It's Judgment Day for McCain

like for instance........? How can this mess possibly be tied to Obama? If you have some evidence that Obama had any involvement please, I'd love to hear it. McCain has been the deregulation king for decades now and his fingerprints are all over this debacle. It's the Keating Five all over again. McCain is a liar and a cheat and symbolizes all that is rotten and broken in Washington.

This crisis is fueled by all the bad paper and fraud that was hidden by Fannie and Freddie. It's rooted in liberal social policy. It was covered up by Democrats in Congress. McCain and other Republicans have been talking about this problem for years now and have made proposals to gain control and oversight over Fannie and Freddie . . . all of which was thwarted by Democrats. All of which was done at the behest of Franklin Raines. Franklin Raines, Jim Johnson and Jamie Gorelick (all big Obama supporters) profited from this.

jawnybnsc,

Your facts are just plain wrong. It has been the Republican Party that has been decrying government oversight and regulation of Wall Street for decades. Phil Gramme, you remember him he was John McCain's financial advisor until last month, sponsored the very piece legislation that finally did away with government regulation of the finance industry. Again, please name one piece of democratic legislation whose aim was to reduce the amount of government oversight of Wall Street. I challenge you to do so.

please dont feed the jawny troll.

So now we get down to brass tacks. The legislation you're talking about is the Gramm-Leach-Bliley Act which repealed Glass-Steagall. Basically, this repeal allowed investment banks, mortgage companies, insurance companies and commercial banks all to live under the same roof. The fact is that this "deregulation" allowed American institutions to compete with their European counterparts whose rules allowed this kind of commingling long before it was allowed in America.

So if this kind of deregulation was the problem, then why didn't this crisis start in Europe? I'll tell you why. They weren't allowing worthless paper to be created within their system. They didn't turn their mortgage lenders into instruments of social policy. They didn't have quasi-private institutions covering up the bad paper and petitioning their legislatures to do nothing about it.

You challenged me to name the Democratic Bill that reduced oversight. I'll do you one better. I can name you the Republican Bill, sponsored by John McCain, that the Democrats shot down.

FEDERAL HOUSING ENTERPRISE REGULATORY REFORM ACT OF 2005

http://www.govtrack.us/congress/record.xpd?id=109-s20060525-16&bill=s109-190

The fact is that John McCain, Elizabeth Dole, John Sununu, Chuch Hagel, President Bush and other Republicans were calling for oversight.

Here's the Summary of this bill in case your partisan blinders won't allow you to go check this out for yourself:

Federal Housing Enterprise Regulatory Reform Act of 2005 - Amends the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 to establish: (1) in lieu of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development (HUD), an independent Federal Housing Enterprise Regulatory Agency which shall have authority over the Federal Home Loan Bank Finance Corporation, the Federal Home Loan Banks, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac); and (2) the Federal Housing Enterprise Board.

Sets forth operating, administrative, and regulatory provisions of the Agency, including provisions respecting: (1) assessment authority; (2) authority to limit nonmission-related assets; (3) minimum and critical capital levels; (4) risk-based capital test; (5) capital classifications and undercapitalized enterprises; (6) enforcement actions and penalties; (7) golden parachutes; and (8) reporting.

Amends the Federal Home Loan Bank Act to establish the Federal Home Loan Bank Finance Corporation. Transfers the functions of the Office of Finance of the Federal Home Loan Banks to such Corporation.

Excludes the Federal Home Loan Banks from certain securities reporting requirements.

Abolishes the Federal Housing Finance Board.