Tuesday, September 30, 2008

Hypocrisy 101 – or “Ignore what I said, listen to what I’m saying…”

Though there is enough “blame” to go around for both parties and private sector CEO’s, but the award of Hypocrite of the Year goes to Nancy Pelosi for her rant that Republican deregulation is the root of all evils.
Loose standards and poor controls at Fannie Mae and Freddie Mac are at the root of the “toxic mortgage” crisis – a crisis that is at the base of today’s credit market meltdown. During 2004 Nancy Pelosi’s Democrats skewered the regulator (Almando Falcon) who was sounding warnings about problems at Fannie Mae and Freddie Mac. Hey Nancy, what about these facts on comments from you party members:

“…I’m just pissed off at FHEO (Federal Housing Enterprise Oversight), because if it wasn’t for you, don’t think we’d be here today.” Rep. Gregory Meeks (D-NY) 2004 Congressional hearing
 to Almando Falcon, FHEO director who presented the report of widespread accounting irregularities in Fannie Mae and Freddie Mac

“I don’t see anything in the report that raises safety and soundness problems.”
–Rep. Barney Frank (D-MA) 2004 on Fannie Mae and Freddie Mac irregularities

“I get the feeling that the markets are not worried about the safety and soundness of Fannie Mae…”
–Rep. Lacy Clay (D-MO) 2004 hearing

“Under the outstanding leadership of Frank Raines, everything in the 1992 Act has worked just fine.”
–Rep. Maxine Waters (D-CA) 2004 hearing

What we need now is to support the markets in “unclogging” the credit arteries in our financial system (THIS IS NOT A BAILOUT). Failures at this stage will not only harm the national economy – it will land a potentially fatal blow to Michigan’s anemic economic performance.

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