President addresses financial concerns before G7 meeting. Dodd and Frank bear some blame for mortgage mess.
Fort Worth, TX (WiredPRNews.com)—A day before he meets with leaders of Group of Seven nations, President Bush stated that he believes the financial crisis is feeding on itself.
According to an October 10, 2008 Associated Press article by Terrence Hunt that appeared in Yahoo.com’s news page, the president said that the recent economic bailouts will work but it will take time. The Group of Seven or, more commonly known as the G7, are seven major nations that comprise much of the world’s economy. They are Canada, the United States, France, Italy, Germany, Great Britain and Japan.
The unraveling of the credit market — brought on by bad lending practices forced upon banks by government coercion and special interest groups—has yet to end. Even after yesterdays Federal Reserve rate cut from 2% to 1.5%, the Dow Jones industrials are well below 9000 as of noon today.
According to the article, Bush stressed that those who seek to illegally profit from the downturn in the stock market will face the consequences. The president talked about how the Securities and Exchange Commission, or SEC for short, has recently beefed up its enforcement.
However, until people like Senator Chris Dodd, (D-CT) and Congressman Barney Frank (D-MA) are held accountable for their blatant conflicts of interest in the housing sector, little will change. According to a June 12, 2008 report by Christopher Keating that appeared on the Hartford Courant’s website, Dodd received two 30-year mortgages at favorable rates from subprime mortgage giant Countrywide Financial.