or rather, the WaPo gives Corker space to lie about what caused the housing bubble.

In case you missed it on Thanksgiving Day, the WaPo gave Sen. Corker space to spread lies about what caused the housing bubble to burst. If we were to believe Corker, the housing bubble was caused by Fannie Mae and Freddie Mac.

Having “crowded out” private investors by charging an insurance premium that was too cheap, the GSEs are saddled with $5 trillion worth of bad credit. This is a tragedy of our own making. During the boom years, the GSEs’ affordable housing goals were coupled with a Congress and an administration that saw only the bright side of rapidly increasing homeownership rates. That meant that as housing prices began to spike, it was impossible to make credit slightly more expensive. Without countercyclical market mechanisms able to operate naturally, as housing prices went higher, the GSEs simply raced each other to lower guarantee fees, out of fear that they might lose business from mortgage originators such as Countrywide and Washington Mutual. The result, we now know, was a government-induced bubble followed by a painful collapse.

Really? REALLY?

The whole Fannie/Freddie are to blame meme put forth by Republicans and Conservatives has been debunked when it was first started, and yet here we years later listening to Corker spread the same old lies once again. While Freddie and Fannie do have problems, they are not the root cause of the housing bubble.

I also wonder why Corker has not said word one about Newt's reaping $1.6 million off of Freddie Mac? Why is that???

By the way, on the same day as Corker's lies were being spread via the WaPo, Bloomberg news reported that PMI, one of the private mortgage insurance companies filed for bankruptcy.

With PMI in bankruptcy, it's going to put a pinch on lenders and in turn, potential homeowners. Can potential homeowners really afford to turn to the private insurance market?

Mary the prez's picture

Yeah, good ole Corker...got 'booed big time'...

Over in Spring Hill at the GM plant because of his non-support of the bailout of the auto industry in 2009.
It also is noted that when the VW plant was getting ready to open in his home town of Chattanooga he tried to tell VW management to NOT allow workers to be represented by the UAW.

So, he is NO friend of the U.S. auto industry, nor union labor, but yet he shows up and tries to take credit for President Obama's success in saving these workers and in effect, helping create thousands of auto-related jobs. This 'welcome' happened last Monday but only made the paper here today. We need more petitions, marching, protesting in front of his office. Anyone willing and able?

We need a good Democrat in his seat in Congress...one who will work FOR Tennessee workers and their families!

CE Petro's picture

And hopefully I won't be

And hopefully I won't be called upon to apologize for saying he's spreading lies as his colleague did against a highschooler.

In all seriousness, many of the T/Gop have (tried taking) taken credit for companies that re-opened and started hiring again, when they fought against any and all stimulus (and some bailouts).

EricLykins's picture

It's clear that Corker

It's clear that Corker doesn't read the Washington Post (or "Picture Time for Republicans"). Barry Ritholtz has been hammering away at this brick wall all month. "How did Europe and Asia and Canada all have a simultaneous housing boom as big if not bigger than that of the US? Were the Australians compelled to follow the CRA? Did Barney Frank influence the Belgians? Were the US GSEs effecting policy in the UK?"

Examining the big lie: How the facts of the economic crisis stack up
Barry Ritholtz
Washington Post, November 19

~~~

It’s fair to say that our discussion about the big lie touched a nerve.

The big lie of the financial crisis, of course, is that troubling technique used to try to change the narrative history and shift blame from the bad ideas and terrible policies that created it.

Based on the scores of comments, people are clearly interested in understanding the causes of the economic disaster.

I want to move beyond what I call “the squishy narrative” — an imprecise, sloppy way to think about the world — toward a more rigorous form of analysis. Unlike other disciplines, economics looks at actual consequences in terms of real dollars. So let’s follow the money and see what the data reveal about the causes of the collapse.

CE Petro's picture

Eric, and wasn't it Barry

Eric, and wasn't it Barry Ritholtz that offered $100K for any conservative spewing the "Fannie/Freddie did it" lie to prove it or STF up a couple of years ago?

I don't recall reading that he paid that out, either.

EricLykins's picture

Here it is:$100,000 CRA

Here it is:

$100,000 CRA Challenge
By Barry Ritholtz - June 29th, 2009, 7:30AM
I’ve run out of patience with tired memes and discredited claims by fools and partisan.

Searching for that, I found this from Krugman

the eternal question, as you look at absurd policy debates, is whether these people are evil or stupid.

In the case of the Fannie-Freddie-did-it discussion, we seem to have an answer.

which I wrote about the day before he did. Take that, NYT! "Reality doesn't fit the narrative": GOP heads explode, Oversight hearing cancelled
One would think a Senator with Corker's supposed financial expertise would have had the sense to pay attention to what happened with the Financial Crisis Inquiry Commission, but I guess that takes us back to Krugman's question of "evil or stupid."
[edit, I forgot this:]

CE Petro's picture

Ahhh, somehow I missed that

Ahhh, somehow I missed that post of yours. The Big Lie, indeed!

How's that quote go? "If you tell a big enough and keep repeating it, people will eventually come to believe it." Corker may want to think that over.

EricLykins's picture

Corker may want to think that

Corker may want to think that over.

He's surely not completely ignorant of this, and has chosen to repeat the lie. Lamar Alexander was in charge of message crafting as the #3 Republican and started slipping with a few reasonable statements here and there. Corker is willing to play ball with the forces of the dark side in order to advance. And on that note, so is Stacey X by hitching his wagon to a Newt.

Newt Gingrich turned NCPAC's campaign messaging strategy into an everyday GOP dictionary of hatred through GOPAC.

or:

His arguments are so tight he is near bullet proof.

Minds like steel traps: nothing in, nothing out.

gonzone's picture

And I used to think there

And I used to think there couldn't be a dumber politician from Tennessee than Duncan.

Min's picture

I used to have a little respect for Coker.

Now, I just wonder what the hell I was thinking.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

style="display:block"
data-ad-format="autorelaxed"
data-ad-client="ca-pub-3296520478850753"
data-ad-slot="5999968558">

TN Progressive

TN Politics

Knox TN Today

Local TV News

News Sentinel

State News

Local .GOV

Wire Reports

Lost Medicaid Funding

To date, the failure to expand Medicaid/TennCare has cost the State of Tennessee ? in lost federal funding. (Source)

Search and Archives