Law Students

Failed Economic Policies

By Pete

The “Bush’s Failed Economic Policies” is incredibly pervasive. Of course, blaming the president for the economy is a knee-jerk, if intellectually lazy, thing to do but you can’t say that the practice is not encouraged by presidential candidate’s promises to “fix” the economy. Nevertheless, it’s interesting that Bush is taking so much heat for the economy, even in light of this from 2003:

The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

. . .

Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.

”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

Oh those brilliant financial minds on the left… what would our country do without them? (Answer: Prosper)

(Via: Ken)

Full post as published by PeteHoliday.com on September 18, 2008 (boomark / email).