Damning evidence indeed, and thank God for the public record. The Wall Street Journal took a look back at who said what when about the solvency of Freddie and Fannie. Doubtful it will have the political ramifications it warrants, but good to know none-the-less. The evidence points to both Democrats and Republicans (stupidity is non-partisan), but mostly Democrats. Say what you will about John McCain, in 2005 he raised alarms about things to come which turned out to be spot-on prophetic. Maybe prophetic isn't the right word, since it was in plain sight for all to see. Earlier this week, I didn't think the blame-game could go any lower, but yes I am that na?ve. Can always count on Barney Frank, who describes criticism of subprime mortgage recipients in the following manner:
"They get to take things out on poor people. Let's be honest: The fact that some of the poor people are black doesn't hurt them either, from their standpoint."
Classy. Like Lady Macbeth, we've all got blood on our hands; hands that won't come clean no matter how often we point to others. Liberal, conservative, Democrat, Republican, rich, poor, socialist, free-market capitalist; it doesn't matter. Those deflecting the most blame are those most responsible for where we currently find ourselves. I only raise the issue to celebrate those who were shouting in the wilderness as the storm raged. People like former Reagan White House counsel and AEI fellow Peter Wallison, whose warnings of Freddie and Fannie date back 10 years. He's all over the networks (now) answering the obvious questions. We featured Wallison in the September 2007 issue of Boomer Market Advisor, and will certainly do so again soon.