Weekly Audit: Will Obama Save Homeowners From Wall Street’s Latest Fraud Scheme?

Over the past decade, Fannie Mae and Freddie Mac transformed themselves into some of the worst-run companies in recent history. But contrary to current talking points, the firms’ failings had almost nothing to do with their programs for low-income borrowers. As policymakers debate what should be done with the mortgage giants, a battle is now beginning in which the very availability of affordable housing for the middle class may be at stake.

The same conservatives who spent the past year senselessly screaming about the U.S. budget deficit are now demanding an extension of the Bush tax cuts for the rich. The extension simply doesn’t make sense, and the policies implied are a recipe for massive job loss in the middle of the worst employment crisis in 75 years.

by Zach Carter, Media Consortium blogger

Congress finally authorized an extension of unemployment benefits on Wednesday, providing a critical lifeline to families across the country and an absolutely essential boost to the economy.

Democrats need to do something more than simply throw up their hands when Republicans filibuster and obstruct.

Steve Benen and Greg Sargent have been making an important point lately that hasn’t yet received the attention it deserves: to the extent that Republicans intend to oppose efforts to hold BP accountable this summer and fall, they are extremely vulnerable politically.

Here’s Benen first, commenting on Republican confusion over just what lengths they should go to in their defense of big oil companies:

It’s no doubt tricky — the GOP has been allied with oil companies for years — and considering the party’s rhetoric of late, I’m not sure Republicans have decided exactly what point(s) they want to emphasize.

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But politically, it’s worth keeping an eye on a potential trend — if Republicans position themselves as the party looking out for BP and the oil industry’s interests, there may be political consequences.

And here’s Sargent, commenting on John Boehner’s confusion on the issue:

His announcement amounts to a tacit acknowledgment that public rage at BP, and the public’s desire that lawmakers hold the company accountable, have left Republicans little maneuvering room. In other words, the insistence on holding BP fully accountable is, and will continue to be, a very potent political issue for Dems.

I was especially pleased to see Politico — which typically doesn’t make smart observations about political situations in which Republicans are vulnerable — pick up on this dynamic yesterday. . .

by Zach Carter, Media Consortium blogger

In the fall of 2008, decades of finance-first, bankers-know-best economic policies coalesced to create one of the worst economic crises in history, one that the banks themselves could not survive without staggering levels of government support.

Coal consumption has costs — this week’s explosion at a West Virginia mine, which killed 25, made that clear. Those costs aren’t limited to human lives, either. Massey Energy Co., the owner of the West Virginia mine, has racked up not just safety violations but also consistently has disregarded the environmental effects of its work.

By Lindsay Beyerstein, Media Consortium blogger

Massey Energy’s Disregard for Safety

A massive explosion ripped through the Big Branch coal mine in West Virginia on Monday, killing 25 miners and leaving 6 others missing and presumed dead. The mine had an egregious record of health and safety violations.

by Zach Carter, Media Consortium blogger

Next week, the debate over financial reform will begin in earnest when Congress returns from its Easter break. Both political parties are gearing up for a major fight, and the stakes couldn’t be higher. An out-of-control banking sector has cost the economy over 7 million jobs since 2007, and without major reforms, Wall Street could repeat this disaster in just a few years’ time. But thanks to Wall Street’s lobbying might, all of the necessary reforms are currently in jeopardy.