Treasury Secretary Henry Paulson, Jr., and Federal Reserve Chairperson Ben S. Bernanke were on Capital Hill taking a verbal beating from some of the very people who should not be asking the questions, but answering them and answering those questions under oath. Senator Chris Dodd, (D-Conn.) and Member of Congress Barney Frank,(D-Mass.) are the first two who should be grilled, not by fellow politicians, but by an independent and hopefully very clever, angry, and mean attorney hired by the American people. No one from the present Justice Department need apply. Both should be asked how much money they have taken from lobbyists hired by the CEOs of Freddie Mac and Fannie Mae. Since that is public record, they should then be asked what Fannie and Freddie got in return for that money.
Barney Frank should be questioned about his House Bill, H.R. 3838, that is clearly designed to keep Fannie and Freddie afloat despite all the signs that there was serious trouble ahead. But, all his bill did was to make the hole bigger in the side of the Titanic. All H.R.3838 did was: To temporarily increase the portfolio caps applicable to Freddie Mac and Fannie Mae, to provide the necessary financing to curb foreclosures by facilitating the refinancing of at-risk sub-prime borrowers into safe, affordable loans, and for other purposes.
The average American listening to all the news of bank failures, and Fannie Mae and Freddie Mac being taken over by the government, and now a bailout of large, privately owned and well known companies, is at first bewildered, and then angry. I think the average American should be furious. But, whom should Americans be furious with? That seems to be the big question as political fingers are pointing in every direction. Was it greedy CEOs with their golden parachutes? Was it the Democrats? Was it the Republicans? Was it Wall Street? The simple answer is that it was all of the above.