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Re: Do we want a member of the Keating Five to be our next president???
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Originally Posted by Angry American
In the current financial crisis we are in, do we really want a member of the Keating Five to become our next president?
McCain was part of the Savings and Loan scandal, and his own economic adviser, Phil Gramm, helped create the current financial crisis.
If there ever was a worse candidate for president in John McCain, I don't know who would be.
I'm sorry but it's the economy stupid, and the McCain campaign is full of stupid when it comes to the economy. 
A member of the Keating Five, really?  |
Funny you should bring that up.
Freddie Mac and Fanny Mae almost went under and we had to spend $200 bil to bail them out.
When it comes to shear numbers this makes Enron look small in comparison.
Strange how all of this is happening while the Democrats have their hand on the till yet they get none of the blame. As a matter of fact Nancy Pelosi was asked if the Democratically controlled congress should shoulder at least some of the blame. She said hell no. Yet this year they have bailed out 4 major financial institutions. The Keating Five doesn't even come close in comparison to Nancy Pelosi, Chris Dodd, and the Democrats.
Truth is Allen Greenspan and Democrats are responsible for this mess. They made it possible for many of these loans that are in foreclosure by relaxing the regulations and requirements needed to get loans. In 2005 McCain tried to do something about the mess it caused and the Dems stopped it.
Hot Air » Blog Archive » Whose policies led to the credit crisis?
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"In the latter years of the Clinton administration -- when I was not there any longer, I should add -- there was an attempt by Alan Greenspan and Bob Rubin and a few others to deregulate financial markets, and they did. They split commercial banking off from investment banking. And many people say, "Well, that was the beginning of the problem," and then, of course, in 2003-2004, Alan Greenspan reduced short-term interest rates to the point where every single bank wanted to lend money. I mean, if you could stand up straight you could get a bank loan because there was so much pressure to get that money out the door. Money was so cheap. So, yes, there is some responsibility on Democrats, some responsibility on Alan Greenspan and the Fed." - Robert Reich Former Secretary of Labor under Bill Clinton
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IBDeditorials.com: Editorials, Political Cartoons, and Polls from Investor's Business Daily -- The Real Culprits In This Meltdown
Five years ago this is what Bush was saying about the shananigans that were going in with Fanny and Freddie and the Democrats objected to it:
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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, and critics have said Fannie Mae does not adequately hedge against rising interest rates.
This should have been a no-brainer, right? With hindsight, we can see that the Bush administration had accurately diagnosed the problem in the lending market and had a plan to address it. Fannie Mae and Freddie Mac reluctantly supported the plan. However, Democrats objected (emphases mine):
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.
Sounds a little like the Democratic denial of problems in Social Security, doesn’t it? Nothing to see here, no crisis on the horizon. Everybody just move along, now. The Democrats had forced lenders to assume more risk at lower interest rates in the 1990s, as IBD points out today, and they didn’t want to countenance an end to their populist policies:
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.”
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New Agency Proposed to Oversee Freddie Mac and Fannie Mae - New York Times
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