Oversight hearing

[audtatious]

So, the Gov is looking into what happened into the financial mess by investigating the corporate participants. One thing missing is investigating Congress itself. Here's an article WITH video about it:

Democrats refuse to talk about Fannie, Freddie in Oversight hearinghttp://hotair.com/archives/200...00929

[Cold_Zero]

Boy did they rake the CEO of Lehman Brothers over the coals yesterday. I resented the 'Yes' 'No' only questions that Congress asked. It tells me that Congress isn't looking for answers, just a fall guy. Where is Lee Majors when you need him.

[audtatious]

Guess they feel that deflecting everything to Bush may not work this time?

[AZhitman]

I love how the investigators profited handsomely as well.

Let's haul in all the attorneys who sued (or threatened to sue) mortgage companies for not giving loans to losers and bums. They're to blame too.

[audtatious]

Guess they feel that deflecting everything to Bush may not work this time?

Maybe I'm right after all?

http://www.whitehouse.gov/news....html

[Cold_Zero]

The woman running for Congress in my district has proposed an idea that if a company is bailed out by the Federal Government all Politicians must disclose how much money they have received from their PAC.

I think it's a pretty good idea.

[AZhitman]

Maybe I'm right after all?

http://www.whitehouse.gov/news....html

President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted. Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.

Snap.

What now, Obama?

Ah, right. This situation is a "direct result of GWB's failed policies".

[audtatious]

That's the Democrats war cry. "It aint us, it's GWB!!!!"

[C-Kwik]

President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted. Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.

Snap.

What now, Obama?

Ah, right. This situation is a "direct result of GWB's failed policies".

What's the likelihood that passing a bill this year would have been put into effect this year? Would it have kept the situation these companies and our economy is in now from occuring? I'm more curious to know when the point of no return was on this. Was it before or after the Dems took control of Congress?

Not that I'm trying to take the Dems off the hook here, but many of appear to be trying to deflect the blame onto the Dems without much critical discussion of the facts. Perhaps its been discussed in greater detail elsewhere, but I've only had time to poke in here once in a while. But back to my original point. Where did the problem begin? When did it become irreversible. How much lead time would have been needed to effect measures to prevent this problem? I'd love to see some facts.

[AZhitman]

We've been down that road.

When the handwringers decided that everyone had an inalienable right to home ownership, there was no turning back without intervention.

Actually started during the Clinton Administration.

Really, it's more than that - Call it a "Perfect Storm" of easy credit, bad mortgage loans, poor oversight, people "faux balling", greedy lenders, frivolous lawsuits, people living beyond their means and a "too much too late" attitude about growth.

[audtatious]

maybe "the people" will learn....

doubt it

[C-Kwik]

We've been down that road.

Where?

[Cold_Zero]

What's the likelihood that passing a bill this year would have been put into effect this year? Would it have kept the situation these companies and our economy is in now from occuring? I'm more curious to know when the point of no return was on this. Was it before or after the Dems took control of Congress?

Not that I'm trying to take the Dems off the hook here, but many of appear to be trying to deflect the blame onto the Dems without much critical discussion of the facts. Perhaps its been discussed in greater detail elsewhere, but I've only had time to poke in here once in a while. But back to my original point. Where did the problem begin? When did it become irreversible. How much lead time would have been needed to effect measures to prevent this problem? I'd love to see some facts.

Coming from a former GSE, I know that it is not uncommon for legislation to come down the pike very quickly and needs to be implemented with in the same year. We are working on a project right now that was legislated in June 2008 and will be implemented in Dec 2008. Also, reauthorization is chiefly one of the big pieces that always hits us. Congress changes aspects of the industry and everyone scrambles to implement them. The other thing that legislation can do when passed, is to get GSE's and Corporations to evaluate how the legislation, that is set go into effect a year from now or at the end of the year, will affect how they do business. Basically, it may not be law but the GSE makes the change early in anticipation of having to make the change at the end of the year or next year. Effectively, a self imposed regulation until the regulations take effect.

Would legislation this year, reforming the regulation of Fannie and Freddie, have kept them from failing? Probably not. Would global legislation regulating the financial industry have kept the world markets from crashing? Not sure. I can tell you this, you can be heavily regulated by the government and the auditors will not mitigate all risk. It is humanly impossible for the Federal Government and its auditors to mitigate 100 percent of all risk.

The problem with the Sub prime Mortgage meltdown began 2005 and picked up steam in 2006. With the revelations of the exposure to risk that these companies had… Im not sure that legislation in 2007, if enacted and implemented immediately would have mitigated the problem. The signs were on the wall 2006 with billion dollar write downs and foreign infusions of cash and everyone should have been paying attention.

[audtatious]

Interesting video

http://www.youtube.com/watch?v=FewmvkaTXHU

[themadscientist]

I would like to see Dodd and Waxman and Obama sitting in the hotseat while some small town bankers whose banks have collapsed because of this take up the gavel and ask them some juicy questions.