Here is video of Sen. Judd Gregg on CNBC today where he placed the blame for most of the U.S. financial crisis squarely at the feet of the Democrats. Gregg was asked about the so-called “Financial Reform” bill, which he described as a “disaster” because it does nothing about reform of Fannie Mae or Freddie Mac.
That’s where Gregg drew the link between the Democrats and the economic crisis:
“The problem was created by the Congress. It was the Congress that told Freddie and Fannie to radically expand their securitization efforts. It was the Congress which said “Forget your standards – Go out there and lend to anybody who wants a home and securitize it for them.” That was purely at the initiative of the Congress. In 2005, Richard Shelby brought to the floor a reform package which, had it passed at the time, would have avoided almost all the problems we’ve had with Fannie and Freddie. . . . . There is still an attitude in the Congress which says we should be pushing out lending to just about anybody who wants a home…..It’s still the philosophy of the majority party.”
The majority party – the Democrats – love to blame all the ills of the world on George W. Bush. But their philosophy of making home ownership a “right” in large part brought us to where we are today, and it sounds like they have not learned a thing from this crisis. That’s why they need to become the minority party, and this time, the Republicans need to govern with true conservative principles.