jsage's Blog

The things you don't hear on the news unless you dig for them. Do you think Franks Dodd and Schumer will admit their push helped cause this?

Sorry, but McCain was one of those that pushed for deregulation to begin with. Maybe he learned his lesson and changed his mind, but he was culpable in the first place. In this case we can not blame either side or any one person. Both sides were for deregulation.
Of course, Billy Bob signed the bill, congress was the one that sent him the bill, and did not the republicans control congress at that time?
There is enough blame to go around as I see it.
Now, it is up to you and me, the lowly tax payer to pay for their F-ups!

Statement by Senator John McCain, May 25, 2006:

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

McCain has never been a deregulation proponent. He is unpopular with his base precisely for this reason. McCain has always been a big regulation guy. Government and regulation is the problem here. Fanny Mae and Freddy Mac are government sponsored companies. Democrats want regulation in private companies so they can control the regulators and milk money out of the companies.

All these savings and loan and mortgage companies are BANKS. They should come under the FDIC and be guaranteed and regulated there. That is what the fed was created for in the first place.

Face it - most of the politicans are lawyers - they have ways of covering up poop that the average person would never think of. One lie on top of another lie and if they are caught - its did I say that well that is not what I meant then we get another lie, and the beat goes on. We will never know the whole truth and nothing but the truth. If we did it would probably give us a heart attack.

So what happens when we get socialized medicine? How long will that take until it too needs a bailout?