Fannie and Freddie was the main issue to the housing bubble and where we are today. It was the biggest issue to the housing mess all caused be dems. The rest of the economy problem was a trickle down effect. Please watch the videos etc before a response. [video=youtube;1RZVw3no2A4]http://www.youtube.com/watch?v=1RZVw3no2A4&annotation_id=annotation_918789&feature=iv[/video] Bush wanted to regulate Fann and Fredd in 2003 but blocked by dems and in 2005 and 2007 John McCain tryed to pass a bill to regulate Fann and Fredd and was blocked again by dems. 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. The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios. 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. ''There is a general recognition that the supervisory system for housing-related government-sponsored enterprises neither has the tools, nor the stature, to deal effectively with the current size, complexity and importance of these enterprises,'' Treasury Secretary John W. Snow told the House Financial Services Committee in an appearance with Housing Secretary Mel Martinez, who also backed the plan. Democrates in congress saying there is no problem with Fannie and Freddie and should not be regulated. [video=youtube;_MGT_cSi7Rs]http://www.youtube.com/watch?v=_MGT_cSi7Rs&feature=player_embedded[/video] Bill Clinton Admitting Dems caused the Housing mess stopping regulation. In reality bill causes the ticking bomb to start. [video=youtube;hfGWxqsKFmY]http://www.youtube.com/watch?v=hfGWxqsKFmY&feature=player_embedded[/video]
How about another reason? Excessive lending to each and everyone no matter credit rating, or ability to repay. "... Bill Clinton raised taxes and then took the US from the perpetual deficits of the Reagan years to a surplus. It ignores how George Bush cut taxes, plunged the budget back into a deficit, encouraged the wild borrowing spree that inflated the housing bubble, and then oversaw the worst recession since the Depression..... " http://finance.yahoo.com/blogs/dail...illionaires-says-congress-must-142239366.html