Freddie Got Fingered

July 15th, 2011

Inspired by States probe Wall St. role in mortgage crisis (Tribune Newspapers7/15/11).

 

“This is where all the bodies are buried. This is where you see fraud on an institutional level.” — banker-turned-professor Charles Geisst, referring to the big financial firms now under investigation for their role in the financial crisis

 

Repubs blame the Bush recession on Fannie Mae and Freddie Mac,

Proxies for Dem housing policies they now like to attack.

 

Never mind that Republicans supported those policies too,

Until 2009 when they that support retroactively withdrew.

 

Never mind that it wasn’t remotely Fannie’s or Freddie’s fault

That brought the world financial system to the brink of default.

 

Like in the movie, Freddie’s fingering is just a hoax,

An opportune scapegoat which the Tea Party base conveniently provokes.

 

It ignores the real cause of the crisis and supports Repub attempts, their regulation to stop:

Unregulated derivatives like subprime mortgage derivatives and the credit default swap.

 

State AGs inNew YorkandDelawarehave subpoenaed records from 13 financial firms,

Looking for evidence of fraud which these allegations confirms.

 

(It’s key that those two states are where the cases have been filed,

Since that’s where Big Finance and most other corporations are domiciled.)

 

What we already know makes a pretty convincing case

That it was the big financial firms that messed up the place.

 

But Republicans have never been fans of fact-based analysis,

Especially when it shows the damage done by their regulatory paralysis.

 

Will the state investigations dig up a smoking gun that can convince even the GOP?

I guess we’ll just have to wait and see.

***

Here’s a scene from the movie that inspired our title, Freddy Got Fingered (sorry, no embed, so you have to watch it on Youtube). Like Republicans trying to blame Fannie Mae and Freddie Mac for the financial crisis, it was a hoax from day one, made up to deflect criticism from themselves.

 

Here’s some more recommended reading from Amazon: Senate report on Wall Street and the financial crisis (Kindle version), The Trillion Dollar Meltdown, and The Meltdown Years: The Unfolding of the Global Economic Crisis.

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