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Only time will tell if Phil Angelides, chairman of the commission investigating the subprime scandal, and a fan of the legislation it grew out of,... View Enlarged Image
Meltdown: The Financial Crisis Inquiry Commission has kicked off its long-awaited hearings by promising a "thorough examination of the root causes" of the subprime scandal. But don't hold your breath.
If the witness list for Wednesday's curtain-raiser is any indication of the direction the panel's Democratic chairman plans to take the yearlong inquiry, we are deeply skeptical any roots will be exposed.
Wall Street honchos from Goldman Sachs and JPMorgan landed in the pillories first, instead of Washington executives from Fannie Mae and Freddie Mac, who have far more to answer for. Under pressure from Washington, the congressionally chartered and subsidized agencies gobbled up more than $1 trillion of the subprime and other toxic home loans that nearly KO'd the financial system.
Yet they're missing from the witness list for today's hearing.
Another giveaway is Wednesday's star policy witness, Mark Zandi — Democrat Barney Frank's favorite economist.
As head of the House banking panel, Frank protected Fannie and Freddie from oversight as it took on more and more bad loans in the name of Frank's hobbyhorse, "affordable lending."
In his 2008 book "Financial Shock," Zandi gave Frank a pass while laying blame at the feet of Wall Street CEOs. Frank, in turn, wrote a blurb for the dust jacket of Zandi's book and praised it during last year's hearings to craft tough new banking regulations.
Asked by a reporter whether he and Zandi, a registered Democrat, disagree about anything, Frank replied: "Not really."
Also appearing was an activist for the Center for Responsible Lending, which helped pressure Fannie and Freddie to ease credit rules by accusing the mortgage giants of racial discrimination.
It pushed for risky loans to uncreditworthy borrowers. Now that they've gone bust, the group accuses banks of "predatory lending."
Is the fix in? Time will tell. The commission plans to conduct hundreds of interviews over the next 11 months, culminating in a 9/11-style formal report due by December.
While commission chair Phil Angelides, a Democrat, pledges "a full and fair inquiry," the "bipartisan" 10-member panel is stacked with six Democrats who clearly have it in for Wall Street.
Angelides brings his own strong bias to the table. A former state treasurer of California, he's a big fan of the Community Reinvestment Act and other regulations that socialized mortgages and helped create the subprime market. His investigative team is stacked with California Democrat cronies, including a San Francisco trial lawyer who specializes in securities class-action suits.
If elected to the United States Senate, it's no secret that Martha Coakley would become the deciding, 60th vote in favor of the Reid-Obama-Pelosi government-run health care bill. To pay for this expansion of state power, the bill relies on 18 new tax hikes (a detailed list can be found on Americans ...
Disaster Relief: Tuesday's earthquake in Haiti was its worst since 1770, leaving the capital in ruins and a death toll that may top 100,000. But help is on its way, and it's America leading the effort. Our tiny tragic neighbor was already in bad shape when the 7.0 earthquake struck the ...
Politics: With the Massachusetts Senate race in a dead heat, the Service Employees International Union makes a massive ad buy for a Democrat raising money from lobbyists. Sorry, Sen. Kerry, but the tea party's coming. Having received a tsunami warning, the purple shirts of the SEIU have ...
Although most people in the lower income brackets as of a given time do not remain there permanently, some people do. Moreover, particular neighborhoods may remain the homes of poor people for generations, no matter how many people from those neighborhoods move out to a better life as they move up ...
The Internet: In 2006, Google, eyeing a billion new Web users in China, launched Google.cn. At the time, activists were dismayed that Google gave China's regime power over its search engine. The activists were right. Google then was willing to block some searches on behalf of the communist ...
Posted By: Rosebud(65) on 1/14/2010 | 1:33 AM ET
LOOK NO FURTHER THAN BILL CLINTON WHO REINSTITUTED THE COMMUNITY REINVESTMENT ACT IN '93 & FORCED THE FED TO LOWER CREDIT STANDARDS SO THAT POOR MINORITIES COULD OWN HOMES WITH NO DP OR INCOME CHECK. LOOK AT THE DEMOCRATS IN CONGRESS NAMELY; BARNEY FRANK,CHRIS DODD & MAXINE WATERS WHO LIED TO COVER CEO FRANKLIN RAINES WHO SHOULD BE IN JAIL. BARACK OBAMA, COMMUNITY ORGANIZER FOR ACORN WHOSE JOB WAS FORCING BANKS UNDER THREAT TO GIVE LOANS TO MINORITIES IN CHICAGO. THEY ALL CREATED THE CRISIS.
Posted By: Osamas Pajamas(275) on 1/14/2010 | 1:23 AM ET
This will be a whitewash to protect the politicians and bureaucrats --- and their laws and regulations which caused this debacle. Angelides is a train wreck just waiting to happen. The late Murray Rothbard would be a better source of economic wisdom ----- http://mises.org/rothbard/agd.pdf --- AND --- http://mises.org/books/whathasgovernmentdone.pdf
Posted By: zenga(815) on 1/13/2010 | 11:17 PM ET
maybe EJ Dionne had something to do with the Panel's inquiries. his editorial today seems to fall in line with blaming all the country's ills on Wall St, and none on gov't intervention in every aspect of American capitalism. impeach obama and fire every Dem until they are all gone. please view this video of gingrich's recent speech: http://www.youtube.com/watch?v=qtjfMjjce2Y
Posted By: OBSERVER U.K(370) on 1/13/2010 | 11:16 PM ET
The Democrats should file for disability benefit, as the seem to suffer from the same old trouble ? they CANNOT piont their fingers at themselve's, only AWAY from themselv's."GOD HELP AMERICA"
Posted By: dwdrury(420) on 1/13/2010 | 10:54 PM ET
Oh, I dunno. Pelosi, Reid & Co are busily proving Bin Laden correct, that DC is a corrupt cess pool in serious need of flushing. It is very close to poisoning us all. So either we clean it up or just maybe they'll do us the favor.
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