The federal government caused the financial crisis in America and now they are going to ram through legislation to gain even MORE control over financial Institutions and markets? One has to check their sanity when observing what is happening in Washington.
It started with a seemingly noble cause with the Community Reinvestment Act (CRA) under President Jimmy Carter in 1977. The intention was to encourage commercial banks and saving institutions to offer low and middle income people, including many minorities, affordable mortgages in order to buy homes. In 1993 President Bill Clinton kicked CRA into high gear by attempting to use this as part of the solution in dealing with the problems of the inner city and distressed rural communities. By early 1995, the CRA regulations were substantially revised to address criticisms that the implementation were too process-oriented, burdensome, and not sufficiently focused on actual results. Consequently a big push with strong pressure was placed on lending institutions to offer what are referred to as "sub-prime" loans.
During the Presidency of George W. Bush, starting in 2001, the sub-prime loan situation began to get out of control. Billions upon billions of dollars of loans were given out to people who had no way in the world of repaying them. Guidelines for responsible, common sense, loan giving were thrown out the window.
The nation's two largest mortgage finance lenders, Fannie Mae and Freddie Mac, went totally out of control. They operate as government sponsored enterprises. Although the two companies are privately owned and operated by shareholders, they are protected financially by the support of the Federal Government. These government protections include access to a line of credit through the U.S. Treasury, exemption from state and local income taxes and exemption from SEC oversight. Supposed federal government oversight was under the leadership of Congressman, Barney Frank, and Senator, Chris Dodd. Their actions and failures of oversight in protecting our nation border on criminal negligence and malfeasance. They had a DIRECT role that led to the financial crisis in America. They are ON RECORD in misleading the American people. Not only were Fannie Mae and Freddie Mac financial practices out of control, wide spread corruption existed with lead executives walking away with millions of dollars of taxpayer money, while the two agencies were in a state of collapse.
What the Obama administration is now doing is unconscionable. Goldman Sachs is being used as a scapegoat so as to place all of the blame on "Wall Street". Worse, in doing so, the so called "Financial Reform" legislation that they plan on ramming through Congress does nothing to address the real root cause of America's financial meltdown...the federal government itself, Fannie Mae, Freddie Mac, and those in government who were responsible. The consequence of not solving the REAL root problems of America's financial crisis is that we will be destined for it to happen all over again. As just one example, a recent newspaper article featured the smiling face of a young woman, who was given what amounts to, a sub-prime loan in order to buy a home...and she didn't even have a job!
The American people need to wake up and wake up now. Our country is being destroyed right before us. We need to stop this "Financial Reform" legislation as well as all the other major, Obama administration led legislation, that will be extremely harmful to our country before it is too late. Enough damage has already been done to our nation.
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