Log in

No account? Create an account

Previous File Entry | Next File Entry

7 Ways Congress Helped Create The Problems They Are Now Trying To Solve:

  • Not only allowed the housing bubble to inflate unfettered, but encouraged it with the passage and promotion of numerous bills designed to encourage lending to those even with bad credit. Even as late as 2006 and 2007, both parties were hard at work on laws that would eliminate a 3% down payment requirement for poor credit homebuyers even as the entire country knew the housing bubble was bursting.

  • Acted schizophrenically by pushing Fannie Mae and Freddie Mac to get bigger in 1999. Then held hearings about Fannie and Freddie's shoddy accounting and how they were too big and too out of control in 2003 and 2004. Just four years later, Congress has flip-flopped again and wants to convince us that letting Fannie and Freddie get bigger is the only way to help housing.

  • Completely missed and/or ignored the 10 year build up of the estimated $160+ TRILLION dollar derivatives market.

  • Congress passed and Bill Clinton signed the Commodity Futures Modernization Act in 2000 that largely allowed the derivatives market to grow without regulation.

  • Allowed banks such as Bear, Lehman and others to borrow 30, 40 and even 50 times their capital base for a multiyear period.

  • Vote to give hundreds of billions to failing companies, tell America they won't give anymore, then give more when it's discovered that throwing money at the problem doesn't actually solve the problem.

  • Accepted millions in campaign contributions from many of these same companies, including more than $9 million dollars from AIG over the last 20 years.