Obama is constantly blaming Bush for everything. And the media are happy to give Our Imperious Leader a pass when he lies.
The truth is that in 2003 Bush tried to avoid the housing meltdown but was obstructed by people like Barney Frank, Christopher Dodd and the Black Caucus, who wanted to continue extending mortgages to people who would be unable to repay them.
Check out this article in the New York Times – dated September 11, 2003.
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By Stephen Labaton
Published: September 11, 2003
WASHINGTON, Sept. 10– 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.
The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.
The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac — which together have issued more than $1.5 trillion in outstanding debt — is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.
Read more at the New York Times.
I wonder how things might have been different had wisdom prevailed.