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02-12-2015, 11:53 AM
http://cdn.thedailybeast.com/content/dailybeast/articles/2015/02/12/how-the-gop-invented-elizabeth-warren/jcr:content/image.crop.800.500.jpg/1423737913321.cached.jpg
The senator and would-be presidential contender just wanted to be a Washington bureaucrat. Now, thanks to Republican opposition, she’s become the de facto leader of the left.
In 2007, a Harvard Law School professor wrote an article for the journal Democracy proposing a federal watchdog agency regulating consumer financial products. “It is impossible to buy a toaster that has a one-in-five chance of bursting into flames and burning down your house,” the professor wrote. “But it is possible to refinance an existing home with a mortgage that has the same one-in-five chance of putting the family out on the street—and the mortgage won’t even carry a disclosure of that fact to the homeowner.”
Written in the very early days of what would become the Great Recession, the professor noted that the sub-prime mortgage market was a “stunning example” of the lack of such government oversight, pointing out that 52 percent of all sub-prime mortgages “originated with companies with no federal supervision at all.”
Three years later (PDF), after the economy had collapsed from the weight of crumbling sub-prime mortgage debt, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act and established the federal Consumer Financial Protection Bureau. Elizabeth Warren, the professor who had originated the idea, was appointed by President Obama to set up the new agency.
http://www.thedailybeast.com/articles/2015/02/12/how-the-gop-invented-elizabeth-warren.html?via=desktop&source=email
The senator and would-be presidential contender just wanted to be a Washington bureaucrat. Now, thanks to Republican opposition, she’s become the de facto leader of the left.
In 2007, a Harvard Law School professor wrote an article for the journal Democracy proposing a federal watchdog agency regulating consumer financial products. “It is impossible to buy a toaster that has a one-in-five chance of bursting into flames and burning down your house,” the professor wrote. “But it is possible to refinance an existing home with a mortgage that has the same one-in-five chance of putting the family out on the street—and the mortgage won’t even carry a disclosure of that fact to the homeowner.”
Written in the very early days of what would become the Great Recession, the professor noted that the sub-prime mortgage market was a “stunning example” of the lack of such government oversight, pointing out that 52 percent of all sub-prime mortgages “originated with companies with no federal supervision at all.”
Three years later (PDF), after the economy had collapsed from the weight of crumbling sub-prime mortgage debt, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act and established the federal Consumer Financial Protection Bureau. Elizabeth Warren, the professor who had originated the idea, was appointed by President Obama to set up the new agency.
http://www.thedailybeast.com/articles/2015/02/12/how-the-gop-invented-elizabeth-warren.html?via=desktop&source=email