Tuesday, March 3, 2009
This YouTube Video paints the Bush Administration as trying to warn everybody about Fannie Mae and Freddie Mac. What I don't understand is why the Bush Administration didn't have a fall back plan that could have been implemented immediately when the sub prime mortgage rates were spiking overnight. I believe the economic downturn could have been softened if home owners didn't just give up paying their mortgage because it dramatically increased overnight.
Regulation does not just have to happen on the front end. Bush, the Republicans and the Democrats seemed more concerned about the banks failing then people who had been paying their mortgage just giving up overnight when the monthly payment ballooned. I still blame the banks for offering a mortgage program that increased the monthly mortgage payment overnight by a factor of 50%, 100%, or even 200% on homeowners.
It would have been amazing if just once, we could have seen Bush ride in and actually rescue the average american.