The media blamed the banks, politicians blamed Wall street, and they all blamed greed.

But we, in the conservative movement, have known for a long time that the fingerprints of government policy have been all over this financial crisis. To us it has been as clear as the nose in our faces. It was not the lack of regulation that caused this crisis it was an abundance of bad law, bad policy combined with a loads of meddling politicians that caused this crisis.

Like most bad government policy it all starts with “good intentions”. Jimmy Carter started it all with the passage of the “Community Reinvestment Act” back in the 70′s. Then, in 1994 the lame duck Democrat Congress amended the CRC to put it on steroids. As the Democrats are fond of doing, they passed this change to the CRC in the dead of the night just before Republicans took over Congress.

Janet Reno took advantage of the new changes to the CRC to threaten and cajole banks to change their normal lending practice. The new norm became “Lend, baby Lend”!!

But after years of the blame game no one has publicly fingered the heavy hand of government intervention, until now!

I guess you have to be so old and close to death or come to the realization that your future is no longer tied to your political fortunes before you can tell the truth in Washington.

On April 7. 2010, Alan Greenspan finally had the nerve to say it in plain spoken words, for a change, what we have been waiting to hear anyone with authority say for a long time.   I guess he is so old now that he doesn’t really care about what the politicians can do to him.

Most notably, Greenspan implied it was Congress’ meddling incompetence — not the Fed, or free markets, or greedy bankers — that created the financial meltdown.

“There’s a lot of amnesia that’s emerging,” Greenspan said. “I sat through meeting after meeting in which the pressures on the Federal Reserve and all the other regulatory agencies to enhance lending were remarkable.”

“There’s a presumption that the Federal Reserve’s an independent agency, and it is up to a point, but we are a creature of Congress and if … we had said we’re running into a bubble and we need to retrench, the Congress would say ‘we haven’t a clue what you’re talking about,’” he said.

Greenspan was not alone. On April 9 none other than two of the crooks themselves, former Fannie Mae Executive Daniel Mudd and Robert Levin said basically the same thing.

“Maintaining the delicate balance between profitability as a private company and service to a public mission became impossible.” _ Daniel Mudd April 9, 2010.

Okay, so we finally start to get at the truth. But, this only begins to scratch the surface of the real villains in this fiasco. When are the politicians that added the most fuel to the fire finally get blamed for the destruction they caused? Chris Dodd, Barney Frank, Maxine Waters, Gregory Meeks, Lacy Clay, Janet Reno, Bill Clinton, and all the other crooks that worked at Fannie Mae, plus many many more and the list is endless.

Now under Obama the country is undertaking another huge financial obligation that we cannot afford.   Obama, hear us yell “We are bankrupt”, you fool.   Who will bail us out next time?

Documentation:

1. Here’s one damning video evidence showing Democrats defending Fannie Mae’s and Freddie Mac’s thievery: http://www.youtube.com/watch?v=_MGT_cSi7Rs
2. Alan Greenspan, C-span video testimony at the FCIC April 7, 2010.
3. Alan Greenspan, written testimony to the FCIC April 7, 2010 (PDF).
4. FCIC official hearings page, transcript of Daniel Mudd and Robert Levin testimony April 9, 2010.
5. Greenspan gets it.
6. Greenspan Defends Fed Record.
7. Ex-Citi exec says he warned Robert Rubin on mortgage risk.
8. Former Fannie Mae Executives Explain Failures to Congress.