The Blame Game

So, who's to blame for the current financial crisis? The popular sentiment throught the years is to blame the party in power for economic downtimes. That would lay the blame at the feet of the Republicans. But is it really fair to make this assessment?

I came across an article published in the New York Times on September 11, 2003. It outlined a Bush administration proposal to overhaul the regulation and oversight of Fannie Mae and Freddie Mac after an independent investigation earlier that year showed manipulation in accounting to mislead investors.

The proposal was well received by both Fannie and Freddie, as well as their competitors. But not everyone was in favor. Barney, who was the ranking Democrat on the Financial Services Committee at the time of the proposal and is now the chairman, had the following to say of the proposal:

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

Feel free to make your own assumptions regarding who is to blame. Read the full NYT article here. Also check out an excellent article by John Lott that delves deeper into the credit mess here.