• Mike Devx

    Senator Barack Obama says today:
    “This isn’t 9/11. We know how we got into this mess. What we need now is leadership that gets us out. I’ll provide it. John McCain won’t.”

    I’m sure Barack meant to say “This isn’t Iraq. We know how we got into this mess.” He didn’t mean to say 9-11. Surely! Certainly he was just tired; you know how much of a toll a lengthy campaign takes on someone who is either:
    A. A deceiver who must constantly lie and deceive us for a year and a half, now.
    B. A lightweight who must spend all his time reconciling each day’s events with his in depth knowledge of Karl Marx’ Das Kapital

    9-11 sure seems a lot clearer to *me* than the current financials meltdown.
    How did we get into the “9-11 mess”?

    Gee, I thought that part was simple: Muslim fanatics succeeded in an audacious plot planned from 1996-2001, caught our intelligence services flat-footed, and murdered thousands of Americans and others by flying airplanes into national landmarks.

    Why is that considered a “mess”? I thought it was a horrific assault on America.

    As far as I can figure it, Clinton’s mark-to-market plans, and his forcing investment firms and banks to provide sub-prime mortgages to people who could not afford them, provided the seeds that have been growing for ten years to create this financials “mess”. Then Bush let it ride for years and years, proud of his “ownership society” even as the foundations continued to rot. And Congress porked it up, abandoning all intelligent oversight in favor of Corruption Cash. There’s plenty of blame to go around for everyone…

    Is Christopher Cox, the head of the SEC, just another Bush flunkie? Appointed for his loyalty, and with few skills necessary to captain the rough shoals, letting us drift into the entire current mess? Some sure seem to think so! Yet another Bushie “You’re doing a great job Brownie!” appointee. Time will tell.

    On the list of top ten recipients of Fannie Mae/Freddie Mac lobbyist money, all Democrats, over the last TEN YEARS, sits Barack Obama at #2. He managed this superlative accomplishment in only three and a half years. Well done, Barack! Only Christopher Dodd, the chairman of the committe that controls oversight into Fannie Mae/Freddie Mac, stands above him at #1.

    John McCain has been around a while and surely bears the guilt? Perhaps by association… perhaps he didn’t do enough? Surely Bush himself bears all the blame?

    From the NYTimes, five years ago:

    The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

    Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

    The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

    The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac — which together have issued more than $1.5 trillion in outstanding debt — is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors.

    Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.

    ”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

    Representative Melvin L. Watt, Democrat of North Carolina, agreed. ”I don’t see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,” Mr. Watt said.

    McCain tried the following two years ago:


    McCain spoke forcefully on May 25, 2006, on behalf of the Federal Housing Enterprise Regulatory Reform Act of 2005 (via Beltway Snark):

    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.

    Franklin Raines… that wouldn’t be this guy: the former chairman and chief executive officer of Fannie Mae who served as White House budget director under President Bill Clinton. He is currently employed by Barack Obama’s Presidential Campaign as an economic adviser.

    He made millions off his tenure at Fannie Mae.
    What did that have to do with Bush? Or McCain? Or any Republican?

    Don’t forget Jim Johnson: He was involved in the vice-presidential selection process for the 2008 Democratic presidential nominee Senator Barack Obama, and is currently an economic adviser to Obama’s campaign. From 1991 to 1998, he served as chairman and chief executive officer of the Federal National Mortgage Association (Fannie Mae)

    He made tens of millions off his time at Fannie Mae.
    What did that have to do with Bush? Or McCain? Or any Republican?

    And then there’s Jamie Gorelick: Gorelick was appointed Vice Chairman of FNMA (Fannie Mae) from 1997 to 2003. She served alongside former Clinton Administration official Franklin Raines. [She] was Deputy Attorney General of the United States during the Clinton administration. She was appointed by former Senate Democratic Leader Tom Daschle to serve as a commissioner on the bipartisan National Commission on Terrorist Attacks Upon the United States.

    She made tens of millions off his time at Fannie Mae.
    What did that have to do with Bush? Or McCain? Or any Republican?

    Clearly, clearly, clearly, the problem lies entirely with Bush Bush Bush, and the Republicans. The Democrats have nothing to with causing the meltdown.

    Congress is broken, Washington is broken, and we want to let these jokers control our health care industry; control more and more of our lives at the point of their taxation gun, so they can spread the money among themselves in their incestuous little snakepit? What a wonderful idea.

  • Ymarsakar

    Barack Obama=Second guy to drop a nuclear device on a city.

    That was my prediction when he first came on the national scene, if he should be elected.

  • McLaren

    Did you write “very dark window”? You racist.

  • http://bookwormroom.com Bookworm

    LOL, McLaren.

  • http://cheatseekingmissiles.blogspot.com Laer

    Thanks for this, Book. It led to quite a surge in traffic; a successful surge, I might add, although BHO would disagree.

    I think Mike’s wrong about the 9/11-Iraq gaffe thing, although it’s an interesting point. It would negate my entire post and make me much less brilliant (how often does that happen??), but it makes another point: That BHO can’t be trusted to lead because he can’t think on his own. Take him away from a teleprompter and he’s an absolute loose canon.

    Can you imagine him in un-preconditioned talks with Ahmedinejad or Chavez? My mind hurts …

  • Mike Devx

    Laer,

    My irony certainly wasn’t clear enough! I definitely think that Obama’s world view is such that 9-11 was “a mess” to him, and not simply a terrorist attack.

    The mental image of Barack Obama sitting in a conference room in Iran with Achmadinjead, and a teleprompter scrolling there in front of Barack while he speaks, is priceless!