Republicans had complete power between 2000-2006, why didn’t they stop the credit bubble then?
Before you Republicans start screaming “Fannie, Freddie and Barney Frank!” (parroting your favorite media propagandists of course), just remember that the housing problems reached critical mass between 2003-2006 when Republicans had controlled Congress and the White house.
Presidential Task Force headed by Hank Paulson:
“The turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for US subprime mortgages, beginning in late 2004 and extending into early 2007.”
By the end of 2000, mortgage debt was 4.8 billion and by 2007 it reached 10.5 billion. (Why didn’t Republicans raise alarm?)
Republicans could of passed legislation without support of the Democrats, yet they did not pass any legislation until 2007 when the Democrats got into power in Congress.
In early 2007, as the new chairman of the House Financial Services Committee, Frank sponsored H.R. 1427 to deal with Fannie and Freddie and to regulate and reform their credit and lending practices.
Chris Dodd tried to fix the mess in 2007 as well.
“In early 2007, as overextended borrowers began to default on too-good-to-be-true subprime mortgages, housing experts sounded an alarm heard throughout Washington. Christopher Dodd (D-Conn.), chairman of the Senate Banking Committee, wanted to push a bill requiring banks to modify loans whose enticingly low “teaser” interest rates soon give way to tougher terms.”
So the Democrats tried to do something about it once they gained some power in the Congress.
It is absolutely clear that Republicans were asleep at the wheel and let this crisis get out of hand until it was too late.
Republicans didn’t pass any legislation at all during their reign of 2000-2006, none at all!
Only in 2007 did the Democrats, when they finally achieved power did they do something about it.
I posted the links, yet so many of you are too lazy to read. Sorry to hear that you would rather believe what the talking head on tv and radio tells you rather then do the research on your own and read it with your own eyes.
Get your history right Republicans…these were the events in 2005…
“Furthermore, before taking over the Financial Services Committee chairmanship, Frank worked with committee chairman Rep. Michael Oxley (R-OH) on the Federal Housing Finance Reform Act of 2005, which would have established the FHFA to replace the Office of Federal Housing Enterprise Oversight (OFHEO) as overseer of the activities of Fannie and Freddie. After voting for the bill in committee, Frank voted against final passage of the bill on the House floor, stating that he was doing so because an amendment added to the bill on the House floor imposed restrictions on the kinds of nonprofit organizations that could receive funding under the bill.