The Republicans in the House gathered forces to focus their attack at a hearing on financial institutions and consumer credit, on Elizabeth Warren the head of the newly set up Consumer Financial Protection Bureau. She is a professor of law and an expert in bankruptcy matters.
The Republicans contend that she had gone beyond the limits of her legal rights by assisting the attorneys general of the states in cobbling together a settlement deal with the mortgage servicers. The latter have been charged with innumerable abuses as a result of the investigations carried on by the attorneys general and other federal departments including the judiciary.
But the charges brought against Warren do not hold water. How can it be illegal for an official of the federal government to talk with officials of the state advising them on lines in which she is an expert? It is of course known to all that the real intention of the attack on Warren was to see that in the final outcome there is no move to actually give protection to the consumers.
It was transparent that the Republicans were actually hoping that if they threw around large lumps of mud some would at least stick. Warren was one of those experts who had given previous warning about the impending crisis. People like her pose a threat by their very presence to the sustainability of the anti-regulation principle. Thus they must be made into demons with whatever tools are available and ready.
When the financial tsunami struck in 2008 many analysts thought it would compel those opposing financial regulation to think anew on it. The conservatives had cheered the boom in debts during the Bush era as a victory for free-market dogma. The disaster, according to their interpretation, was because of too much intervention by the government.
Unfortunately it was not apprehended that those opposing regulation would so quickly and with such determination rewrite history. Without a moment's delay a new interpretation was given to the boom and bust. The snag was that those who are insisting for more stringent regulation have an impeccable track record - this making their opinions more acceptable; there are few who have a better credibility than Elizabeth Warren.
In proportion to income of households the debt doubled during the past three decades. These high debt levels are taken to be a significant barrier to economic recovery. Very few realized the potential risk when the debt had started to rise. Among them Warren had the foresight.
Karen Anne, has been working on ForeclosureWarehouse.com studying the foreclosures market, helping buyers on the finer points of Albuquerque Foreclosures. Try to visit ForeclosureWarehouse.com and search Foreclosure Homes.
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