Rep. Michele Bachmann (R-Minn.) is accusing Congressional Democrats and the President of causing the 2008 financial crisis and for using it as an opportunity to implement excessive financial regulations through the Dodd-Frank Act.
On the Republican presidential primary campaign trail, Bachmann is referring to Dodd-Frank as “The Jobs and Housing Destruction Act,” according to CNBC.com. She was the first member in the House to introduce the bill’s repeal.
Bachmann is blaming the financial crisis on the federal government’s housing policies and overbearing mortgage market intervention. She said that the obsession to maximize home ownership degraded mortgage underwriting standards and led to an implosion that devastated housing and jobs.
Democrats did nothing to regulate “crony-capitalist government-sponsored enterprises” such as Fannie Mae and Freddie Mac, Bachmann wrote in an editorial, according to CNBC.com.
Instead, Democrats passed the Dodd-Frank Act, which they promised would strengthen Wall Street and permanently end government bailouts of private institutions.
“Fifteen months later, Dodd-Frank has not delivered on any of these promises, and instead has aggravated financial sector instability, restricted credit availability, reduced business investment, kept unemployment high, and degraded economic growth,” Bachmann wrote, according to CNBC.com. “Moreover, Dodd-Frank has badly burdened American business to the permanent advantage of their foreign competitors.”
Bachmann, along with her primary opponents, pledged to end Dodd-Frank if elected into the White House.