Dems Blame Bush For Deregulation: Just Another Day Of Astounding Liberal Hypocrisy

So Sen. Charles Schumer is the latest partisan Democrat ideologue to take yet another wild roundhouse swing at the Bush Administration and Republicans over the housing finance market meltdown.  But in this case, it would have served Schumer to recognize that when you point a finger at someone else, there are three fingers pointing back at you.

Fox News briefly tells the story as follows:

Democratic Senator Charles Schumer of New York says a lack of regulation by the Bush administration is responsible for the current economic troubles. The New York Sun reports Schumer says, “Eight years of deregulatory zeal by the Bush administration, an attitude of ‘the market can do no wrong,’ have led us down a short path to economic recession.”

But Schumer fails to mention he has been a leading voice of deregulation. The Sun reports he championed the repeal in 1999 of the Glass-Steagall Act, the law which separated commercial and investment banking.

He also wrote an opinion piece for The Wall Street Journal in 2006 which warned about what he called “overzealous regulators” and opposed a bill in 2005 that would have transformed Freddie Mac and Fannie Mae from large investment funds into “conduits” that only bought mortgages, packaged them into securities and sold them on the market.

And whatever one wants to say about the repeal of the Glass-Steagall Act, it must be mentioned first that it was President William Jefferson Clinton who signed the 1999 law that repealed it.

The New York Sun goes into the real nitty-gritty detail over just what astounding hypocrites Democrats like Charles Schumer really are.

The article begins as follows (the whole thing is ever SO worth reading):

Pro-Deregulation Schumer Scores Bush for Lack of Regulation
By JOSEPH GOLDSTEIN, Staff Reporter of the Sun | September 22, 2008

As Senator Schumer attempts to blame Wall Street‘s recent economic upheavals on a lack of regulation by the Bush administration, he may have some inconvenient facts to confront.

Until the current credit crisis, Mr. Schumer had been a leading voice for deregulation: He has championed the repeal of a Great Depression-era law that prohibited commercial banks from underwriting securities; he has written an opinion piece calling for the Sarbanes-Oxley Act to be “re-examined,” and he has opposed a bill that sought to reduce taxpayer risk in the event of a housing market slowdown by requiring Freddie Mac and Fannie Mae to sell their entire investment portfolios of about $1.5 trillion worth of mortgage assets.

The New York Sun article continues:

A spokesman for Mr. Schumer did not respond yesterday to a request for comment.

Mr. Schumer’s opposition to regulation is also beginning to come under scrutiny for the first time.

“He is responsible as one of the leading senators in the banking committee for much of the problems that we’re facing today,” a fellow at the American Enterprise Institute, Peter Wallison, a former general counsel to the Treasury Department under President Reagan, said of Mr. Schumer. “He failed to regulate where there was an opportunity to reduce the taxpayers’ liability.”

Too many people naively and frankly stupidly believe that the housing finance market meltdown is the Republicans’ fault because President Bush is in the White House and Republicans used to be in charge of Congress two years ago.  And this “They wanted to deregulate” lie is at the heart of that blame game. Republicans clearly do bear a share of the blame.  But this mess has Democrat written all over it, too.  Look at Joe Biden, Charles Schumer, Barney Frank – and yes, Barack Obama – along with a whole legion of Obama Democrats like Franklin Raines, Jim Johnson, and Jamie Gorelick who collectively took well over $300 million from Fannie Mae while cooking the books to do it.  And let us not forget Barack Obama’s National Finance Chair, Penny Pritzker, who was at the epicenter of the subprime scandal, and who paid $460 million dollars of her personal fortune to literally stay out of jail.

Barack Obama is second on the list of Fannie Mae and Freddie Mac campaign money recipients only after fellow Democrat Chris Dodd (who has also been identified taking a sweetheart deal from scandelized Countrywide); and he is second on the list of Lehman Bros’ campaign money recipients only after fellow Democrat Hillary Clinton.  And Obama, of course, got a sweetheart housing deal of his own, from convicted sleazeball Tony Rezko.

It needs to be realized that the Bush administration twice tried to regulate the housing finance industry in 2003 and 2005 – and both times were stymied by determined Democratic opposition.  John McCain joined President Bush in both efforts that would have saved our financial market, and was one of the four Republican sponsors of the Federal Housing Enterprise Regulatory Reform Act of 2005.  In his statement supporting the 2005 bill, John McCain presciently foresaw the very disaster that has since overtaken the finance industry.   Democrats’ entrenched opposition to any reform that would have prevented people who could not qualify for a home loan from getting one anyway prevented both measures from succeeding.

Looking at Barack Obama’s personal exposure and the direct culpability of his closest advisers in the housing finance scandal, one thing is sure: voting for an Obama administration would be tantamount to giving the robbers the keys to the bank.

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7 Responses to “Dems Blame Bush For Deregulation: Just Another Day Of Astounding Liberal Hypocrisy”

  1. Jamie Holts Says:

    Thanks for posting the article, was certainly a great read!

  2. This is excellent! Says:

    This is journalism as it should be, Michael. What President Bush maybe should do is go to the Country on National Television and tell the people to open their eyes to the truth. The crooks need to be prosecuted. And they must repay what they literally stole from the people.

  3. Michael Eden Says:

    Thank you.

    I just wish more people would take a few minutes to learn the facts.

    The FBI is investigating, but these people always seem to get away with stealing.

  4. Fred L May Sr Says:

    I am not Democrat or Republican.
    Interesting artical. Authors should be required to identify their political leanings. That way reader can decide how truthful the artical is or how biased it is.

  5. Michael Eden Says:

    I agree with you.

    I am a conservative, and identify myself as such on my blog title page.

    Having a perspective is different from having a bias. For example, Jews have a clear perspective regarding the Holocaust (they believe it happened, and that it was evil); and they have worked hard to preserve and present the evidence of the Holocaust. On the other hand, many Islamicists also have a perspective regarding the Holocaust; but they also have a bias. They do not care about what happened, and seek to explain away what happened with propaganda.

    While I have a definite perspective, I try to keep my commitment more to the truth than to my “side.” I always try to provide substantial documentation to support my views in my articles.

    The worst kind of bias is what we have been seeing in the media. Journalists are overwhelmingly liberal. 92% of journalists voted for Clinton; 90% voted for Kerry, for example. And now many are registering “independent” (often their publications require that they do so), but that is only to escape the embarrassment of being seen in obvious bias. Yet they claim that they are politically objective. That has always been a crock (as an example, we NOW know that Walter Cronkite was a total flaming liberal!); but never more than this election, when they went over the top kookoo for Obama.

  6. Brian Says:

    Biased people seem to claim that they are not. Let’s look at your story, you shift the blame on Democrats for Bush’s failure to regulate banking or financial industry. The indisputable fact is that both congress and white house was in control of Republican while Bush tried to regulate Fannie mae & Freddie mac,and the author tried to blame the minority for majority’s incompetency. The author needed to know that only with Republicans’ help, Democrats would be able to block that piece of regulation, and he conveniently omit that fact. That’s where your bias come in. By the way, I am neither Republican nor Democrat. I am free of any affiliation with any party. I vote freely for whomever I think would be capable and do their jobs. I haven’t seen a politician who is not a little bit of hypocrite. Politicians have to play loose with facts to get voters into sides. The author did just like politicians and therefore you have biased perspective.

  7. Michael Eden Says:

    Let’s see what is laughably wrong about your drivel, Brian.

    #1) You say “Biased people seem to claim that they are not. Let’s look at your story…” Hey, DUMBASS, why don’t you take a look at the very first words that follow the name of my site: “Michael Eden’s Discussion of the Two Forbidden Subjects – Politics and Religion – from a Conservative Perspective.”

    My problem here is I don’t know if you are a true liar who is dishonestly trying to fabricate a straw man to rhetorically demagogue me, or if you really are just that dumb. BUT I NEVER CLAIM NOT TO BE “BIASED,” Mr. MENSA; I simply loathe to see mainstream media elites who couldn’t be more in the tank pretend to be “objective.”

    #2) Your second point is that I am somehow wrong for trying to “shift the blame on Democrats for Bush’s failure to regulate banking [sic] or financial industry [sic].”

    Let’s explore that for a moment. From the New York Times, 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.

    And who blocked those reforms? The Democrat Party, using every procedural tactic known to man including the filibuster to PREVENT George Bush from aforementioned regulatory overhaul of the housing finance industry. At the end of the very same article we have this:

    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.”

    Representative Melvin L. Watt, Democrat of North Carolina, agreed.

    ”I don’t see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,” Mr. Watt said.

    U.S. New & World Report puts it this way:

    Seventeen. That’s how many times, according to this White House statement (hat tip Gateway Pundit), that the Bush administration has called for tighter regulation of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.

    Take a look at the timeline as to what collapsed when and sent the snowball rolling into a giant avalanche here. Fannie and Freddie – which Barney Frank and the Democrat Party assurred us over and over again was just FINE as they prevented George Bush from reforming and regulating SEVENTEEN TIMES – imploded and took the entire economy down with it.

    So you are literally calling me out for being “biased” for accurately stating the truth. Democrats STOOD IN THE WAY AT EVERY SINGLE TURN while Bush tried to prevent the crisis that imploded America. And if you WEREN’T a total dumbass, you would know that the Democrats had the power to filibuster and to prevent the passage of any bill they didn’t like. And if you were honest – instead of the liar I have already documented you to be above – you would see how completely ASININE the Democrats have been in demonizing Republicans for stopping legislation when DEMOCRATS stopped legislation over and over and over again when Republicans were running things.

    It was also Democrats such as Franklin Raines who were running Fannie and Freddie when all the policies that led to their implosion occurred.

    John McCain tried to warn America to reform Fannie and Freddie before it was too late. He said in 2005, “If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.” Which of course was EXACTLY what happened three years later. Too bad vile Democrats stopped that effort dead. Meanwhile, Barack Obama was taking more money in a shorter time from Fannie and Freddie than ANYBODY.

    You really ought to get a damn clue before you start calling people out, Brian. First of all you were IGNORANT of the fact that Bush and Republicans DID try over and over to reform Fannie and Freddie. Second of all you are IGNORANT of the fact that the minority party has the power of the filibuster and many other procedural gimmicks.

    Every single thing you say is entirely fallacious. You ought to be ashamed of yourself.

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