years. Not good for Obama.

 

[editec]

KD, you seem to be operating under the assumption that an economc meltdown won't effect things like the occupation of Iraq.

You seem to not get that everything American does or does not do depends on our having a viable economy.

Right now, except for the fact that we are rearragning deck chairs on the Titanic to keep the stock market from crashing, we don't really have a viable economy.

We don't know what kind of economy we have.

The fiat money game is finding its logical conclusion and that ain't good.

 

[The Paperboy]

KD, you seem to be operating under the assumption that an economc meltdown won't effect things like the occupation of Iraq.

You seem to not get that everything American does or does not do depends on our having a viable economy.

Right now, except for the fact that we are rearragning deck chairs on the Titanic to keep the stock market from crashing, we don't really have a viable economy.

We don't know what kind of economy we have.

The fiat money game is finding its logical conclusion and that ain't good.

The economy is viable and will continue to be viable if we keep politicians who've never run a business, made a payroll or a sold a product out of the frickin' way.

 

[editec]

The economy is viable and will continue to be viable if we keep politicians who've never run a business, made a payroll or a sold a product out of the frickin' way.

I hope you're right.

Time will tell.

 

[jschuck12001]

The economy is viable and will continue to be viable if we keep politicians who've never run a business, made a payroll or a sold a product out of the frickin' way.

Well they have been out of the way and here we are, so not sure I agree with you there.

 

[The Paperboy]

I hope you're right.

Time will tell.

No choice.

 

[JimH52]

Last night and this morning I listened to what I felt were two excellent analysis of the bailout. One was from Newt Gingrich. The other from Mitt Romney. Newt is totally against it. Mitt is tepidly for it.

The reason I thought McCain might come out against it would not be because of political reasons. However I was looking at the political pluses of it if he does come out against it.

Just as I can live with either Obama or McCain as the next President I can live with the bailout or I can live without it.

I know my Democratic friends out there will not agree or like this but I think the current economic situation benefits McCain because it takes the economic issue out of Obama's hands.

Neither Obama or McCain are really players in the BIGGEST economic decision of our times. Not good for Obama.

If McCain comes out for the bailout he and Obama will essentially share the same position. Not good for Obama.

If McCain comes out against it he shows his maverick side and further distances himself from Bush. Not good for Obama.

On top of that McCain is on the winning side of the energy debate. Not good for Obama.

If you look down the road 2-3 weeks the economy as far as the candidates are concerned could be a non issue in that neither would have had much to do with the biggest economic decision in 50 years. Not good for Obama.

I share some of your compassion, or lack thereof, with the candiates but I disagree with your analysis of who will benefit from the economic mess. If McCain had no record on the economy, I would agree with you, but he does. He has basically said on numerous occasions that he knows little about economics. That coupled with a poll that shows the majority of people blame the GOP since they have been in power for the last 8 years, 6 of which they had the WH and Congress.

The layman, who includes most of us, looks at that fact and quickly develops a belief that the GOP should bare most blame. McCain would continue many of bush's economic policies, and that cannot be denied, well, unless he changes his mind again.

 

[The Paperboy]

I share some of your compassion, or lack thereof, with the candiates but I disagree with your analysis of who will benefit from the economic mess. If McCain had no record on the economy, I would agree with you, but he does. He has basically said on numerous occasions that he knows little about economics. That coupled with a poll that shows the majority of people blame the GOP since they have been in power for the last 8 years, 6 of which they had the WH and Congress.

The layman, who includes most of us, looks at that fact and quickly develops a belief that the GOP should bare most blame. McCain would continue many of bush's economic policies, and that cannot be denied, well, unless he changes his mind again.

Except I think McCain will be lay out a pretty good case that Democrats are more to blame for the Fannie mess and that McCain and the Bush Administration made many attempts to reel in Fannie but were stopped by Democrats.

Now don't get me wrong I think there's blame to around but I think McCain can make a pretty good case and wrap it around the Demomcrats neck.

Democrats are banking on pining the mess on Phil Gramm and amendment to deregulate the Commerical Banks. Problem is President Clinton signed it into law.

See NY Times from Nov 1999: Clinton Signs Legislation Overhauling Banking Laws Link here

 

[Ravi]

Except I think McCain will be lay out a pretty good case that Democrats are more to blame for the Fannie mess and that McCain and the Bush Administration made many attempts to reel in Fannie but were stopped by Democrats.

Now don't get me wrong I think there's blame to around but I think McCain can make a pretty good case and wrap it around the Demomcrats neck.

Democrats are banking on pining the mess on Phil Gramm and amendment to deregulate the Commerical Banks. Problem is President Clinton signed it into law.

See NY Times from Nov 1999: Clinton Signs Legislation Overhauling Banking Laws Link here

I hope you're right. I hope McCain blames the entire mess on the Democrats and wrings his hands and cries how helpless Republicans are to do anything about anything, even when they are given big chunks of total control.

 

[The Paperboy]

I hope you're right. I hope McCain blames the entire mess on the Democrats and wrings his hands and cries how helpless Republicans are to do anything about anything, even when they are given big chunks of total control.

Read this and weep:

NY Times Nov 1999:

President Clinton signed into law today a sweeping overhaul of Depression-era banking laws. The measure lifts barriers in the industry and allows banks, securities firms and insurance companies to merge and to sell each other's products.

''This legislation is truly historic,'' President Clinton told a packed audience of lawmakers and top financial regulators. ''We have done right by the American people.''

The bill repeals parts of the 1933 Glass-Steagall Act and the 1956 Bank Holding Company Act to level the domestic playing field for United States financial companies and allow them to compete better in the evolving global financial marketplace.


Who was in bed with Gramm? Robert Rubin. Who shared the stage with Obama a few days ago? Robert Rubin. Who just through Obama under the bus to protect Clinton? Robert Rubin.


Link here

 

[Tech_Esq]

My reading of all this is that there is plenty of blame to spread around and Fannie was a major part of the problem. It is also my undertanding that the Congress and the past two administrations were asleep at the wheel. It is also apparent that several former Clinton Administration appointees walked away with boatloads of money from Fannie. Also Obama has received a whole more money from Wall Street and Fannie than McCain. On the other hand McCain unlike Obama actually co sponsored legislation to reform Fannie.

I don't think you can say the administration is at fault here. I'm no Bush fan, but I don't believe in blaming someone unless it's their fault.

See below for full post. I hit the send button too soon.

 

[Tech_Esq]

My reading of all this is that there is plenty of blame to spread around and Fannie was a major part of the problem. It is also my undertanding that the Congress and the past two administrations were asleep at the wheel. It is also apparent that several former Clinton Administration appointees walked away with boatloads of money from Fannie. Also Obama has received a whole more money from Wall Street and Fannie than McCain. On the other hand McCain unlike Obama actually co sponsored legislation to reform Fannie.

I don't think you can say the administration is at fault here. I'm no Bush fan, but I don't believe in blaming someone unless it's their fault.

New Agency Proposed to Oversee Freddie Mac and Fannie Mae

By STEPHEN LABATON
Published: September 11, 2003

The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

New York Times Article

The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.

What did Barney Frank say at the time?

These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing

Legislative outcome?

S.1508
Title: A bill to address regulation of secondary mortgage market enterprises, and for other purposes.
Sponsor: Sen Hagel, Chuck [NE] (introduced 7/31/2003) Cosponsors (4)
Related Bills: S.1656
Latest Major Action: 4/1/2004 Senate committee/subcommittee actions. Status: Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably. COSPONSORS(4), ALPHABETICAL [followed by Cosponsors withdrawn]: (Sort: by date)


Sen Dole, Elizabeth [NC] - 7/31/2003
Sen Lott, Trent [MS] - 1/22/2004
Sen McCain, John [AZ] - 9/10/2003
Sen Sununu, John E. [NH] - 7/31/2003

In the end the Dems blocked the effort after vigorous spending on lobbying by Fannie Mae.

So, I don't think you can argue that there was sleeping going on near the switch. I think you can fairly say that efforts to fix the problem ahead of time were blocked by a strong political effort put forth by those who were fighting for "affordable housing." Now we see how the housing was so affordable, WE get to pay for it!

 

[Tech_Esq]

I hope you're right. I hope McCain blames the entire mess on the Democrats and wrings his hands and cries how helpless Republicans are to do anything about anything, even when they are given big chunks of total control.

Please, y'all do the same thing. You haven't been able to do jack shit for the last two years cuz the big, bad Repubs keep blocking all your fondest legislative dreams from becoming reality.

Give me a break!

Following that logic, the Democrats must want to be in Iraq otherwise they would have pulled the plug in the last two years.

 

[The Paperboy]

I don't think you can say the administration is at fault here. I'm no Bush fan, but I don't believe in blaming someone unless it's their fault.



New York Times Article



What did Barney Frank say at the time?


Legislative outcome?



In the end the Dems blocked the effort after vigorous spending on lobbying by Fannie Mae.

So, I don't think you can argue that there was sleeping going on near the switch. I think you can fairly say that efforts to fix the problem ahead of time were blocked by a strong political effort put forth by those who were fighting for "affordable housing." Now we see how the housing was so affordable, WE get to pay for it!

I would agree and I sure hope the McCain campaign can get this understood by the American public. If he can, he just might get elected. Perhaps he's waiting for the debates.

 

[Ravi]

Please, y'all do the same thing. You haven't been able to do jack shit for the last two years cuz the big, bad Repubs keep blocking all your fondest legislative dreams from becoming reality.

Give me a break!

Following that logic, the Democrats must want to be in Iraq otherwise they would have pulled the plug in the last two years.

hmmm? Strawman, much?

 

[Tech_Esq]

hmmm? Strawman, much?

NOT! It was exactly your point...Hoist on your petard much? Keep falling on the bombs Ravi dear.

 

[JimH52]

Except I think McCain will be lay out a pretty good case that Democrats are more to blame for the Fannie mess and that McCain and the Bush Administration made many attempts to reel in Fannie but were stopped by Democrats.

Now don't get me wrong I think there's blame to around but I think McCain can make a pretty good case and wrap it around the Demomcrats neck.

Democrats are banking on pining the mess on Phil Gramm and amendment to deregulate the Commerical Banks. Problem is President Clinton signed it into law.

See NY Times from Nov 1999: Clinton Signs Legislation Overhauling Banking Laws Link here

which came from a Republican congress. Then with the Bush era, the GOP had 6 years of unfettered control. Folks are going to look at "who is driving the boat."

But I agree that this is verymuch a bipartisan issue.

 

[Ravi]

NOT! It was exactly your point...Hoist on your petard much? Keep falling on the bombs Ravi dear.

Wrong. I merely took his stupid wish that McCain would place on the blame for this crisis on the Dems and agreed with it.

 

[rayboyusmc]

It's amazing. For 7 years they ran rampant.

Now it's the Dems fault.

The only ones who are going to believe that are the spinners and the true believers.

Le'ts see if the worst administration in our current history has helped bury the Republican party for at least a few decades?

 

[Tech_Esq]

It's amazing. For 7 years they ran rampant.

Now it's the Dems fault.

The only ones who are going to believe that are the spinners and the true believers.

Le'ts see if the worst administration in our current history has helped bury the Republican party for at least a few decades?

Way to not let the facts interfere with your partisanship Ray!