Anyone following the news this past week will probably have heard Democrats and other liberals repeatedly blaming the Republicans for the current financial crisis. The historical fact is, however, that Republicans have tried on several occasions to rein in these institutions and have been forcefully resisted by Democrats who wanted banks to be forced to give mortgages to people who couldn't afford them and for taxpayers to essentially guarantee those loans.
This video is from a 2004 congressional hearing in front of the House Subcommittee on Capital Markets. It leaves no doubt that the Democratic members chose to attack the credibility of the regulator rather than take any action against Fannie Mae and Freddie Mac or their CEO's whom they chose to defend.
Watch the whole thing and the next time you hear someone try to blame the current mess on the Bush administration dare them to watch it as well:
Here's a rich irony. The very same people who preferred to beat up on the regulating agency at this hearing, Barney Frank and his fellow Democrats, now run the committee and are the same people to whom is entrusted the task of designing legislation to solve the problem.
Here's another irony. More people trust Barack Obama to fix this crisis than trust John McCain despite the fact that Obama has accepted more money in the last two and a half years from Freddie and Fannie than any other politician except Democrat senator Chris Dodd and despite the fact that he numbers among his economic advisers the two men most responsible for the corruption at these two institutions, Franklin Raines and Jim Johnson. It's hard not to be cynical about the intelligence of the American voter.
For more background on this video go here.
RLC
