Fanniegate

Walter Russell Mead wrote “Fanniegate: Gamechanger for the GOP?” reviewing a new book (tip to Instapundit):

Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon. By Gretchen Morgenson, one of America’s best business journalists who is currently at The New York Times, and noted financial analyst Joshua Rosner…

We’ve known about corruption at the government-backed mortgage corporation Fannie Mae (Federal National Mortgage Corporation), such as Democrat fatcat Franklin Raines doctoring the books to increase his bonus or Democrat Congressman Barney Frank getting a job for his partner (and then defending Fannie Mae in Congressional hearings) or Democrat Jamie Gorelick (who helped bring on 9/11 and the housing crisis) ‘earning’ $26 million for bundling subprime loans into securitized financial instruments.   As bad as we thought the scandals at Fannie Mae were, nobody went to jail (not even the ‘Friends of Angelo’) and the fines imposed on the corruptocrats (if at all) were a small fraction of the amount looted from the American people.

“Reckless Endangerment” provides more insight into the Democratic Party’s culture of corruption.

The villains?  An unholy alliance between Wall Street, the Democratic establishment, community organizing groups like ACORN and La Raza, and politicians like Barney Frank, Nancy Pelosi and Henry Cisneros…

…the American dream didn’t die of old age; it was murdered and most of the fingerprints on the corpse come from Democratic insiders.  Democratic power brokers stoked the housing bubble and turned a blind eye to the increasingly rampant corruption and incompetence at Fannie Mae and the associated predatory lenders who sheltered under its umbrella; core Democratic ideas may well be at fault.

…Big government, affirmative action and influence peddling among Democratic insiders came within inches of smashing the US economy.

…The story illustrates everything the Tea Party thinks about the corrupt Washington establishment and the evils of big government.  It demonstrates the limits on the ability of government programs to help the poor.  It converts a complicated economic story into a simple morality play — with Dems as the villain.  It allows Republicans to capitalize on public fury at the country’s economic problems.  It links the Democrats to Wall Street — the one part of the private sector that the Republican base loathes.  It exposes that mix of incompetence and arrogance that is the hallmark of the modern American liberal establishment and links this condescending cluelessness to the real problems of real American families.  It links President Obama (through appointments, associations and friendships) with the worst elements of the Clinton legacy and it blunts some key Democratic talking points.

Read the whole thing.

3 thoughts on “Fanniegate

  1. I am always happy to heap scorn on Democrats for the prodigious work they do in wrecking this country. However, Republicans – specifically George W. Bush – are not exempt from blame on this score. He promoted the loosening of loan requirements that helped fuel the housing bubble and subsequent bust:

    http://www.americandreamdownpaymentassistance.com/whsp12162003.cfm

    It is also no secret that defaults were most numerous in the so-called “sand-states”: California, Arizona, Texas, and Florida. Which states, not uncoincidentally, are home to large populations of illegal aliens – the very illegal aliens of whom G.W. Bush was so solicitous. A lot of the foreclosed houses were purchased by illegal aliens and their children, who – as it turned out – were often not very good credit risks.

  2. Pingback: The Liberals have run congress sense 2007, this is there mess - Page 2 - US Message Board - Political Discussion Forum