Government Knows Government is Corrupt
The Committee on Oversight and
Government Reform released a 26 page report back in July of this year
confirming what we already knew. The Government was responsible
through regulation for the Housing and Mortgage crises that threw us
into a recession. The report can be read here.
The report clarifies key points of government interference and bank shareholders who were eager for additional profits in a lucrative market.
- Community Reinvestment Act cited as underlying cause
- Government succeeded in increasing home ownership to those who could not afford them
- Government put the burden on the American taxpayer
- Fannie Mae and Freddie Mac operated with insufficient funds
- Fannie Mae and Freddie Mac removed liabilities from their balance sheet to free up funds
- Bill Clinton pressured the underwriters to make more loans through major regulatory reform
- Barney Frank lied about and mismanaged Fannie Mae and Freddie Mac
- Blame rest on shoulders of government policy makers
- GSE (Government Sponsored Enterprise) employees contribution $15 million to key politicians
It should be noted that many blame the
rich and big business for the current financial crises. This notion
has been fully supported by politicians like Barney Frank, Nancy
Pelosi, and President Obama. While this may be true to an extent, it isn't until government gets involved by regulation that business starts scramble in an attempt to defend itself.
The fact is government created the 2007 housing bubble and then in 2008 then government popped it wide open. Our corrupt politicians are a direct cause of our current financial disaster.
Even government knows government is bad.