Unqualified home buyers were not the only ones who benefitted from Massachusetts Rep. Barney Frank’s efforts to deregulate Fannie Mae throughout the 1990s, so did Frank’s partner, herb moses, a Fannie Mae executive at the forefront of the agency’s push to relax lending restrictions.
Frank met Moses in 1987, the same year he became the first openly gay member of Congress.
"I am the only member of the congressional gay spouse caucus," Moses wrote in the Washington Post in 1991. "On Capitol Hill, Barney always introduces me as his lover."
The two lived together in a Washington home until they broke up in 1998, a few months after Moses ended his seven-year tenure at Fannie Mae, where he was the assistant director of product initiatives. According to National Mortgage News, Moses "helped develop many of Fannie Mae’s affordable housing and home improvement lending programs."
The biggest villain in the whole financial meltdown isn't the "private sector," as some in Congress — like Rep. Frank — have tried to claim. It's Congress itself, and barney frank. Govenment influenced wallstreet to go bust. Barney frank played the race card when he was warned feddie mac and fannie mae were about to go bust. His "boyfriend" at the time was over freedie mac. While barney was groping, congress was requiring banks to make bad loans. Barney and the democrates created the manufactured financial crisis. Yes it was barney gay boy frank and his fellow democrates that pushed the economic system over the edge. Democrates created a crisis that obama would not let go to waste. Barney set America up for a fall so the FRAUD obama could appear to solve a manufactured crisis by pushing the US in debt. This was a cover to make the US economic system collapse. Obama and the democrates could claim they did their best to solve the crisis they created by spending the US into economic destruction. Obama and all his fellow comrades have a plan to destroy capitalism. It is working. Obama is a traitor as are all in congress who support obama. Americans must fight for their freedoms. Domestic enemies have taken over the federal government in the form of elected "officials" who are ruling and not responsive to the people as "elected" officials. Story Reports
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Greenspan implied it was Congress' meddling incompetence — not the Fed, or free markets, or greedy bankers — that created the financial meltdown
Regulation:
Sometimes, long after their public careers are done, those once in power speak openly about the past. Like Alan Greenspan, who on Wednesday told Congress what he could never tell them while in office.
Testifying before the Financial Crisis Inquiry Commission, the former Fed chairman told some plain truths he didn't dare utter when he headed the central bank. Most notably, Greenspan implied it was Congress' meddling incompetence — not the Fed, or free markets, or greedy bankers — that created the financial meltdown.
"If the Fed as a regulator had tried to thwart what everyone perceived as a fairly broad consensus that the trend was in the right direction, homeownership was rising and that was an unmitigated good, then Congress would have clamped down on us," he said.
That, of course, is dead right. But the maestro wasn't finished.
"There's a presumption that the Federal Reserve's an independent agency, and it is up to a point, but we are a creature of Congress and if ... we had said we're running into a bubble and we need to retrench, the Congress would say 'we haven't a clue what you're talking about,'" he said.
Indeed, that's precisely what happened.
Yes, the Fed may have kept interest rates too low for too long in the middle of this decade. But it also might be true that it had no other real choice — given the sluggish recovery following the 2000 stock market meltdown, the 2001 recession and the 9/11 attacks.
Regardless, it wasn't the Fed that caused the housing crash and financial meltdown. It was Congress and the White House.
(Yes bush is also to blame. He could have done more to stop the fed I believe. Only congress could have made the fed, fannie mae, feddie mac be responsible. Congress let the crisis be created when congress under the control of the democrates could have stopped the comming meltdown. Congress wanted to create the manufactured crisis. The democratic congress would do anything to stay in power.) Story Reports
The mess began in the 1970s when, during the Carter administration, left-wing activists attacked banks for supposed "redlining" practices that let them discriminate in making home loans.
In response, Congress passed the Community Reinvestment Act, which gave regulators the power to force banks to lend money to "low-income, minority, and distressed neighborhoods."
To fund all this new lending, they used two little-known government-sponsored enterprises — Fannie Mae and Freddie Mac — and essentially rewrote credit standards for the banks, weakening them substantially. Banks made loans, then Fannie and Freddie bought them — using borrowed money to do it.
In this environment, credit ratings no longer mattered much. Neither did having a job or a steady income. What mattered was race.
The process got supercharged in 1992, when a Democrat-led Congress pushed Fannie and Freddie to buy even more mortgages from banks that had made loans to low-income and minority buyers. In 1996, President Clinton's Department of Housing and Urban Development told Fannie and Freddie that 42% of their financing had to go to those with incomes below the median.
By 2000, HUD Secretary Andrew Cuomo proudly unveiled "new regulations" to "provide $2.4 trillion in mortgages for affordable housing for 28.1 million families." Despite subsequent efforts at reform, Democrats in Congress — led by Sen. Chris Dodd and Rep. Barney Frank — rejected major changes to Fannie and Freddie.
(Yes dodd and frank were responsible for not changing the policies of fannie and freddie. Their democrate leader bill clinton didn't try to do anything to curtail the wild, crazy, insane policy of making loans to people who could not afford them. He added fuel to the fire just like "butt buddy" barney frank did. Congress ignored the warnings. These two bums added even more fuel to the manufactured crisis. The DEMOCRATES CREATED THE MANUFACTUTED FINANCIAL CRISIS! The democrates are still manufacturing the "FINANCIAL CRISIS." Reagan said, "In this time of financial crisis it is not the government that is the answer it is the government that is the problem" Reagan was correct. The manufactured democratic congress created a massive slush fund to be used for their own reelection. This is the dirty little secret.) Story Reports
We're still paying for that today. Fannie and Freddie have gotten a blank check from the government for their losses, and still owe more than $5 trillion that they can't pay off.
We've been critical of Greenspan in the past, but on this, he's completely right. The biggest villain in the whole financial meltdown isn't the "private sector," as some in Congress — like Rep. Frank — have tried to claim. It's Congress itself, UNDER THE CONTROL OF THE DEMOCRATES.
