The folks over at The Weekly Standard wrote this story on John Murtha's Freddie/Fannie Distortions. "(I)t's worth looking at the rest of his recent interview to get a sense of how he views the credit crunch. Here's how Murtha describes how we got into this financial mess:
Six months ago they said to me... Paul Kanjorski - who's on the Banking Committee said 'Fannie Mae and Freddie Mac aren't going to make it. A hundred banks are going to go bankrupt.' I said 'well what the hell are we doing about it? What do you mean?' I could hardly believe that. Finally the president kept saying things are all right. Well the president has no credibility. When he says something nobody believes that.
And so finally Bernanke and Paulson came over. Scared the hell out of us. I mean, scared us... made us... convinced us that we had to do something. And of course they sent a 3 pages thing over -- an open door."
JSchmidt of Brookfield, CT asks these questions of Kanjorski. "Murtha paints a picture that does not reflect reality. He is either foolish or dishonest--or both.And what of Kanjorski? Murtha says that Kanjorski knew 6 months ago that Fannie Mae and Freddie Mac were going under. That was well before the severity of the problem became fully apparent.Where were Kanjorski's warnings, and call for an immediate response?- None"
This information is consistent with Jim Lehrer's interview with Paul Kanjorski:
REP. PAUL KANJORSKI (D), Pennsylvania: Well, of course, I'm on the committee of jurisdiction, so I've been watching...
JIM LEHRER: The Financial Services Committee.
REP. PAUL KANJORSKI: That's right. I've been watching this disaster, if you will, unfold for probably two years now, and particularly since last August -- not this immediate past August, but the August before that, when the subprime mortgage problem was created.
In the meantime nobody told Barney Frank. On July 14,2008 he is quoted as saying "I think this is a case where Freddie Mac and Fannie Mae are fundamentally sound."
Paul Kanjorski, may I ask a few questions? What do I do now? When will stocks come back? When will I see my 401(k) rise? Can I still retire? What's next for home prices? Is my job safe? Can I count on my money fund? Will my taxes shoot up? You found a solution for your corporate friends now how about homeowners.