Why didn't any Dems know the shit was hitting the fan?

[Laura PourMeADrink]

With the economy? Are the corporate, monied powers-that-be so secretive?

We know the repuke powers-that-be did (Bushco had a plan for this already, just dusted it
off - have the link somewhere). I don't think the rank in file repuke knew.

Obviously, Franks, Reid, and Pelosi didn't know.

How can this be?

[SoonerPride]

1. The iceberg was there all along.

The ship of state was heading for it. Many on both sides of the aisle did know and even tried to warn us about it it.

But Captain Moron kept yelling "full steam ahead!"

The credit and liquidity problems are real, though the hyped up "must act in 15 minutes or we all die" meme is a made for TV election stunt.

[Demeter]

2. Didn't Know, or Didn't Care?

Based on how much attention they give to the scandals in BushCo, I'd say didn't care.

[stray cat]

3. The mathematical calculations companies were using were so specialized gov and regulators

couldn't understand them. Consequently they saw numbers and didn't bother looking to see what they meant and how they were arrived at.

[seabeyond]

4. they knew. they care and they have been trying to do stuff. cant get it done with 50/49/1

the info is around if you want to find it

[BlooInBloo]

6. +1

[MadMaddie]

5. They knew but when you have * Cronies running things like the

fed then warning signs are ignored.

Where have we heard this before? 9/11, Katrina and Iraq.

Same ole story just a different disaster. They had plenty of warning and the Repugs fought any legislation to regulate the markets.

[rug]

7. I would like to know who on Wall Street placed the first phone call to Paulson.

And when.

[TayTay]

8. They were holding hearings and trying to fix this

Cong. Barney Frank heads the Financial Services Committee. This is the hearings of the 110th Congress. You tell me if you spot a pattern here:
http://financialservices.house.gov/hearings_all.shtml

9/25/2008 Oversight Hearing to Examine Recent Treasury and FHFA Actions Regarding the Housing GSEs Full Committee

9/24/2008 The Future of Financial Services: Exploring Solutions for the Market Crisis Full Committee

9/18/2008 Auction Rate Securities Market: A Review of Problems and Potential Resolutions Full Committee

9/17/2008 The Implementation of the Hope for Homeowners Program and A Review of Foreclosure Mitigation Efforts Full Committee

9/16/2008 HUD's Proposed RESPA Rule Oversight and Investigations

9/10/2008 Sovereign Wealth Funds: New Challenges from a Changing Landscape DIMP

9/6/2008 The Effects of the Foreclosure Crisis on Neighborhoods in California’s Central Valley: Challenges and Solutions Full Committee

7/30/2008 Examining Issues Related to Tactilely Distinguishable Currency DIMP

7/29/2008 Affordable Housing in West Virginia: Challenges in the Eastern Panhandle Housing

7/29/2008 What Borrowers Need to Know About Credit Scoring Models and Credit Scores Oversight & Investigations

7/25/2008 A Review of Mortgage Servicing Practices and Foreclosure Mitigation Full Committee

7/24/2008 Implications of a Weaker Dollar for Oil Prices and the U.S.Economy Full Committee

7/24/2008 Systemic Risk and the Financial Markets Full Committee

7/17/2008 GAO Report on Regulation B: Should Lenders Be Required to Collect Race and Gender Data of Borrowers for All Loans Oversight and Investigations

7/16/2008 Humphrey Hawkins Hearing on Monetary Policy Full Committee

7/10/2008 Systemic Risk and the Financial Markets Full Committee

7/9/2008 Federal Spending Requirements in Housing and Community Development Programs: Challenges in 2008 and Beyond Housing

6/26/2008 Problem Credit Card Practices Affecting Students: The Need for Legislative Action FI and Consumer Credit

6/26/2008 H.R. 6066, the Extractive Industries Transparency Disclosure Act Full Committee

6/20/2008 H.R. 5772, the Frank Melville Supportive Housing Investment Act of 2008 Housing

6/19/2008 Affordable Housing Preservation and Protection of Tenants Full Committee

6/18/2008 The 15th Replenishment of the International Development Association (IDA) and the 11th Replenishment of the African Development Fund (AfDF) Full Committee

6/16/2008 Foreclosure Problems and Solutions: Federal, State, and Local Efforts to Address the Foreclosure Crisis in Ohio Housing

6/11/2008 H.R. 6078, the Green Resources for Energy Efficient Neighborhoods Act of 2008 Full Committee
6/10/2008 H.R. 5840, the Insurance Information Act of 2008 Capital Markets

6/6/2008 Examining the Administration's Proposal to Establish a Multilateral Clean Technology Fund DIMP

6/4/2008 Examining the Roles and Responsibilities of HUD and FEMA in Responding to the Affordable Housing Needs of Gulf Coast States following Emergencies and Natural Disasters Joint Hearing

5/22/2008 Targeting Federal Aid to Neighborhoods Distressed by the Subprime Mortgage Crisis Housing

5/22/2008 Impact on Homebuyers and Housing Market of Conforming Loan Limit Increase Full Committee

5/21/2008 The Impact of Credit-Based Insurance Scoring on the Availability and Affordability of Insurance Oversight and Investigations

5/20/2008 Examining the Need for H.R. 2885, the Credit Monitoring Clarification Act Full Committee

5/14/2008 Contributing Factors and International Responses to the Global Food Crisis Full Committee

5/8/2008 Emergency CDBG Funds in the Gulf Coast: Uses, Challenges, and Lessons for the Future Housing

4/17/2008 The Credit Cardholders' Bill of Rights: Providing New Protections for Consumers FI and Consumer Credit

4/16/2008 H.R. 5679, The Foreclosure Prevention and Sound Mortgage Servicing Act of 2008 Housing

4/16/2008 Examining Proposals on Insurance Regulatory Reform Capital Markets

4/15/2008 H.R. 5579, the Emergency Mortgage Loan Modification Act of 2008 Capital Markets

4/15/2008 Financial Literacy and Education: The Effectiveness of Governmental and Private Sector Initiatives Full Committee

4/10/2008 Using FHA for Housing Stabilization and Homeownership Retention Full Committee

4/9/2008 Using FHA for Housing Stabilization and Homeownership Retention Full committee

4/2/2008 Proposed UIGEA Regulations: Burden without Benefit?” DIMP

3/15/2008 Public Housing Redevelopment Strategies: Implications for Jordan Downs, Its Community, and Residents Housing

3/13/2008 The Credit Cardholders' Bill of Rights: Providing New Protections for Consumers FI and Consumer Credit

3/12/2008 Municipal Bond Turmoil: Impact on Cities, Towns, and States Full Committee

3/11/2008 Coin Modernization and Taxpayer Savings Act of 2008

3/11/2008 The Oversight of the Department of Housing and Urban Development Full Committee

3/8/2008 The Use of Federal Housing and Economic Development Funds in St. Louis: From ‘Team 4’ Into the Future

3/6/2008 The Need for Credit Union Regulatory Relief and Improvement Full Committee

3/5/2008 Foreign Government Investment in the U.S. Economy and Financial Sector Joint Hearing

2/27/2008 Monetary Policy and the State of the Economy Full Committee

2/26/2008 Monetary Policy and the State of the Economy Full Committee

2/14/2008 The State of the Bond Insurance Industry Capital Markets

2/13/2008 The Community Reinvestment Act: Thirty Years of Accomplishments, but Challenges Remain Full Committee

2/11/2008 Effects of the Subprime Mortgage Crisis in New York City and Efforts to Help Struggling Homeowner FI and Consumer Credit

2/11/2008 The 'Homeowners' Insurance Crisis and its Impact on Communities, Homeowners and the Economy Oversight and Investigations

2/8/2008 Negative Implications of the President’s Signing Statement on the Sudan Accountability and Divestment Act Full Committee

2/7/2008 Diversity in the Financial Services Sector Oversight and Investigations

2/7/2008 Holocaust Insurance Accountability Act of 2007 Full Committee

12/12/2007 The Financial Consumer Hotline Act of 2007: Providing Consumers with Easy Access to the Appropriate Banking Regulator FI and Consumer Credit

12/6/2007 Accelerating Loan Modifications, Improving Foreclosure Prevention and Enhancing Enforcement Full Committee

12/5/2007 Affordable Housing Needs of America’s Low Income Veterans Housing

11/30/2007 Foreclosure Prevention and Intervention: The Importance of Loss Mitigation Strategies in Keeping Families in Their Homes

11/8/2007 H.R. 2634, the Jubilee Act for Responsible Lending and Expanded Debt Cancellation of 2007 Full Committee

11/2/2007 Progress in Administration and Other Efforts to Coordinate and Enhance Mortgage Foreclosure Prevention Full Committee

10/30/2007 Preserving and Expanding Minority Banks Oversight and Investigations

10/30/2007 Additional Perspectives on the Need for Insurance Regulatory Reform Capital Markets

10/29/2007 Affordable Housing Needs in the City of Houston: Unique Challenges and Opportunities

10/25/2007 Transparency of Extractive Industries: High Stakes for Resource-Rich Countries, Citizens and International Business Full Committee

10/24/2007 Legislative Proposals on Reforming Mortgage Practices Full Committee

10/23/2007 H.R. 647, The Mark-to-Market Extension Act of 2007 Housing

10/17/2007 The Impact of Late Housing Assistance Payments on Tenants and Owners in the Project-Based Rental Assistance Program Housing

10/17/2007 U.S.-Russia Economic Relationship: Implications of the Yukos Affair

10/16/2007 The Reauthorization of the McKinney-Vento Homeless Assistance Act Housing

10/15/2007 Mortgage Lending Disparities Full Committee

10/4/2007 The Reauthorization of the McKinney-Vento Homeless Assistance Act Housing

10/3/2007 The Fight Against Global Poverty and Inequality: the World Bank’s Approach to Core Labor Standards and Employment Creation Full Committee

10/3/2007 The Need for Insurance Regulatory Reform Capital Markets

10/2/2007 Systemic Risk: Examining Regulators' Ability to React to Threats in the Financial System Full Committee

10/2/2007 Credit-Based Insurance Scores: Are They Fair Oversight and Investigations

9/27/2007 SEC Proxy Access Proposals: Implications for Investors Full Committee

9/27/2007 The Role of Credit Rating Agencies in the Structured Finance Market Capital Markets

9/20/2007 Legislative and Regulatory Options for Minimizing and Mitigating Mortgage
Foreclosures Full Committee

9/6/2007 H.R. 3355, the Homeowners Defense Act of 2007 Joint Hearing

9/6/2007 H.R. 2930, the Section 202 Supportive Housing for the Elderly Act of 2007 Housing

9/5/2007 Recent Events in the Credit and Mortgage Markets and Possible Implications for U.S. Consumers and the Global Economy Full Committee

8/9/2007 The Effect of Predatory Lending and the Foreclosure Crisis on Twin Cities’ Communities and Neighborhoods Full Committee

8/7/2007 Credit Cards and Older Americans FI and Consumer Credit

7/25/2007 Improving Federal Consumer Protection in Financial Services – Consumer and Industry Perspectives Full Committee

7/25/2007 Rooting Out Discrimination in Mortgage Lending: Using HMDA as a Tool for Fair Lending Enforcement Oversight and Investigations

7/19/2007 The National Affordable Housing Trust Fund Act of 2007, H.R. 2895 Full Committee

7/18/2007 Monetary Policy and the State of the Economy Full Committee

7/17/2007 H.R. 920, the Multiple Peril Insurance Act of 2007 Full Committee

7/17/2007 Monetary Policy and the State of the Economy Full Committee

7/11/2007 Overdraft Protection: Fair Practices for Consumers FI and Consumer Credit

7/11/2007 Hedge Funds and Systemic Risk: Perspectives of The President’s Working Group on Financial Markets Full Committee

7/10/2007 Affordable Housing Preservation: Lessons from Starrett City Housing

6/26/2007 A Review of Investor Protection and Market Oversight with the Five Commissioners of the Securities and Exchange Commission Full Committee

6/22/2007 Homeowner Downpayment Assistance Programs and Related Issues Housing

6/21/2007 Reauthorization of the HOPE VI Program Housing

6/21/2007 Examining a Legislative Solution to Extend and Revise the Terrorism Risk Insurance Act Capital Markets

6/20/2007 The State of the International Financial System Full Committee

6/19/2007 Will Examine Consumers’ Ability to Dispute and Change Inaccurate Information Full Committee

6/13/2007 Improving Federal Consumer Protection in Financial Services Full Committee

6/12/2007 National Flood Insurance Program: Issues Exposed by the 2005 Hurricanes Joint Hearing

6/12/2007 The Flood Insurance Reform and Modernization Act of 2007, H.R. 1682 Housing

6/8/2007 Can Internet Gambling Be Effectively Regulated to Protect Consumers and the Payments System? Full Committee

6/7/2007 Improving Credit Card Consumer Protection: Recent Industry and Regulatory Initiatives FI and Consumer Credit

6/6/2007 U.S. Interests in Reform of China’s Financial Services Sector Full Committee

6/6/2007 Reauthorization of the Native American Housing Assistance and Self-Determination Act Housing

5/22/2007 The Role and Effectiveness of the World Bank in Combating Global Poverty Full Committee

5/17/2007 Remittances: Access, Transparency, and Market Efficiency- A Progress Report DIMP

5/16/2007 Private Equity’s Effects on Workers and Firms Full Committee

5/10/2007 Suspicious Activity and Currency Transaction Reports: Balancing Law Enforcement Utility and Regulatory Requirements Oversight and Investigations

5/9/2007 Currency Manipulation and Its Effects on U.S. Businesses and Workers DIMP

5/8/2007 The Role of the Secondary Market in Subprime Mortgage Lending FI and Consumer Credit

5/8/2007 Rural Housing Programs: Review Fiscal Year 2008 Budget and Pending Rural Housing Legislation.” Housing

4/26/2007 Credit Card Practices: Current Consumer and Regulatory Issues FI and Consumer Credit

4/25/2007 H.R. 698, the Industrial Bank Holding Company Act of 2007 Full Committee

4/24/2007 Policy Options for Extending the Terrorism Risk Insurance Act Capital Markets

4/19/2007 The Expanding American Homeownership Act of 2007: H.R. 1852 and Related FHA Modernization Issues Housing

4/18/2007 Isolating Proliferators and Sponsors of Terror: The Use of Sanctions and the International Financial System to Change Regime Behavior DIMP

4/17/2007 Possible Responses to Rising Mortgage Foreclosures Housing

4/4/2007 Household Incomes and Housing Costs: A New Squeeze for American Families Full Committee

3/27/2007 Perspectives on Natural Disaster Insurance Housing

3/27/2007 Subprime and Predatory Mortgage Lending: New Regulatory Guidance, Current Market
Conditions and Effects on Regulated Financial Institutions FI and Consumer Credit

3/23/2007 The Role of Public Investment in Promoting Economic Growth fc>

3/20/2007 The Darfur Accountability and Divestment Act Full Committee

3/15/2007 Legislative Proposals on GSE Reform Full Committee

3/14/2007 Full Committee Hearing on the Oversight of Department of Housing and Urban Development Full Committee

3/13/2007 Hedge Funds and Systemic Risk in the Financial Markets Full Committee

3/12/2007 Legislative Proposals on GSE Reform Capital Markets

3/9/2007 The Section 8 Voucher Reform Act Housing

3/8/2007 Empowering Shareholders on Executive Compensation: H.R. 1257, The Shareholder Vote on Executive Compensation Act Full Committee

3/7/2007 The Role of Remittances in Leveraging Sustainable Development in Latin America and the Caribbean DIMP

3/5/2007 The Need to Extend the Terrorism Risk Insurance Act Capital Markets

2/28/2007 Insurance Claims Payment Processes in the Gulf Coast after the 2005 Hurricanes Oversight and Investigations

2/23/2007 Solving the Affordable Housing Crisis in the Gulf Region Post Katrina: Why no progress and what are the obstacles to success? Housing

2/22/2007 Solving the Affordable Housing Crisis in the Gulf Region Post Katrina: Why no progress and what are the obstacles to success? Housing

2/16/2007 The State of the Economy, the State of the Labor Market, and the Conduct of Monetary Policy Full Committee

2/15/2007 The State of the Economy, the State of the LaborMarket, and the Conduct of Monetary Policy Full Committee

2/7/2007 Committee on Foreign Investment in the United States (CFIUS), One Year After Dubai Ports World Full Committee

2/6/2007 Federal Housing Response to Hurricane Katrina Full Committee

[Laura PourMeADrink]

13. Wow, good work pulling that together. So basically Barney knew

and was probably not one iota shocked.

It strikes me that it would have been good for Dems to have
blown the whistle - big time - on this - a week before Paulson
did.

[RoyGBiv]

9. They did -- March, 2008 ...

Franks and Dodd specifically have been working toward finding solutions to address a increasing problem for some time. What they didn't know -- what know one knew -- would be how quickly it would all start to fall apart, which is to say they knew a problem existed, but didn't know how much time they had to work with. It would probably be safe to say they were hoping the stop-gaps put in place here and there going back to last year would hold the boat steady enough for the next administration and congress to have a seat at the table so they didn't have to try to fight the obstructionist Republicans in the Senate with its current make-up, deal with Presidential politics, or face the "regulator" label in their reelection campaigns this fall, during a time when public awareness seemed to be destined to be very low.

Last March, after Bear-Sterns, the NYT published a piece on this mess that summarized what was happening, why it was happening, and sepculated on what might happen. They were frighteningly prescient, but they admit that despite the plethora of expert opinion -- and in some cases because of its diversity -- knowing whom to believe was difficult.

From the article:

TWO months before he resigned as chief executive of Citigroup last year amid nearly $20 billion in write-downs, Charles O. Prince III sat down in Washington with Representative Barney Frank, the chairman of the House Financial Services Committee. Among the topics they discussed were investment vehicles that allowed Citigroup and other banks to keep billions of dollars in potential liabilities off of their balance sheets — and away from the scrutiny of investors and analysts.

“Why aren’t they on your balance sheet?” asked Mr. Frank, Democrat of Massachusetts. The congressman recalled that Mr. Prince said doing so would have put Citigroup at a disadvantage with Wall Street investment banks that were more loosely regulated and were allowed to take far greater risks. (A spokeswoman for Mr. Prince confirmed the conversation.)

It was at that moment, Mr. Frank says, that he first realized just how much freedom Wall Street firms had, and how lightly regulated they were in comparison with commercial banks, which have to answer to an alphabet soup of government agencies like the Federal Reserve and the comptroller of the currency.

“Not only did Wall Street have so much freedom, but it gave commercial banks an incentive to try and evade their regulations,” Mr. Frank says. When it came to Wall Street, he says, “we thought we didn’t need regulation.”

...

(Kevin) Phillips (former Republican strategist and author of _Bad Money_) says that it’s likely that the Fed’s actions have ushered in a new era in financial regulation.

“What we may be looking at is a rethinking of the whole role of the Federal Reserve and what they represent,” he says. “If they didn’t solve it in this round, I’m not sure they can stretch it out and do it again without creating a new law.”

On Capitol Hill, leading Democrats like Senator Christopher J. Dodd of Connecticut, chairman of the Senate Banking Committee, and Mr. Frank of the House Financial Services Committee are pushing for just that.

Last Thursday, Mr. Frank offered up a raft of suggestions, including requiring investment banks to disclose off-balance-sheet risks while also making the firms subject to audits — much like commercial banks are now. He also wants investment banks to set aside reserves for potential losses to provide a greater cushion during financial panics.

Earlier in the week, Mr. Dodd said the Fed should be given some supervisory powers over the investment banks.

http://www.nytimes.com/2008/03/23/business/23how.html?_r=3&oref=slogin&pagewanted=print&oref=slogin

[EC]

10. They did....

Don't you remember Kerry rallying about it in 2004 or even all the legislation Dems tried to get passed every year? These last two years they kept trying to get legislation passed and the repubs filibustered every one...at least they got extended unemployment passed which helped some people keep their homes...but it was a little too late for a whole bunch of people...it's not just the lack of regulations that went into this...it was people losing jobs, getting sick without health care and predatory loan practices...

[Canuckistanian]

11. This was known since the summer of 2007

Not like there haven't been warnings.

My recent post from Dec. 2007
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4125443

[Laura PourMeADrink]

15. Interesting. Also interesting that Greenspan resigned before the

shit hit the fan. If Dems knew - or suspected - it strikes
me that they could have done something. Something big.
Something important. To stop it.

[DCBob]

12. It is the responsibiity of the Treasury and the administration to keep congress informed

of impending crises like this. They dropped the ball.

[Geek_Girl]

14. I think various Dems over the years have been working on regulating the markets

But it's kind of hard to do with the DLCer's in the dem party and GOP mostly in power.

[NYC_SKP]

16. One Dem Did: Obama letter to Bernanke & Paulson, March 2007:

http://obama.senate.gov/press/070322-obama_urges_ber/

Granted this is about the mortgage meltdown, not the consequences we see today, but nonetheless it was on his radar early last year, and Bernanke/Paulson ignored it, apparently.