White House warned about Fannie and Freddie

For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties.  President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted.  Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.  

2001

April: The Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity."

2002

May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac.  (OMB Prompt Letter to OFHEO, 5/29/02)

2003

January: Freddie Mac announces it has to restate financial results for the previous three years. 

February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that "although investors perceive an implicit Federal guarantee of [GSE] obligations," "the government has provided no explicit legal backing for them."  As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market.  ("Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO," OFHEO Report, 2/4/03) 

September: Fannie Mae discloses SEC investigation and acknowledges OFHEO's review found earnings manipulations.

September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements.

October: Fannie Mae discloses $1.2 billion accounting error.

November:  Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any "legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk."  To reduce the potential for systemic instability, the regulator would have "broad authority to set both risk-based and minimum capital standards" and "receivership powers necessary to wind down the affairs of a troubled GSE."  (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)

2004

February: The President's FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator:  "The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator."  (2005 Budget Analytic Perspectives, pg. 83)

February: CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for granted."  Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs are overseen by an effective regulator."  (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And Freddie's House In Order," Financial Times, 2/24/04)

June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying "We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system.  Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs:  Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System."  (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)

2005

April: Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system."  (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05)

2007

July: Two Bear Stearns hedge funds invested in mortgage securities collapse.

August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions.  Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options."  (President George W. Bush, Press Conference, The White House, 8/9/07)

September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before. 

September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years.  Median sale price of existing homes fell six percent from the year before.

December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission.  The GSE reform bill passed by the House earlier this year is a good start.  But the Senate has not acted.  And the United States Senate needs to pass this legislation soon."  (President George W. Bush, Discusses Housing, The White House, 12/6/07)

2008

January: Bank of America announces it will buy Countrywide.

January: Citigroup announces mortgage portfolio lost $18.1 billion in value.

February: Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully."  (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)

March: Bear Stearns announces it will sell itself to JPMorgan Chase. 

March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages."  (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)

April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes."  (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)

May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further. 

  • "Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans."   (President George W. Bush, Radio Address, 5/3/08)
  • "[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator."  (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)
  • Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans."  (President George W. Bush, Radio Address, 5/31/08)

June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac."  (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)

July: Congress heeds the President's call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.

(White House Press Release)

Who were the people and groups involved with coronavirus research, and what really went down before and after the pandemic began? On "Glenn TV" this week, Glenn Beck heads to the chalkboard to outline a tale of negligence and then, coverup. The elites of the world - the people calling themselves experts - trusted the Chinese Communist Party with one of the most dangerous weapons we can imagine on this planet--a virus.

Glenn reveals who was involved in a definitive timeline, and argues: If proof of a lab leak does come out, the worlds needs to know EVERYONE that was involved. We must expose the coverup and attempt to control the narrative of the pandemic origins. Everyone from Big Tech, the media, the Chinese and even our own government have been involved. What lies behind the coverup could reveal the dirty secret that, in order to cut corners, the academic elites and government entrusted Communist China with a civilization-killing virus.

Watch the full episode below:

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BlazeTV host Mark Levin said his new book, "American Marxism," provides proof that we're not just facing a coming Marxist revolution — it's already here.

Many Americans remain unconvinced, believing recent moves from the far left and the Democratic Party are just passing phases. But this is not a "fad," Levin told Glenn Beck on the radio program Tuesday.

"This isn't progressivism, or social activism, or democratic socialism. This is Marxism. Now, it may not be Marxism in every particular. But it's an Americanized form of Marxism," Levin explained.

"You need to pay attention to what's taking place ... You've seen it with your own two eyes. You saw the riots all summer long. You saw Black Lives Matter, which is headed by an openly proud Marxist. You see Antifa, which is a Marxist anarchist organization. You see the media, that you have been watching and reading, endorse every single one of these movements," he added.

"People have been brainwashed, or ... haven't been paying attention. They view this as a passing fad," Levin went on to say. "It's not. We all need to wake up to this. And if we have little differences, moderate Democrats, Libertarians and so forth, you better put them aside right now. Because we have a common enemy. I say enemy, not opponent. Not adversary. Enemy. And we need to be focused on defeating that enemy, rather than fighting among ourselves."

Watch the video clip below to hear Mark Levin explain how our individual freedoms are in serious jeopardy:

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Electric vehicles are the wave of the future. They are so much better for the environment. At least that's what we have been told, but is this correct?

On his TV special, Glenn Beck explained how electric vehicles (EVs) might not actually be the environmental solution we've been led to believe. In fact, they may not be a solution at all.

Glenn shared a recent article from LiveScience that reported:

A 2014 study published in the journal Proceedings of the National Academy of Sciences looked at the entire life cycle of an EV's emissions, from mining the metals required for the batteries to producing the electricity needed to power them, and then compared this with the average emissions of a gas-powered vehicle. The team found that when electric vehicles are charged with coal-powered electricity, they're actually worse for the environment than conventional gasoline cars.

He next shared an article from The Greenage, which stated:

The Union of Concerned Scientists has calculated that manufacturing a mid-sized EV with an 84-mile range results in about 15 percent more emissions than manufacturing an equivalent gasoline vehicle. For larger, longer-range EVs that travel more than 250 miles per charge, the manufacturing emissions can be as much as 68 percent higher.

Noting how electric vehicles and other fossil-fuel alternatives require the use of mined minerals like lithium, cobalt, zinc, copper, and nickel, among others, Glenn quoted an International Energy Agency report that warned reaching the goals of the Paris Agreement "would mean a quadrupling of mineral requirements for clean energy technologies by 2040. An even faster transition, to hit net-zero globally by 2050, would require six times more mineral inputs in 2040 than today."

"Can [you] predict which country is the world leader in processing the minerals needed for these batteries? Right, China," Glenn stated. "The average EV requires over 200 kilograms of minerals. The average gas vehicle requires 40 kilograms of minerals, mostly copper. A single EV has 22 pounds of lithium in it ... yet another way that the green reset of American energy is putting us all at the mercy of Communist China."

"Oh, and remember during the Obama administration when the world was gonna end' over fracking?" Glenn asked. "Well, the Institute for Energy Research now says, and I quote, 'Mining and processing of lithium, however, turns out to be far more environmentally harmful than what turned out to be the unfounded issues with fracking.'"

Watch the video clip from Wednesday night's episode of "Glenn TV" below for more details:

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We've heard a lot about the 1776 Commission over the past several months. From the mainstream media, you've heard lies and slander: It was a racist panel put together by President Trump to peddle a whitewashed version of American history.

In reality, the 1776 Commission was established by President Trump in the fall of 2020 with the purpose of promoting "patriotic education." Not to mandate it, not to propose legislation – simply to PROMOTE it. The media and academia lost their minds over this now controversial idea that we should teach young Americans to appreciate the nation they've inherited. And predictably, just hours after Biden took the oath of office, he signed an executive order to dissolve the 1776 Commission, calling the commission's report "offensive and counterfactual."

Glenn Beck presents the 1776 Commission's report in its entirety, because unlike the media and President Biden who want to hide it from you, Glenn wants you to seek the truth and celebrate Independence Day with pride.

Watch a preview below or catch the FULL, 5-part presentation of the 1776 Report on BlazeTV.com or Glenn Beck's YouTube channel.

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