Churning Butter

It doesn't matter which political party is leading the charge, because all the sound and fury signify nada. 

Today, Housing Wire reported that Republican Congressman Darrell Issa has sent a letter to the House Ethics Committee that accuses four house members of receiving what were affectionately called "Friends of Angelo" loans "back in the day."

"Testimony and documents show that Countrywide used the VIP program to build relationships with government officials and others positioned to advance Countrywide's business interests," Issa said in the letter.

Issa said the program lasted from January 1996 to June 2008. It gave loans to federal government employees and others who worked at Fannie Mae and Freddie Mac.

"My staff is also aware of the possibility that loans with VIP-benefits were conferred to other members and serviced by a separate loan processing branch," Issa said.

This is such incredibly old news that it makes you realize why Congress can't get anything useful done, like tax and budget reform: its members are too busy trying to screw with one another over issues that no one outside of the lunatic fringe of both political parties gives a flying wombat about.

Nearly two and one-half years ago, we mused about the fact that Chris Dodd and Pete Conrad were cleared of ethics charges on the same program, in which Countrywide gave influential members of Congress preferential treatment on home loans. At that time, the name of Congressman Adolphus Towns was also mentioned, but absolutely nothing happened to him, either. So, after all this time with absolutely nothing being done to any of our politicians who bathed in this little cesspool, why is this being resurrected now?

Oh, yeah: 2012 is an election year.

Certainly, we expect an ethics committee than ran off the rails trying to investigate Maxine Waters' more obviously questionable activities to wake up and look deeply into whether, six years ago, four House members got their discount points waived or an interest rate that even Warren Buffet couldn't garner. Of course, we also expect Bill Clinton to swear off sex and enter a Franciscan friary next week.

Last Friday in Austin, Federal Reserve of Dallas CEO Richard Fisher told his audience that the reason for our economic malaise lies squarely on the shoulders of the US Congress.

"The brows of economic forecasters and business operators begin to furrow when contemplating the international landscape," Fisher said in his speech. "But the face of both the economist and businessman turn into something akin to Edvard Munch's Scream when contemplating the frightful consequences of indecision and political mischief at both ends of Pennsylvania Avenue in Washington."

Amen! Preach it, Brother Richard!