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)

On the "Glenn Beck Radio Program," Glenn explained why he wouldn't be surprised to see our supply chain collapse and empty shelves in America in the near future. Shortages are already wrecking our economy, China (where many of our goods are still made) is facing an energy shortage, and the Biden administration sure seems to be doing everything it can to make things worse.

Glenn noted a serious warning from American CEO Mike Beckham: "There's a major storm brewing in the supply chain," Beckham wrote on Twitter.

Thanks to China's centrally planned system, electricity shortages are causing huge delays in product manufacturing. In fact, some items are facing a 33 percent cut in production. "It could dramatically impact every [American's] life next year. But almost no one knows about it yet," Beckham warned.

Glenn went on to explain exactly what this means for you — and what you can do to prepare.

Watch the video clip below to hear Glenn break it down:


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Every decision made by President Joe Biden has ended in "disaster," Bill O'Reilly told Glenn Beck.

O'Reilly joined the radio program to explain why he thinks there's only one "mechanism" Americans can use stop the Biden administration's mess.

"Give me one thing that [Biden] has done, just one, that's improved this nation. Everything that he has been involved with is a disaster. Everything from the COVID mandates, to the energy policies, to the economic policies, to the inflation, to Afghanistan, to the collapsing southern border, to the social woke business, to the denial of due process. Right across-the-board, there isn't anything this man has done, or stood for, that's improved America," O'Reilly said.

"But there is no mechanism to do anything about it until a year from this November: the midterm elections. That's the only mechanism that we have, under the Constitution. We elected this guy and he's there for four years. You neutralize him next November [2022], with the Republicans taking back the House and Senate, then he's done. [He] can't do anymore damage because you've got him in a hole. And he's not going to be proactive with executive orders. He's just going to stay there in his jammies for two more years. OK? So that's the only mechanism."

O'Reilly also tore into the corporate media for using its power to defend Gen. Mark Milley after news of his China calls broke. Is there any deterrence in American society anymore to keep our leaders and media in check?

"What does this say to the United States of America when you have two of the most powerful information agencies in the world — NBC, Comcast, and AT&T, CNN — actively deceiving you?" O'Reilly said. "They know what they're doing. And yet there is absolutely no way for anyone to hold them accountable other than not watching them, which has, of course, happened. You know they have no audience. But just the corruption level of the information flow to the American people is at an all-time high. We have never had a worse media in the history of this republic."

Watch the clip below to hear O'Reilly break it all down:

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Twitter is full of fake communists. Privileged teenagers and 20-somethings who tweet about Karl Marx from their iPhone, safe inside their parents' house.

A recent example of this is the "What is your job on the Leftist commune?" meme. It began as a tweet from some anonymous Twitter Marxist, asking "What is your job on the Leftist commune?"

She continued, "I'm gonna be leading discussion on theory some days, making clothes from scraps other days, and making lattes whenever needed."

The tweet got thousands of likes, retweets, and comments. Things like, "Bringing everyone water. Pouring tea and hot cocoa for folx in the reading alcoves. Checking in and doing a pause-to-breath with folx."

By the way, "folks" is spelled with an "x" for some reason.

Other commune occupations included "proofreading pamphlets," singing, archery, cooking, crotchet, "guiding embodiment practices," tarot card reading, "identity politic lawyering." Therapist, librarian, prostitute, and "puppy kindergarten teacher."

They're basically parroting Marx, whose communist society sounds like Woodstock or Burning Man.

They're basically parroting Marx, whose communist society sounds like Woodstock or Burning Man.

A magical place where "there are no painters but at most people who engage in painting among other things," which allows "everyone sufficient free time to take part in the general affairs of society — theoretical as well as practical," so that "there are no politicians but at most people who engage in politics among other activities."

Don't you know that communism is all about leisure and good vibes? A playground full of puppies and lattes.

Marx refers to "idle time" as a time for higher activity. He calls it "time for the full development of the individual."

Me Time. A life of spa days.

Generation Z is the first digital generation. The first generation to be born inside the internet. So it's no surprise that they have fallen for this kind of Marxist nonsense. If someone convinces you that Marxism will free you from work, of course you'd want it.

Now they're quitting their jobs in droves. The media is calling it "The Great Resignation," but really it's just a new version of Marx's anti-work movement.

Gen Z are incredibly progressive. And they expect the government to be involved. Decades of Marxist activism have finally convinced a generation that the point of work, the point of life, the point of government, is activism.

Pew Research Center found that seven in ten "members of Gen Z are more likely than older generations to look to government to solve problems, rather than businesses and individuals."

Seven in ten of Gen Z believe that the government should do more to solve problems. A majority of them are not proud of America, a majority of them hold negative views of capitalism.

They believe Marx when he says that Capitalism is only good for producing its own grave-diggers. We know that this is actually a description of communism. Actually, communism is much worse. Because it always results in mass graves.

They haven't realized that that the world that Marx foresaw is long gone. It failed. Repeatedly.

They don't realize that, even on the page, Marxism doesn't work. Because ultimately the greatest flaw of Marxism is that it forces us to choose between productive slavery and unproductive freedom. Either way, with Marxism we can never be free.

"The Great Resignation" is ultimately a crisis of freedom, identity, and exhaustion. It is, as noted in a recent Gallup report, an expression of great discontent. Gen Z feels like they have nothing to lose and nothing to gain.

But in America, there's always something to lose and gain.

But in America, there's always something to lose and gain. They just need to have a little patience.

For the most part, Americans adhere to the libertarian maxim, "As long as you're not hurting anyone…." It's our undeniable belief in the goodness of the people around us. If you've traveled out of the States much, you know this to be true. There's a spirit inherent to America, and it is overwhelmingly good in nature.

Marx's utopia would ruin us. It would make us as lazy as Marx. A man who lived off other people his entire life. A man who had no loyalty to any nation because no nation wanted him. He was stateless. Do you realize how awful a person has to be for them to be stateless?

Maybe Gen Z just needs to see America at its finest.

Marx's utopia would quickly become disgusting. It would leave us feeling empty. Hopefully, they realize this before it's too late. For their own sake. Because, if America ever actually fell to communism, they would be the first ones against the wall.

When the government plans to spend $3.5 trillion that it doesn't have on a loose definition of "infrastructure," it's a good idea to know what's actually in it.

On the radio program, Glenn Beck revealed some of the expenditures Democrats hid in the bill, like a 10-fold increase in fines for employers who don't comply with the government's COVID-19 mandates, "equitable" bankroll for Biden's Build Back Better agenda, and "climate justice" funding.

"Let me tell you what's in our infrastructure bill, the $3.5 trillion bill," Glenn began. "Nancy Pelosi quietly tucked an enforcement mechanism into the $3.5 trillion reconciliation bill, passed it down to the budget committee, and sent it to the House floor. It's something you should know about, on page 168. I know, why read it? It's 2,465 pages."

Glenn pointed out the huge fees for certain businesses that refuse to comply with the Biden administration's proposed vaccine mandates. The fees could be as much as $700,000.

"Up to $700,000 ... that will kill all companies that are noncompliant. Kill them. That's 80 million of us who work in companies that are going to be fined in that way, if they don't bow the knee to the king," he said.

Glenn and Stu Burguiere went on to discuss more Democrat "wish list" items hidden inside this reconciliation bill, such as establishing "business incubators" who are authorized to disperse tens of billions of dollars to startup businesses in underserved areas, including the formerly incarcerated, and exclusive to businesses less that five years in operation or in "the planning stages."

"These sorts of businesses are the most risky place to put your money. Well, that matters when it's your money. But if it's not your money, who cares how risky it is. It's our [taxpayers] money so they don't care at all," Stu noted.

"Well, there's also $5 billion for climate justice block grants to pay for community organizations for, among other things, facilitating engagement of disadvantaged communities in state and federal processes," Glenn read. "Wait a minute. 'Facilitating engagement of disadvantaged communities in state and federal processes'? Organizing votes — that's what it sounds like."

"This is essentially all of us funding the fever dream of Barack Obama," Stu said.

Watch the video clip below for more details:

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