Lindy’s Blog: Where Mom is Always Right

September 23, 2008

Something stinks…

Well, the only issue that is going to make a difference in the election now is the economy.  I think we all can agree on that.

That being said, I want to point out that I only have a rudimentary understanding of all the recent goings-on with AIG and Fannie Mae and Freddie Mac.  All I do know is that there has ensued a flurry of finger-pointing.  It all seems too nuanced to understand.  McCain says we need more accountability, and Obama says we need more government regulation (of course.)  Actually, it’s not only Democrats who think this.  (Why does government oversight rub me the wrong way?  If there’s no risk, there’s no reward, right?  Isn’t that the way the market works?  The job of a CEO is to make sure the corporation that employs him makes money to pass along to the shareholders in that corporation.  But, if I were a CEO, and I knew that the government was going to bail me out no matter how crappy of a job I did, wouldn’t my incentive to do a good job lessen considerably?  Seriously, I’m rambling.) 

I do know that there are some things that are quite interesting about all this.  Namely, that Fannie and Freddie and Hillary Clinton and Chris Dodd and Barack Obama were all in bed together.  And I can tell you one thing for certain:  If this were the case with, say, John McCain, or any other Republican, there’d be a demand for investigation upon investigation, and the media would be having a hayday.  Really.  You know it’s true. 

I thought this article did an excellent job in explaining all of this.  A great analysis and TIMELY revelation regarding S.190, a bill that would have averted this mess, that was not passed in Congress by Democrats, one of whose sponsors was none other than…John McCain.  http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSKSoiNbnQY0

Too good to keep off of this post:

“[Barack] Obama… blamed the shocking new round of subprime-related bankruptcies on the free-market system, and specifically the ‘trickle-down’ economics of the Bush administration, which he tried to gig opponent John McCain for wanting to extend. But it was the Clinton administration, obsessed with multiculturalism, that dictated where mortgage lenders could lend, and originally helped create the market for the high-risk subprime loans now infecting like a retrovirus the balance sheets of many of Wall Street’s most revered institutions. Tough new regulations forced lenders into high-risk areas where they had no choice but to lower lending standards to make the loans that sound business practices had previously guarded against making. It was either that or face stiff government penalties. The untold story in this whole national crisis is that President Clinton put on steroids the Community Redevelopment Act, a well-intended Carter-era law designed to encourage minority homeownership. And in so doing, he helped create the market for the risky subprime loans that he and Democrats now decry as not only greedy but ‘predatory.’ Yes, the market was fueled by greed and overleveraging in the secondary market for subprimes, vis-a-vis mortgaged-backed securities traded on Wall Street. But the seed was planted in the ‘90s by Clinton and his social engineers.” —Investor’s Business Daily

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3 Comments »

  1. And I can tell you one thing for certain: If this were the case with, say, John McCain, or any other Republican, there’d be a demand for investigation upon investigation, and the media would be having a hayday. Really. You know it’s true.

    you might want to read this…..dont believe there is any demand for an investigation, maybe there should be. It is amazing that any McCain surrogates would go after Obama on this given there lobbyist ties.

    http://www.rollcall.com/news/28629-1.html

    http://www.bloomberg.com/apps/news?pid=20601070&sid=aQIOOr9klOnE&refer=politics

    timmons and davis have official roles. Johnson left after one week on the vice presidential selection team because of Obama’s rule against this conflict of interest and Raines was a donation bundler. Not quite the same thing.

    Comment by elizabeth — September 23, 2008 @ 6:41 pm |Reply

  2. …and the Iranians are saying that it’s “over” for Americans. Our #1 status in the world has been done in…maybe so…maybe not. It would not surprise me if it were so…we all need a little examination of conscience, I suppose…and a big conversion.

    Comment by Dee — September 23, 2008 @ 7:51 pm |Reply

  3. Interesting, but according to the article you cited, “Both mortgage companies were forced to dissolve their muscular lobbying teams earlier this month under the terms of their federal takeover. Davis Manafort appears to have hung on a little longer because the firm never directly lobbied for the company, instead providing public affairs help.” It doesn’t seem to be of the same weight to me. It seems small in comparison to Obama’s ties to the companies. My opinion.

    As for Timmons, he was “expected to lead” McCain’s presidential transition team. I doubt he would now. Hearsay abounds, and speculation about who will lead what for whom is rampant, and that seems like a way away to me. It is a speculated future action, not one that has actually taken place.

    It’s fun to point fingers here, (and who says I’m not just as guilty as anyone?), but the bottom line to me is Bill S.190, and McCain’s role in trying to pass it. He said of it, “I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole. I urge my colleagues to support swift action on this GSE reform legislation.”

    The bill did not pass due to a partisan denial by Democrats in Congress.

    “It never made it out of committee. Chris Dodd, then the ranking member of the Banking Committee and now its chair, was in the middle of receiving preferential loan treatment from Countrywide Mortgage, one of the companies gaming the system in the credit crisis. Meanwhile, Barack Obama took hundreds of thousands of dollars from the lobbyists McCain mentions in this speech, making him the #2 recipient of Fannie/Freddie money.”

    Furthermore, “Open Secrets has the list of Congressmen who have benefited from Fannie Mae/Freddie Mac largesse since 1989 (inclusive). Remarkably, after only serving less than four of those 20 years, Barack Obama has vaulted to the #2 position on Capitol Hill. Only Dodd outstripped him. He took more than six times the amount that McCain received in a 20-year period.”

    (source, http://hotair.com/archives/2008/09/17/mccains-attempt-to-fix-fannie-mae-freddie-mac-in-2005/)

    The blame game will undoubtedly continue on all sides, but doesn’t it all boil down to the candidates themselves? Whoever becomes president, their term(s) will be based solely on getting us out of this mess. Do I want to vote for someone who saw this coming and tried to stop it? Or do I want to vote for someone who seems to have benefitted greatly from its continuance?

    Comment by lindyborer — September 24, 2008 @ 8:07 am |Reply


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