Congressman Ryan Clayton’s Myth about Great Recession Root Cause


 

Congressman Ryan Clayton’s Myth about Great Recession Root Cause

Rep Ryan Clayton

Please stop advancing myths about the Great Recession.  You did so on Judge Jeanine’s  June 1 Saturday 9 pm FOXNews program.  The root cause was Government interference in the housing market.  Just go back to an article by the NY Times in 1999 and read about role Fannie Mae and Freddie Mac played.  Link is way below.

In the 90s, Clinton pressured the banks to make more subprime loans. The banks pushed back, because there weren’t enough subprimes to pass Fannie and Freddie underwriting standards. So Clinton then pressured Fannie and Freddie into lowering the standards which had protected taxpayers for 80 years.

Clinton’s actions turned trash mortgages into safer investments. The banks made the loans in part because Clinton Admin pressured them to. Liberals blame investors for buying … government-guaranteed loan packages from Fannie and Freddie.

This was all reported by — no kidding — the New York Times. And near the end, the TIMES predicted that Clinton’s actions could create a taxpayer bailout like the 1980s.

This link would be funny if it wasn’t so tragic.

www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html

Furthermore, BO was a Community Organizer during this time leading efforts that included protests on bank CEO home lawns demanding toxic loans.  Barney Frank secluded Fannie and Freddie from much needed scrutiny in order to expand Government’s housing industry near monopoly.  Bush called on Frank few times to reign in these unwise financial Fannie/Freddie financial engineering .  Bush was not persuasive enough and failed – a sign of poor leadership on an extremely important issue.  Hence Bush deservers blame to.  However I blame Frank more than anyone.  In July 2008 he  (and another economic dunce Paul Krugman) emphatically stated that Fannie and Freddie was financially strong.  This froze many investors who lost millions when both were bankrupt in Sep 2008.

Learn more about how the economy works.  Then be a rare Democrat who will champion the private sector as the one by far most capable of creating new jobs that self sustain themselves, create ancillary jobs, and generate increasing  much needed Treasury revenues.

Twitter @Economics501

June 2, 2013

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About economics501

1 - free market Capitalist; 2 - Fitness Entrepreneur; 56 years old, VP at an Investment Bank in NYC, ex Venture Capitalist, happily married with 2 girls. Education: Rutgers and NYU. I allow Ted Hruzd, my friend to blog at will here. He has many posts here. I have known Ted since we were both students at NYU. Ted also works for an Investment Bank as a VP in Equity Global Markets. ------------------------- I was very very Socialist leaning as a 22 year old. I then strongly believed in Gov role in helping the poor. However, as a USDA Child Nutrition Programs, I personally accounted for millions of fraud, abuse, and waste of tax payer money. I came to believe that the poor would be best served with less Gov programs and more with direct aid via tax system. Then after 5 years I became a free market capitalist, was a venture capitalist in 2007 and helped start 2 high tech companies. I dedicate this site to champion free market capitalism as the best road to Prosperity. Please join in. If you disagree, fine, but please post with dignity and class and be civil. Argue with facts always.
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