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American Enterprise Institute Senior Fellow Peter Wallison on why the ‘Occupy Wall Street’ protestors should be protesting the government and not ...
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Yes -- -- the Wall Street protesters gullible occupiers and says the anger -- anger should be directed somewhere else entirely.
Joining us now is Peter Wallace and senior fellow at the American Enterprise Institute former member of the Financial Crisis Inquiry Commission Peter good to have you with us.
That He -- be here He wrote He wrote a brilliant op Ed in the Wall Street Journal.
In which you you pointed out that these folks really need to.
Transfer their attention to the White House two Washington DC.
Not much likelihood of.
That is there.
Well no afraid not but sad fact is that it wasn't the -- it wasn't financial system in general that caused the financial crisis.
I it was their own government.
Is at -- -- -- 2008.
I'm sort of and 2008 there were at 27 million very weak sub prime mortgages in our financial system.
And 70% of those who -- on the books of government agencies so.
The mortgage meltdown of course cause the financial crisis.
And it was not originated on Wall Street.
I don't think most people and perhaps there it is arguably there's a reason for them not to have -- worry about it but the fact of the matter is.
Over the course of twenty years of bad government.
And really in judicious decision making when it comes to the housing industry on the part of government.
-- we're looking at the you know it's a terrible echo.
From our history to hear president George W.
Bush talking and bragging about.
The homeownership rate rising to just about seven almost 69%.
But what led that that is a trail of deceit.
-- of absolutely.
Just misguided public policy and perhaps in some cases with the best of intentions but.
Horribly managed and horribly concede.
Well that's exactly right and that's you make a very important point here because this is not a partisan issue.
This was a government error in two administrations -- began in the Clinton administration.
Continued through the Clinton administration and then right into the Bush Administration.
So we Republicans.
Should not be proud of what happened here but we have to face the truth.
And the truth is that the government.
Created this problem and we shouldn't be demonstrating against Wall Street those people should be down on the capitol steps telling their representatives.
That the mistake was made right there.
You did you'll forgive me if I don't exco paid all of Wall Street in this because.
Those folks who.
Most of -- handling.
Those mortgage those MBS is -- those mortgage backed securities knew exactly.
What they were doing.
With those sub prime.
-- sub prime.
Strip.
It was a disaster and they knew it they had developed.
But there's no question that Wall Street was involved but that really key question that we have to look at.
Because it makes a great difference to public policy is.
Would there have been a financial crisis if the government hadn't created the demand that these sub prime loans.
And if you assume that it is the private sector that did it then you get something like Dodd-Frank -- which is now causing Havoc in our financial system.
But as you point out is having Dodd-Frank is it is having.
To really.
To really bad guess over to dinner twice you did broader -- what about.
-- any idea that that the Barney Frank and Chris Dodd are the ones that are saving the financial industry when one looks at their contributions.
And Fannie Mae or Freddie Mac until housing policy than the FHA.
It's it's it's truly frightening and when we got a projected back to the community.
Development.
What a loss of the mid ninety's in the Clinton administration I believe 1990.
96.
This this is.
Citi.
That was the impact of which you couldn't have even been imagined.
-- it's it's inception.
It perfectly right.
And we have to we have didn't know these facts the American people have to know these facts in order to judge.
That the quality of the government that they are getting and to judge whether the things that have been done since the financial crisis really made sense.
The -- frank and Dodd-Frank.
Caused the problem and they then -- drew up the bill.
That was supposed to address the wrong problem.
The portraying symmetry of our government -- -- -- watchers think the people -- -- -- great to have you with us thanks for being here to be here thank you --
