When the News Isn't Fit to Print ... Blog

Freak & Dud Aside

In Bowling for Dollars, Harvard Math, Obamarama, Reaganology, The Way Far Right, Uncategorized, Weekly Rant on 24/11/2009 at 15:44

Okay, this article will be boring. Finance is dry stuff, but you should read every last word of it, because it might save you from financial oblivion.

For sometime I have been critical of John McCain, but in the grand scheme of things our differences are small. How can one not be in awe of a man who has given so much for his country? I feel similarly towards George W. Bush, although for different reasons. W’s actions immediately after the 9-11 attacks were courageous and decisive.

These are good men. They love their country and whatever our differences, we share the same desire to keep this nation free and solvent. In 2005 these two men valiantly tried to stave off what both prophesied as a coming disaster in the housing and financial markets in the face of opposition from both political parties.

The New York Times on October 27, 2005: “Responding to the accounting scandals at Fannie Mae and Freddie Mac, the House of Representatives approved legislation on Wednesday overhauling the regulatory oversight of the two huge mortgage financing companies. But the measure was sharply criticized by the Bush administration and differs significantly from legislation moving through the Senate.” The article further explains that the House blocked Bush’s objection to White House political appointments on the Fannie/Freddie boards, Bush’s inference being that such appointments imply a federal rescue in case of default. “It is that belief that has enabled Fannie and Freddie to pay lower interest rates on their bonds than most other companies pay,” the Times goes on to say.

And of course the government did step in to rescue Fannie and Freddie and myriad lending institutions, vastly exacerbating, not staving off the current crisis, and creating the Obama Nation. Those institutions should have been allowed to fail, regardless of the immediate effect on the economy. Bush’s bad.

But in 2005, the Bush administration supported McCain’s senate bill, which required Fannie and Freddie to slowly divest most of their $1.5 trillion portfolios, while the House legislation opened the floodgates and gave us the housing and financial crisis we have today.

McCain sponsored the Federal Housing Enterprise Regulatory Reform Act, saying, “For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac … ” His bill ultimately lost out, but the senator warned of “the sheer magnitude of these companies and the role they play in the housing market. … 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.”

Setting aside McCain’s recent train-wreck legislative history, like McCain-Feingold and McCain-Kennedy, had the senator been elected president last year we would be seeing vastly a different approach to the reconstruction of the financial market in the aftermath of the cataclysmic housing and loan disasters. Banking institutions are still handing out subprimes, and Barney Freak, I mean Frank, is pushing for more risky loans.

I said this is boring stuff. I don’t even like writing about it, but if everyday Americans don’t wake up and understand the significance of their single vote, this nation will have an economy similar to that of Mexico in less than 20 years. We are right now sitting on the precarious edge.

We need as close to a “clean sweep” in congress this coming election year, as anything I can imagine. I mean every pork barrel congressman and senator must go. This is not a partisan issue; it is a survival issue.

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  1. We are praying people wake up and I think they might be…..and hopefully, Dodd will be out along with Reid and Pelosi…thx and keep it up

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