Big Bailout: Now Is The Time For Blame

For a week now we’ve endured the dumbed-down slogans, contrived for voter consumption:

“Now is not the time to point fingers”

“Now we have to come together and get something done.”

“There’s plenty of blame to go around.”

We don’t buy it.  Now is the time to determine who is at fault and what they did to cause the crisis.  Otherwise we’re doomed to suffer the costs and risks of government intervention without preventing similar crises in the future.  The People should demand that blame be assessed immediately for the following reasons:

  • If there is to be emergency government action it should be appropriate to the true nature of the problem.
  • Any long term government action should be consistent with liberty, institutional accountability and personal accountability
  • Congressmen or Senators who, through deliberate dishonesty, or through negligence, or due to incompetence contributed to the crisis should not be empowered to determine what action government should take.
  • Government appointees whose negligence or malfeasance in running Freddie Mac and Fannie Mae contributed to the crisis should not be trusted to organize or supervise or oversee any Government response to the crisis.
  • If no blame is meted out now the fabricated oral history of this financial crisis, which is already being generated by the political-media establishment will soon evolve into accepted truth, promulgated throughout the nation, deceiving millions of Americans.
  • Some of the politicians who should be held accountable were the primary authors of The Big Bailout that was voted down yesterday, and, are, today, writing Bailout 2.0

This video of a House Committee hearing held 2 years before the financial crisis is an extremely effective presentation of the story of early attempts to intervene and prevent Fannie Mae and Freddie Mac from bringing the nation to this crisis.  The video also stars some of the politicians who should be held accountable for preventing action to rein in Fannie and Freddie. 

Notes on terms in the video:

  • GSE stands for Government Sponsored Entity, the structure of Fannie Mae and Freddie Mac.
  • Franklin Reins was CEO of Fannie Mae, earned millions in undeserved bonuses, and was eventually removed from his post by Congress.
  • OPHEO (pronounced “ofayo” in the video) was The Office of Federal Housing Enterprise Oversight, the agency charged with regulating Fannie and Freddie.  The hearings in the video were held in response to a scathing audit by OPHEO calling attention to executive malfeasance at Fannie and Freddie.

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