Where is the US economy headed?

okie, That still doesn't excuse any financial institution that provided loans to unqualified buyers. That Frank told congress that "Fannie and Freddie is sound" doesn't mean much when they continued to lend to unqualified buyers. Did Frank make it illegal not to?

It wasn't so much their direct lending to unqualified buyers that accelerated the mortgage bubble & collapse as it was their widespread buying and securitizing of mortgages let by Countrywide and other third party lenders.

It wasn't so much their direct lending to unqualified buyers that accelerated the mortgage bubble & collapse as it was their widespread buying and securitizing of mortgages let by Countrywide and other third party lenders. This had the effect of decoupling lenders from the possibility of borrower default and quickly replinishing the capital on which they could make more loans - all guaranteed by our idiot government. The public bill for this aspect of the bubble hasn't yet been paid. Still nothing was wrong, because as the esteemed Maxine Waters said of the Bush attempt to rein in Fannie and Freddie, "Don't fix it. It ain't broke."

It was all done with GWB's watch. He had eight years and he never even looked at it and it consumed his Administration.

2007
*06/23—Two Bear Sterns hedge fund groups collapse due to their mortgage investments.
*08/09— President Bush requests Congress pass a reform package for Fannie Mae and Freddie Mac.
*12/06— President Bush warns Congress of need to pass legislation reforming GSEs.

2008
*03/14—J.P. Morgan and the Federal Reserve recognize extent of Bear’s toxic assets, including sub-prime mortgages, and credit default swaps, and interconnection with other banks.
*03/14—At Economic Club of New York, President Bush requests Congress take action and reform Fannie Mae and Freddie Mac.
*04/14—President Bush issues a plea to Congress to pass legislation reforming Fannie Mae and Freddie Mac.
*05/03—President Bush issues a plea to Congress to pass legislation reforming Fannie Mae and Freddie Mac.
*05/19—President Bush issues a plea to Congress to pass legislation reforming Fannie Mae and Freddie Mac.
*05/31—President Bush issues a plea to Congress to pass legislation reforming Fannie Mae and Freddie Mac.
*06/06—President Bush issues a plea to Congress to pass legislation reforming Fannie Mae and Freddie Mac.
*07/11—Senator Chris Dodd says: "There’s sort of a panic going on today, and that’s not what ought to be. The facts don’t warrant that reaction, in my opinion … Fannie Mae and Freddie Mac were never bottom feeders in the residential mortgage market. People ought to feel comfortable about that. "

http://www.freerepublic.com/focus/f-news/2051527/posts
Partial History of U.S. Federal Income Tax Rates
Highest and lowest Income Tax Rates 1971 to 2009
...
1971-1981: minimum = 14%; maximum = 70% [CARTER 1977-1981]
1982-1986: minimum = 11%; maximum = 50% [REAGAN 1981-1989]
1987-1987: minimum = 11%; maximum = 38.5%
1988-1990: minimum = 15%; maximum = 33% [BUSH41 1989-1993]
1991-1992: minimum = 15%; maximum = 31%
1993-2000: minimum = 15%; maximum = 39.6% [CLINTON 1993-2001]
2001-2001: minimum = 15%; maximum = 39.1% [BUSH43 2001-2009]
2002-2002: minimum = 10%; maximum = 38.6%
2003-2009: minimum = 10%; maximum = 35%
2009-2010: minimum = 10%; maximum = 35%[OBAMA 2001-2009]

The Democrats only gained a slim majority Congress in 2006.

talk72000 wrote:

The Democrats only gained a slim majority Congress in 2006.

And the Democrats opposed doing anything to correct Fan&Fred thereafter--in 2007, 2008, 2009, and 2010. Their bailout efforts in 2008 and thereafter have failed to correct the problems initiated and perpetuated by the Democrats who in December 2008 began evolving into ODDM (i.e., Obama Democrat Disassembling Maligners).

Nothing they could have done post-2006 would have averted the disaster, Ican. You have been patiently explained this fact over and over again, and I'm starting to conclude that you are just too stupid to understand the situation.

Cycloptichorn wrote:

Nothing they could have done post-2006 would have averted the disaster, Ican. You have been patiently explained this fact over and over again, and I'm starting to conclude that you are just too stupid to understand the situation.

THAT IS A CLAIM FOR WHICH YOU HAVE PROVIDED ZERO EVIDENCE, and it is a VACUOUS CLAIM.

Cutting back FAn&Fred poorly and inadequately backed housing loans would have been an excellent start.

Nothing they could have done post-2006 would have averted the disaster, Ican. You have been patiently explained this fact over and over again, and I'm starting to conclude that you are just too stupid to understand the situation.

Cycloptichorn