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

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

    October 5, 2008 /
    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?

    September 23, 2008 /
    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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