• Barack Obama,  Fannie Mae,  John McCain

    John McCain Finally Blasts Obama and Democrats Over Fannie Mae Financial Crisis

    National Republican Congressional Committee Ad: What Just Happened? on the financial meltdown caused by the collapse of Fannie Mae and Freddie Mac

    Flap said yesterday that Team McCain needed to attack the Democrats and Barack Obama on the financial crisis, precipitated by the collapse of Fannie Mae and Freddie Mac, for their roll in the financial meltdown.

    Finally, John McCain will get tough and address the issue.

    Our current economic crisis is a good case in point. What was his actual record in the years before the great economic crisis of our lifetimes?

    This crisis started in our housing market in the form of subprime loans that were pushed on people who could not afford them. Bad mortgages were being backed by Fannie Mae and Freddie Mac, and it was only a matter of time before a contagion of unsustainable debt began to spread. This corruption was encouraged by Democrats in Congress, and abetted by Senator Obama.

    Senator Obama has accused me of opposing regulation to avert this crisis. I guess he believes if a lie is big enough and repeated often enough it will be believed. But the truth is I was the one who called at the time for tighter restrictions on Fannie Mae and Freddie Mac that could have helped prevent this crisis from happening in the first place.

    Senator Obama was silent on the regulation of Fannie Mae and Freddie Mac, and his Democratic allies in Congress opposed every effort to rein them in. As recently as September of last year he said that subprime loans had been, quote, “a good idea.” Well, Senator Obama, that “good idea” has now plunged this country into the worst financial crisis since the Great Depression.

    To hear him talk now, you’d think he’d always opposed the dangerous practices at these institutions. But there is absolutely nothing in his record to suggest he did. He was surely familiar with the people who were creating this problem. The executives of Fannie Mae and Freddie Mac have advised him, and he has taken their money for his campaign. He has received more money from Fannie Mae and Freddie Mac than any other senator in history, with the exception of the chairman of the committee overseeing them.

    Did he ever talk to the executives at Fannie and Freddie about these reckless loans? Did he ever discuss with them the stronger oversight I proposed? If Senator Obama is such a champion of financial regulation, why didn’t he support these regulations that could have prevented this crisis in the first place? He won’t tell you, but you deserve an answer.

    Obama’s bump up in the poll is the direct result of the faltering economy. American voters are pissed off at politicians and scared of losing their life savings.

    John McCain and Sarah Palin must push the MAIN cause of the financial crisis: Barack Obama and the Congressional Democrats. They must explain John McCain’s role in attempting to avert the meltdown which was thwarted the Democrats.

    No more free ride for “The One.”

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  • Barack Obama,  Fannie Mae,  Freddie Mac,  William Ayers

    Note to Steve Schmidt and Rick Davis: It IS The Economy Stupid

    National Republican Congressional Committee Ad: What Just Happened? on the financial meltdown caused by the collapse of Fannie Mae and Freddie Mac

    Memo to Team McCain, including Steve Schmidt and Rick Davis entitled: IT IS THE ECONOMY STUPID.

    Why do you think Barack Obama has risen in the polls and John McCain has cratered? The economy, stupid.

    And, what caused the financial markets collapse, the bailout and the credit market meltdown?

    Answer: Fannie Mae and Freddie Mac and the lack regulation of them both.

    So, listen to Flap and Jim Geraghty.

    But I cannot emphasize enough how much the Campaign Spot’s readership is yearning for the Republican nominee to lay out the various ways that Democrats on Capitol Hill aided and abetted the mismanagement and risky gambles at Fannie Mae and Freddie Mac. Atrocious management at Fannie and Freddie isn’t the sole reason for our financial mess, but it’s a big one. And there were certain voices in Congress, generally on the right, who saw it as risky, and a lot of loud voices on the Hill, generally on the left, insisting that nothing was wrong.

    The RNC web ad is a pretty good start, but how many will see it? (About 155,000 so far, in an electorate that will be measured in the tens of millions, probably considerably more than 2004’s 122 million.) Can the 1:30 version be cut down and put on television? Why can’t John McCain and Sarah Palin make the points about the how the crisis was built illustrated in the “Burning Down the House” (with the revised music) YouTube video? Could McCain please, please bring up some of this in Tuesday’s debate?

    Forget about William Ayers and domestic terrorism and concentrate on the economy in key battleground states. This is what America voters care about not some left-wing unrepentive lunatic who once tried to bomb police stations and the United States Capitol.

    Run this ad:

    Ad from RightChange.com

    Or modify this ad:

    This video is an informative look at the factors that are causing our current financial and economic crisis. It discusses policy changes 13 years ago that unleashed the sub-prime mortgage-backed securities market, which accelerated prices erratically, inviting speculation and loose lending practices which were both condoned and encouraged by existing regulation and carried out by risk-blind executives and Fannie Mae and Freddie Mac.

    If Team McCain wants to win this race you must concentrate on the economy and focus the blame where it RIGHTLY belongs – not on George Bush or the GOP.

    Steve and Rick, the American voters are blaming you for the financial morass and Barack Obama plus the Congressional Democrats are getting a free ride in electoral bliss. You fumbled suspending McCain’s campaign.

    Don’t fumble Tuesday night’s debate. Forget about William Ayers and Jeremiah Wright. How about attacking Barney Frank who had a gay sexual relationship with a high ranking Fannie Mae Executive and the obvious conflicts of interest?

    It is the economy, stupid.

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  • economics,  Fannie Mae,  Freddie Mac

    The Fannie Mae and Freddie Mac Meltdown – What Happened?

    Specia Report with Brit Hume summarizes the economic financial institution meltdown

    The above video is a good summary of the economic crisis and its causes – notably Fannie Mae and Freddie Mac.

    Another good treatise is The Global Pool of Money. Here is the link to both the podcast and transcript. You can download a pdf transcript here.

    Some other background primer links include:

    So, the short version answer = GREED.

    And, the FBI is now investigating the entire mess while the Congress debates corrective action, including a massive taxpayer financed bailout.

    The FBI is investigating four major U.S. financial institutions whose collapse helped trigger a $700 billion bailout plan by the Bush administration, The Associated Press has learned.

    Two law enforcement officials said Tuesday the FBI is looking at potential fraud by mortgage finance giants Fannie Mae and Freddie Mac, and insurer American International Group Inc. Additionally, a senior law enforcement official said Lehman Brothers Holdings Inc. also is under investigation.

    The inquiries will focus on the financial institutions and the individuals that ran them, the senior law enforcement official said.

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