Monday, September 22, 2008

Financial Meltdown/Miraculous Recovery: Take 2 

Kevin Hasset at Bloomberg.com says the Democrats caused the current financial crisis by blowing off a senate bill back in 2005 (S. 190) that would have reined in Fannie and Freddie before they flooded the market with mortgage backed securities of dubious safety.

Alan Greenspan is cited:
If Fannie and Freddie ``continue to grow, continue to have the low capital that they have, continue to engage in the dynamic hedging of their portfolios, which they need to do for interest rate risk aversion, they potentially create ever-growing potential systemic risk down the road,'' he said. ``We are placing the total financial system of the future at a substantial risk.''

Prophecy, I tell ya. But the Dems didn't listen. McCain was a cosponsor of S. 190.

H/T Instapundit

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