President Obama last week nominated Rep. Mel Watt (D-N.C.) to run the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, the two agencies that caused the Great Recession Obama keeps blaming on George W. Bush.
They did this by promoting policies that allowed them to own billions of dollars in home loans made to people who couldn’t afford to buy homes. And then, a FINANCIAL CRISIS ensued when these people couldn’t make their payments, as might have been expected.
Except, it wasn’t expected by Mel Watt.
In a nice piece of investigative journalism, Charles C. Johnson over at The Daily Caller did some research and found out that Mr. Watt supported the very polices that got us into trouble in the first place, even after these policies got us into trouble.
From the article:
In 2002, Watt teamed up with Freddie Mac and Fannie Mae, Bank of America, BB&T, and UJAMMA Inc., to announce Pathways to Homeownership, a pilot initiative designed to give home loans to welfare recipients . . .
Watt, alongside then-Democratic Massachusetts Rep. Barney Frank, blocked Bush Administration efforts to reduce Fannie and Freddie’s overexposure to subprime loans . . .
In 2007, a full year after the real estate market peaked and began to plummet under the weight of millions of mortgage defaults, Watt and Frank co-sponsored a bill forcing Fannie and Freddie to meet even higher quotas for affordable lending.
Don’t be shocked. Remember that in Obama World, only greedy bankers and George W. Bush cause financial crises. They can never be the result of market-distorting liberal policies, which opened the door for lending abuses – and even in some cases required them – in order to realize the dream of home ownership for all.
Because even people who can’t afford homes need to own them. And, please, each according to their needs.
And so, in Obama World, Mel Watt is perfect for the job. And on the Obama Farm, foxes guard chicken coops.