Blog Home |  Email Author  |  About this Blog       Welcome to Community Server Sign in | Join

What the ?

Never Politically Correct! And Pointing Out Morons of Mass Destruction!

Obama and Dems Fueled The Economy Crisis

By Ed Furey
Wednesday, Oct 8 2008, 12:01 AM

More than three years ago, John McCain proposed additional oversight and regulation on Freddie Mac and Fannie Mae in a bill that had full Republican support and no Democratic support.  A bill that could have prevented much of what went wrong.  A bill that would have prevented these GSE's (Government Sponsored Enterprises) from speculating on the mortgage based securities that they packaged.  The profit from this speculation is what provided the means for outrageous executive bonuses.  Obama and his cohorts, the rest of the Senate Democrats killed the bill.  Why would they do this?  Maybe it was a difference of opinion.  If so, that shows again why McCain is better suited to lead this country. 

I don't think that is the real reason the Dems killed it.  See, if they sided with McCain, the Democrats would lose their big fat donations (bribes) from Freddie and Fannie.  You see, even though Obama has only been in office for four years, (less than two if you remove his time campaigning for President - something that he said he wasn't qualified to do less than two years before he decided to) yet he was getting bigger payoffs than more senior Democrats.   Conspiracy theorists have speculated that Dhimocrats actually wanted the collapse, to try to build an even better case for one of their own to gain the White House.

Republicans are usually against regulations, but in this case McCain went against conventional thinking and tried to get these GSE's under tighter regulations.  In his speech supporting this legislation this is what he said:

Mr. President, this week Fannie Mae's regulator reported that the company's quarterly reports of profit growth over the past few years were "illusions deliberately and systematically created" by the company's senior management, which resulted in a $10.6 billion accounting scandal.

The Office of Federal Housing Enterprise Oversight's report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae's former chief executive officer, OFHEO's report shows that over half of Mr. Raines' compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.

The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator's examination of the company's accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.

For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac-known as Government-sponsored entities or GSEs-and the sheer magnitude of these companies and the role they play in the housing market. OFHEO's report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO's report solidifies my view that the GSEs need to be reformed without delay.

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.

Fox News Journalist John Gibson, reports on how Obama continued to benefit from Freddy and Fannie and how Obama and the Democrats had much to lose if their golden goose was cooked.

JOHN GIBSON: All right Heather. Lehman Brothers' collapse is traced back to Fannie Mae and Freddie Mac, the two big mortgage banks that got a federal bailout a few weeks ago. Freddie and Fannie used huge lobbying budgets and political contributions to keep regulators off their backs. A group called the center for responsive politics keeps track of which politicians get Fannie and Freddie political contributions. The top three U.S. Senators getting big Fannie and Freddie political bucks were democrats and number two is Senator Barack Obama.

Now, remember, he has only been in the Senate four years but still managed to grab the number two spot ahead of John Kerry, decades in the senate, and Chris Dodd who is chairman of the senate banking committee. Fannie and Freddie have been creations of the congressional democrats and the Clinton white house, designed to make mortgages available to more people, and as it turned out, some people who couldn't afford them. Fannie and Freddie have also been places for big Washington democrats to go to work in the semi-private sector and pocket millions. The Clinton administration's white house budget director Franklin Raines ran Fannie and collected 50 million dollars. Jamie Gurilli, Clinton Justice Apartment Official, worked for Fannie and took home 26 million dollars. Big Democrat Jim Johnson, recently on Obama's VP search committee has hauled in millions from his Fannie Mae C.E.O. job.

Now remember, Obama's ads and stump speeches attack McCain and republican policies for the current financial turmoil. It is demonstrably not Republican policy and worse, it appears the man attacking McCain, Senator Obama, was at the head of the line when the piggy's lined up at the Fannie and Freddie trough for campaign bucks. Senator Barack Obama, number two on the Fannie/Freddie list of favored politicians after just four short years in the senate. Next time you see that ad; you might notice he fails to mention that part of the Fannie and Freddie problem. Heather.

NAUERT: Wow, that's quite a report, begs the question - where is John McCain on this?

GIBSON: John McCain is a measly $20,000 after over 20 years so he really doesn't even come close in the political contribution department.

20 years of compiling this info and Obama, in less than four years, was number 2 in contributions.

John McCain has finally taken off the gloves to try to get the truth out, instead of playing nice with all of the Obama lies.  Here is what McCain is saying today:

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.

John McCain has a proven track record of working with the other party and against his own to get done what needs to be done.  Obama has a proven record of poor decisions, poor choices for influential people in his life, corruption and lies.

Choosing McCain is the only reasonable decision.

Comments

Amy L. Geiger-Hemmer   

Where are all the liberal comments on this post?  Any rebuttals?  I know, facts are hard to refute.  Come back with some "feel good" stuff...you know the usual.  How Republicans are racist and cold.  Democrats wanted everyone to have access to loans - no matter if they could pay them back or not.  Now look where we are.  Don't you dare dump this in Bush's lap.  Obama and the rest of the Dems are to blame - especially Barney Frank and Chris Dodd.

October 8, 2008 1:18 PM

Disgusted   

Yes, where are they?  Maybe they've all come to realize they can't reason with you or Ed.  You are right Amy, all of our country's problems have been caused by the Democrats.  It's a huge conspiracy.  You've cracked the case!  Where have you been all these years?  Thank goodness you can blog and expose all the bad things the democrats have done.  Even though the Republicans have been in the White House for the last 8 years.  I know, I know -- Republicans=good, Democrats=bad.  Too bad you just don't get it!  Nothing gets done without working together.  Funny how so many people blame others for the problems but take the credit for the good things.  Don't even bother replying.  No one wants to hear it anymore.

October 8, 2008 10:27 PM

Ed Furey   

Disgusted:  In several other posts you mention this need for working together.  The parties need to work together.  If this is the most important thing to you, than you obviously support McCain.  Afterall he is the only candidate that actually does work with the other party and has the track record to prove it.  

October 8, 2008 11:35 PM

Disgusted   

In your small close minded world, yes, I guess that's the case.  But in the real world that just plain isn't true.

October 9, 2008 11:05 AM

jmark   

With a bit of research you'll discover that S190, the Federal Housing Enterprise Regulatory Reform Act of 2005  was introduced in the Senate on Jan 26, 2005, sponsored by Hagel and co-sponsored by Dole and Sununu. S190 was discussed in the Senate Banking Committee. The bill died in committee and never came to the floor of the Senate or back to the Senate Banking Committee for reconsideration.    

McCain was not an original co-sponsor. He didn't jump on board until May25 2006, two days after the Office of Federal Housing Enterprise Oversight, issued the results of their 27 month long investigation of Fannie Mae. Opportunist?    1

I'll bet you didn't know The House had their own version of the bill,  HR1461  Federal Housing Finance Reform Act of 2005. The bill went to vote and passed 331-90 on October 26, 2005. Here's the icing on the cake, HR1461 and S190 would actually weaken the regulation of Fannie and Freddie. Even the conservative think tank American Enterprise Institute thought these were bad bills: Reform That is Worse Than Current Law. www.aei.org/.../pub_detail.asp

Even Bush thought the bills were too weak: Bush says HR1461 too weak.

www.presidency.ucsb.edu/.../index.php

S190 died in the 109th congress and has been resurected as S1100 Federal Housing Enterprise Regulatory Reform Act of 2007 in the 110th congress. Can you guess who's not co-sponsoring this bill? You got it, John McCain.

October 9, 2008 4:58 PM

Ed Furey   

Jmark:  An opportunist is someone that waits until after one of the largest crisis in America happens and then tries to take credit for saying something.  Something that they can’t prove they did.  Wait, this would mean the opportunist is Obama.  

McClain was one of three co-sponsors of the bill.  This is factual.  It is also documented that he spoke out forcefully in favor of reforming Fannie and Freddie.  Obama was busy writing “President Obama” over and over again to see what it looked like.  

Chris Dodd, who was then the ranking member of the Banking Committee and now its chairman, was receiving preferential loan treatment from Countrywide Mortgage, one of the worst offending companies embroiled in the credit crisis.  Meanwhile, Barack Obama took hundreds of thousands of dollars from their lobbyists, making him the #2 recipient of Fannie/Freddie money.

Also, with a bit of research you can discover that the Bush Administration called for tightening up reforms on Fannie and Freddie 17 times.  

And as Jim Geraghty of National Review Online points out:

Don't the American people deserve to know that Democrat Barney Frank, then ranking member and now chairman of the House Financial Services Committee, said, "I want to roll the dice a little bit more in this situation towards subsidized housing"? Isn't the fact that the ranking Democrat in charge of oversight of Fannie Mae was in a sexual relationship with a high-ranking Fannie Mae executive a glaring conflict of interest? Isn't it worth noting that Democratic Rep. Maxine Waters insisted, "we do not have a crisis at Freddie Mac, and in particular at Fannie Mae, under the outstanding leadership of Mr. Frank Raines"? Shouldn't the American people know that Democratic Rep. Gregory Meeks insist that "there's been nothing that was indicated that's wrong with Fannie Mae"?

If nothing else, shouldn't we salute Democratic Rep. Artur Davis for saying, "Like a lot of my Democratic colleagues I was too slow to appreciate the recklessness of Fannie and Freddie. I defended their efforts to encourage affordable homeownership when in retrospect I should have heeded the concerns raised by their regulator in 2004. Frankly, I wish my Democratic colleagues would admit when it comes to Fannie and Freddie, we were wrong."

October 10, 2008 11:55 AM

jmark   

As I mentioned, McCain did co-sponsor the bill, it just took him 16 months from the bill's introduction to get on board. His getting on board also coincided with the release of the Fannie Mae report. I'd call that grandstanding. Why isn't he a co-sponsor of the current version? I'm speculating it's because the bill is seriously flawed, which explains why it didn't make it out of committee in 2005.    

I'm not sure what relevance if any Barney Frank has to do with a bill that was introduce into the Senate by Chuck Hagel. Keep in mind Barney was a member of the 2005 Republican controlled House,   where the equivalent of S190, HR1461  Federal Housing Finance Reform Act of 2005, passed by an overwhelming majority.

These are the the facts Ed.    

October 10, 2008 1:08 PM

jmark   

By the way, Paul Sarbanes was the ranking member of the Senate Committee on Banking in 2005.  

October 10, 2008 1:26 PM

Leave a Comment

Please Sign In to post comment.

About Ed Furey

My name is Ed Furey.  I am a married, father of two boys that lives in the Town of Eagle and the Mukwonago Area School District.  I am very involved with youth sports.  I design and sell wireless systems that allow companies to communicate voice, data and video wirelessly. I will be writing about national and local items that irritate, interest or excite me. I am opinionated and not always politically correct, but I don't take everything too seriously either.

Posts

Your browser must support javascript to use the posts pager. Please enable javascript or return to the home page to page through posts.
Newer Older

Tags

Search the Blogs