Richard Lugar: The Foreclosure Senator?

Right now on RealtyTrac–a website that tracks home foreclosures-there are nearly 13,000 properties in Indianapolis that are facing some sort of forclosure proceedings.  Foreclosure rates are up 53% since last year.

There is plenty of people to blame for this crisis; but it looks like much blame can be placed on Indiana Senator Richard Lugar.  Check out this Mother Jones article by David Corn:

Only two days earlier, the Supreme Court had issued its decision on Bush v. Gore. President Bill Clinton and the Republican-controlled Congress were locked in a budget showdown. It was the perfect moment for a wily senator to game the system. As Congress and the White House were hurriedly hammering out a $384-billion omnibus spending bill, Gramm slipped in a 262-page measure called the Commodity Futures Modernization Act. Written with the help of financial industry lobbyists and cosponsored by Senator Richard Lugar (R-Ind.), the chairman of the agriculture committee, the measure had been considered dead—even by Gramm. Few lawmakers had either the opportunity or inclination to read the version of the bill Gramm inserted. “Nobody in either chamber had any knowledge of what was going on or what was in it,” says a congressional aide familiar with the bill’s history.

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One thought on “Richard Lugar: The Foreclosure Senator?

  1. great article. we are going to the wedding soon of a friend who trades derivatives. I’ll have to ask him what role he thinks past deregulation has played in the current housing crisis…

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