NYT Revealed True Cause of Fannie Mae Crisis -- In 1999!

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

"Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements," said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. "Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market."

- New York Times, September 30, 1999

http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&pagewanted=1

Do you know where John McCain was born?

Congress and president than includes all parties has what about a 20% approval rating and Americans say no to this plan, so guess what papa knows best.
The president has again gone on TV to elicit our fears and join with ---Experts--- he has hired who clearly have guessed everything wrong and have not been able to do the right thing with the economy so why would I believe they now ---KNOW--- how to fix it.

So now, there is what I have named the ---EMD--- to replace ---WMD---.
---EMD--- or Economic Mass Destruction is the mantra if we do not do it now we will all die a slow and painful financial death, and of course, we just realized it is crashing, and that Economic Mass Destruction will occur. Gee, they just noticed a problem after saying for years everything is Rosy. My heaven I am to believe crooks coming from Wall Street and Corporate America to Washington to ask for a free ride. Are they not millionaires already? So all the current and previous Crooks on Wall Street walk away with the millions they pilfered from us for the past 20 years or so, which have led to this new fraud to take from the poor and give to the rich?

I am sorry crying wolf when the wolf is the one crying does not convince me.

NO BAILOUT. I repeat NO BAILOUT. Let the ---EMD--- occur and clean us of a scourge that is haunting us instead of borrowing just to put it off. When will the PONZI scheme of propping up our economy end? We must all suffer, not just me paying for someone else’s mistake while I pay more taxes and pay my bills.
I worked for Washington Mutual Bank who deserves nothing as I watched them approve billions in loans, which now are ---Toxic---. That company deserves nothing but a kick out the door. NO BAILOUT. I will vote against every ---POLYTICK--- (Blood Sucker) the rest of my life if they take more of my tax money to pay for Crooks from Wall Street to Main Street.
Thanks and have a nice day,
Kchusa.

Let the banks fail.

Let the crash come fast and hard - that will keep it short.

Let the guilty bear their rewards and leave us free to rebuild.

Any idea on where McCain is on the blow up?

I do believe that the Democrats planned to play chicken with this all along.....the last-minute "stimulus" (handout) bill, the "lets let judges rewrite mortages", etc. etc.

They think this is a game, akin to the annual who-gets-the-blame-for-failing-to-pass-a-budget game.

Despite the Media's obvious attempts to help the Democrats, over time (as it usually does happen) we'll see the true motivations revealed.

Obama is going to look like an also-ran in this. Too bad its not a game.

McCain Warned of Fannie Mae/Freddie Mac Meltdown in 2006: Democrats Ignored Him

From the Congressional Record (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 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.

- Senator John McCain

And if school records are so important how can you vote for a candidate who was 5th from the bottom of his class in college, who picked a running mate who had to transfer 5 times to get a communications degree?

Do you find comfort in knowing the candidate you support isn't very smart as opposed to having some uncertainty about it?

democrat all your life....

please show me where obama voted against mccains half legislation to rope in freddie and fannie (it wasnt about regulating or fixing them it was about them getting too big)

John McCain was born in the Panama Canal zone. His father was a naval officer stationed there.

Democrat all my life: John McCain was born in the Panama Canal zone. And before you begin to hyperventilate about the constitutional requirement that president's be born in the U.S., Congress passed a resolution saying that McCain's birth in what was then an American protectorate satisfied the Constitution and made him eligible to be President.

Great post/find LightSeeker. For all of those saying this is the market failing and the downfall of free market capitalism gone wild, all I can say is read a book.

Affirmative action applied to the housing market, the liberals loved it then! And now....well, obviously this crisis is due to greedy bankers and the excesses of an unregulated free market! LOL! what foolishness

posted by "Democrat all my life" - "I'd rather we didn't have a debate"

uh ok moron. Lets' not really try to figure out what is best for the country. We'll just agree blindly with whatever stupid crap you say. Idiots like you are the reason we're in this messin the first place. I bet you are totally in favor of using taxpayer money to bail out fat cat businessmen.

I hope you lose everything you've got.

In regard to the post by "Democrat All My Life" titled "Proud of McCain"...

You don't want the debate? Huge minority there buddy. Take a look at the surveys... 68-72% of the people have responded they think the debate should go on as planned.

I've been a registered republican for 22 years, but I've finally opened my eyes and realized what the reps are doing. Obama 08 Baby!

Nice try with the birth certificate lie (see http://latimesblogs.latimes.com/washington/2008/06/obama-birth.html ) Now please tell us the fairy tale of a midshipman who graduated at the bottom of his class, a navy pilot who was shot down 5-times, and then became president because he could take a beating. Please elect McCain so the European Union can then rule the world. Stupid Americans.

I absolutely agree. Curb the Socialism, let the markets fall. NO BAILOUT!!! NO BAILOUT!!! Let the natural forces of free market purge us of federal involvement and set itself right again!

First time visiting this blog, and... I believe, collectively, you are the stupidest commenters on the internets. Next!

It will be the best thing for the country if the bailout blows up...why line the pockets of Goldman/Buffett/BofA, etc. at the expense of Main Street?

freddie and fannie are not the whole problem... they are but a small fraction of the problem

why is mccains campaign manager still getting paid by freddie and fannie?

why is mccain for deregulating the markets the very thing that caused this mess to beign with?

House Republicans are not torpedoing the deal.

Pelosi is because she is demanding a certain no. of Republican votes for cover.

She can pass the bill, but doesn't want the public to realize her party is as much for rich bankers than the Republicans.

The problem is that Democrats screwed with the bailout from the beginning trying to lard it with all their pet ideas. Also, the voter is king, but the voter is also the mob. These guys need to do what is best for the country. The voters might like like the bailout, but I'm telling you, the voters will like it even less when unemployment hits 20% or 25% like it did in 1934. When Warren Buffet says this is like Pearl Harbor, you better listen. As a business owner, I know how it goes. The banks stop lending money, I can't order any products. I can't order any products, then, I've got nothing to sell. At that point, I have to get rid of employees. That's how it works Joe 6 pack. So, you better start believing this has something to do with you. As Paulson says, the public is already on the hook. Do you know who will hold the bag if this deal isn't done? About 100 Wall Street guys and about 30 million Joe 6 packs. Wake up.

Congress is quite right to be wary of this bailout deal. $700 billion? To buy bad debts? With a silly war in Iraq? Are you kidding? Where will money for bridge repair come from? This money will evaporate and we'll all be standing here wondering what kind of scam Bush pulled off. I hope Congress is very very careful here. This looks like a slightly early October surprise. I'm not buying this whole episode entirely. Something is rotten here. Keep digging. Someone's full of crap. Pause. Think. See what the markets do over the next week.

Think. Desperate Republicans. Lying Bush with a war to fund. Something's up folks. Major sneak attack. Careful.

Democrats are responsible for this mess. Under Barney Frank's politically correct regs, lendors were not even allowed to ask for social secutity numbers so as not to discriminate against illegals and felons. If the past won't destroy us, surely a $700 billion gift to corrupt politicians and their henchman will bury our families for generations to come. NO BAILOUT!

I remember when the GOP was the party of responsibility. What a joke. For 6 of the last 8 years they held the White House (along with every federal department) and both houses of Congress. And still this colossal mistake is not their fault.

So either it is their fault or they are completely ineffective. Not sure which is better.

Dems should just allow Repugs fight and kill themselves on this one.

The White House will be fighting Repugs in Congress.

Let them eat each other in their dog-eat-dog world.

The Dems should not give in on the clause to defend average American homeowners.

If they can not have that in the deal then there will be no deal.

At least McCain can have his excuse not to debate, but he will pay a HUUUUUGGGGEEE price for this at the polls come Nov. 4th..

MCCain is against the middle class that is losing their homes in droves.

House Republicans are not torpedoing the deal.

Pelosi is because she is demanding a certain no. of Republican votes for cover.

She can pass the bill, but doesn't want the public to realize her party is as much for rich bankers than the Republicans.

i agree that the process needs close scrutiny. why on earth would anybody trust the heads of finance chairs and the president who were in change of overseeing the economy and that brought us this disaster to solve it. i find it telling that democrats leaders had the audacity to try to shove this thru and attempt to shut-out republican input.

Claim: McCain claims that he championed legislation that would have prevented the current financal meltdown;

Fact: False/Misleading

In his September 19th speach in Arlington, VA., Sen. McCain states:

"Two years ago, I called for reform of this corruption at Fannie Mae
and Freddie Mac. Congress did nothing. Senator Obama did nothing, and
actually profited from this system of abuse and scandal"

What he is referring to is a Senate bill (S.109[109th] Federal Housing Enterprise Regulatory Reform Act of 2005) which was originally authored by Sen. Charles Hagel and co-sponsored by Sen. Sununu and Sen. Dole. It was not until after a 2006 Office of Federal Housing Enterprise Oversight Report to Congress outlining problems with the two organizations that Sen. McCain decided to add his name to the bill as a co-sponsor. The bill never made it out of committee (Senate Committee on Banking, Housing and Urban Affairs), which was at the time controlled by a Republican majority and chaired by Republican Senator Richard Shelby. The statement about Congress and Sen. Obama doing nothing is true, but misleading, since there was nothing that they could have done until the bill came to the floor of the Senate, which it never did.

Sources:

http://www.govtrack.us/congress/bill.xpd?bill=s109-190
http://www.ofheo.gov/AnnualReports.aspx
http://www.sourcewatch.org/index.php?title=Senate_Committee_on_Banking%2C_Housing%2C_and_Urban_Affairs#109th_Congress_.282005-2006.29

The bailout must die. It is nothing but a $700 Billion stolen from the American public to be given to Wall Street executives. No wonder Bush and his people are livid, fuming at the idea that their $700 Billion gift to their best friends might be cancelled.

Obama took the lead here, loud and clear. While McCain is being a pusssy, trying to skip the debate lest his stupidity be revealed, Obama is standing firm, and staying on topic.

Now, Obama has placated McCain's politicing of the debt crisis. Time to move on, and hold the debate. Does McCain have the guts to face Obama?

This is exactly why the Senate and House asked John McCain to stay away: if McCain had not come to Washington, there would not have been a meeting at the White House, and if there had not been a meeting at the White House, the deal would not have blown up. Thanks, McCain! WElcome to the Depression!

OBAMA IS A COMPLETE PHONEY!! WHERE WAS HE BORN? KENYA? SHOW US YOUR BIRTH CERTIFICATE. OBAMA IS A SOCIALIST AND STREET ACTIVITIST FROM DALY'S CHICAGO. HE WILL POLARIZE AND DESTROY THE U.S. WAKEUP AMERICA BEFORE ITS TOO LATE!!

Alessandro, if you don't believe Bush, then listen to Warren Buffet--an Obama supporter by the way. He says we are going to go over the precipise if this is not done. When I think, which do I want, a bailout or a serious recession or depression, its a no brainer.

Chris Dodd in charge of Banking!?!? That's like having Mike Vick be your dog walker. Can I get an interest free good buddy loan like he did and over $150,000 cash, from the same companies that started all this!!!

PJR

saying let hte banks fail shows you do not understand teh scope of what is happening...

this isnt just a simple, oh they screwed up let them pay for it

if we LET them pay for it... if we let things just unload...

its a GLOBAL problem.. the GLOBAL economy tanks

the banks that ARE OK, stop lending money

then what happens is a ripple effect... and you can claim you dont care, but heres what happens

banks stop lending to small businesses and otehr people... those businesses go under

unemployment sky rockets

suddenly bigger and bigger companies start to fail because there are less and less people working, and who have money to spend

then what happens is those middle and lower class people lose their jobs and houses, and then people start to get sick and now we have a medical crisis on our hands

the money trickles down

and the pain trickles up

unless you are rich, and have your assets and money liquid

the ripple effect from this could cause a massive massive disaster that you obviously dont understand...

this will effect YOU

if this doesnt go through, IF we DONT put up the money NOW

we are all doomed...

the good news is that, the bail out can make the tax payers money, if the government sells back the morgages at a profit

a lot of the loans are good loans

Include in any agreement that congress cannot spend any more money on special interest groups. This mortgage debacle is simply giving houses to democrats born and maintained on welfare pure and simple.

Paulson is afraid he won't be able to keep his promises of an open ended bailout to his wall street buddies.

McCain has done nothing on this issue, he is on no relevant committee, has no relevant experience, and possesses no relevant knowledge, they were actually closer to a deal being done until he made his stunt.
I personally need a president that can work on more than one problem at a time.
Obama also is not on any of the relevant committes, he's consluted with experts made his proposals and is letting the process happen. That IS doing his job.

I say again, all McCain has done is try to hijack this process so he can claim some personal victory, it is grandstanding on a delusional scale.

Why is everyone in this comment section so crazy?

It's time for the people to retake Washington. The politicians are irrelevant, or worse. The Democrats are the most loathesome of the bunch. (Remember which party wants to eliminate the Second Amendment? This is why!)

The gutless wonder Dem second string are warning of a "race war" if their boy doesn't get elected and they get their way.

The Press has lost its entitlements under the First Amendment through partisanship and attempts at rigging the election.

So, when the politicians are run out, the print and electronic media ought to be flushed out, and start from anew.

Soon, they'll have us facing bayonets. Better them than me.

The Democrats better not let this one get out of hand. Bush tried to get them to act and they control the purse strings on this bail out. I hope they aren't playing around to try and get Obama elected, they will all pay dearly in this next election.

Marty,

Just f up with your Obam abith certifcate crap.

We are tired of these distractions when there is 3/4 of a trillion at stake.

Just go to hell Bozo.

McCain is a citizen of Panama so stop disturbing.

i dont like it, these a ss holes should all be nailed for this

mccain and his republican deregulation party should all be castrated for this

mccain can claim wahtever he wants, but his actions speak leaps and bounds

he is a deregulator

If we can hold off on the proposed taxpayer bailout and try a free market approach instead, that would be better for everyone. We shouldn't rush to finish something in time for a debate tomorrow. The present and future health of the American economy is more important than either Obama or McCain.

Printing $700 Billion dollars will make you pay a huge fine everywhere in America. That is called inflation of a monetary policy.

People on these boards are uneducated.

Don't blame anyone else but yourself when you see Gas, Groceries, and anything else tied to your dollar go up in huge prices.

When you let junk like Democrat for Life to be posted there is no incentive to read your blogs --ie paid disinformation is hardly part of a blog

Please do not elect Obama. He is not white, not rich, and not looking out for the CEO's of America. If you want to be trickled on, please vote McCain.

A lot of nutty Republicans on this site. McCain is trying to scuttle or delay the deal just so that he doesn't have to face Obama to debate him. McCain is chicken.

In a revelation tying Barack Obama even closer to radical community organizing, we learned that a renowned disciple of the late socialist agitator Saul "The Red" Alinksy wrote a letter of recommendation for Obama when he applied to Harvard Law School.
Obama approached Northwestern University professor John L. McKnight – a loyal student of Alinsky's radical tactics – to pen the Harvard letter in the late 1980s. McKnight serves on the boards of radically anti-American groups in Chicago, including one accused of thuggery.
Obama in his 2006 memoir alludes to McKnight – whom he describes as an "older man who had been active in the civil rights efforts in Chicago in the sixties" – but stops short of identifying him by name. He referred to him only as "my friend."
But McKnight, who enforced affirmative action for Attorney General Robert Kennedy, was far more than that to young Obama. He helped train him in the agitation tactics of Alinsky, who wrote the organizing manual, "Rules for Radicals," which he dedicated to mankind's "very first radical, Lucifer”.

The Chicago-based Gamaliel Foundation lists McKnight as a board director. From1985 to 1988, Obama worked for a subsidiary of Gamaliel, where he cut his teeth as a community organizer on Chicago's South Side. McKnight and Gamaliel, which was founded on Alinsky's principles, provided training for the budding radical.

Before leaving for Harvard, Obama wrote an article published in a journal titled, "After Alinsky: Community Organizing in Illinois," in which he praised McKnight and his organizing strategies. He also decried "institutional racism" and called for more "power" to put in place "a systematic approach to community organization."
While at Harvard, he found time to take advanced training courses at the Industrial Areas Foundation, a group founded by Alinsky and affiliated with Gamaliel. He also would return to Chicago to work as a consultant and trainer for Gamaliel.
Under the tutelage of McKnight and other hardcore students of Alinsky, Obama says he got the "best education I ever had, better than anything I got at Harvard Law School." He made the remark last year while campaigning in Iowa.

wnd

I am so tired of rich Americans being motivated by greed and blaming minorities and low income consumers!! It is pure GREED (the mighty dollar) that motivated mortgage companies, etc to milk this cash cow until it blew up in our collective faces. It was not because there was some motive of ensuring that minorities and/or low income consumers could participate in the American dream. I am so mad I could spit!!!! Look at the banks! Look at the bonuses of the salesmen!! Look at who benefited from this crisis!!!!

Why don't you guys give every vet who's served overseas a foreclosed home at half the market price... it's the least you could do for them.

Let the banks fail
why do we need to save these scumbags
if the debt credit lenders are destroyed
that means no debt
we can start anew
we will be justified in doing away witht hese career politicians
the integrity of america is being smothered by this move to save the people who will tax you and go after you if you are so unfortunate to be struggling with mortgage payments.

i don't want a debate i want action now on the economy now.
the democrats are in a hurry to get on with their planned recess.
the debate can be rescheduled.
obama was invited repeatedly by mccain to participate in town halls and refused but now it matters?

obama looked like a school boy that was called in by the principle to get to school and do his work.

john vestri,

f off Bozo.

Post what is relevant to the discussion.

You Repugs and your distractions will fail.

With partisan Pelosi and her side kick Reid at the controls, absolutely nothing will get done. Can we please just kick them out now?

I'm afraid this isn't looking good for the DemWits, mainly, Obama and Pelosi. I agree, I think Obama was playing chicken, and after today's meeting, he will be "chicken soup" in this election! Way to go, President McCain! Stand up for America! We are proud of YOU!

McCain/Palin 08!
"COUNTRY FIRST!"

This is NOT a bailout... this is potentially a money making venture for Uncle Sam in the long run. These "assets" will ultimately have value, perhaps more than what the feds will pay for them. Every "bailout" washington has ventured in over the past 20 to 30 years has reaped benefits i.e Chrysler, the S&L's, 600 billion dollar loan to Mexico.. all became profitable. I'm a capitalist through and through and despise socialism, but sometimes the government can do some good... they got us into this mess, let them fix it!

last look 76TO 80%% of americans DO NOT WANT THIS DEAL,ITS iNSANE TO WRITE UP A CHECK FOR CLOSE TO A TRILLION DOLLAR AND MORE , WHERE DOES THIS STOP.

MccAIN HEADING DOWN THERE HOPING FOR THIS DEAL OR I SAY A BANDAID TO HELP HIS SINKING CAMPAIGN.

HE KNOW IN THE DEBATE IT WOULD BE HARD TO DEFEND HIS VOTING AND HIS PARTY ECONOMIC POLICIES THAT LEAD US HERE IN THE FIRST PLACE .

THE DEMOCRATS WOULD BE DUMB TO THROW HIM A LIFELINE; LET THE TAX PAYERS/ CITIZENS SEE HOW THE REPUBLICANS FAIL POLICIES THAT MCCAIN WANTS TO CONTINUE.

BUSH AND MCCAIN CAREFULLY PLAN THIS HOPING THE DEMOCRATS WOULD CAVE TO PASS THIS PACKAGE AND HAVE MCCAIN TRICK THE AMREICAN PEOPLE THAT HE WENT TO CONGRESS TO GET SOMETHING DONE .AT LEAST IN THEIR MIND THATS HOW WRAP THESE PEOPLE ARE.

DON'T DO IT DEMOCRATS .GIVE OBAMA A CHANCE TO WIN AND THEN LET HIM APPLY AND CHANGE THE POLICIES AND WASHINGTON.

And SINCE our politicians, bankers, and business people are showing that they are amoral, why in the world would this bailout not have in the very beginning some checks and balances to ensure some safety and why didn't it take away the incentives of CEO's to ride their golden parachute after running these companies into the ground. Ordinary citizens are suffering and who is looking to help us! WHere are the statesmen and sensible people!????

Do we really believe anything these people say? We are about to give 700 billon to the same people who f****** it up in the first place.

If the bailout goes through America is over and they will roll in NAU.

If they let the crash happen we will be down for around 3 years to rebuild.

If they pass it Paulson will give away every one saving and the USA will be the newest 3rd world country.

John McCain and his Republican rats are at it again, politicizing everything and blaming this whole mess on the Democrats. Enough!

Do we really believe anything these people say? We are about to give 700 billon to the same people who f****** it up in the first place.

Posted by: Kev | Sep 25, 2008 6:42:19 PM

THAT WOULD BE THE DEMWIT CONGRESS! OBAMA IS TOAST N0W!

WELCOME, PRESIDENT JOHN MCCAIN!

To steveO:

I would like to ask you how do you think we got here in the first place. The federal reserve sets interest rates.

When the interest rates are artificially low it causes mal investment. This is because we have to PRINT the money to pay for things. When that money trickles down to the American people and filter through the system it drives the prices to a point where it is unbelievable.

Why do you think your grandapa said, "i used to buy a candy bar worth 0.10c back in my day".

That is because we have printed 6.7 trillion dollars since then.

Printing $700 billion dollars will collapse the system to a point where no one in America can afford ANYTHING. Every single savings that anyone has will be gone, all 401(k) will disappear and everyone will not have a house. I am not trying to use fear as people do, but systems like these have been proven in history to NOT work.

The stuff the media feeds you is an attempt to control your thought process and have you come to a conclusion that what they are saying is factual.

yes we will have bad times and yes people will lose jobs. It has to happen because we have allowed the Federal Reserve to print money freely.

BTW the federal reserve is a private company, it is not the government.

So for all of you bleeding heart libs that want everyone to have their fair share here's what you get. Let's let welfare recipients, illegal immigrants, etc. qualify for a mortgage loan. 96% of people are paying their mortgages on time while the people the libs keep down are defaulting. Who pays for it? Employers like me who will get absolutely pounded if the credit market shuts down. Fn Robin Hood idiot liberals.

This is what comes from decades of kicking the can down the road. It isn't just about banking practices, it's about free markets, greed, avarice, and the manipulation by politicians who got rich off the very system they now want to fix. How many congressmen and women are involved in the market, bought real estate at a "sweetheart deal", were 'in bed' with one of the banking industries now defunct, etc? These questions ought to be answered BEFORE any money gets spent. Let the politicians answer for THEIR misbehavior, and I mean in November at the ballot booth!

so Barney "Franks 'n Beans" states "After all we've been through!" just what exactly has Barney "Franks and beans" been through besides an all male chorus line?

tell Paulson and Bush and McCain to all go to hell!

-- The stuff the media feeds you is an attempt to control your thought process and have you come to a conclusion that what they are saying is factual. --

Amen to that! In terms that even some of the less than capable people can understand:

The sky is not falling

God knows I love John McCain for what he's done for the country in the past, but he has lost it. He's chasing his own tail on the financial crisis. One day he thinks everything's ok, next day his hair is on fire because there's going to be a depression. There's something wrong with him. Watch his left eye. No way I'm voting for a 72 year old who's probably having a stroke or has Alzheimers, especially with that empty skirt Palin a heartbeat away.

Wow, that is an interesting article. So the people with the worst credit have to pay the highest interest rates.

Maybe that is what caused the problem. The Clinton administration should have insisted that the only way Fannie Mae would buy the sub-prime mortgages would be if the lenders gave the poor people reasonable interest rates or rates the same as those that rich people get. Then the poor would have been able to afford their loans and they wouldn't have defaulted and we wouldn't have this crisis.

And since the rates were so high for the poor they probably went with ARMS (Adjustable Rate Mortgages) and then when the Bush Administration raised the interest rates it made the loans impossible for the poor.

Why not try and help the poor with low interest rates instead of charging them higher interest rates? If we had, they could have afforded their loans and we wouldn't have this crisis.

Welcome President John McCain, your election has ensured the destruction of America. Long live Venezuela and his glorious leader Chavez; At least he can raise his hands over his head.

And we're supposed to actually believe Paulson? Mr. "A Strong Dollar Is Good For American" Paulson? Here's a man who already knew last year what was going to happen and deliberately waited until he could take advantage of some crisis in order to bail out his buddies on Wall Street? I don't believe him for a single second. He's not giving up. I think he's inclined to use any tactic necessary in order to steal money from the U.S. taxpayers and cleanse the balance sheets of his friends on Wall Street. He will continue to push behind closed doors until he gets the power and money that he wants....and we get stuck with the bill to pass on to our children and grandchildren.

John McCain has lost any shred of integrity he may or or may not have had. His ego is as out of control as this financial crisis.

Look at the rocord of blatant lying by either McCain or Obama. Now some folks are being criticized for asking for records. Open them up on both cadidates. I don't trust Obama and have doubts on McCain so let the honesty begin.
If either one of them found your wallet who would you trust to get it all back?

Posted by: Bhrandon | Sep 25, 2008 6:27:02 PM

Your post has so been debunked, your pitiful. Check your facts.

Now is not the time to waver, stumble or put self before Country. The taxpayer must be protected; the banks and shareholders must be held accountable. There will be pain; there will be hard decisions that cross party lines so therefore my vote is for John McCain.

david from texas- I will welcome president McCain. He doesn't hide like Obama when tough issue arises. "call me if you need me" "it's above his pay grade"
Christopher-loved your post it's exactly right.

Once again, the Republicans, led by John "I-Don't-Understand-The-Economy" McCain are putting their party interests aahead of the country's. They have overseen the creation of this debacle, they came up with a pathetically incomplete proposed solution, but, when presented with what appeared to be a negotiated arrangement, have now backed away. What a disgrace! I pray that the voters will see through their continuing cynicism and hypocrisy and throw them out in November. If the Republicans still have any power after election day, may God save our country.

I too lived and worked in Indonesia but I never faced Mecca when I prayed nor did I ever forget when life beings, at conception.