Kevin Hassett explains the central role of Fannie Mae and Freddie Mac in causing the current financial meltdown, and especially the way Democrats blocked attempts starting four years ago for stricter regulation of Fannie and Freddie. Why?
About ten years ago I was invited to make a presentation to the board of directors of Fannie Mae, and I was startled to notice that the board was composed almost wholly of Democratic party luminaries such as then chairman Jim Johnston (who struck me as a complete dolt), Franklin Raines, Jamie Gorelick (she of FISA "firewall" fame). This was crony capitalism at its worst--a sinecure for Clintonistas to get rich without much heavy lifting.
It is pathetic to see McCain jump on the general "Wall Street corruption" bandwagon rather than use the opportunity to slam the Democrats for their economic ignorance and complicity in the disaster.
On the bright side, the cost of this bailout likely puts the Obama administration and the Democratic Congress out of business in terms of major new spending programs. You’d almost think it was a bankers’ conspiracy, like the Reagan deficits of the 1980s. Any takers?
UPDATE: I walked down the hall to give an "attaboy" to Kevin (since he’s on my floor here at Neocon World HQ at 1150 17th Street), and he tells me that since Drudge linked to his article his phone and e-mail are going crazy. mostly with rants and death threats from liberals. I watched his screen as e-mails rolled in about three a minute. Looks like he hit a raw nerve.
UPDATE #2: The Village Voice (!!!) argues that the seeds of the mortgage meltdown should be laid at the feet of Andrew Cuomo, HUD Secretary for Bill Clinton. Isn’t Cuomo the person McCain wants to appoint to the SEC to fix this mess? Now I’m really baffled.