Video: Fannie/Freddie reform “too complicated” to do with financial regulation reform

posted at 2:20 pm on May 11, 2010 by Ed Morrissey

What Rep. Paul Kanjorski (D) means is that it’s too expensive … and too politically fraught to do before the elections.  Rick Santelli blasts Kanjorski on CNBC this morning for dodging the issue as well as offering the misleading notion that Congress is doing something about the continuing risk of Fannie Mae and Freddie Mac to taxpayers.  After all, Congress took off the limits on the bailout a few months ago, something Kanjorski fails to mention:

In fairness, it probably is too complicated to be included in the Dodd bill, but that’s just all the more reason for Fannie/Freddie reform to be addressed first.  After all, while Wall Street bears some responsibility for the secondary problems that created the crash in 2008, the actual, underlying cause was Fannie/Freddie’s assumed guarantees from Congress and Congressional manipulation of the lending markets.  If we unlink the federal government from Fannie and Freddie, it will keep Congress from using that relationship again to conduct the kind of social engineering that almost gave us a new Great Depression.

Let’s fix government’s problems before addressing Wall Street’s.  It can’t be any more expensive than the unlimited bailout Congress authorized in this session.

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Gotta like Santelli.

catmman on May 11, 2010 at 2:23 PM

Why isn’t Dodd in jail?

lorien1973 on May 11, 2010 at 2:23 PM

How is eliminating Fannie and Freddie too complicated? THAT’s what needs to be done.

Firefly_76 on May 11, 2010 at 2:24 PM

Heh, I was just going to post a link to this video downthread. There are no flies on Ed Morrissey. He is on top of the news with an apt observation added to boot.

onlineanalyst on May 11, 2010 at 2:24 PM

Uhm, who is Kenny Youngman?

Archimedes on May 11, 2010 at 2:25 PM

But I thought there was nothing wrong with Fanny and Freddie…?

Seven Percent Solution on May 11, 2010 at 2:25 PM

Why isn’t Dodd in jail?

lorien1973 on May 11, 2010 at 2:23 PM

He’s too big to jail.

Lily on May 11, 2010 at 2:26 PM

Why isn’t Dodd in jail?

lorien1973 on May 11, 2010 at 2:23 PM

He’s too big to jail.

Lily on May 11, 2010 at 2:26 PM

Also, laws are racists, for Nazis, and against Latinos!!!!111!!!!

tetriskid on May 11, 2010 at 2:28 PM

Uhm, who is Kenny Youngman?

Archimedes on May 11, 2010 at 2:25 PM

That’s Henny Youngman, one of those old-style Borscht Belt comedians famous for his one-liners. That’s one-liner schtick is why Santelli;s rebuttal is so effective in responding to Kanjorski.

onlineanalyst on May 11, 2010 at 2:28 PM

Fannie and Freddie: Can We Finally Admit the New Deal Failed?

So many still believe that evil, fascist SOB FDR is sitting to the right of God in Heaven.

The full Fed audit also failed today. I wonder when Democrat voters (as well as some Republicans) will realize how deep in the pockets of Big Banksta their party actually is. Fascists, all, defying the will of the people, again.

Senators Once Again Show They Only Work For The Fed And Wall Street: Vote Vitter Amendment Down 62-37

Rae on May 11, 2010 at 2:29 PM

How is eliminating Fannie and Freddie too complicated? THAT’s what needs to be done.

Firefly_76 on May 11, 2010 at 2:24 PM

Elinating them probably would not be complicated but, what to do with all the assets/liabilities they/we hold is a question.

One that I have no ready answer to, if someone else has any ideas I am all ears.

Archimedes on May 11, 2010 at 2:29 PM

Chris Dodd’s job should be washing sheets in the prison laundry.

It’s appalling that a worthless criminal incompetent like Chris Dodd has our nation’s financial future in his “caught red handed” hands.

NoDonkey on May 11, 2010 at 2:30 PM

onlineanalyst on May 11, 2010 at 2:28 PM

Roger that, thanks!

Archimedes on May 11, 2010 at 2:30 PM

Why isn’t Dodd in jail?

lorien1973 on May 11, 2010 at 2:23 PM

Because his replacement (AG Blumenthal) refuses to prosecute him for just making “mistakes”.

Johnnyreb on May 11, 2010 at 2:34 PM

Let’s fix government’s problems before addressing Wall Street’s.>>>

Yeah, let’s get the MSM or the libs to even admit there are problems with the government.

joeindc44 on May 11, 2010 at 2:34 PM

Let’s fix government’s problems before addressing Wall Street’s. It can’t be any more expensive than the unlimited bailout Congress authorized in this session.

Pffffffft. Yeah, like THAT will happen. Dream on….

sicoit on May 11, 2010 at 2:36 PM

Hey it’s all cool. There is only about $1.5 Trillion left in bad notes they still guarantee.

Johnnyreb on May 11, 2010 at 2:38 PM

So many still believe that evil, fascist SOB FDR is sitting to the right of God in Heaven.

The full Fed audit also failed today. I wonder when Democrat voters (as well as some Republicans) will realize how deep in the pockets of Big Banksta their party actually is. Fascists, all, defying the will of the people, again.

Senators Once Again Show They Only Work For The Fed And Wall Street: Vote Vitter Amendment Down 62-37

Rae on May 11, 2010 at 2:29 PM

One of my senators, the one we’re keeping, McConnell voted against it, while, Bunning the one were losing, voted for it. Life isn’t fair.

DFCtomm on May 11, 2010 at 2:39 PM

NoDonkey on May 11, 2010 at 2:30 PM

There is long list of people and events that require investigations, both criminal and civl and need to be prosecuted. The question is wether the Rep’s have the stones to go through with it, especially as the Dhim’s will threaten backlash with all shady dealings the Rep’s have in their own closets.

With very, very few exceptions, we need to clean house if we are going to get anywhere.

I am very curious whats going on with Patrick Fitzgerald’s efforts in Chicago, anyone here anything on that front?

Archimedes on May 11, 2010 at 2:40 PM

Senators Once Again Show They Only Work For The Fed And Wall Street: Vote Vitter Amendment Down 62-37

Rae on May 11, 2010 at 2:29 PM

How disappointing. Turncoat Brown voted against. Even the Maine sisters voted correctly on this one.

Firefly_76 on May 11, 2010 at 2:40 PM

Why isn’t Dodd in jail?

lorien1973 on May 11, 2010 at 2:23 PM

He’s on work release so he can write financial regulation law.

forest on May 11, 2010 at 2:41 PM

Why isn’t Dodd in jail?

lorien1973 on May 11, 2010 at 2:23 PM
He’s too big to jail.

Lily on May 11, 2010 at 2:26 PM

Yes. A few laws need to be changed. Congressmen need to be held accountable for “mistakes”. When they aren’t they are free to engage in the kind of stuff that led to this melt down.

I’m serious there needs to be personal accountability for when it is foreseeable that the things they do as Congressment will lead to consequences such as these.

Dodd should be in jail. And so should Barney Frank. And possibly Paulson. Anyone else?

By the way who was head of the banking committee before 2006? I am serious about accountability.

petunia on May 11, 2010 at 2:42 PM

The government is Wall Street’s problem. They can’t make money without being all capitalistic. The government is trying to make them socialist. It ain’t working.

BetseyRoss on May 11, 2010 at 2:44 PM

what Kanjorski means is we have to wait until FAN FRED FHA are holding all the inventory and are the biggest landlords in the US before we make our move

see here and here for starters

ginaswo on May 11, 2010 at 2:44 PM

Why isn’t Dodd in jail?

lorien1973 on May 11, 2010 at 2:23 PM

They’d put him in jail but even the prisoners don’t want a lying Senator as their girlfriend.

WordsMatter on May 11, 2010 at 2:44 PM

Dodd and Frank both deserve jail! Not the cushy, low risk type either! They should both do hard time! Biggest problem is that Frank would love it!!!

Vntnrse on May 11, 2010 at 2:46 PM

With very, very few exceptions, we need to clean house if we are going to get anywhere.

Archimedes on May 11, 2010 at 2:40 PM

Fire them all!

Johan Klaus on May 11, 2010 at 2:47 PM

Dodd isn’t in jail because this is the most ethical Congress EVAH!!!!! Pelosi told me so.

search4truth on May 11, 2010 at 2:47 PM

I hope to H3ll that one of Boehner’s first acts as speaker of the house is to call for hearings about Fannie and Freddie and the involvement of past and present politicians.

WordsMatter on May 11, 2010 at 2:48 PM

Hey we here in CT tried to get Dodd charged with at least something in that whole “Friends of Angelo” Country wide loan mess, and his mansion in Ireland lying about it on his taxes stuff, but the AG refused to do anything. Twice.

Johnnyreb on May 11, 2010 at 2:48 PM

If they’ve been in office more then four years they should go, and the one’s who’ve been in office less then four years need very VERY close observation!

Vntnrse on May 11, 2010 at 2:49 PM

Hey we here in CT tried to get Dodd charged with at least something in that whole “Friends of Angelo” Country wide loan mess, and his mansion in Ireland lying about it on his taxes stuff, but the AG refused to do anything. Twice.

Johnnyreb on May 11, 2010 at 2:48 PM

Is that the same AG that’s running for Senate this year?

WordsMatter on May 11, 2010 at 2:49 PM

Dodd should be in jail. And so should Barney Frank. And possibly Paulson. Anyone else?

petunia on May 11, 2010 at 2:42 PM

Maxine Waters.

Johan Klaus on May 11, 2010 at 2:51 PM

By the way who was head of the banking committee before 2006? I am serious about accountability.

petunia on May 11, 2010 at 2:42 PM

I think it was Shelby.

Archimedes on May 11, 2010 at 2:51 PM

Is that the same AG that’s running for Senate this year?

WordsMatter on May 11, 2010 at 2:49 PM

Yep Blumenthal the media whore is his designated replacement.

Johnnyreb on May 11, 2010 at 2:51 PM

The Fannie/Freddie fix is not that complicated: NO MORE BAILOUTS OR FEDERAL FUNDING. You fail then you fail. Suck it.

gwelf on May 11, 2010 at 2:53 PM

Why isn’t Dodd in jail?

lorien1973 on May 11, 2010 at 2:23 PM

Anyone in the ruling class in favor at the time is immune to prosecution. At most, they may have to apologize for something.

“I’m sorry I killed those 200 people and robbed taxpayers of $2 billion. I take full responsibility. Now, if you’ll excuse me, I have to get back to my lunch date.”

Daggett on May 11, 2010 at 2:54 PM

Fire them all!

Johan Klaus on May 11, 2010 at 2:47 PM

There are some who are trying to do the right thing, I understand the anger, trust me I do, but would you oust Ryan, Pence, De Mint to name just a few? We must resist the temptation of shooting ourselves in the foot.

Archimedes on May 11, 2010 at 2:54 PM

Dodd should be in jail. And so should Barney Frank. And possibly Paulson. Anyone else?

petunia on May 11, 2010 at 2:42 PM
Maxine Waters.

Johan Klaus on May 11, 2010 at 2:51 PM

Agree, she can be the Bull Prison Guard, making life miserable.

“What we’ve got here is a failure to communicate.”

Classic.

NoDonkey on May 11, 2010 at 2:56 PM

One of my senators, the one we’re keeping, McConnell voted against it, while, Bunning the one were losing, voted for it. Life isn’t fair.

DFCtomm on May 11, 2010 at 2:39 PM

Bunning’s a good man, and Wattle McConnell is a disgrace.

Interesting breakdown here (according to who’s up for re-election).

Number of Democrats who Voted Nay = 52 Out of 58 = 89% of Democrats
Number of [Republicans] who Voted Nay = 11 Out of 41 = 26% of Republicans
Percentage of Democrats up for election who voted Yea = 28% of Democrats
Percentage of Republicans up for election who voted NAY = 0% of Republicans…
(more)

I see “Scotty Brown” is living up to his RINO potential. The tea party was had as far as that guy goes.

Rae on May 11, 2010 at 2:57 PM

Dodd should be in jail. And so should Barney Frank. And possibly Paulson. Anyone else?

petunia on May 11, 2010 at 2:42 PM
Maxine Waters.

Johan Klaus on May 11, 2010 at 2:51 PM

Oh please, can we try making easier on ourselves by going with short list of shouldn’t be tossed out. I have no desire to type up 500 or so names.

Archimedes on May 11, 2010 at 2:58 PM

Is that the same AG that’s running for Senate this year?

WordsMatter on May 11, 2010 at 2:49 PM
Yep Blumenthal the media whore is his designated replacement.

Johnnyreb on May 11, 2010 at 2:51 PM

Gee that doesn’t seem a little fishy at all, nothing to see hear, now move along. Un-freakin-real!

Archimedes on May 11, 2010 at 3:00 PM

From the man who resurrected the term “Tea Party”. Tell it like it is, Rick.

pjean on May 11, 2010 at 3:02 PM

In all fairness Ed, You sound like a political hack from the Beltway~! Let’s see what happens in November. If there is a huge turnover in Congress, with lots of new blood replacing stagnant lefties, maybe we’ll be able to get after Fannie and Freddie and the Congressional badguys who perpetrated this disaster, Frank, Pelosi, Waters, Rangel, etc..Dodd can’t stand the heat.

tomshup on May 11, 2010 at 3:05 PM

I’m not expert on how to unravel Freddie/Fannie but it would be appear to be something like this:

1. Cut off funding and GSE status.
2. Allow MBS value’s to adjust to non-gov’t guaranteed status.
3. And when Wall Steet screams bloody murder, don’t bail them out!

WisRich on May 11, 2010 at 3:13 PM

Our founding fathers are rolling in their graves.

Impeachment for odumbo!

ultracon on May 11, 2010 at 3:18 PM

After all, while Wall Street bears some primary responsibility for the secondary problems that created the crash in 2008, the actual, underlying cause was Fannie/Freddie’s assumed guarantees from Congress and Congressional manipulation of the lending markets.

FIFY. Members of Congress will probaly wish they’d reconsidered their position on Fannie and Freddie reform when they have Greek-like mobs chasing them with pitchforks.

BuckeyeSam on May 11, 2010 at 3:18 PM

Dodd and Frank both deserve jail! Not the cushy, low risk type either! They should both do hard time! Biggest problem is that Frank would love it!!!

Vntnrse on May 11, 2010 at 2:46 PM

Put Barney in a woman’s prison.

Patrick S on May 11, 2010 at 3:22 PM

ginaswo on May 11, 2010 at 2:44 PM

Excellent links. Thanks.

That ought scare the hell out of EVERYBODY (except freeloaders).

hillbillyjim on May 11, 2010 at 3:25 PM

Those bastards in Congress will not give up Fannie and Freddie. There’s too much power there.

GarandFan on May 11, 2010 at 3:44 PM

what Kanjorski means is we have to wait until FAN FRED FHA are holding all the inventory and are the biggest landlords in the US before we make our move

Kind of like all Obama’s blathering about Medicare fraud, but it couldn’t be addressed unless he got socialized medicine in place first.

califcon on May 11, 2010 at 3:48 PM

Why isn’t Dodd in jail?

lorien1973 on May 11, 2010 at 2:23 PM

He should be. And for extra punishment he should have to share a cell with Barney Frank.

Corsair on May 11, 2010 at 4:47 PM

Wall Street may have played the role of the match in our crisis, but the Fannie/Freddie/CRA conjunction was pretty clearly the fuel that engulfed our economy (and still burns for that matter). Tar and feather a few Congressmen, and we’ll be better off as a country.

MTF on May 11, 2010 at 5:17 PM

If we unlink the federal government from Fannie and Freddie, it will keep Congress from using that relationship again to conduct the kind of social engineering that almost gave us a new Great Depression.

Am I the only one that thinks that we already are into a depression? Obviously, we will need to slide into the third consecutive recession to qualify for an old school depression. Now that we are into the 29th month of this mess, does the next non-govt drop in growth count as the third one? Without any way forward in terms of monitary policy, other than the additional tax burdens envisioned by Obama for his version of social justice, it seems inevitable that we will move from one recession to the next.

Or maybe this is the new Obama economic solution. After all, Obama did promise an end to the ‘bubble’ economy. Not having any real growth will certainly prevent future bubbles!

Freddy on May 11, 2010 at 5:27 PM

When is the right time? I saw this at Gateway listing all the times Bush tried to reform Fannie Mae and Freddie Mac…and McCain and other Republicans have been saying for years it just needs to be done away with, privatized. I think that is the only real cure it for it.

Terrye on May 11, 2010 at 5:36 PM

Poor, poor dimmycrats. Their pockets aren’t big enough to steal every last dime from us before November.

n0doz on May 11, 2010 at 9:33 PM