November 23, 2007 (LPAC)--For months, LPAC and the LaRouche Youth Movement have encountered glazed-eyed Democrats following the Felix Rohatyn line that Fannie Mae and Freddie Mac would solve the foreclosure crisis, and that Lyndon LaRouche's Homeowners and Bank Protection Act is not needed! But that game is over -- now that Fannie and Freddie have already reported billions of dollars of losses, with more to come. LPAC is naming the names and holding these members of Congress and the Senate accountable.

House Speaker Nancy Pelosi (D-CA), and Sen. Chris Dodd (D-CT) are among those who led the pack of fools. What are they saying now? LPAC was unable today to reach Congressional offices for comment. Here's some of the evidence.

Rep. Pelosi: Posted on the Speaker's website is: "Make Fannie Mae and Freddie Mac Loans Part of the Solution: The House has passed comprehensive legislation (H.R. 1427) to improve the regulation of Fannie Mae and Freddie Mac, and the Federal Home Loan Bank system. The bill raises the GSE loan limits for single family homes in high cost areas, so that these entities could purchase more loans in higher cost areas (lowering interest rates for new homes and refinancings in those areas). These government-sponsored enterprises (GSEs) provide liquidity to the mortgage markets by buying loans already made, freeing up money for new mortgages and refinances. (The Senate Banking Committee is expected to take up similar legislation this fall.)"

Presidential candidate Dodd, another Rohatyn flunkey, repeatedly made raising the Fannie/Freddie loan levels his battle cry. On Aug. 21, he told CNBC, this policy "would have, I think, a positive effect of dampening down interest rate hikes..." within the loans that these GSE's deal with.

In October, both Rep. Barney Frank (D-MA), and Sen. Charles Schumer (D-NY), introduced legislation calling for the raising of the portfolio caps for Fannie Mae and Freddie Mac. Rep. Melissa Bean (D-IL) and Rep. Randy Neugenbauer (R-TX) cosponsored a similar bill in early October.

On the Republican side, Sen. Charles Hagel (R-NE) and cosponsors Sen. Elizabeth Dole (R-NC), Sen. Mel Martinez (R-FL), Sen. John Sununu (R-NH) in April have introduced a bill, S. 1100, to address the regulation of secondary mortgage market enterprises which includes the raising of caps for Fannie and Freddie.

LPAC will keep you posted.